Washington-Trump International Hotel in Washington, DC, 2016-2020, despite all the major Republican-paid political events and bars hosted by lobbyists, foreign dignitaries, and other supporters of President Donald J. Trump. Lost about $74 million at the time. Friday from the Home Investigator.
The results come from the accountant Mr. Trump himself and his tenure in the White House, even if Mr. Trump points to annual sales of more than $40 million, at least until the pandemic strikes. Described generally an increase in losses through.
House Democrats added a new bill to the Biden administration for hotel revenue and annual losses at the federal monument known as the former post office building to determine whether Trump has violated federal rules. While he continued to run the hotel through his family as president, he was released when he asked to be shown his paperwork.
“The document provided by the GSA raises new and uncomfortable questions about the attitude of former President Trump,” said a letter from the Homeland Oversight and Reform Commission to the General Services Administration for more information. On the phone.
In the first three years after Trump’s inauguration, the hotel earned about $3.8 million from foreign government officials, including hotel stays, restaurants and other businesses, according to home investigators. It is believed that it was made. The president attracted the attention of foreign dignitaries who liked to see him at the hotel and sometimes even met with Trump aides at the compound.
The federal election commission said millions of dollars had been raised from the Republican National Committee and other election campaigns and political parties supporting the Republican candidate and Trump’s re-election bid. It was issued. During his presidency, the Trump Hotel became a venue for lobbying and manipulating the exclusive interests of Mr. Allies. Trump to get his attention and support.
However, the general message is that, despite all the headlines, Trump International Hotels is a loss-making company and operates a Hotel & Comfort Advisor that assesses and watches hotel performance. Accountant David J. Sungri said in an audit report requested by the New York Times.
You would expect a hotel in Washington D.C. Make a profit,” he said.
The Trump family often has different methods for calculating wins and losses. For example, he submits a number of figures to the tax authorities that show losses from tax cuts, and generally provides other figures that show a higher rate of return that better reflects Trump’s business. Enlightenment.
New York prosecutors are already investigating whether Trump essentially has two separate books.
Eric Trump, who has supported the family business since his father’s presidential campaign began, said hotel losses of $74 million from 2016 to 2020 would generally reduce real business profits. I call it “bullshit” because it involves a lot of accounting practices. Consider the annual depreciation of the asset.
Eric Trump added that income from foreign government sources would be much higher if the Trump family were actively seeking business. Instead, he said, most of the time the company tried to discourage him when Trump was in office.
The Trump family pays the Treasury Department for the Trump Hotel in Washington annually (a total of $355,687 between 2017 and 2019) to recoup profits from these sales to foreign government officials. Payments from foreign governments have led to accusations in cases where Trump violated the so-called constitutional compensation clause that requires federal agencies to refrain from making payments from foreign governments.
Eric Trump also sought a proposal by the Chamber’s supervisory board to receive preferential treatment from Deutsche Bank, which funded the renovation of the former post office building before the Trump family reopened the hotel. The Commission asked why the loan terms were changed to interest-only payments in 2018, but Eric Trump took the $170 million loan because of the hotel’s relatively high valuation. He said he could delay the payment for a few years.
“You’re intentionally writing a false story,” Eric Trump said in an interview Friday. “And they know it’s wrong.”
Former President Trump presented an annual public report that included only total hotel revenue, but no profits as required by law. Information released on Friday includes profitability figures calculated in various ways.
A detailed financial report from Mr Trump’s auditors was also released by the House on Friday, which resulted in a total loss of $74 million, including depreciation of about $8 million per year in the value of the hotel. Will be shown.
But even after eliminating depreciation losses, the document shows that, taking into account the taxes, rents and rents paid annually to the federal government, the hotel is still losing money. The loss was less than the standard set by Democrats on Friday.
For example, on the August 2018 income statement, the previous year’s loss after depreciation was eliminated was about $5.3 million, but the Chamber Commission said this year’s loss was $13.5 million. Lower.
By this adjusted calculation, the loss in 2019 was $9.6 million, up from the $17.8 million reported by the House of Democrats.
Sangley said Trump’s hotel net income in Washington was relatively low compared to other luxury hotels in big cities, even after removing payments and loan interest rates from the calculation.
A financial report released by home investigators shows that they previously provided classified information about hotel operations and earned a very high percentage of restaurant and bar revenue compared to hotel rooms. Me. Each category raised about $25 million in 2018.
Revenue from rooms is typically much higher than food and bar service, Sangley said. During his presidency, a large crowd of lobbyists and friends of Mr. Trump congregates in the lobby of the Trump Hotel most nights, and Mr. Trump was alone when he arrived at the hotel for a steak dinner. Sometimes I’m called.
Some of Trump’s allies, such as former New York Mayor and Trump’s personal attorney Rudolf W. Giuliani, often use hotel bars so they have their own tables. It’s people.
However, the hotel is likely to bring much higher profits to other owners as the controversy surrounding Trump makes it no longer difficult to sell to large, distant companies, Sangley said. Ricefield. Hotel management costs are also unusually high as a share of revenue, he said.
“This hotel needs to do better,” Sangri said, and a document released Friday showed that the average daily rate is around $500, enough to make a significant profit. It must be high.
The Trump family has traveled twice in recent years to sell leases with the federal government to operate local hotels. The managing director involved in the negotiations said the offer was still being considered after about 12 bids were submitted for the property, including from several major local hotel brands.
In the absence of Mr. Trump, this hotel is less attractive to leading Republicans in Washington. The lobby is often empty these days as the search for potential rental buyers continues