The Trump International Hotel in Washington DC has been sold in a $375 million deal and will be turned into the Waldorf Astoria, according to the government agency that approved the sale to a Miami investment fund.
The Trump Organization had poured $200 million into the historic former federally owned post office on Pennsylvania Avenue, though the converted hotel lost millions during the 45th president’s term, according to reports.
The General Services Administration announced Friday that CGI Hospitality Opportunity Fund I, LP and Hilton Worldwide Holdings, Inc. will convert the property into a luxury Waldorf Astoria hotel.
“GSA based this decision on the strength of the partnership between CGI and Hilton and the parties’ commitment to ensure the success of the future hotel, upon closing of the transaction, by: (1) executing a long-term property management agreement term; (2) provide significant equity; and (3) provide material credit support to help secure debt financing,” the GSA said in a statement.
The Trump Organization is selling the lease, not the building itself.
“The confirmation was based on a thorough and comprehensive review of the documentation provided in support of the proposed assignment. The documentation included, among other things, financial information and details regarding their respective expertise and experience in funding real estate acquisitions and hotel operations.
The Associated Press reported that investors include former New York Yankees slugger Alex Rodriguez, with a $375 million price tag well above what many expected for a hotel that has lost tens of millions of dollars during that Trump was president.
The deal is a significant win for the ex-president’s company after business partners severed ties following the Jan. 6 Capitol riot by Trump supporters last year.
Eric Trump declined to comment but told AP that GSA approval “was the final condition to closing the deal.”
The hotel – known as host to the dating of powerful actors – has been at the center of several lawsuits and investigations, including one by the House Oversight Committee.
The CGI-led fund has already bought two hotels in Miami and a third in Atlanta and rebranded them as a chain of “socially responsible” and “environmentally friendly” properties, AP reported.
In addition to Mr. Rodriguez – who had no comment to AP – former boxing champion Floyd Mayweather Jr is also in the fund and will co-own the hotel, CGI confirmed to the agency.