Coronavirus Costing Trump Properties Over $1 Million Daily in Lost Revenue [View all]

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Source: The Wall Street Journal.

WSJ NEWS EXCLUSIVE

Coronavirus Costing Trump Properties Over $1 Million Daily in Lost Revenue

Crisis is also complicating Trump Organization’s effort to sell long-term lease on Washington hotel at a record price

By Brian Spegele, Craig Karmin and Justin Scheck
April 2, 2020 6:30 am ET

The coronavirus outbreak is costing Trump Organization properties more than a million dollars in lost revenue daily and may have hurt the firm’s chances of earning a record price on the sale of its Washington hotel, according to an analysis of industry data and people familiar with the deal talks.

The majority of revenues for President Trump’s family business comes from travel and leisure, which have been hit hard by the forced closures and economic downturn caused by the pandemic. The situation could worsen because golf accounts for about half of the roughly $440 million of income Mr. Trump reported in his latest government financial disclosure.

More than 500 staff at Trump properties in New York, Washington, Las Vegas and Florida have been laid off or furloughed, say people familiar with the matter and federal disclosures. Several Trump hotels have been closed, and those still running have experienced dwindling occupancies. One day in March, the family’s flagship Trump International Hotel in Washington had just 11 guests in its 263 rooms, according to an employee.

The outbreak also has derailed the organization’s effort to sell its long-term lease on the Washington hotel, which is in the former Old Post Office building. With extensions, the lease from the federal government runs close to 100 years. The organization was negotiating a deal with two potential buyers for between $320 million and $350 million, but those talks have stalled. At least one of the potential buyers was a consortium and both were hotel investors.

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—Caitlin Ostroff contributed to this article.

Write to Brian Spegele at [e-mail], Craig Karmin at [e-mail] and Justin Scheck at [e-mail]

Read more: https://www.wsj.com/articles/coronavirus-costing-trump-properties-over-1-million-daily-in-lost-revenue-11585823401

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The coronavirus pandemic is not only costing Trump properties over $1 million a day in lost revenue, but also complicating the sale of the Washington hotel

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