# Sale of Trump DC Hotel lease **URL:** \ **Category:** Politics & Elections\ **Created:** [November 15, 2021, 2:37pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383 "2021-11-15T14:37:36Z")\ **Posts on this page:** 16\ **Page:** 1
**Author:** ![MikeF](https://avatars.discourse-cdn.com/v4/letter/m/45deac/32.png) [@MikeF](https://boards.straightdope.com/u/MikeF)\ **Post date:** [November 15, 2021, 2:37pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/1 "2021-11-15T14:37:36Z")
Reports are that Trump Organization is selling the lease for $375 million. This is more than double the $180 million that they leased it for in 2016. The hotel lost $70 million while he was in office, despite all the people using the hotel in order to suck up to Trump. Why would anyone pay so much for a property that loses money? ---
**Author:** ![Gyrate](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/gyrate/32/3588_2.png) [@Gyrate](https://boards.straightdope.com/u/Gyrate)\ **Post date:** [November 15, 2021, 2:41pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/2 "2021-11-15T14:41:43Z")
The property is probably fine and in a good location. The management, however… ---
**Author:** ![MikeF](https://avatars.discourse-cdn.com/v4/letter/m/45deac/32.png) [@MikeF](https://boards.straightdope.com/u/MikeF)\ **Post date:** [November 15, 2021, 2:48pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/3 "2021-11-15T14:48:26Z")
Still, for the price to double in five years? With covid still impacting things? Call me skeptical but something seems off. ---
**Author:** ![QuickSilver](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/quicksilver/32/7832_2.png) [@QuickSilver](https://boards.straightdope.com/u/QuickSilver)\ **Post date:** [November 15, 2021, 2:54pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/4 "2021-11-15T14:54:29Z")
You’re overthinking it. It’s a typical Trump playbook. Ask an exorbitant price to make yourself look like a shrewd businessman. Then quietly declare bankruptcy and scurry away. ---
**Author:** ![Elmer\_J.Fudd](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/elmer_j.fudd/32/1211_2.png) [@Elmer\_J.Fudd](https://boards.straightdope.com/u/Elmer_J.Fudd)\ **Post date:** [November 15, 2021, 2:56pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/5 "2021-11-15T14:56:36Z")
The $375 million is for establishing the value of the lease when it’s being used as collateral on a loan. The actual value is well south of that. The value of the lease as an asset for tax purposes will probably be pegged by the Trump Organization at around 5 bucks. ---
**Author:** ![SpacemanSpiff\_II](https://avatars.discourse-cdn.com/v4/letter/s/e19adc/32.png) [@SpacemanSpiff\_II](https://boards.straightdope.com/u/SpacemanSpiff_II)\ **Post date:** [November 15, 2021, 4:44pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/6 "2021-11-15T16:44:19Z")
> [@MikeF](#): > > Reports are that Trump Organization is selling the lease for $375 million. This is more than double the $180 million that they leased it for in 2016. The hotel lost $70 million while he was in office, despite all the people using the hotel in order to suck up to Trump. Why would anyone pay so much for a property that loses money? At the time Trump took over that property it was a former post office and not a hotel. Trump spent an enormous amount of money turning it into a hotel. It would stand to reason that the value of the property is increased signfiicantly, and whatever his upfront payment was is not the proper point of comparison for the selling price. I’m also unclear as to whether the $70M loss might also include some revelopment costs, which would then not be true losses either. Basically, unless we understand more of the financial details, it’s hard to assess the overall profitability of the investment. ---
**Author:** ![Skywatcher](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/skywatcher/32/254_2.png) [@Skywatcher](https://boards.straightdope.com/u/Skywatcher)\ **Post date:** [November 15, 2021, 4:49pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/7 "2021-11-15T16:49:10Z")
> [@SpacemanSpiff\_II](#): > > At the time Trump took over that property it was a former post office and not a hotel. The Postal Service left in 1914. Aside from the bottom two floors – food court and various touristy kiosks – and the very top floor – storage – it was all government offices, specifically the National Endowment for the Arts and the National Endowment for the Humanities. I used to work in the NEA’s mailroom. ---
**Author:** ![MikeF](https://avatars.discourse-cdn.com/v4/letter/m/45deac/32.png) [@MikeF](https://boards.straightdope.com/u/MikeF)\ **Post date:** [November 15, 2021, 5:11pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/8 "2021-11-15T17:11:39Z")
So, the $70 million dollar loss might not include the price to convert it to a hotel and just be operating expenses minus income? Roughly $48,000 per day loss for four years? Stable genius, indeed. ---
**Author:** ![Euphonious\_Polemic](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/euphonious_polemic/32/3002_2.png) [@Euphonious\_Polemic](https://boards.straightdope.com/u/Euphonious_Polemic)\ **Post date:** [November 15, 2021, 7:20pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/9 "2021-11-15T19:20:37Z")
Trump would lose money operating a whorehouse next to a mining camp. His Grandfather at least knew how to make money with this operation. ---
**Author:** ![carnivorousplant](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/carnivorousplant/32/3563_2.png) [@carnivorousplant](https://boards.straightdope.com/u/carnivorousplant)\ **Post date:** [November 15, 2021, 8:53pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/10 "2021-11-15T20:53:38Z")
An outstanding comment, Sir. ---
**Author:** ![simster](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/simster/32/1047_2.png) [@simster](https://boards.straightdope.com/u/simster)\ **Post date:** [November 16, 2021, 1:37am UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/11 "2021-11-16T01:37:31Z")
Hunter really needs to buy this - I would love to see the GOP collective head explosion. Maybe he could adorn it with his art as well - win win win… ---
**Author:** ![squeegee](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/squeegee/32/14537_2.png) [@squeegee](https://boards.straightdope.com/u/squeegee)\ **Post date:** [November 16, 2021, 3:39am UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/12 "2021-11-16T03:39:20Z")
> [@Skywatcher](#): > > The Postal Service left in 1914. Aside from the bottom two floors – food court and various touristy kiosks – and the very top floor – storage – it was all government offices, specifically the National Endowment for the Arts and the National Endowment for the Humanities. And it would take a lot of money to turn a very nice office building into a hotel. For example, an office building might have 2-8 bathrooms per floor. A hotel might have 20-50 per floor. That’s a lot of plumbing. ---
**Author:** ![Hari\_Seldon](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/hari_seldon/32/5173_2.png) [@Hari\_Seldon](https://boards.straightdope.com/u/Hari_Seldon)\ **Post date:** [November 16, 2021, 5:33pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/13 "2021-11-16T17:33:11Z")
Apparently he has a buyer, although the deal is not final. Maybe it is worth it under good management. ---
**Author:** ![QuickSilver](https://sea3.discourse-cdn.com/straightdope/user_avatar/boards.straightdope.com/quicksilver/32/7832_2.png) [@QuickSilver](https://boards.straightdope.com/u/QuickSilver)\ **Post date:** [November 16, 2021, 6:16pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/14 "2021-11-16T18:16:36Z")
Is it Kushner R.E.H.? ---
**Author:** ![Tim\_T-Bonham.net](https://avatars.discourse-cdn.com/v4/letter/t/46a35a/32.png) [@Tim\_T-Bonham.net](https://boards.straightdope.com/u/Tim_T-Bonham.net)\ **Post date:** [November 16, 2021, 10:26pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/15 "2021-11-16T22:26:30Z")
The ‘buyer’ is a hedge fund, no experience in operating hotels; I’d guess that some of Trump’s buddies are behind it. Probably a tax dodge on both sides. And the new owners have hired Hilton to operate it as a Hotel. ---
**Author:** ![SpacemanSpiff\_II](https://avatars.discourse-cdn.com/v4/letter/s/e19adc/32.png) [@SpacemanSpiff\_II](https://boards.straightdope.com/u/SpacemanSpiff_II)\ **Post date:** [November 17, 2021, 2:56pm UTC](https://boards.straightdope.com/t/sale-of-trump-dc-hotel-lease/954383/16 "2021-11-17T14:56:31Z")
> [@Tim\_T-Bonham.net](#): > > The ‘buyer’ is a hedge fund, no experience in operating hotels; I’d guess that some of Trump’s buddies are behind it. You can hire people who have experience operating hotels. Many more people can do this beyond “Trump’s buddies”. Hedge funds invest in a very broad variety of industries. They don’t necessarily have experience in any of them. Their experience is running hedge funds, and they outsource the actual running of the businesses.