Trump's Washington Hotel Turns $2 Million Profit, Far Above Expectations

Trump's Washington Hotel Turns $2 Million Profit, Far Above Expectations

But the projected loss turned into a $1.97 million profit in four months, primarily after he became president and foreign dignitaries and the big money folks started staying at the hotel that charges the highest rates in Washington, DC.

Even though the hotel is rarely occupied, as in an average of 42% of rooms are unoccupied, its still managed to post an enormous profit.

The hotel, which opened last fall, has been working to make a name for itself in downtown Washington and the $4.1 million improvement over original projections proves it is succeeding. Trump gets $652.98 on an average nightly stay at his hotel and those who stay there include some of his billionaire cabinet members while his inner circle pay high prices at the restaurant and bars. The profitability of an upscale hotel typically peaks at an occupancy rate of around 78%, according to recent industry research.

Trump handed over management of the Trump Organization to his two eldest sons upon taking office, but the D.C. hotel has struck a chord among many Trump critics, with many saying owning the building violates the emoluments clause of the Constitution. But he retained his ownership interest, allowing him to eventually profit from the holdings, against the advice of the government's top ethics official.

Of his 202 days in office, Trump has spent 65 days at his properties, majority at his golf properties. As GQ and WaPo have both recently reported, Trump International has emerged as the hottest spot in town for conservative politicians, pundits, and donors exiled in a heavily democratic city to hang out and drink wine served in spoons.

The only divisions of the hotel that didn't churn a profit were retail, parking, and the Spa by Ivanka Trump. As now a White House appointee, that raises serious ethical questions. She also retained her stake in the hotel and reported $2.4 million in hotel-related revenue from its opening to June.

"We are very proud of the success of the project", said the president's son Eric Trump to the Post in an email, who took over management along with his older brother Donald Jr.

In accordance with the clause, Trump has promised to give the US treasury any profits that come from foreign governments.

The Trump International's performance to date comes despite the fact that its rooms are more often empty than its competitors', meaning there is room to grow its profits. It posted an occupancy rate of 42.3 percent, compared with almost 70 percent in the industry.



Related Posts

Here's what Bungie learned from the Destiny 2 beta
This will result in longer matchmaking times, but Bungie expects the "quality of the gameplay experience will be worth the wait". The PC beta has been updated with our new values and will provide much more heavy ammo in PvE than what was found before.

United States stocks close slightly lower
Dean Foods slumped 19.10 percent after the largest USA dairy processor's quarterly results came in below estimates. US trading volume has been low with summer setting in and Congress expected to be in recess until September 5.

South Korea Calls Urgent Security Meeting After North's Newest Threat
Spot gold was 0.1 percent lower at $1,276.40 an ounce after having spiked the previous day to a near two-month peak of $1,278.66. ENERGY: Benchmark U.S. crude gained 28 cents to $49.84 a barrel in electronic trading on the New York Mercantile Exchange.

The Boeing Company (NYSE:BA)
Blue Granite Capital LLC's holdings in Boeing Company (The ) were worth $3,617,000 at the end of the most recent reporting period. American Investment Services Inc. increased its stake in shares of Boeing Company (The ) by 116.1% in the first quarter.

Legg Mason, Inc. (NYSE:LM) Stock Rating Reaffirmed by Morgan Stanley
The Firm is focused on the transport and transshipment of dry bulk commodities, including iron ore, coal and grain. Navios Maritime Holdings a global, vertically integrated seaborne shipping and logistics company.

Ayodhya dispute: Apex court begins hearing pleas against HC verdict
However, the dispute has become more complicated with Uttar Pradesh's Shia Wakf Board seeking to become a party in the case. The Hindus claim that it is the birthplace of Lord Rama where a mosque was built in 1528-29 CE (935 AH) by Mir Baqi.

Morata: I've played 15 minutes and already they're killing me
For example, in Juve I did not score any more than 20 goals, and I won all the titles except the Champions League final. It was a hard situation; I was leaving a team that's my home and who are winning everything at the moment.

BlackRock (NYSE:BLK) Earns News Impact Rating of 0.14
HighPoint Advisor Group LLC purchased a new stake in shares of BlackRock during the fourth quarter worth approximately $291,000. As of the end of the quarter Carderock Capital Management Inc had bought a total of 99 shares growing its holdings by 3.3%.

'Hopefully' we never need our nuclear arsenal
In an interview in January, Trump said he wanted the United States to be "at the top of the pack" when it comes to its nuclear weapons program.

Stericycle, Inc. (NASDAQ:SRCL) Stake Increased by Markel Corp
On September 20 the company was changed to a "Neutral" according to a Northcoast Research report down from the previous " rating. BidaskClub cut shares of Stericycle from a "sell" rating to a "strong sell" rating in a research report on Tuesday, August 1st.

© 2015 ExpressNewsline. All Rights reserved.