Trump loses millions on D.C. hotel sale in 2022

In 2022, the former president sold his D.C. hotel for $127 million after investing $200 million in its restoration. The hotel, located in the historic Old Post Office building, was a luxury establishment that Trump had developed under a long-term lease with the U.S. government. Despite winning a competitive bidding process against major hotel chains, the business struggled to generate sufficient revenue, particularly after the Covid-19 pandemic caused a significant drop in income, with revenues falling over 60%. In 2021, Trump found a buyer willing to pay over $370 million, but the deal ultimately fell through, leading to a foreclosure auction where the hotel was sold for just $100 million. The buyer, BDT & MSD, inherited the original lease but faced challenges due to the hotel's poor financial performance. The auction was described as lacking interest, with no other bidders participating. The financial situation worsened for Trump as the $28 million owed to him by the buyer was wiped out during the foreclosure process. This loss highlighted the risks associated with the investment and the challenges of operating a luxury hotel in a competitive market. Despite the unfavorable circumstances, BDT & MSD expressed optimism about the future of the hotel, indicating a belief that they could turn the situation around, even with the burdensome lease. The entire episode underscores the complexities of real estate investments and the impact of external factors like the pandemic on business viability.