Trump's DC Hotel Lost More Than $1M In Its First Two Months

The Trump International Hotel on Pennsylvania Avenue lost more than $1M in September and October, its first two months of operation.

The Trump Organization had anticipated earning $397k in those two months, but actually lost $1.2M, according to monthly financial reports included in a letter from House Democrats on the Committee on Oversight and Government Reform. During that period, the hotel brought in just over $4M in revenue, $2.3M below its expectations.

The letter also revealed the ownership structure of the hotel. The president himself owns 76% of the LLC controlling the hotel, which signed a long-term lease with the GSA, a federal agency now under Trump's control. His sons Eric and Donald Jr. each own about 7.5% of the hotel.

Trump announced earlier this month he would not be divesting from the company and would instead place his ownership stake in a trust while his sons run the company. This presents a major issue given that the lease for the hotel forbids any elected official from benefiting from any part of the lease.

The letter from House Democrats asked the GSA to address any steps it is taking regarding the breach of the lease agreement. It also asked the agency to address the liens from contractors claiming The Trump Organization still owes them more than $5M for work on the project.

In addition, the letter identifies the acting administrator for the GSA, Timothy Horne. Horne was previously regional commissioner of the GSA's Rocky Mountains Public Buildings Service. He will head the agency until Trump appoints a permanent administrator.

Bisnow has reached out to the GSA and will update this story with its response.

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