The Trump Organization received a nearly half a million dollars off on the $3 million of rent it pays. The federal government collects that money made by Trump International Hotel and is allowing for the break because the building is open to the public, according to The New York Post.
With a half a million dollars extra in the bank, the hotel used that money mostly for the purposes of cleaning, security, and utilities costs, according to the General Services Administration, which still owns the former Old Post Office Pavilion, as reported by The Washington Post.
Trump agreed to the lease a couple of years before he would even announce his candidacy for president.
The Jewish Voice previously reported on the Trump property right near the White House. A contract was signed in 2013 between The Trump Organization with the U.S. government to lease out the Old Post Office (which has historical significance) and convert it into a deluxe hotel. Its location near many Washington landmarks, as well as the White House, make it especially attractive to tourists and visitors.
Certain experts in ethics in business and government have cited the hotel as a sign that Trump is intertwining his business interests with that of his position as president. He’s been accused of making money off of the fact that he’s in this position as president, allowing his business interests to rake in money from those eager to be close to someone in power, or at least partake in a business owned by one.
As Sean Hennessey, a hotel consultant, related to the Wall Street Journal, “It appears that the hotel has been perceived as a place to be seen and have power lunches and that sort of thing. The numbers on the [food and beverage] side indicate it has that kind of cachet.”
The amount of money that the hotel is making is apparently considerable despite prices being increased far higher, after Donald Trump became president, than had originally been planned. The Trump International Hotel has made about $18 million in revenue in only the first four months of the current year, according to the Wall Street Journal which had access to documents regarding the pricing. This is despite the fact that the hotel is charging guests up to 60% higher rates than has been planned.
The price to stay in a room at the Trump International Hotel had been increased to $660 a day, as opposed to an average daily rate of $495 at other hotels in the area. According to the hotel documents, the hotel had originally only planned to charge $416 for a room daily. Even though the hotel had expected a $2.1 million loss, it instead made $2 million in profit during the four month period in question.
By: Neal Gilruth