Earlier this year Donald Trump announced he was selling off the Trump International Hotel in Washington DC. This was a big deal because it’s one of his very few profitable properties. The only reason to sell off your most profitable property is if you’re so upside down overall, you need the cash immediately to try to fend off your debtors, even if it means sacrificing the long term income from the property you’re selling.
So it’s an even bigger deal that Trump has now given up on selling his hotel, because he couldn’t even come close to finding a buyer. CNBC says that the bids tended to be around half of what Trump was asking for. In other words, Trump couldn’t even sell off his one profitable property. This isn’t shocking. The hotel has only been doing well because Trump has been abusing the power of the presidency to steer government-related business there. Anyone who buys the hotel will see that artificially generated business dry up immediately.
This is the third financial blow that Donald Trump has taken since losing the presidency. His real estate partner Vornado just bailed on a planned deal to sell its stake in Trump Tower, which would have given Donald Trump a cash infusion. And now Deutsche Bank is reportedly seeking to sell off and/or call in Trump’s loans. Now that he’s lost, Trump’s creditors are coming for him, and no one is willing to give him the cash he needs to fend them off.
Bill Palmer is the publisher of the political news outlet Palmer Report