Donald Trump’s controversial and divisive foray into politics may have gained him the White House – for now – but it’s costing him in other ways. For instance a number of his hotel properties are now being avoided and boycotted as Trump increasingly viewed as an extremist and a Russian traitor. That trend is hitting Trump’s hotel in New York so severely that it’s essentially dying, and it’s begun layoffs.
That’s the word from local news outlet WNYC, which reports that the Trump SoHo hotel – which used to be a bustling hotspot before Donald Trump entered politics and ruined his brand – is now laying off a double digit number of employees (link). The hotel has already been forced to drop its nightly rates to barely half of what they had been. The restaurant built into the hotel has already moved out, and the space is sitting empty, as no tenant has been willing to take its place. So how bad will this get?
Based on the pricing plunge, it sounds as if the Trump SoHo has lost nearly half its hotel revenue. WNYC says that the Trump hotel has also lost far more than half of its convention revenue. So it’s difficult to imagine the property being able to remain in business if this trend continues. The layoffs will buy some time on a cash basis, but will also trigger a decline in overall guest experience, which may create a downward vicious circle and cause revenue to plummet even further. Is yet another Donald Trump corporate bankruptcy on the horizon?
Back in December, Palmer Report brought you the story of numerous former Trump SoHo customers having fled to a nearby hotel owned by noted Trump hater Robert De Niro (link). That trend appears to have continued and escalated. So not only is Donald Trump’s hotel dying as a result of his foray into politics, it’s dying at the hands of someone who despises Trump. Follow Palmer Report on Facebook and Twitter.
Bill Palmer is the publisher of the political news outlet Palmer Report