Former President Donald Trump’s company has reportedly reached a deal toin Washington, DC, for $375 million.
CGI Merchant Group, a Miami-based investment firm, has entered into a contract toon the 19th-century building, the , citing people familiar with the matter.
CGI plans toand has reached a deal with Hilton to re-brand the property and have it managed by Hilton’s Waldorf Astoria group, the Journal added.
The sale is expected to close in the first quarter of 2022, the report said.
The 122-year-old building, which is just a few blocks from the White House in the former Old Post Office Pavilion, is still owned by the federal government, but with extensions, the lease runs close to 100 years.
The sale price comes in lower than the $500 million paydaywhen they first shopped the lease in 2019.
The Trump Organization leased the building from the General Services Administration in 2013 andto turn it into a luxury hotel before opening it to guests in 2016.
It opened its doors just weeks before the presidential election that swept Trump into the White House.
As president, Trump hosted dozens of dinners in the hotel’s restaurant and caught flak from ethics watchdogs for encouraging administration officials to visit the facility.
One group, Citizens for Responsibility and Ethics in Washington,by public officials during Trump’s term in office.
Still, the coronavirus pandemic took a toll on the hotel as it did with many luxury hotels around the country.
Last month, a report from the House committee on oversight and reform found that the hotelbetween its opening in 2016 and last year, despite the boost in sales to foreign governments.
The Trump Organization had to inject $27 million from other parts of its business into the hotel and get preferential treatment from a major lender to delay payments on a $170 million loan to support the ailing property, the report found.
The Trump Organization has disputed those findings.
“People are objecting to us making so much money on the hotel, and therefore we may be willing to sell,” son Eric Trumpin 2019, when the family first put the lease on the market.