Trump’s DC hotel lost millions and got loan stay from foreign bank – NBC Connecticut

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Former President Donald Trump’s hotel in Washington, DC suffered more than $ 70 million in operating losses during his tenure, forcing him at one point to secure a reprieve from a major bank on the loan payments, according to documents released Friday by a House committee investigating his business.

The House Committee on Oversight and Reform said Trump reported that the Pennsylvania Avenue hotel generated more than $ 150 million in profits during his presidency. Trump “grossly overstated the financial health” of the hotel, according to the panel, noting that documents show the Trump Organization had to inject $ 27 million from other parts of its operations to help the hotel.

The committee said the financial statements it obtained show the losses occurred despite payments estimated at $ 3.7 million from foreign governments, a deal government ethics experts say Trump is said to have. had to refuse because it posed conflicts of interest with his role as president and raises “concerns about possible violations of the foreign emoluments clause of the Constitution.

“By filing these misleading public disclosures, President Trump grossly exaggerated the financial health of the Trump Hotel,” the committee said in a press release. “He also appears to have concealed potential conflicts of interest arising not only from his ownership of this bankrupt company, but also from his roles as lender to the hotel and guarantor of its loans to third parties.”

The Trump organization said in a statement that the Democrat-led committee’s findings were misleading and false, and that it had not received any special treatment from a lender.

“This report is nothing more than continued political harassment in a desperate attempt to mislead the American public and vilify Trump in pursuing their own agenda,” the company said.

The committee documents, the first public disclosure of the hotel’s audited financial statements, show significant losses despite flourishing activity while in office by lobbyists, businesses and Republican groups.

Deutsche Bank’s decision to allow the president to delay payment on a $ 170 million loan was “undisclosed preferential treatment” that should have been reported by the president because Trump personally guaranteed this loan and the bank. has substantial operations in the United States, the committee said in a letter to the General Services Administration, the federal agency that oversees the hotel. The hotel is let by the federal government to the Trump Organization.

“The documents (…) raise new and troubling questions about former President Trump’s tenure with the GSA and the agency’s ability to manage the former president’s conflicts of interest during his tenure as he ‘he was effectively on both sides of the contract, as landlord and tenant,’ the committee, overseen by New York Democrat Carolyn Maloney, wrote in a press release.

The GSA did not immediately respond to a request for comment.

When Trump first requested the lease of the old post office building in 2011 for his hotel, he also provided the federal government with information that the committee said “appeared to be covering up some debt.” Records show that Trump specifically did not show outstanding balances for properties he owned in other major cities like New York, Chicago and Las Vegas, the panel said.

Trump’s company has been trying to sell the 263-room hotel since fall 2019, but has struggled to find buyers during the coronavirus pandemic at a reported initial asking price of over $ 500 million.

The head of the government’s ethics watchdog CREW said the losses shed new light on Trump’s refusal to ban foreign governments from sponsoring his company.

“The only lifeline was corrupt business from people, organizations and governments seeking to influence it,” said Noah Bookbinder, president of Citizens for Responsibility and Ethics in Washington. “His use of the presidency to get business was absolutely essential in stemming the tide of losses.

To allay concerns about the possibility of taking advantage of foreign governments, Trump has pledged to send payments from his company’s income to the US Treasury every year. Payments totaled $ 356,000 for the first three years of his presidency. Critics of the voluntary agreement say Trump’s definition of income is unclear and has given the president plenty of room to lower the number.

Although the Washington hotel was badly affected by closures related to the pandemic last year, audited financial statements released by the committee show it was also suffering every year it was open prior to that. He lost almost $ 50 million in the first three years of his presidency, then $ 22 million last year.


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