Craig Karmin and Julie Bykowicz
Former President Donald Trump’s family company is in advanced discussions to sell the rights to its opulent Washington, D.C., hotel in a deal worth more than $370 million, say people familiar with the matter.
CGI Merchant Group, a Miami-based investment firm, is in talks to acquire the lease on the hotel, these people said. The Trump International Hotel Washington, D.C., is located in the former Old Post Office, a short walk down Pennsylvania Avenue from the White House in a building featuring some of the largest guest rooms in the capital.
The property is owned by the federal government, but with extensions the lease runs close to 100 years. CGI has also entered into discussions with hotel operators, including Hilton Worldwide Holdings Inc.’s /zigman2/quotes/202780307/composite HLT -2.34% Waldorf Astoria luxury brand, about removing the Trump name in favor of that of another hotel manager, these people said.
The lease deal could ultimately fetch closer to $400 million, which would represent roughly a doubling of the money the Trump Organization spent to convert the government building into a luxury hotel, said one of the people familiar with the matter.
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