Donald Trump’s family hotel company has reached an agreement to sell the rights to its glittering Washington, D.C., hotel for $375 million, according to people familiar with the matter.
CGI Merchant Group, a Miami-based investment firm, is in contract to acquire the hotel lease for the Trump International Hotel, which is located a short walk down Pennsylvania Avenue from the White House. CGI intends to remove the Trump name, and it has reached a deal with Hilton Worldwide Holdings Inc. (NYS:HLT) to have the property branded and managed by Hilton’s Waldorf Astoria group, these people said.
The hotel is owned by the federal government, but with extensions the lease runs close to 100 years. It is housed in the former Old Post Office and it features some of the largest guest rooms in the capital.
The sale, which people briefed on the matter said is expected to close in the first quarter, comes as Democratic-controlled House committees have been investigating and holding hearings on potential conflicts of interest and emoluments issues surrounding former President Trump.
The Trump Organization has said it didn’t market the hotel to foreign dignitaries and that it writes a check to the U.S. Treasury Department for money made from foreign government guests.
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