The Trump Organization is ending its contract to operate the Trump SoHo hotel in lower Manhattan, the second time since Donald Trump took office that one of his eponymous properties has had to abandon the company name.
The New York Times reports that Trump, which opened the SoHo hotel in 2010, has struggled to fill guest rooms and sell condos at the five-star, 36-story mixed-use development.
Even before the November 2016 election, the hotel had faced strong local opposition and scrutiny due to the involvement by a shady Russian financier. Trump also faced accusations that the company made up sales figures in order to inflate the value of the condominiums at the property.
The impact of politics on the hotel was reflected by the closure of its main restaurant in April 2017, which the owners ascribed to declining business “since the election.”
Under the reported deal, the owners of the property will pay the Trump Organization to terminate the management contract early so the property can be rebranded, presumably minus the Trump name.
The group’s hotels have suffered a fall in room rates since since Donald Trump became president of the United States in November 2016, and reported Trump Organization revenues have declined about 3 per cent since the presidential campaign began last year.
Some other hotels continue to perform well, such as the Trump Washington, DC, which has become popular with lobbyists and groups seeking to curry favor with the current administration.
Generally, Trump hotels have performed better in areas where the president had more support during the election campaign.