Documents show Trump lost millions operating Washington hotel

0

Updated October 8, 2021, 1:06 p.m. ET

The Trump International Hotel in Washington, DC, a hangout for Republican allies of former President Donald Trump during his tenure in the White House, was a big loser for Trump’s business, according to a cache of documents released by Congressional Democrats on Friday.

What size? The company suffered more than $ 70 million in net losses, according to the House Oversight Committee.

The panel said Trump claimed that the hotel, located on Pennsylvania Avenue a few blocks from the White House, generated $ 150 million in revenue during his tenure. But he said Trump “grossly overstated the financial health” of the hotel and that his company had to inject $ 24 million to help the establishment.

The oversight committee said its findings were in documents recently obtained from the General Services Administration, which negotiated a lease with Trump for the hotel, a former federal post office.

The committee also found that Trump received preferential treatment from Deutsche Bank, the German financial institution, which allowed Trump to delay paying the principal of a $ 170 million loan for six years. The panel says Trump personally guaranteed this loan. He also indicates that Trump did not disclose “this important advantage of a foreign bank” while he was president.

In addition, while he was president, according to the committee, the hotel received about $ 3.7 million from foreign governments who rented rooms at the property, “raising concerns about possible violations of the law. the constitutional clause on foreign emoluments ”.

Sign up to receive daily news!

Stay informed with the WPR email newsletter.

“The documents provided by the GSA 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 was effectively on both sides of the contract, as landlord and tenant, “wrote committee chair Rep. Carolyn Maloney, DN.Y. and Representative Gerald Connolly, D-Va., Chair of the Government Operations Subcommittee.

The documents also show that Trump did not disclose more than $ 1.1 billion in unpaid loan balances for property the Trump Organization owned in Chicago, Las Vegas, New York and San Francisco when he applied to lease the. building in 2011.

The committee asked the GSA to provide it with other documents, including details of the Trump hotel loan from Deutsche Bank, payments from the foreign government to the hotel, and loans from Trump or his companies to the hotel. (Read the documents: part 1, part 2 and part 3.)

In a statement, the Trump Organization said the House Oversight Committee’s claims are “intentionally misleading, irresponsible and unequivocal.”

“First, it is clear that the committee has a fundamental misunderstanding of basic accounting principles – including the difference between gross income and net income. Second, at no time has the company received preferential treatment from a lender. Finally, the committee clearly fails to point out that the profits collected during the presidency were voluntarily returned to the US Treasury at the end of each fiscal year, ”the statement said.

He said the committee was engaged in “nothing more than continued political harassment in a desperate attempt to mislead the American public and defame Trump in pursuing an agenda.”


Source link

Share.

About Author

Comments are closed.