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Zippyjuan
11-24-2017, 12:31 PM
https://www.nytimes.com/2017/11/22/business/trump-organization-soho-hotel.html


The announcement came on his television show, “The Apprentice.” Donald J. Trump would open his second luxury hotel in New York, a “work of art” in the SoHo neighborhood of Manhattan that would become “an awe-inspiring masterpiece.”

That was 11 years ago. The 46-story skyscraper, it turned out, was actually an albatross for Mr. Trump — drawing local opposition soon after its unveiling, partisan protests when he became a candidate for president and political scrutiny because of its early ties to a dubious Russian deal maker.

Now, in the latest sign of strain in the president’s family business, the Trumps want no more.

The Trump Organization has reached a deal that will allow the company to exit the property by the end of next month, the company said Wednesday. It is the second time this year the Trump name was erased from a hotel development, after a June announcement in Toronto.

Located in an upscale neighborhood in a deeply Democratic city, the SoHo hotel has struggled to attract guests at five-star prices and has dropped its rates to keep rooms occupied. The property also includes condominiums that have been slow to sell. And when the building’s main restaurant decided to close in April, a lawyer for the restaurant attributed it to a decline in business “since the election.”

Under the exit deal, the Trump Organization will sever its contract with the building’s owner, an investment firm in California that focuses primarily on real estate. As with many of their properties, the Trumps do not own the SoHo hotel, but instead manage the day-to-day operations. The Trump Organization is entitled to a cut of the hotel’s revenue, although the contract also requires the Trumps to pay the owner, CIM Group, if the property fails to meet certain financial performance standards.

With years remaining on the contract, CIM will pay the Trumps to end the arrangement early, according to people briefed on the matter, who described the negotiations as amicable. A buyout enables CIM to either rebrand the property, or to buy more condo units and expand the hotel before eventually selling it. The company did not disclose the proposed price of a buyout.

Despite the challenges, the SoHo hotel is a signature property in the backyard of the Trump family empire, making the Trump Organization’s cutting of ties unexpected. The property also carried emotional significance for the family: Not only did Mr. Trump announce the project on “The Apprentice,” but his elder children — Donald Jr., Ivanka and Eric — were on hand, in 2007, for a glittering launch party.

More recently, the Trump Organization and CIM, which took over the property in 2014 after the Trumps’ prior partners defaulted on a loan, discussed ways to upgrade the hotel and replace the closed restaurant. Along with an election-related slump, the general lack of investment may have partly contributed to the hotel’s struggles.





In November 2011, the Trumps and other defendants paid 90 percent of $3.16 million in deposits to settle claims from buyers of condominium units that Mr. Trump, his children and others had inflated sales figures in what turned out to be a struggling project. The Manhattan district attorney, Cyrus Vance Jr., was pursuing a criminal investigation into the same issue, The New York Times reported last year. Some prosecutors felt they had enough evidence to build a case, but Mr. Vance declined to pursue charges, several news organizations reported last month.

At the same time, a separate lawsuit alleged that the project was backed by felons and financing from Russia. Felix Sater, a Russian deal maker, felon and F.B.I. informant, had helped facilitate the deal, the lawsuit said.

As time went on, the connection with Mr. Sater caused headaches for Mr. Trump through the campaign and the first year of his presidency. The Times reported this year how Mr. Sater continued to push for a Trump Tower in Moscow, even during the presidential campaign.

Zippyjuan
11-24-2017, 12:33 PM
The Trump Hotel in Toronto earlier this year also removed the Trump name from their building. Trump doesn't own it but licenses his name to it.
https://www.wsj.com/articles/russian-state-run-bank-financed-deal-involving-trump-hotel-partner-1495031708


Russian State-Run Bank Financed Deal Involving Trump Hotel Partner


Russian-Canadian developer put money into Toronto project after receiving hundreds of millions from deal involving VEB

VEB, a Russian state-run bank under scrutiny by U.S. investigators, financed a deal involving Donald Trump’s onetime partner in a Toronto hotel tower at a key moment for the project, according to people familiar with the transaction.

Alexander Shnaider, a Russian-Canadian developer who built the 65-story Trump ....

sparebulb
11-24-2017, 12:41 PM
I don't think that Trump's exit from his hotel will be as difficult as yours, Zippy.

https://stoppestinfo.com/images/Black-Flag-HG-11020-1-Roach-Motel-Insect-Trap.jpg

FSP-Rebel
11-24-2017, 12:42 PM
No one cares.