Then-Republican presidential nominee Donald Trump gives a thumbs up after cutting the ribbon at the new Trump International Hotel in October 2016. (Photo by Chip Somodevilla/Getty Images)
While Democrats and local business owners are raising concerns over President Donald Trump’s hotel at the Old Post Office Pavilion, the Trump Organization is exploring opening a second in the city.
The Washington Post reports that representatives of the Trump Organization have been asking about turning one of the city’s “boutique, medium-sized hotels in upscale neighborhoods in and near downtown” into an establishment with the company’s new “Scion” brand.
The company, now run on a day-to-day basis by the president’s sons Donald Jr. and Eric, has said it will move “full steam ahead” on the new hotel chain from the company, which would cost about half of the cost of the luxury hotels and be the first not to broadcast the Trump name. The plan is to open dozens of these Scion hotels, perhaps even 100, across the country in the next three years, according to the Associated Press.
The Post says some of the inquiries into hotels in D.C. predate the election, but have continued since then.
Eric Danziger, chief executive of the Trump Organization’s hotel division, more recently toured the 199-room Beacon Hotel, at 1615 Rhode Island Ave. NW, with an interest in converting the property to a Scion, according to a real estate executive who was not authorized to discuss the Trump Organization’s interest and spoke on the condition of anonymity. No agreement was reached.
“I think he liked it,” the executive said. “He said it was perfect. It just didn’t work out.”
While the president says he is not involved in running the business, he has not divested, either. Additionally, his son Eric said last week, two minutes after saying he made a pact to never talk business with his father, that he would provide updates on “the bottom line, profitability reports and stuff like that” on a quarterly basis.
The International Trump Hotel on Pennsylvania Avenue, which opened in the fall, has led to accusations of a conflict of interest. Even before Trump was elected, he plugged the hotel in debates and appearances.
He finalized a 60-year lease with the General Services Administration, which owns the Old Post Office Building, back in 2012.
During the hotel’s first two months in operation, it came in $2 million under revenue projections. After his surprise win in November, though, business—and concerns about pay-to-play—began picking up.
“Why wouldn’t I stay at his hotel blocks from the White House, so I can tell the new president, ‘I love your new hotel!’ Isn’t it rude to come to his city and say, ‘I am staying at your competitor?’” one diplomat told The Washington Post shortly after the election.
House Democrats said that he violated that lease, which states that “No member or delegate to Congress, or elected official of the Government of the United States … shall be admitted to any share or part of this Lease, or to any benefit that may arise therefrom.” They also voiced concerns that the GSA, which would be run by a Trump appointee, couldn’t effectively act as landlord.
However, a letter from the GSA last week said that Trump’s transfer of the LLC to his son Donald Jr. made them “fully compliant” with the lease.
The International Trump Hotel in D.C. is currently facing lawsuits from a government watchdog group, which claims that the president is violating the foreign emoluments clause of the Constitution by taking money from foreign governments, and Cork Wine Bar, a D.C. restaurant and events space suing under District law over unfair competition. Cork’s owners allege that the International Trump Hotel and its restaurants take business away by offering unparalleled opportunities for business advocates, lobbyists, foreign dignitaries, and more to meet and curry favor with the president and his cabinet.
A new Scion-branded hotel in the District could take years to come to fruition, according to The Post.
Rachel Kurzius