The Trump Organization urged potential investors to cash in on millions of dollars in foreign business in a brochure trying to sell the lease to the Trump International Hotel in Washington DC, according to CNN.
"Tremendous upside potential exists for a new owner to fully capitalize on government-related business upon rebranding of the asset," says a copy of the brochure obtained by CNN.
The claim is based on the Trump family’s claim that it is not profiting from foreign governments.
The Trump Organization claims in the brochure that its refusal to solicit foreign business has cost the company more than $9 million.
The brochure claims these “sacrifices” included turning away more than 17,000 room nights this year, costing $5.3 million in room bookings and nearly $4 million in food and beverage sales.
The pitch does not note how much foreign business the hotel has accepted.
Trump Org projects massive sales increase:
Trump reported in his financial disclosure that the hotel earned $40.8 million in revenue last year, roughly the same as it earned in 2017. It is unclear if Trump turned a profit on the hotel in either year.
But the investor pitch projects a huge 65 percent increase in revenue from last year to 2020.
The brochure claims that the hotel is estimated to have operating revenues of $67.7 million in 2020, including $6 million in profits. And that’s despite the hotel’s projected 68% occupancy rate, considerably lower than the 74.5% occupancy rates at other five-star hotels in the area.
According to The Wall Street Journal, the company hopes to sell the hotel for more than $500 million.
Trump Org brought in plenty of foreign business:
Despite its claims, there has been plenty of foreign business at the Trump hotel.
“Delegations from Saudi Arabia, Malaysia and Kuwait have stayed at the hotel or held events there, along with members of Trump's cabinet and GOP fundraisers. The Prime Minister of Romania reportedly booked a room earlier this year,” CNN reported. Multiple “lawsuits claim Trump has violated the emoluments clause of the US Constitution, which forbids the President from receiving gifts or payments from foreign governments.”