Trump drops new hotels

President Donald Trump’s company is scrapping plans for two new hotel chains announced two years ago, casting blame in part on a hostile political environment.

The Trump Organization said that it will no longer try to open hotels under its Scion and American Idea brands catering to mid-priced and budget travelers, a departure from its focus on luxury hotels. The announcement comes as the company has posted losses at a few of its golf properties and brand experts say it has lost some of its appeal.

“We live in a climate where everything will be used against us, whether by the fake news or by Democrats who are only interested in presidential harassment and wasting everyone’s time, barraging us with nonsense letters,” the president’s son, Eric Trump, said in an emailed statement. “We already have the greatest properties in the world and if we have to slow down our growth for the time being, we are happy to do it.”

The rollout began with promises of fast success. The company said in March 2017 that nearly two dozen developers had already signed letters of intent to open mid-priced Scion hotels.

“It’s full steam ahead,” said Eric Danziger, who oversees the hotel business for the family. “It’s in our DNA.”

But the avalanche of deals never materialized, as was the case for its budget brand American Idea, which was launched a few months later at a party at the Trump Tower in New York.

The only developer willing to strike a deal was Chawla Hotels of Mississippi. It planned to open as many as four hotels in the state — but now that is off, too.

“In today’s politically charged environment,” hotel consultant Lee Hunter told the Associated Press recently, “everyone is cautious.”

The company is also struggling with some self-imposed restraints on expanding its business.

When Trump became president, he handed day-to-day control of the company to Eric and his other adult son, Donald Jr. He also agreed his company would not pursue new deals abroad and that domestic deals would be vetted by a lawyer hired to make sure they posed no conflicts with Trump’s presidency.

 

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