Former Trump DC Hotel Struggles Under New Leadership Without Trump's Name, Set for Foreclosure Auction

The new owners of the famous Washington, D.C. Waldorf Astoria Hotel, known best for formerly being the Trump International Hotel until it was sold for $375 million to the CGI Merchant Group in 2022, are struggling without the name of 45th President Donald Trump on the building, so much so that the building could be sold in a foreclosure auction next month. CGI got a $285 million loan to finance their hotel purchase, $252.7 million of which is still outstanding. The CGI Merchant Group defaulted on their mortgage three months ago. Foreclosure filings reveal an auction on the legendary property scheduled for June 20 at Alex Cooper Auctioneers. If an agreement is reached, the auction could be canceled or postponed.

CGI said in a statement to Biznow, "CGI is engaged in productive discussions with the property's manager, Hilton, and several other parties who want to reach a consensual financing solution that reflects the realities of today's challenging, rising rate environment, MSD's unilateral decision to file a foreclosure notice is inconsistent with the discussions and possibly invalid. Although our goal is to continue advancing constructive negotiations with all parties, including MSD, we're prepared to take all necessary steps to protect the rights of CGI and its partners."

The 2022 $375 million sale of the Trump hotel, originally the Old Post Office building, gave the Trump family a $100 million profit. The sale shocked and impressed many hotel brokers, who didn't expect the 263-room hotel to sell for the price it did. "The hotel was a magnet for lobbyists, diplomats, and others seeking to curry favor with the president. Democrats said it sullied the reputation of the presidency, pitted his financial interest against the public interest, and possibly broke the law. Several lawsuits challenging his ownership of the lease were unsuccessful," NPR reported in 2022.

During the Trump administration, the hotel was a hotspot for administration officials and the president himself during his term, serving as a refuge in a Democratic city. In June 2023, the Supreme Court dismissed a case and prevented House Democrats from suing to obtain information from a federal agency about the lease for the hotel. The court's unsigned order, which dismissed the case and nullified a lower court ruling in favor of the Democrats, came shortly after agreeing to hear the dispute known as Carnahan v. Maloney. Trump's company renovated the building, just blocks from the White House, and transformed it into the Trump International Hotel.

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