Trump-branded properties 'underperforming'

The Trump Doral propertyImage copyright
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US President Donald Trump’s Miami golf resort and Manhattan skyscraper, jewels in the crown of his property empire, are in decline, say US media.

The Trump National Doral Miami has reported a steep drop in income since 2015, according to the Washington Post.

Since 2015 net operating income dropped by 69%, the paper reported, citing Trump Organization documents.

And owners of units at Trump Tower in New York have been selling at heavy losses, Bloomberg reports.

The 643-room Doral resort – which is Mr Trump’s highest-earning hotel – is “severely underperforming” other resorts in south Florida, a Trump Organization tax consultant told a Miami-Dade County official last year, according to the Post.

“There is some negative connotation that is associated with the brand,” said the consultant while seeking to lower the property’s tax rate.

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Image caption

An anti-Trump gunman was shot by police in the lobby of the Doral resort last May

Eric Trump, the president’s son who handles the business with his brother Donald Jr, said in a statement: “This story is completely senseless.”

“Our iconic properties are the best in the world and our portfolio is unrivalled by anyone,” he added.

President Trump bragged in 2016 of claiming depreciation of his commercial real estate as an old property developers’ tactic to write off his taxes.

Bloomberg News reported on Tuesday that apartment owners in Trump Tower, Manhattan, were selling for “brutal” losses.

Some flats at the skyscraper – where Mr Trump ran his 2016 presidential campaign and filmed TV show The Apprentice – have been sold at losses as high as 20%.

In Manhattan, only 0.23% of homes over the last two years have sold at a loss, according to data provider PropertyShark.

The tower’s occupancy rate is double the average vacancy of most Manhattan properties, according to Bloomberg.

By contrast, the Trump Organization this year reported a 26% increase in profit from foreign governments.

The company said it planned to donate that money to the US Department of Treasury.

The Trump International Hotel in Washington appears to be prospering as diplomats and lobbyists reportedly splurge there.

During the hotel’s first full year of operation in 2017, revenues topped $40m (¬£31m).

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