Trump Hotel in DC Braced for a Loss, Got a Windfall

The first 4 months of the year saw a $1.97M profit
By Kate Seamons,  Newser Staff
Posted Aug 11, 2017 12:27 PM CDT
The Trump International Hotel at 1100 Pennsylvania Avenue NW, is seen Wednesday, Dec. 21, 2016 in Washington.   (AP Photo/Alex Brandon)

(Newser) – "Some people really want to stay there, and then there's a bunch of people who don't." It's a statement that could be applied to pretty much any hotel, but it has special meaning in this case. The hotel the analyst is referring to is the recently opened Trump International Hotel in Washington, DC, which has this year logged an occupancy rate of 42.3%. That's well below the industry standard of about 70%, but as the Washington Post explains, that hasn't translated into big losses. Quite the opposite. Based on financial records obtained by the Post and the Wall Street Journal, the Trump Organization was expecting a $2.1 million loss during the first 4 months of the year; instead it recorded about $18 million in revenue and made a $1.97 million profit.

Credit room rates, in part: The Journal and Post cite slightly different average nightly room rates—$660 and $653, respectively—but either figure is well above the $495 hotelgoers paid at luxury rivals like the Four Seasons and the $416 the hotel had expected to charge between January and April. The Journal states the seemingly obvious: "The fact that hotel rates were substantially above the budgeted amount and above area rates indicates that Mr. Trump's presidency likely played a role in the performance." But room rates don't tell the whole story: The hotel made $8.2 million on food and drinks, which was 37% higher than projections and accounted for more of the revenue than a non-convention-center hotel typically sees, per analysts. (Read more Trump Organization stories.)

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