Trump DC hotel suffered more than $70 million in losses while Trump was president, documents show
The documents also show the hotel received millions from foreign governments in payments and loan deferrals, which Trump did not disclose, raising questions about potential conflicts of interest during his presidency.
It is the first time congressional investigators have reviewed and released details of the former president’s financial information, although the Trump Organization on Friday challenged the committee’s understanding of the accounting and denied any wrongdoing. Manhattan District Attorney and New York Attorney General investigators looked into Trump’s finances, but none of it has been made public.
Trump’s revenue from the Trump International Hotel reported in public financial disclosures dating from 2016 to 2020 totaled more than $156 million, the committee said in an updated report.
But over that four-year span, Trump’s DC hotel actually suffered a net loss of over $70 million while he was president and had to be loaned over $27 million to the one of Trump’s holding companies, DJT Holdings LLC, from 2017 to 2020, according to hotel financials the committee obtained.
More than $24 million has not been repaid and has instead been converted into capital contributions, the committee said.
According to the committee, their analysis of the documents shows that the Trump Hotel received approximately $3.7 million from foreign governments, which they say raises “concerns about possible violations of the foreign emoluments clause of the Constitution”.
The documents contain details that Congress has sought for years during Trump’s presidency, particularly information about foreign payments to Trump’s companies, which House Democrats unsuccessfully sued under the Disclosures Clause. emoluments of the Constitution. The Emoluments Clause, an anti-corruption provision drafted by the nation’s founders, said Congress should be able to approve all gifts to office holders from foreign governments. But despite the House’s interest for years in an autopsy of Trump’s finances, congressional approval of the foreign payments the Trump Organization received never happened.
The committee also claimed General Services Administration documents showed Trump received “undisclosed preferential treatment” from Deutsche Bank on a $170 million construction loan.
The terms of the loan required the Trump Hotel to begin repaying principal in 2018, but the terms were revised that year to allow the Trump Hotel to defer those payments for six years.
In a statement, a spokesperson for the Trump Organization called the committee’s findings “intentionally misleading, irresponsible and unequivocally false,” arguing that the committee “has a fundamental misunderstanding of basic accounting principles – including the difference between gross revenue and net profit,” and said the profits were returned to the U.S. Treasury. The spokesperson also said the company “has invested significant time and money to salvage this crumbling asset that is costing American taxpayers millions of dollars every year.”
“Put simply, this report is nothing more than continued political harassment in a desperate attempt to mislead the American public and defame Trump in pursuit of his own agenda,” the spokesperson said. .
Deutsche Bank also accused the committee of making “several misrepresentations regarding Deutsche Bank and its loan agreement”. The terms of the loan have not changed and there has been no payment deferral, a person familiar with the matter said.
CNN has reached out to the GSA and the House Oversight Committee for comment.
In July, the GSA released documents including the Trump hotel’s audited financial statements from 2014 to 2020 prepared by WeiserMazars LLC, Trump’s accounting firm, and three years of Trump’s statements of financial position compiled by Mazars.
Various House committees have also prosecuted Trump’s tax returns and other Mazars USA and Deutsche Bank financial records for years, without success.
The documents released Friday raise “troubling questions” about the lease with the General Services Administration and “the agency’s ability to manage the former president’s conflicts of interest during his tenure when he was effectively a two sides of the contract, as landlord and tenant”. “, wrote the Democratic chair of the oversight committee, Carolyn Maloney, in a letter to the GSA on Friday.
The committee is also asking that the GSA produce more documents by the end of two weeks.
Since then, the Oversight Committee has investigated conflicts of interest regarding the GSA’s management of the Trump Hotel lease.
UPDATE: This story has been updated to reflect that the committee has corrected its own report to say that Trump’s revenue from the hotel reported in public financial disclosures is greater than $156 million. The report previously categorized this money as income.
CNN’s Kara Scannell contributed to this report.