![]() “However, (Trump’s peer group) ekes out a tiny RevPAR gain in 2016 when Trump RevPAR plummets.” “That’s quite a bit of new supply over a short period of time in the ‘upper upscale’ and ‘luxury’ chain scales,” Detlefsen wrote in his email. Seven upper-end hotels opened between 20, including the Langham Chicago a block away, the Loews in Streeterville and the Virgin and London House in the Loop. The Trump Chicago, which opened in 2008, may also have lost business to new luxury competitors that opened before and during his presidential campaign, according to Detlefsen. ![]() But by 2018, it ranked sixth, with a RevPAR of $258.38. In 2014, Trump’s RevPAR of $296.39 ranked first among the eight hotels, according to STR data. But over the same period, RevPAR rose nearly 4% for a group of eight downtown luxury hotels in Trump’s competitive set. Revenue per available room, a key performance metric that accounts for occupancy and room rate, fell 22% at the Trump Chicago over 20, according to a report filed with the assessor that was prepared by STR, a hospitality research and consulting firm. The data shows that the Trump hotel fell behind its competitors, including the Peninsula, Four Seasons and Ritz-Carlton, as Trump’s political fortunes rose. Trump’s attorneys also filed data with the assessor showing how his hotel has performed versus its luxury peers, offering a more complete picture of its position in the downtown market. Other factors may be fully or partly responsible for its struggles.īut a declining downtown hotel market wasn’t one. Though the documents suggest Trump’s political rise hurt his Chicago hotel, they do not prove it. Crain’s obtained the documents from the assessor by filing requests under the Freedom of Information Act. But his attorneys over the years have included its closely held financials in appeals filed with the assessor’s office, part of their efforts to show that the hotel’s assessed value is too high for property tax purposes. Trump operates his Chicago hotel as a private business and doesn’t release its results to the public. But revenue at his Mar-a-Lago club in Palm Beach, Fla., and his Trump Doral golf resort in Miami held steady until the pandemic, according to financial disclosure reports Trump filed with the U.S. House committee that Trump representatives have disputed. His Washington hotel lost an estimated $74 million between 20, according to a report from a U.S. Some of Trump’s other properties slipped during the early years of his presidency, including his hotel in New York. Representatives of the Trump Organization, the former president’s New York-based company, didn't respond to requests for comment. “Instead, it looks like the Trump brand became hyper-polarized over a longer period between the end of 20,” Detlefsen wrote in an email.Ī Trump Hotels spokeswoman declined to comment. ![]() If so, it didn't happen overnight, said Hans Detlefsen, president of Chicago-based consulting firm Hotel Appraisers & Advisors, who reviewed the documents. One possible explanation for the decline is that Trump’s political ascendance undermined his Chicago hotel, as the developer-turned-president turned off potential guests with his policies and brash style. ![]() The hotel stabilized in 2019 before being walloped by the COVID-19 pandemic the following year. The property’s earnings before interest, taxes, depreciation and amortization, or EBITDA, fell 89% over the same period, to $1.9 million. But revenue at the 339-room hotel dropped as Trump rose to power and took charge in Washington.įrom 2015 to 2018, a time of relative stability for the downtown hotel market, revenue at the Trump Chicago dropped 30%, to $50.3 million, according to financial documents filed with the assessor. Amid a recovering downtown hospitality market, the Trump Chicago’s results improved steadily in the first half of the last decade. ![]()
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |