Former President Donald Trump saw a recent surge in value at his Trump National Doral golf resort in Miami, Florida, amidst a significant drop in his paper wealth from his shares in Trump Media and Technology Group. The club, which Trump purchased for $150 million in 2012, has seen its value increase to about $273 million, largely due to a recent boost in revenues and profits. The surge in value is attributed to multiple booms in the golf and resort industry, as well as the location of the club in South Florida, where real estate sales and home values remain high.
The success of Doral is reflective of the overall positive trend in the golf industry in recent years. Demand for golf resorts has increased post-pandemic, due to more flexible work options and a decrease in supply of courses. Doral, with its four courses, has been able to leverage its position in the market to take advantage of the booming industry. Trump’s other clubs, including thirteen Trump National clubs, have also increased in value, indicating a broader positive trend in the industry.
Experts attribute the increase in value at Doral to factors such as location, consumer travel trends, and a rise in high-end hotel and resort sales. The hotel business at Doral has seen steady growth in revenues from its 643 rooms, as well as increasing food and beverage sales from affluent customers. However, the rising cost of insurance in Florida and the uncertainty of a cooling economy could pose challenges for the property in the future.
Despite the recent success at Doral, Trump may have plans to redevelop the land in the future, as he proposed replacing two hotel buildings with over 2,200 residential units in 2022. There is also the factor of the “Trump” brand and its impact on property valuations, which has been mixed in different locations. In Florida, where the state trends red politically, the impact of the Trump brand on demand remains uncertain.
Experts remain divided on whether the positive trend in the golf industry will continue, given the post-pandemic disruption and economic uncertainty. Trump’s properties could see additional support from his quieter supporters in the future, who may choose to stay at his hotels and resorts as a way to show support anonymously. The future of Trump National Doral and other Trump properties remains uncertain, depending on a variety of factors including market trends, consumer demand, and the political climate.
