Former President Donald Trump’s hotel brand experienced a decline in popularity and success following his controversial presidency, leading to several hotels removing his name from their buildings. One notable instance occurred in Manhattan’s SoHo neighborhood, where Trump SoHo was rebranded as The Dominick Hotel after protestors projected an image of Russian leader Vladimir Putin on the building. Trump’s decision to part ways with the building’s owner, CIM Group, resulted in a spike in combined entity revenues from $3 million in 2015 to $17 million in 2017, possibly due to a breakup fee covering the remaining duration of the contract.
Trump’s brand faced similar removals in Toronto and Honolulu, where his name was taken down from hotel properties. In Toronto, management revenues at Trump International Hotel and Tower increased from $500,000 in 2015 to over $2.2 million in 2017, reflecting a spike in cash flow following the rebranding. Interestingly, reports indicate that Trump received a significant sum in licensing fees for the Honolulu property in 2022 before the breakup was announced in 2023, demonstrating a strategic financial move on his part.
Despite the financial gains from these breakup fees, not every property that ended its contract with Trump resulted in a payout. The Panama City hotel removed his name in 2018 without evidence of a breakup fee, while the Vancouver hotel closed in 2020 amid the pandemic and reopened in 2022 as the Paradox Hotel, leaving unclear whether a buyout fee was involved. Estimates suggest that Trump may have received between $15 million and $25 million in total from these breakup fees, a significant portion of his management and licensing business’s profits from 2017 to 2023.
As Trump’s name continued to be removed from properties, his licensing and management business sought new opportunities in regions like the Middle East. Following investments from Gulf states and Saudi Arabia during his presidency, new Trump hotel locations in Oman and Dubai are set to open in the coming years, potentially rejuvenating his brand in those markets. Despite the decline in his hotel brand’s popularity in the industry, these new ventures may offer a chance for Trump to regain some of the luster lost in recent years.
Overall, the removal of Trump’s name from several hotel properties signals a shift in the perception and profitability of his brand post-presidency. While breakup fees from these contracts provided a financial boost to his struggling business, the long-term impact on Trump’s reputation and success in the hospitality industry remains to be seen. With new opportunities arising in the Middle East, Trump’s licensing and management business may find new avenues for growth and success in the years to come.
