- Former President Donald Trump’s luxury hotel in Washington, D.C., suffered more than $70 million in damages from 2016-20, according to newly released filings that his accountants submitted to the hotel’s landlord, the General Services Administration.
- While the hotel was losing money, Trump’s annual financial disclosures only reported its revenue, which totaled $156 million over five years.
- The House Oversight and Government Reform Committee alleged in a new report that Trump hid more than $20 million in loans for the struggling hotel.
WASHINGTON — Former President Donald Trump’s luxury hotel in Washington, D.C., suffered more than $70 million in damages from 2016 to 2020, according to newly released confidential filings that his accountants submitted to the hotel’s landlord, the General Services Administration. did.
While the hotel was losing money, Trump’s annual financial disclosures filed with the Office of Government Ethics publicly reported only hotel revenue, which rose to about $156.6 million.
Yet in the same period, Trump’s accounting firm, Weisermajors LLP, disclosed Confidential Report to GSA that the hotel suffered a loss of approximately $73.9 million.
According to A new report released Friday by the House Oversight and Government Reform CommitteeThe effect of the discrepancy between what Trump publicly reported and what he disclosed privately was to mislead the public about the president’s financial position.
A Trump spokesman did not immediately respond Friday to CNBC’s request for comment on the new report.
The committee also alleged that Trump hid more than $20 million in loans given to his real estate holding company to the struggling hotel, another attempt to hide the true state of the president’s finances.
“Far from being a successful investment, Trump Hotels was a failing business that was deeply in debt that required bailouts from President Trump’s other businesses,” the committee said. wrote in a letter on Friday Robin Carnahan, administrator of the General Services Administration, the federal agency that leases the underlying property of Trump’s D.C. Hotel, the historic Old Post Office building on Pennsylvania Avenue.
“In deciding to conceal the actual financial position of the Trump Hotel from federal ethics officials and the American public, President Trump concealed a conflict of interest,” wrote Rep. Carolyn Maloney, D.Y., and Rep. Gerry Connelly, D-VA. Chairman of the Committee and the Chairman of the Subcommittee on Government Operations respectively.
It is not clear whether Trump violated any federal rules regarding the disclosure of assets and income. By reporting revenue, and excluding losses, Trump has followed the letter of the law, if not the spirit.
The committee also revealed that Trump received an unrestricted and surprise loan modification from Deutsche Bank halfway through his presidency, potentially saving the then-president and his struggling company millions of dollars.
The US subsidiary of Deutsche Bank gave Trump a $170 million loan in 2015 to renovate and operate the hotel. Under the terms of that loan, Trump was supposed to start paying off the principal in 2018.
But according to the committee’s findings, in 2018, “the terms of the loan were changed to allow the Trump hotel to defer any principal payments on the loan for six years.”
The committee says it is not clear how or by whom the loan modification was negotiated. According to Trump’s annual financial disclosures, the change in loan terms was not publicly disclosed.
The new findings are in keeping with Trump’s decades-long pattern of allegedly hiding his losses and liabilities, while increasing his income, assets and net worth.
That pattern is currently the subject of investigation by New York state officials, who are investigating whether Trump’s company overestimated the value of its assets on insurance forms, and underreported them on tax returns. This could amount to insurance fraud.
The company is also facing a tax evasion case in New York that has already implicated its top accountant, longtime Trump family employee Alan Weiselberg. In July, Weiselberg pleaded not guilty to the charges stemming from an alleged decades-long conspiracy to hide compensation he had received from the company.
Trump has denied any allegations of wrongdoing, instead accusing officials of subjecting him to a partisan “witch hunt.”
Trump recently Removed from Forbes magazine’s list of 400 richest Americans, a list containing his name for the last 25 years. The COVID-19 pandemic hit the commercial real estate and hotel industries particularly hard, costing Trump nearly $600 million in estimated net worth, Forbes determined.