Trump’s Hotel is a cash cow – and this is a serious...

Trump’s Hotel is a cash cow – and this is a serious problem for him

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The Trump International Hotel in Washington DC makes much more profit than expected. This was reported by The Wall Street Journal and The Washington Post. So far Trump’s company, the Trump Organization, this year made about two million dollar profit. According to Trump’s company, a loss of two million dollars was expected by April. US President Donald Trump is now on the verge of profit.

The high income is achieved because the guests are willing to pay a high price for the rooms. On average, one night at the Trump Hotel costs $652.98. According to the newspaper, experts estimate that this is the most expensive hotel in Washington.

The Trump Organization had originally expected to be able to demand a 57 per cent lower price for the rooms. It posted net profit of $2 million in that period on revenue of $18 million, although, there was a forecast for the hotel to report a $2.1 million loss, according to both newspapers.

The hotel is the meeting place of the Republicans

The demand for the rooms is probably due to the proximity to the White House. This is a 15-minute walk from the hotel. Members of Trumps Cabinet as well as high-ranking Republicans descend there and meet in the bar and restaurant area.

For the high profit, the Democrats criticize the President, for example Peter DeFazio. He calls the Trump Hotel in Washington a highly unethical arrangement. Because the building belongs to the government he rented it since 2013 to Trump Organization, which made it a hotel.

Trump has secured the ownership rights to the hotel

The Trump Organization has twelve hotels, most of them in the USA. According to the economic magazine Forbes, the assets of the US president are estimated at 3.5 billion dollars.

Although Trump has given the hotel management to his sons Eric and Don Jr. and promised not to pay during his office time any profit of the hotels. But Trump is still the owner, so he can profit from the profits at a later date.

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I am a lecturer at the University of Economics in Bratislava, department of Banking and International Finance. I have a Ph.D. academic degree, my dissertation was focused on major markets. Commodities and stock markets are also the main focus of my research and publication activities. I have approximately 10 years of investing experiences. My investments mostly focus on small- to mid-cap companies of energy sector, financial and technology.

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