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Donald Trump has a cash problem
David Fahrenthold RetweetedLast week, the Trump boys blamed Democrats and journalists for the failure of their new down-market hotel lines. But they weren't great ideas for the Trump Org to begin with... and weren't going to bring in the cash the president probably needs
Link to tweet
Donald Trump Has a Cash Problem
The failure of his sons’ new hotel chains hints at financial issues.
RUSS CHOMA FEBRUARY 19, 2019 6:00 AM
President Donald Trump’s sons announced Thursday that they were shelving plans to open two chains of lower-end hotels and motels, blaming Democrats and journalists on their failure to get the new brands off the ground. But there’s a likelier explanation for their struggles, and it has to do with their dad.
It’s been two and a half years since the Trump sons trademarked the names Scion and American Ideal for the new hotel chains. With Thursday’s announcement, they have nothing to show for the once-ballyhooed expansion of the Trump empire. “We live in a climate where everything will be used against us, whether by the fake news or by Democrats who are only interested in presidential harassment and wasting everyone’s time, barraging us with nonsense letters” Eric Trump said in a bitter statement to the New York Times. ... The Trumps had announced only one franchisee, to operate four locations of the new hotels. According to the New York Times, they had perhaps a dozen additional deals that had not been publicized.
Despite Eric Trump’s protests, it seems unlikely that the planned chains were ever going to thrive. One hotel industry expert told Mother Jones that for chains like Scion and American Ideal—which were probably going to rent rooms in the $100 to $150 range, as opposed to $450 and up in Trump’s swankier locations—to be successful, they have to operate at scale. Chains like these create business through dozens or hundreds of locations that use a loyalty points system and central booking. While Trump’s high-end hotels bank on their uniqueness, excellent service, or lavish luxury, the market for the lower-end chains is dominated by brand loyalty.
Rather than “presidential harassment” or “fake news,” there are plenty of business reasons for franchisees to avoid the Trump brands—mainly the association with President Trump. When it comes to brand loyalty, the Trump name was probably a killer for anyone who wanted to open a new hotel. ... “He’s the president and he’s very polarizing,” says Jan A. deRoos, a professor of hotel finance and real estate at Cornell University’s School of Hotel Administration. “So if you have a chance to put a brand on your hotel and a good half of the population won’t stay there because they don’t like him, or you could put something benign on it like a Best Western, it’s an incredibly easy decision.”
....
The failure of his sons’ new hotel chains hints at financial issues.
RUSS CHOMA FEBRUARY 19, 2019 6:00 AM
President Donald Trump’s sons announced Thursday that they were shelving plans to open two chains of lower-end hotels and motels, blaming Democrats and journalists on their failure to get the new brands off the ground. But there’s a likelier explanation for their struggles, and it has to do with their dad.
It’s been two and a half years since the Trump sons trademarked the names Scion and American Ideal for the new hotel chains. With Thursday’s announcement, they have nothing to show for the once-ballyhooed expansion of the Trump empire. “We live in a climate where everything will be used against us, whether by the fake news or by Democrats who are only interested in presidential harassment and wasting everyone’s time, barraging us with nonsense letters” Eric Trump said in a bitter statement to the New York Times. ... The Trumps had announced only one franchisee, to operate four locations of the new hotels. According to the New York Times, they had perhaps a dozen additional deals that had not been publicized.
Despite Eric Trump’s protests, it seems unlikely that the planned chains were ever going to thrive. One hotel industry expert told Mother Jones that for chains like Scion and American Ideal—which were probably going to rent rooms in the $100 to $150 range, as opposed to $450 and up in Trump’s swankier locations—to be successful, they have to operate at scale. Chains like these create business through dozens or hundreds of locations that use a loyalty points system and central booking. While Trump’s high-end hotels bank on their uniqueness, excellent service, or lavish luxury, the market for the lower-end chains is dominated by brand loyalty.
Rather than “presidential harassment” or “fake news,” there are plenty of business reasons for franchisees to avoid the Trump brands—mainly the association with President Trump. When it comes to brand loyalty, the Trump name was probably a killer for anyone who wanted to open a new hotel. ... “He’s the president and he’s very polarizing,” says Jan A. deRoos, a professor of hotel finance and real estate at Cornell University’s School of Hotel Administration. “So if you have a chance to put a brand on your hotel and a good half of the population won’t stay there because they don’t like him, or you could put something benign on it like a Best Western, it’s an incredibly easy decision.”
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from a Russian friend...with a first name...?? can't recall.................I think it starts with a V..
