The Trump International Hotel in Washington, D.C., was a favorite Republican meeting spot during the Trump presidency, attracting lobbyists, lawmakers and others with business before the administration. After the Trumps faced criticism that they were skirting government-ethics laws by profiting from the property, they put up for sale the long-term lease rights for the hotel in the former Old Post Office, the Wall Street Journal reported. In 2022, the Trumps sold those rights to Miami-based investor CGI Merchant Group for $375 million — a price that was tens of millions of dollars more than the other offers. CGI rebranded the hotel as a Waldorf Astoria. This month, the new owner defaulted on a $285 million loan related to the property, according to people familiar with the matter. The missed payments on that loan reflect higher interest rates and the above-market price the firm paid the Trumps, industry executives say. In an interview, CGI Chief Executive Raoul Thomas said he is lining up $100 million of new financing for the property. Mavik Capital Management, a real-estate debt and investment fund, is in talks to provide $75 million to cure the default and restructure the troubled balance sheet, while also providing money for a private club and another restaurant at the hotel. But reaching a final deal might not be easy. Hilton, which manages the Washington, D.C., property, has been talking to other firms about new capital and would have to approve any new partner.
