Daily Management Review

WSJ: Trump's company is losing $1M daily


The lost revenue of the company of the President of the United States Trump Organization due to the coronavirus pandemic exceeds $ 1 million per day, writes The Wall Street Journal, citing industry data and information from sources.

Bin im Garten
Bin im Garten
According to the newspaper, the company receives most of its revenue from travel and entertainment, that is, sectors that have been hit hard by the pandemic.

More than 500 employees of the company in New York, Washington, Las Vegas and Florida were suspended from work, WSJ sources said. Some hotels of the company were closed, and those that continued to work faced a drop in the number of bookings. According to one of the employees, there were only 11 guests with 263 rooms on one of March days at the Trump International Hotel in Washington.

The outbreak also thwarted the Trump family’s plans to sell state leases to the former post office building that houses the Trump International Hotel in Washington. The company was negotiating with two potential buyers about a deal for $ 320-350 million. However, discussions were discontinued, and their resumption is unlikely until the situation with the epidemic becomes clear.

“As from day one, we weigh all our options,” said President Trump’s son, who runs the company with his brother Donald Trump Jr.: “We are now focused on ensuring that our great team remains healthy and safe”.

Resorts owned by Trump in Florida, including Mar-a-Lago and Trump National Doral, were closed last week due to a decree from State Governor Ron DeSantis. According to WSJ, Doral is losing more than $ 200,000 for each day of closing. The resort receives large revenues not only from tourist accommodation, but also from golf tournaments, conferences and other events, staff say.

Hotels in Washington and New York that continue to operate lose a total of at least $ 300,000 in a day.

At the same time, the Trump Organization will not receive assistance under the $ 2 trillion economic package last week, WSJ notes.

source: wsj.com