The Trump Organization has reached a deal that will allow the company to walk away from the property by the end of next month, the company said Wednesday. It is the second time this year the Trump name was erased from a hotel development, after a June announcement in Toronto.
Located in an upscale neighborhood in a deeply Democratic city, the SoHo hotel has struggled to attract guests at five-star prices and has dropped its rates to keep rooms occupied. The property also includes condominiums that have been slow to sell. And when the building’s main restaurant decided to close in April, a lawyer for the restaurant attributed it to a decline in business “since the election.”
Under the exit deal, the Trump Organization will sever its contract with the building’s owner, an investment firm in California that focuses primarily on real estate.