The Trump Organization is getting paid millions of dollars by the owners of a Toronto hotel so they can remove Trump’s name from the building.
In a deal announced late Tuesday, Trump was bought out of its management contract at the 65-story Trump International Hotel and Tower Toronto.
The luxury property will likely be reflagged as soon as August as a Marriott St. Regis, the Financial Post reported, adding that the Trump Hotels likely walked away with roughly $6 million from the management sale.
The agreement to scrub the Trump name from the tower is a step toward revamping the property, which has faced a history of construction delays and lawsuits, according to the newspaper.
“Most recently, it’s been a site for protests against the Trump’s comments disparaging women, Mexicans and Muslims, even though his company has no ownership stake in the property,” according to the Financial Post.
The hotel’s new owner JCF Capital, a venture of Juniper Capital Partners and Cowie Capital Partners, bought the building in a court-approved sales process in March.
JCF obtained 211 hotel units, 74 residential units and most of the commercial, retail and amenity space at the hotel for a bid of $298 million.
Its former owner and developer, Talon International, run by Russian-Canadian billionaire Alex Shnaider, had defaulted on its loan in 2007, which was also purchased by JCF.
“This was a record setting year for the hotel and we are incredibly proud of our performance,” said Eric Danziger, CEO of Trump Hotels. “We look forward to the possibility of exploring other opportunities with JCF in the near future.”
Jay Wolf, president of JCF Capital, noted in the announcement, “Collectively, Donald Trump Jr., Eric Trump, Eric Danziger and their team have been exceptional partners and we hope to have the pleasure of working with the Trump Organization again in the future.”
Early this month, the Trumps announced the formation of American Idea, a more downscale chain that was inspired by their experiences while traveling during the presidential campaign, and will launch in Mississippi with three hotels.
