Spekulatius Posted November 20, 2020 Share Posted November 20, 2020 I found this article pretty interesting, assuming the numbers are correct: https://www.cnbc.com/2020/11/19/trump-international-hotel-washington-dc-sale-put-on-indefinite-hold.html Thepupil would love this: This was valued at $500M by the Trump organization, but they didn’t even get a bid for $250M Hotel was apparently renovated / build for $200M in cost $40M in Revenue annually (2019) $3M (ground lease - 60 years with inflation escalator) $100M in debt (held by Deutsche Bank) Does any of this even make remotely economic sense? Building a Hotel for $200M that brings in a measily in $40M revenue while not even owning the dirt and having to pay $3M ground lease (seems they the ground lease is less than 99 year even). How on earth could this be worth $500M? As the article cited, it may not even be worth $100M (the loan amount) if they give it back to a lender. Quote Link to comment Share on other sites More sharing options...
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