GSA approves sale of Trump Organization hotel lease in Washington
The GSA said it has hired a third-party consultant to assess CGI Merchant Group and its partner Hilton Worldwide Holdings Inc., which will operate the hotel as a Waldorf Astoria property. After a review, he said he determined CGI was a “qualified assignee” and Hilton was a “qualified operator,” a necessary step for Trump to sell the lease. The GSA said its contracts manager informed the Trump Organization of its decision on Friday.
The Trump Organization did not immediately respond to a request for comment. A CGI spokesperson declined to comment.
A person familiar with the deal says it is on track and could be announced in the coming weeks.
The GSA said its review determined the sale price was reasonable.
“The contracting officer has no basis to conclude that the sale value of the lease is commercially unreasonable or inconsistent with market demand,” he said. “The brokerage firm engaged by the tenant to market the lease has advised the contracting officer that there is broad interest in acquiring the leasehold interest and has received multiple offers within the same range as the sale price to CGI. Additionally, in the opinion of the contracting officer, the dollar amount per key (a common measure used to value the sale of hotel assets) was comparable to similar transactions.”
This story has been updated with additional details.