Even with 42.3% occupancy at the Trump International Hotel in Washington, D.C., the hotel posted a US$1.97 million profit during the first four months of 2017, according to a Washington Post story citing documents from the General Services Administration.
The Trump Organization had projected that it would lose US$2.1 million during the first four months of 2017 as the hotel ramped up its new business, but with an average rate of US$652.98 it easily beat initial room rate projections by 57%.
The Post said rates were likely driven hire by curiosity seekers and members of Trump’s Cabinet who have stayed or lived there. There has also been big spending on food and beverages in the meeting areas, bars and restaurants with the hotel generating US$8.2 million and again beating expectations by 37.2%. The report said those gains easily outweighed underperformance by the hotel’s retail, parking and Spa by Ivanka Trump.
The data does not show how much of the hotel’s profits come from foreign governments, money the hotel is expected to donate to the U.S. treasury at the end of the year to avoid violating the Constitution’s emoluments clause, which prohibits the president from profiting from foreign governments without specific approval from Congress.