President Trump’s hotel in Washington, D.C., has a below-average occupancy rate with a hefty price tag compared to its competitors, according to a new report.
The Trump International Hotel, which opened just before the 2016 election and sits a few short blocks away from the White House, averaged an occupancy rate of about 50 percent a month during its first year of business, CNN reported Saturday.
The news outlet said it obtained data from the hotel’s first 11 months which revealed that the occupancy rate is around one-third below that of other luxury hotels in the nation’s capital, which reportedly averaged an occupancy of 77 percent a month.
The group of luxury hotels also charged guests an average of $334 per night whereas the Trump International Hotel charged an average of $559 a night.
According to an analyst that spoke to CNN, new hotels don’t start at a higher price because they "want to create an incentive for customers – plus, they haven't built a base of corporate customers yet." However, that’s not the case for the Trump hotel.
The Trump hotel was built in the federally owned Old Post Office building. The Trump Organization pays a fixed monthly rent to the federal government for the space and under the terms of the 60 year lease and is billed an additional fee if the business exceeds certain sales benchmarks.
Critics have raised concerns over the terms of this lease given that it’s with the General Services Administration, now under the charge of the Trump administration.
Trump resigned from the company after he was elected and transferred his assets into a trust, though Trump appears to have the authority to dissolve the trust at any time.
Despite low occupancy rates, the hotel has been a popular spot for many high-end events, Republican and otherwise, since the president was elected.