Trump SoHo Hotel is being bought out, Trump International Hotels Management and the board of the Trump SoHo Condominium New York announced Wednesday.
The transition for the buyout of the remaining term of the management and license agreement of Trump SoHo Hotel will take place by the end of the year. The buyout was first reported by the New York Times.
The decision comes as some properties connected to the Trump Organization are struggling for business. One exception to this is the, a meeting place for administration and GOP officials and out-of-town guests, which has been exceeding financial expectations. Trump SoHo opened only seven years ago in 2010, as a $450 million, 46-story hotel and condominium in the popular lower Manhattan district. The Trump SoHo is not owned by Mr. Trump, but his name was licensed and the Trump Organization managed the property.
The announcement comes after a hotel bearing Trump's name in Toronto did away with the "Trump" attached to its name, following the decision of the building's new owner to end a contract with the Trump Organization to manage the hotel and condo space.
The property has faced legal trouble in the past. Condo buyers in a lawsuit claimed they were defrauded by claims Mr. Trump, his children and associates made about the building, and the defendants in the suit in November 2011 agreed to refund 90 percent of $3.16 million in deposits, while admitting to no wrongdoing, The New York Times reported. The endeavor has also been questioned for ties to Felix Sater, a Russian-born real estate developer whose name has cropped up in discussions about Russian election meddling and any ties to the Trump campaign. Sater pushed the idea of a Trump property in Moscow, Michael Cohen.
But those associated with the endeavor touted its successes.
"The board and CIM have been first class in every regard," said Eric Danziger, CEO of Trump Hotels. "We have truly enjoyed our relationship and look forward to exploring new opportunities in the future. Over the past several years, Trump Hotels has expanded into a multi-dimensional hotel group, and we look forward to continuing the expansion into new domestic markets."
"The hotel has achieved high ratings and earned many accolades, including the prestigious AAA Five-Diamond award for five consecutive years under the management of the Trump Organization and the impressive efforts of the hotel's employees," Gil Keinan, vice president of the board said in a statement.
The president's sons, Eric Trump and Donald Trump Jr., are in charge of the Trump Organization, with Mr. Trump in the White House, although the president hasn't divested his business interests.