In August 2017, protestors in Manhattan projected an image of Vladimir Putin onto Donald Trump’s hotel, Trump SoHo, leading to the eventual renaming of the hotel to the Dominick Hotel by the end of the year. Despite the controversy and political polarization surrounding Trump’s brand, the separation from the hotel actually resulted in a spike in revenues for the property. It is speculated that a breakup fee may have been involved, as is common in these situations, to cover the remaining duration of the contract.
Similar situations occurred at other Trump-branded hotels, such as in Toronto and Honolulu, where management revenues increased significantly before the rebranding of the properties. The Trump International Hotel and Tower in Toronto saw a buyout of the management contract in 2017, leading to a spike in revenues for Trump. In Honolulu, the beachfront hotel’s management and licensing contracts were bought out in 2023, resulting in the removal of Trump’s name from the property.
Not all of Trump’s hotel separations involved a payout, as seen in Panama City and Vancouver, where the removal of his name did not result in reported breakup fees. The Vancouver property, now known as the Paradox Hotel, declined to confirm whether a buyout fee was involved in the separation. However, other locations such as Panama City and Vancouver have seen successful rebrandings post-Trump, indicating that the hotels have thrived without the controversial name attached.
The total estimated sum of breakup fees from various Trump-branded hotels is estimated to be at least $15 million, possibly reaching up to $25 million. This represents a significant portion of Trump’s profits from his licensing and management business, which struggled in the years following his presidency. Despite the difficulties faced by his brand in the United States, Trump is finding new opportunities in international markets such as Oman and Dubai, where new Trump-branded hotels are set to open in the coming years, bringing in millions in revenue.
Overall, the decline of the Trump hotel brand in the United States has led to various rebranding efforts and separations from his name, resulting in both profitable and challenging outcomes. The controversy surrounding Trump’s presidency and brand has impacted his business operations, leading to the need to seek new opportunities in international markets. Despite the challenges faced in the U.S. hotel industry, Trump’s licensing and management business continues to adapt and find success in new ventures abroad.
