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Business Donald Trump The Trump Organization

Trump’s Hotels Are Failing Financially So He’s Trying To Monetize Politics: Report

Business is not good at hotels owned by failed, one-term former President Donald Trump, which has led the Trump Organization to try and sell off some its most well-known properties such as the Trump International Hotel in Washington, D.C., which is quickly becoming little more than a emblem of business failure, the one thing Trump has always excelled at.

Pulitzer Prize-winning Washington Post journalist David Fahrenthold said on the Post Reports podcast Wednesday that Trump has come to the realization that he has to start dumping some of his most prized hotels:

“(The D.C. hotel) was losing millions and millions of dollars. I think they recognize that you cannot make it in Washington, especially with as expensive a hotel as that is, as big of a loan as that hotel has, you can’t make it on one slice of the pie. You can’t make it just on Republicans.”

“It’s not enough. To make that kind of hotel at that luxury level work in Washington, you need everybody. You need embassies and you need conventions. You can’t have a polarized audience. So that’s them admitting, we can’t make this work. … It’s the kind of place that could do really well — it’s got a great location — but not (with the) Trump (name).'”

The Trump name and brand is toxic. Almost no one wants to be associated with the ex-president or anything that carries his now infamous name, Fahrenthold noted.

Additionally, Trump isn’t able to compete with big chain hotels because he can’t offer what they do:

“They’ve always had a structural disadvantage, because you can get Marriott points or Hilton points, or you can get your Trump card points, which you can use at three other hotels. They’ve always had that kind of structural disadvantage being a small chain. Now they’ve polarized their audience. I don’t see that as a long-term venue for the Trump Organization. The Trump hotel in DC, if they can’t make it here with that beautiful building, I don’t really see how they can make it anywhere.”

All of this, Fahrenthold concluded, means that Donald has to try and find another source of revenue:

“The idea that the Trump brand is something that brings in the general public, that demands a premium from the general public above a Hilton or a Marriott, I think that’s over, and they’ll shrink that part of the brand and focus on ways they can monetize politics. They’re doing that now. They have the whole T-Shirt and tchotchke shop online where you can buy Don Jr.’s book, and a MAGA hat, and an $85 candle that says ‘Trump’ on the side.

“There’s that, and then there’s this new digital venture, that are meant to monetize Trump’s fans.”

The digital venture is what Trump has dubbed “Truth Social,” his social media site that already has numerous problems even though it hasn’t yet formally launched.

Donald Trump is one of the worst businessmen in the world. Despite his bragging, he has no idea how to run a company or make money other than by grifting, i.e. Trump University. So now he’s going to rip off his gullible supporters and make them foot the bill for his lavish lifestyle.

To quote the late P.T. Barnum, “There’s a sucker born every minute.” Or least that’s what Trump is now counting on so he can try and stay afloat financially.

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Business Donald Trump GOP Social Media

MTG Bought $50K Worth Of Stock In Trump’s New Social Media Site – And Quickly Lost A Fortune

Like so many in the Republican Party, Rep. Marjorie Taylor Greene (R-GA) believes failed, one-term, twice-impeached former President Donald Trump is infallible.

But blindly following the ex-president has just hit Greene right in the wallet, with an investment she made in the ex-president’s new social media platform, Truth Social, costing her several thousand dollars, according to CNBC:

Rep. Marjorie Taylor Greene has invested up to $50,000 in the SPAC stock linked to former President Donald Trump’s planned social media platform.

According to a public disclosure, the Georgia Republican purchased a stake in Digital World Acquisition Corp., or DWAC, on Friday. The stake is worth at least $15,000 but no more than $50,000.

But based on DWAC’s price fluctuations and when Greene said she made her investment, on Friday, it’s almost certain she has lost money on the trade.

On Friday, DWAC opened at $118.80 a share and dipped as low as $67.96 a share. It ended Wednesday’s session at $64.89 a share. That means, at best, Greene has lost about 4.5% on her investment.

Imagine you bought a stock at almost $119 a share and then watched as it sank to approximately $65. How quickly would be be ready to dump the investment before you lost even more money?

Considering that Trump’s new venture also faces scrutiny from various federal regulatory agencies and financial institutions, it’s not even certain that Truth Social will ever get off the ground. Of course, if it doesn’t, Trump will still probably profit.

Truth Social is set to officially launch sometime in early 2022, but the wild ride the stock is on could delay or destroy those plans.

 

Categories
Business Donald Trump Social Media

Forbes Calls Investing In Trump’s New Social Media Platform ‘A Sucker’s Bet’

Even though failed, one-term former President Donald Trump’s latest business venture — a social media platform he’s dubbed Truth Social — won’t actually be operational until early next year at the soonest, he’s already raising money to finance the project, which has Chuck Jones of Forbes warning that putting a dime into the Trump project is “a sucker’s bet.”

Investors have been somewhat bullish early on:

Former President Trump announced on Thursday that a newly formed company, TMTG or Trump Media & Technology Group, would merge with Digital World Acquisition Corporation. Digital World is a SPAC or Special Purpose Acquisition Company that was formed in September and whose stock price had essentially been trading around $10 before the TMTG announcement. On Thursday the stock rose to $52 before closing at $45.50 and on Friday it hit a high of $175 and closed at $94.20.

From $10 to $52, then back down to to $45.50 and finally closing at $94.20. That’s some major fluctuation in such a short time, but Jones explains people are betting on a company that has no revenue and no earnings, which is just as absurd and unstable as it sounds:

As Digital World’s IPO prospectus stated, “We have neither engaged in any operations nor generated any revenues to date. Our only activities since inception have been organizational activities and those necessary to prepare for this offering. Following this offering, we will not generate any operating revenues until after completion of our initial business combination.”

Does that sound like something you want in your stock portfolio? If so, then you should probably hand over control of your investment decisions to a 10-year-old and let them choose what stocks to buy on your behalf.

There’s also the matter of the only other publicly traded company Trump has ever been a part of: Trump Entertainment Resorts, which included most of the Donald’s Atlantic City casinos. How did that work out? According to the Washington Post:

“The company operated for roughly two decades, starting in 1995. For Trump’s investors, it was a disaster: The company lost more than $1 billion, its stock price nosedived, and it filed for bankruptcy three times, in 2004, 2009 and 2014. … But Trump himself did well: The struggling company paid him more than $44 million in salary, bonuses and other compensation.”

Trump did great, but investors got fleeced. That’s the story of Donald Trump’s life. He’s a failure and he’s always been one. He just has others pay for his ignorance. And for some reason, they keep falling for his con job.

Categories
Business Donald Trump The Trump Adminstration

Trump Falls Off List Of Richest People For First Time In 25 Years

Proving yet again that he’s one of the worst businessmen on the face of the planet, failed, one-term, twice-impeached former President Donald has fallen off the list of the richest people for the first time in a quarter century, according to a new report from Forbes.

The reason Trump is no longer one of the 400 richest people is simple, Forbes notes:

If Trump is looking for someone to blame, he can start with himself. Five years ago, he had a golden opportunity to diversify his fortune. Fresh off the 2016 election, federal ethics officials were pushing Trump to divest his real estate assets. That would have allowed him to reinvest the proceeds into broad-based index funds and assume office free of conflicts of interest.

Ironically, since the COVID pandemic began (and was badly mishandled by Trump as president), his own personal wealth has decreased by $600 million, leaving him with an estimated net worth of $2.5 billion, which is $400 million short of the cutoff he would need to make the list of America’s richest people.

Divesting his assets would have allowed Trump to save a cool fortune on capital-gains taxes while also letting him enjoy the perks of investing his money in the stock market, which would have been a gold mine for him:

Close-mindedness has its costs. If Trump had managed to avoid capital-gains taxes, he could have theoretically reinvested $3.5 billion into the S&P 500 on the day he entered the White House. In that alternate scenario, Trump would have been worth an estimated $7 billion by this September, when Forbes locked in estimates for its annual list, enough to earn a spot as the 133rd-richest person in the country. Instead, he’s off the Forbes 400 for the first time in a quarter-century.

The Donald is going to need plenty of money in order to pay the legal bills that are accumulating with him under investigation in multiple venues for crimes ranging from bank and tax fraud to interfering with an election.

Additionally, the Trump Organization has massive debts coming due in the near future:

Lenders will expect his businesses to pay back an estimated $900 million in the next four years, an alarmingly accelerated timetable that involves more than twice as much debt as the president previously indicated. In order to emerge unscathed, Trump will likely have to engage in a series of high-stakes, big-money transactions—deals that could produce arguably the biggest conflicts of interest that an American president has ever had to face.

About half of the debt coming due from the start of 2021 to the end of 2024 is secured against assets that the president and his children own outright. He will have to pay back loans against his hotel in Washington, D.C., his golf resort in Miami and his tower in Chicago. He’ll also have to sort out the debt against Trump Tower and Trump Plaza in New York City.

Categories
Business Donald Trump The Trump Organization

Trump’s DC Hotel Is So Deserted That He’s Having Trouble Finding A Buyer: Report

Failed, one-term former President Donald Trump and his company, the Trump Organization, are desperately trying to sell their hotel in Washington, D.C., but business is so bad at the property that no one wants to make an offer to buy the hotel.

Jane Recker of Washingtonian recently dropped by the Trump hotel in the nation’s capital and reports it looked, sounded, and felt more like a tomb than a hotel:

It was 5 pm on the Tuesday after Labor Day, and roughly a dozen customers were in evidence—a tiny number for such a cavernous space. We camped out at the bar with a martini and a plate of fries, taking in the (lack of) scene. At one point, a maskless man approached us and asked, “Are you part of the Trump book club?” We were not. He wandered away, soon joining a small group across the room. A woman came to the bar and got a glass of Grenache. “I usually order the Trump wine,” she said, “but . . . .” She gazed around. “This is really a change from what it used to be. It used to be packed all the time.” She gulped her wine and left.

Another sign of just how little is going on at the Trump hotel: Recker spent two hours in the lobby and the elevator doors, she notes, didn’t move a single time.

At one point, it seemed things might change when a man approached Recker and sounded like he had some information for her:

Then again, maybe more is happening than is discernible to the naked eye. We struck up a conversation with a guy who was eager to chat with a journalist. “You ever write about Harris?” he asked, referring, we assumed, to the Vice President. He looked around suspiciously. “Meet me here at 10 o’ clock,” he said. “Get a few Irish whiskeys in me, I can tell you a lot of things.” We didn’t stick around.

The hotel has been on the market since 2019 and yet there have be no offers made to the Trump Organization. For all intents and purposes, it might just as well be what it once was before renovation: The old Post Office. At least when it served that purpose some people came in and gave the place some business.