The Trump brand name will no longer be used on high-rise hotel located in Toronto, Canada following a deal that was reached between Trump Hotel and JCF Capital ULC, the owner of the project. In order to release the project owner from using the name, the Trump family business will receive millions of dollars. JCF Capital ULC will also drop the Trump name from a condo development project that is in Toronto as well.
“We are pleased to have reached this agreement with JCF and have enjoyed our relationship with them as the new owners of this property,” Trump Hotels’ chief executive officer, Eric Danziger, said in a statement.
While the project was never owned by the U.S. president, Trump’s firm had entered into a management and branding contract with the developer of the building, Talon International Development. The developer however defaulted on the construction loan in 2016. In a sale directed by courts, JCF Capital then acquired some units which had not been bought yet.
After the buyout was announced, JCF Capital did not reveal whether a deal had been reached with another firm to oversee the branding and the management of the project. Sources say that Marriott International Inc is likely to operate the hotel.
The deal between JCF Capital and Trump Hotels is just the initial step taken in efforts to revamp the property which has encountered lawsuits and construction delays. Since it was opened, Talon International Development had only managed to sell less than 50% of the residential condos in the tower. The occupancy rate of the hotel had also turned out to be lower than what some investors had been expecting.
And following comments and statements by Donald Trump which disparaged Muslims, Mexicans and women, the building had become a protest site despite the fact that the president only lent his name and did not have any ownership in the building.
Since Donald Trump clinched the Republican nomination to contest the U.S. presidency, the Trump brand has been undergoing change. Last year the Scion line of hotels was launched, a curious development since the Trump brand name had previously been splashed on everything from vodkas to golf courses to casinos. Earlier this month there were was another line of hotels launched going by the name of American Idea. These are aimed at smaller markets and the first three are planned to be put up in the state of Mississippi.