In August 2017, a group of protestors projected an image of Vladimir Putin onto the Trump SoHo hotel, leading to a decline in Trump’s name being associated with the property. The hotel was eventually renamed the Dominick Hotel, and Trump and the tower owner CIM Group parted ways. Despite his brand taking a hit, Trump reportedly made money by taking his name off the building, with revenues soaring from $3 million in 2015 to $17 million in 2017.
The increase in cash flow was likely due to a breakup fee covering the remaining duration of the contract, which is a common practice when switching to other partners or brands. This trend of hotels ditching Trump’s name started in Toronto in June 2017 and continued with a hotel in Honolulu in 2023, where the Trump brand faced disadvantages due to politics and lack of loyalty program. Trump seemed to have received a payout in these instances before the breakup was announced.
While not every contract end resulted in a payout, some hotels like Panama City and Vancouver reportedly did not involve breakup fees. Trump’s hotel in Vancouver closed in 2020 amid the Covid-19 pandemic and reopened in 2022 as the Paradox Hotel after parting ways with the Trump Organization. Estimates suggest that Trump could have made $15-25 million in breakup fees from hotels taking his name off buildings from 2017 to 2023, a significant portion of his total profits.
Despite the decline in associations with the Trump name, his licensing and management business is finding new opportunities in other countries like Oman and Dubai. The business generated millions in 2022 and 2023 from new deals in Gulf states where the Trump brand still seems to have resonance. As hotels continue to take his name off buildings, Trump’s licensing and management business is seeking new places to establish itself as the luster of the Trump brand fades in the industry.
Overall, the trend of hotels disassociating from the Trump brand indicates a shift in the perception and value of his name in the hospitality industry. While some instances may involve breakup fees, not every contract end results in a payout for Trump. Moving forward, the Trump Organization is focusing on new opportunities in countries where the brand still holds value, signaling a shift in strategy for the business in response to changing market dynamics and political circumstances.
