GSA Makes Surprising Verdict on Trump's DC Hotel

Image: PHOTO: Trump International Hotel, Washington, DC. (photo via Flickr/Olivier Duquesne)
Image: PHOTO: Trump International Hotel, Washington, DC. (photo via Flickr/Olivier Duquesne)
Patrick Clarke
by Patrick Clarke
Last updated: 11:15 AM ET, Fri March 24, 2017

Despite months of debate, the argument over whether Washington, D.C.'s Trump International Hotel is in violation of its lease (now that Donald Trump has assumed the presidency) has finally reached a conclusion.

According to the New York Times, the General Services Administration (GSA) has ruled that the luxury hotel's lease is in "full compliance."

While a clause in the lease prohibits any elected official from benefiting from the property, GSA contracting officer Kevin Terry said the lease terms had been met because Trump resigned from his executive positions at the Trump Organization and turned over control to his sons Donald and Eric.

Trump also agreed to receive no direct earnings from the hotel, which is housed in the Old Post Office building on Pennsylvania Avenue.

"We would like to thank the GSA for their diligent review of this matter," the Trump Organization said in a statement Thursday via the Times. "We are immensely proud of this property and look forward to providing our guests with an unrivaled luxury experience for years to come."

Unsurprisingly, the agency's decision was met with dismay from House Democrats who had urged GSA to look into the matter prior to Trump's inauguration.

"GSA changed the position it held before Trump took office," said Rep. Elijah Cummings of Maryland and Rep. Peter DeFazio of Oregon via NBC News. "Any elected official can now defy the restriction by following this blueprint."

"This decision allows profits to be reinvested back into the hotel so Donald Trump can reap the financial benefits when he leaves the White House," the duo added. "This is exactly what the lease provision was supposed to prevent."

In addition to Democrats, the decision left some experts stunned.

Government procurement law expert and former federal government contracting officer Steven Schooner called the ruling "unexpected and unpersuasive."

"It is harmful to the integrity-and thus credibility-of GSA, the presidency, and federal procurement process," Schooner said via NBC.

[READMORE] READ MORE: Donald Trump to Donate Hotel Profits to US Treasury [/READMORE]

Although Trump and his brand's new hotel appear out of the woods when it comes to the lease agreement, challenges remain. Earlier this month, a nearby wine bar sued Trump and his hotel, claiming the property had an unfair advantage in attracting customers.

Other businesses have been encouraged to join the suit, which seeks to have Trump divest from the hotel or close it for the duration of his time in office.


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Patrick Clarke

Patrick Clarke

Senior Editor

A Maryland native and wanderer who has lived across the U.S. from North Carolina to SoCal, Patrick Clarke graduated from Towson University with a B.S. in journalism. He previously worked for Bleacher

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