The Trump Organization will receive millions of dollars so that JCF Capital ULC-the U.S. firm that owns the Trump International Hotel & Tower in Toronto-can remove the name of the U.S. president from its property in the city's bustling downtown business district.
The Trump Organization did not have an ownership stake there but had leased the Trump name to the property and was responsible for its management.
According to Bloomberg, a buyout deal has been reached-possibly to the tune of at least $6 million, although the official amount was not disclosed.
Representatives from both JCF Capital and the Trump Organization had a positive outlook on the negotiations and promised to work together again in the future.
"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 CEO Eric Danziger said in a statement.
"This was a record-setting year for the hotel and we are incredibly proud of our performance. We look forward to the possibility of exploring other opportunities with JCF in the near future," Danziger added.
While both parties praised the deal, low hotel occupancy rates and poor residential sales likely weighed on decisions.
The hotel first opened its doors in 2012 under the Trump brand, offering 211 guest rooms as well as 74 residences. It was then owned by Talon International, which defaulted on the loan, leading to the sale of the building to JCF.
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According to a report in CBC news regarding the sale to JCF, the residential units were more than half empty and room rates have been on the decline since the property opened.
In the months since Trump began his campaign and presidency, the 65-story tower has also become a beacon for protests over his remarks on women's issues, Mexican immigration, Muslim travel and more.
Bloomberg noted that sources said the Trump name could be gone as soon as August 1, with many believing Marriott International will operate the hotel as a St. Regis.
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