Trump organization ends management of Toronto tower

Trump organization ends management of Toronto tower

The new owner of the Trump Hotel and Tower in Toronto has reached an agreement to remove the U.S. president's name from the property.

JCF Capital ULC, the firm that owns the Toronto hotel, reached a buyout deal with the Trump Organization's hotel and management firms for a reported fee of at least $6 million.

Trump's hotels in both the US and Canada have been used as sites to protest the president.

Last year, Trump Hotels announced a new brand of hotels, called Scion, which are smaller in scale than traditional Trump properties and will target millennial travellers.

The building and another one elsewhere in Vancouver, British Columbia, have become popular gathering spots to protest US policies.

Trump's brand was fairly straightforward as long as the only association customers had was "luxury, excellence and all the glamour", said Gabor Forgacs, an associate professor at the Ted Rogers School of hospitality and tourism management at Toronto's Ryerson University.

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. Some investors sued Talon for misrepresenting the investments.

Trump International Hotel and Tower in Toronto could become a St. Regis. A court past year ordered the developer to pay damages to one investor for "negligent misrepresentation" and for another sale to be rescinded.

JCF declined to say why the company bought out the management contracts.

Signage may be removed from the tower as soon as Aug, 1 and the hotel "will likely be operated under Marriott International Inc".

JCF, a joint venture between two private real estate investment firms, would not comment on when Mr. Trump's name would be removed. Trump Hotels' chief executive, Eric Danziger, added to the Times: "We are pleased to have reached this agreement with JCF and have enjoyed our relationship with them as the new owners of this property". The chain also manages eight hotels in the United States, as well as properties in Scotland and Panama.

Related news: