Donald Trump’s political campaign, which has divided the American population, appears to have also hurt the bottom line of his hotel properties.
It may have also been part of the reason the Trump Hotel chain introduced Scion, a new luxury brand hotel chain targeting a youthful clientele.
The company issued a press release in September touting the launch of the Scion brand of luxury hotels which are “in response to the boom in social clubs and the ‘we’ economy.”
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The Trump organization currently has 15 hotels in eight countries, including in cities Toronto, New York and Washington, D.C.
“Our business at Trump Hotels is stronger than ever and we are incredibly excited about the future of Scion, the newest brand in our hotel portfolio,” Trump’s daughter, Ivanka, said in the release.
While the branding is a clear attempt to reach out to a more youthful market, it is also a step away from the Trump name, which has been tarnished in many eyes by the Republican presidential candidate’s attacks on minorities and allegations of sexual assault.
Trump’s hotels have been a victim of his polarizing campaign as vacancies at his hotel chain have risen 58 per cent, according to Hipmunk.com.
While the company itself hasn’t disclosed booking rates, Ovation Vacations, a luxury travel firm, told Bloomberg News that bookings through their company have fallen 29 per cent over the past six months.
Another firm, Altour International Inc., told Bloomberg that while corporate bookings had fallen 10 per cent, personal vacations at Trump hotels were on the rise.
At his brand new Washington hotel vacancies were high during recent IMF Meetings in the U.S. Capitol, according to New York Magazine. In fact, rates were said to have been discounted while many rival hotels were full.
Rates were initially set at $625. Rooms are said to have been available for as little as $404.
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The Washington location has also had problems staffing its restaurants as celebrity chefs walked away from contracts to open a restaurant in the hotel after Trump made disparaging remarks about Mexican immigrants, according to Travel and Leisure Magazine.
While the company announcement did not link the new Scion brand with falling bookings, frequent critic Mark Cuban somewhat did recently.
He issued a tweet in early October which read, “Every single Donald Trump hotel and golf course is toast. Done. Over. Bernie Madoff now has a better brand.”
https://twitter.com/mcuban/status/784610064116150273?ref_src=twsrc%5Etfw
However, people tend to have short memories said Jason Awad, a venue planner in Washington, to Bloomberg.
“Six months after the election, everyone will forget it,” Awad said. “He’s very resilient.”
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