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Old Post Office Building
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NEW YORK—After rumors surrounding multiple brands, the Old Post Office Building in Washington, D.C., will undergo an extensive historic renovation and become part of the Trump Hotel Collection.
The Trump organization announced Tuesday it was selected by the U.S. General Services Administration as the developer of the much sought-after Washington landmark.
David Orowitz, VP of acquisitions and development for the Trump Organization, told HotelNewsNow.com the company’s executives are excited about finally having closed a deal in the difficult-to-enter D.C. market.
“The Old Post Office is in a prime location. It’s two blocks from everything that makes D.C. great,” he said. The tourist spots, including the White House, as well as a business district nearby are just a few of the drivers of demand for the new hotel.
Under the proposal, the Trump Hotel Collection will be the investor, developer, brand and operator for the 250-plus room property. Colony Capital partnered with Trump on the proposal and will be the co-investor.
“Tom Barrack (founder, chairman and CEO of Colony Capital) and Mr. (Donald) Trump have a 30-year personal and business relationship,” Orowitz said. The two companies have successfully partnered in the past on complex, high-end projects, and Orowitz is confident the partnership will bode well with the complexity of the Old Post Office Building.
“We are unique in that we are an investor, developer and operator. There’s a real advantage because you’ve got that perspective early on in the process,” Orowitz said. The entire team, including the designers, was in on the process early on, which allows the organization to avoid any surprises later, he said.
Although many of the Trump Hotel Collection properties have been new-builds, renovations are nothing new to the company, Orowitz said. The Mar-a-Lago Club in Palm Beach, Florida, the Plaza Hotel in New York, and the Grand Hyatt New York at Grand Central Terminal all have been developed by the Trump Organization.
As for the Old Post Office Building, Orowitz said Trump Hotel Collection is a very creative organization and was able to come up with a very precise renovation program. “It’s a landmark, and we can’t alter it (in many ways), and we wouldn’t want to,” he said.
The exterior of the building will be preserved, as well as the contributing elements on the inside.
The deal includes a 60-year lease on the property with the GSA.
“This is 100% a public-private partnership … We made it clear in our proposal that we were interested in working hand-in-hand with the GSA,” Orowitz said.
The Trump Hotel Collection currently has five hotels open in the United States, a property in Toronto, another in Panama City, Panama, and a hotel in Aberdeen, Scotland, in the pipeline.
While there is a lack of a development in the U.S., there are more opportunities for the company to develop ground-up hotels in places such as Asia, Orowitz said.
“Our general strategy is that we’re focused on where there is luxury demand and that’s been the goal we have. We want to be in places that support the international standards of luxury,” he said.
