Coronavirus Costing Trump Properties Over $1 Million Daily in Lost Revenue

Crisis is also complicating Trump Organization’s effort to sell long-term lease on Washington hotel at a record price

The coronavirus outbreak is costing Trump Organization properties more than a million dollars in lost revenue daily and may have hurt the firm’s chances of earning a record price on the sale of its Washington hotel, according to an analysis of industry data and people familiar with the deal talks.

The majority of revenues for President Trump’s family business comes from travel and leisure, which have been hit hard by the forced closures and economic downturn caused by the pandemic. The situation could worsen because golf accounts for about half of the roughly $440 million of income Mr. Trump reported in his latest government financial disclosure.

More than 500 staff at Trump properties in New York, Washington, Las Vegas and Florida have been laid off or furloughed, say people familiar with the matter and federal disclosures. Several Trump hotels have been closed, and those still running have experienced dwindling occupancies. One day in March, the family’s flagship Trump International Hotel in Washington had just 11 guests in its 263 rooms, according to an employee.

The outbreak also has derailed the organization’s effort to sell its long-term lease on the Washington hotel, which is in the former Old Post Office building. With extensions, the lease from the federal government runs close to 100 years. The organization was negotiating a deal with two potential buyers for between $320 million and $350 million, but those talks have stalled. At least one of the potential buyers was a consortium and both were hotel investors.

The family had hoped to raise as much as $500 million in a sale, according to people familiar with their thinking. But at $350 million, the deal still would have been the most-expensive hotel sale in Washington on a per room basis. People familiar with the sale process say a deal is unlikely until the impact of the pandemic becomes clearer.

“As we have done from day one, we are weighing all of our options,” Eric Trump, who runs the organization with his brother Donald Trump Jr., said in a statement. “Our main focus right now is to keep our amazing teams healthy and safe.”

The Trumps’ failure to close a deal could prove costly in other ways. The property, a short walk down Pennsylvania Avenue from the White House, is a hub of social activity among Republicans. If Mr. Trump isn’t re-elected this fall, much of that business could dry up quickly, and the Trump name on the hotel could keep other potential customers away.

Trump properties in Florida, including Mar-a-Lago and the Trump National Doral Miami, as well as in Las Vegas are closed.

“It’s like a ghost town here,” said Whitney Schneider, a Palm Beach, Fla., resident and member of Mar-a-Lago, which closed last week following an order from Florida Gov. Ron DeSantis for all bars and restaurants in the state to shut.

The Trump Organization isn’t alone among hotel and golf course operators confronting a crisis with little precedent. Mr. Trump’s businesses are explicitly barred from taking any part in the roughly $2 trillion rescue package signed into law in March.

“The impact to our industry is already more severe than anything we’ve seen before,” Chip Rogers, president of the American Hotel & Lodging Association, a trade group, told President Trump in a meeting at the White House last month.

The Journal’s estimates of Trump hotel revenues are based on federal disclosures, interviews with former and current employees and travel-industry data from analytics firm STR. The estimates use average occupancy rates and pricing data for the luxury hotel category by city for March 2019.

Recent total revenues of the Trump Organization couldn’t be determined, though even before the pandemic hit, the firm’s reported performance had been sluggish, federal disclosures show. Its prime office properties may help to partly temper the revenue declines from hotel and golf assets.

The Doral is likely losing more than $200,000 each day the resort is closed, according to the estimates. Besides golf, former employees of the resort said big profits come from golf tournaments, conventions and other events that attract hundreds of visitors who also book hotel rooms at the Doral.

Even the hotels that remain open, such as in Washington and New York, appear to be taking big losses, with those two properties together forgoing around $300,000 or more in revenues each day, according to the estimates.

“Like virtually every other hospitality company, we are anxiously awaiting the day when our world-class properties can fully reopen their doors,” Eric Trump said in a written response to questions, without commenting on the properties’ revenues. “We have an unbelievably strong company and we continue to pray for the health and safety of all Americans.”

There is seasonality in many of the organization’s businesses. The Florida properties were closed near peak season, while business would normally pick up in hotels and golf courses in the north as summer approaches. In New York and New Jersey—the epicenter of the pandemic in the U.S.—Trump golf courses reported annual revenues of around $45 million in the president’s latest financial disclosure.

As a result, some Trump-owned courses and their employees, through their participation in several industry groups, have supported efforts to lobby state and local officials to keep golf courses open during the pandemic or to win government relief if they are closed, lobbying disclosures show.

Jay Karen, chief executive of the National Golf Course Owners Association, a trade group, says golf courses should be allowed to stay open even with social-distancing guidelines in place, since players can remain 6 feet apart from one another and courses can limit the number of people playing at the same time.

Mr. Karen’s organization is part of an umbrella group called We Are Golf that lobbies federal, state and local officials. Trump courses in New Jersey and Pennsylvania are members of the group’s local chapters.

Another group representing managers of Trump courses is the Club Management Association of America. That group in turn is a member of the World Golf Foundation, the parent of We Are Golf.

Jeff Morgan, the CMAA president, said his members are hoping that facilities like golf courses will be eligible for federal assistance programs that excluded them in the past.

The pandemic is another setback to the Trump Organization’s thwarted ambitions to build a world-wide luxury hotel empire. Even before the coronavirus struck, the Trumps were forced to abandon plans to work with Middle Eastern, Asian and other foreign partners on luxury hotels because of conflict-of-interest concerns after Mr. Trump won the White House.

“We walked away from billions of dollars’ worth of deals and ceased virtually all expansion,” Eric Trump previously has said.

Some Trump hotel owners have removed the name and terminated the company’s management, including the 70-story Trump International Hotel & Tower in Panama City, which is shaped like a ship’s sail and is now a JW Marriott. A Trump hotel in Toronto went into receivership in 2016 and today operates as a St. Regis.

The Trumps’ effort to launch more lifestyle-oriented brands in the U.S. aimed at younger travelers and with a lower price point never went anywhere and has been shut down.

Saluting the Heroes of the Coronavirus Pandumbic | The Daily Show

Hannity. Rush. Dobbs. Ingraham. Pirro. Nunes. Tammy. Geraldo. Doocy. Hegseth. Schlapp. Siegel. Watters. Dr. Drew. Henry. Ainsley. Gaetz. Inhofe. Pence. Kudlow. Conway. Trump. We salute the Heroes of the Pandumbic. #DailyShow #TrevorNoah #Coronavirus

Fox’s Fake News Contagion

The network spent too long spraying its viewers with false information about the coronavirus pandemic.

You can relax, Sean Hannity, I’m not going to sue you.

Some people are suggesting that there might be grounds for legal action against the cable network that you pretty much rule — Fox News — because you and your colleagues dished out dangerous misinformation about the virus in the early days of the crisis in the United States. Some might allege that they have lost loved ones because of what was broadcast by your news organization.

But lawsuits are a bad idea. Here’s why: I believe in Fox News’s First Amendment right as a press organization, even if some of its on-air talent did not mind being egregiously bad at their jobs when it came to giving out accurate health data.

And, more to the point, when all is said and done, my Mom will listen to her children over Fox News. One of us — my brother — is an actual doctor and knows what he is talking about. And the other is a persistent annoyance — that would be me.

I’m a huge pest, in fact. “I’m going to block your number, if you don’t stop,” my mother said to me over the phone several weeks ago from Florida, after I had texted her the umpteenth chart about the spread of coronavirus across the country. All of these graphs had scary lines that went up and to the right. And all of them flashed big honking red lights: Go home and stay there until all clear.

She ignored my texts, so I had switched to calling her to make sure she had accurate information in those critical weeks at the end of February and the beginning of March. She is in the over-80 group that is most at risk of dying from infection. I worry a lot.

But she was not concerned — and it was clear why. Her primary source of news is Fox. In those days she was telling me that the Covid-19 threat was overblown by the mainstream news media (note, her daughter is in the media). She told me that it wasn’t going to be that big a deal. She told me that it was just like the flu.

And, she added, it was more likely that the Democrats were using the virus to score political points. And, did I know, by the way, that Joe Biden was addled?

Thankfully, Mom had not gone as far as claiming the coronavirus is a plot to hurt President Trump — a theory pushed by some at Fox News heavily at first. While she has been alternately appalled and amused by the president, and often takes his side, she is not enough of a superfan to think that he is any kind of victim here.

So, she kept going out with friends to restaurants and shopping and generally living her life as it always had been. “What’s the big deal, Kara? Stop bothering me,” she said over the phone. “You’re the one who is going to get sick, if you don’t stop working so much.”

And with that she was off to another social event, with me unable to stop her since I was hundreds of miles away. That spring break kid was bad, but this was also not good.

I could not lay the blame at the feet of social media this time. No, Facebook was not my mother’s source of misinformation (in fact, the company has been trying to improve in this area). It was not the fault of Dr. Google, which has at least pushed out more good information than bad. And my mom doesn’t use Twitter.

Instead, it was Fox, the whole Fox and nothing but the Fox.

Many children of older parents have come to know this news diet as the equivalent of extreme senior sugar addiction mixed with a series of truly unpleasant and conspiracy-laden doughnuts.

You know all those awful GIFs using a Meryl Streep line from “A Cry in the Dark”: “A dingo ate my baby!”? Well, it sometimes feels like Fox News is eating my mother’s brain.

My brother, a doctor working on the front lines of the crisis in San Francisco, called the misinformation “magical thinking and wishful ignorance” that persists because none of us ever wants to believe the worst. He finds it happens a lot when it comes to dire health information. “If Mom does not want coronavirus to be true, pablum from Fox News makes it easier,” he told me. “It’s classic propaganda.”

It turns out, executives at Fox News HQ were more reasonable behind the scenes. The offices were Lysol-ed and sanitized and employees were given instructions to be safe. All while the network was doing quite the opposite: spraying viewers with far too much fake news contagion.

As The Times media columnist Ben Smith wrote recently: “Fox failed its viewers and the broader public in ways both revealing and potentially lethal. In particular, Lachlan Murdoch failed to pry its most important voices away from their embrace of the president’s early line: that the virus was not a big threat in the United States.”

That would be the chief executive of the company that owns Fox News, who took over the job from his infamous father, Rupert Murdoch. It was the patriarch who set the table at Fox, and Lachlan is just an apparently lackadaisical butler of the family business, according to Mr. Smith.

Well, not completely. Lachlan Murdoch did dump a B-team player, the Fox Business host Trish Regan, after she called the media attention given to coronavirus “another attempt to impeach the president.”

In Mr. Smith’s column, Fox’s longtime public relations honcho Irena Briganti said that the virus situation “has evolved considerably over the last few weeks.” Presumably that’s an attempt to use a get-out-of-lawsuit-free card by trying to establish that the story has shifted and so has the news organization.

Mistakes were made, pandemic version.

Given the growing number of cases and deaths in the United States, Fox stopped playing down the crisis, a move that closely tracks the rocky evolution in thinking by Mr. Trump. Fox may also seek cover from some early pronouncements from another powerful Fox host, Tucker Carlson. While Mr. Hannity spun the hoax line, Mr. Carlson was quite firmly in the taking-it-seriously camp, urging Mr. Trump to act.

But back then, Mr. Carlson was a lone prominent voice on Fox, and his more grounded views did not break through to my mother in the early days. In this, Fox failed my mother and countless others of its fans. While we can joke all we want about the “Fair and Balanced” motto, it’s a very low bar to simply give your audience decent health information.

Fox News finally got much more serious in its reporting on the coronavirus, as has Mr. Trump (the My Pillow guy aside). Convinced by experts’ new estimates that millions of Americans would be at risk for infection and hundreds of thousands at risk for dying if he prematurely reopened the country, Mr. Trump and Fox have gone into reverse.

And, to my surprise, as the pandemic has worsened, my mother started to listen to other sources of information, like her children and other news outlets. She’s been sheltering in place at home for at least two weeks and not going out — except to get food and perhaps an ice cream sundae. (“It’s my daily joy,” she said to me, and so I do not argue.)

It was when Mr. Trump and Fox News initially shifted to a story line about getting back to work — even though it was too early — that the problems with Fox really sank in for her. She now seems to realize that she bears some of the burden as a news consumer, though she remains a Fox News acolyte.

So by the time the lieutenant governor of Texas, Dan Patrick, was on Fox on March 23 declaring that the elderly might take a virus bullet for the young people to bolster the country’s economic future — a line that was then echoed through the network — she was having none of it.

She read up. She looked at my charts. She stopped thinking so magically. And, most of all, she decided she wanted a lot more ice cream sundaes.

“Are they crazy? That’s crazy,” she said. “I am not dying for anyone.”

She was talking to me, for sure — but she’s also talking to you, Sean.