By Andy Sullivan
WASHINGTON, March 25 (Reuters) – The U.S. government said on Friday it would allow former President Donald Trump’s company to sell the rights to a luxury Washington hotel to a Hilton subsidiary, paving the way on behalf of Trump. served as a flashpoint during his presidency.
The US General Services Administration, which acts as the federal government’s landlord, said it approved the deal between the Trump Organization and CGI Merchant Group, a Miami-based investment firm that plans to operate the building as a than Waldorf Astoria hotel.
Located in the historic Old Post Office Building four blocks from the White House, the Trump International Hotel served as a gathering point for his supporters and some foreign government officials during his presidency, and a sticking point for critics who said it violated ethics laws.
Trump’s company has reached an agreement to sell its rights to the property for $375 million, which could earn it a profit of $100 million.
Democrats in Congress had urged the GSA to cancel the lease before Trump could sell it, arguing that he may have provided a misleading picture of his finances when the government leased the property to him in 2013, before he does not run for president.
The Trump Organization and CGI Merchant Group did not immediately respond to a request for comment. (Reporting by Andy Sullivan; Additional reporting by Caitlin Webber; Editing by Rami Ayyub and Alistair Bell)