Supreme Court to Hear Case on Trump’s Former DC Hotel.

The Supreme Court Takes Up Dispute Over Trump Hotel

Background

The Supreme Court has decided to take up a long-running dispute between former President Donald Trump and congressional Democrats over the former Trump International Hotel in Washington D.C. The case dates back to 2017 when Trump had just become president and Republicans controlled both chambers of Congress.

Several Democrats on the House Oversight Committee demanded that the Trump administration produce records concerning how Trump acquired the rights to develop the historic Old Post Office building as a luxury hotel. The Trump administration refused, and Trump critics have alleged that the deal smacked of corruption. They said that various organizations, including foreign governments, booked the hotel to curry favor with the administration.

However, The Trump Organization said the leasing process was conducted fairly. More than 20 hotel companies bid on the project, and Trump’s company said it “was awarded the job based on the strength of Trump development capabilities, financial wherewithal, vision for the property, and dedication to the preservation of the historic structure.”

The Sale of the Lease

Trump left the presidency in January 2021, and The Trump Organization sold the lease to the property in May 2022 to CGI Merchant Group for an undisclosed sum. The hotel is now known as the Waldorf Astoria Washington D.C. and is part of Hilton Worldwide.

“The transaction marks the highest price per key ever achieved in Washington D.C., the highest price per key in U.S. history for a leasehold interest, and the largest sale of a historic hotel in over 15 years,” The Trump Organization said.

Media reports based on unnamed sources indicated at the time that the lease was sold for $375 million and may have netted the Trump family business up to $100 million in profits.

The Case

The case is Carnahan v. Maloney, court file 22-425. Robin Carnahan is the administrator of the General Services Administration (GSA), an independent agency of the U.S. government that manages federal property and provides contracting options for government agencies. Former Rep. Carolyn Maloney, a Democrat from New York, chaired the U.S. House Oversight Committee until she left office on Jan. 3.

The decision to hear the case came in an unsigned order. No justices dissented.

Conclusion

The Supreme Court’s decision to take up this case is significant, and it will be interesting to see how it plays out. Stay tuned for updates.