Someday we will know why Trump ran for president. Was it an inclination to improve the lives of his fellow citizen? Was it an order from Putin? Or was it based on a desire to promote his brand, and fatten his wallet? If Trump thought the presidency would be good for business, that might go down as the worst business decision ever. Turns out that buildings all over the word are facing economic backlash as a result of having Trump’s name on it.
Much of Trump’s wealth comes from allowing buildings all over the world to wear his name. Once upon a time, Trump’ signified opulence. Some crappy building in Shanghai becomes the center of glamour by just hanging the word ‘Trump’ on the edifice. Trump really doesn’t own so much property. Most of his fortune has been amassed by leasing the rights to names to buildings.
A financial summary Trump issued when he kicked off his presidential campaign in 2015 valued his “real estate licensing deal, brand and branded developments” at $3.3bn – the most significant single source of what Trump then claimed to be an $8.7bn total net worth. TheGuardian.
That is an important quote. The biggest source of income to the Trump organization is licensing his name. Trump’s presidency has made his name worthless. Trump once said that by placing his name on the building, the property value instantly soars 25%, TheGuardian. That might have been true ten years ago. Before Trump ran for president, and America only associated Trump with hot women, shitty television shows, and Oompa Loompas, the Trump name carried a lot of weight. But now, the Trump name conjures up swastikas, censorship and curfews.
Maybe once upon a time, forking over that ten million price tag for permission to use his name, was a good idea. But not anymore. Residents of a luxurious New York apartment building wearing Trump’s name are furious, and want the name taken down. The Trump name is bad for business. Harvey and Peggy Koeppel put their apartment for sale just before the election. For months, it didn’t budge. They finally sold it for 10% less than the asking price. TheGuardian
A week after Trump was elected to office, three other buildings in New York paid Trump to have his name removed. Linda Gottleib said she and several of her neighbors were so “incensed” at Trump’s actions throughout the presidential campaign that she started the petition.
We felt we had to do something, so this was a small protest.” ABC
Even the Trump organization is cognizant of how damaging the Trump name now is to property value. In late 2016, Trump announced a new brand of hotels, called the Scion. I reckon, it’ll take a few media campaigns to make every American associate Scion with Trump.
All over the world, buildings are feeling the curse of the Trump name. Owners of the Trump International Hotel in Panama paid at least $32 million to wear the Trump name. Now, they are in the process of removing his name.
Stripping the Trump name is not so easy. The Trump Organization argues that buildings that remove his name are violating contractual obligations.
Not only do we have a valid, binding and enforceable long-term management agreement, but any suggestion that the hotel is not performing up to expectations is belied by the actual facts,” the Trump Organization said in a statement. NYDailyNews
The Trump International Hotel & Tower in Toronto feels that the Trump name is so horrendous for business, they are actually paying $6 million to remove it!
Trump has a massive following of supporters. However, none of these supporters could afford a roll of toilet paper at a Trump Hotel, let alone a room. Trump might be better off trading his empty hotels for some trailer parks.