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Saturday, October 22, 2016

In The Hospitality Industry Worldwide, Trump's Brand Is Now Completely Toxic-- Less Than Worthless

This past summer we were in Azerbaijan, primarily in Baku, the capital city. Really nice place to visit! We noticed that there was a huge hulking Trump Tower in the middle of the glittering skyline. But it was empty. In fact, it was closed down, having only opened for a week before firing the entire staff and shutting down the operation. Presumably they'll remove the toxic logo that the local bandits who own the building paid Trump to use, and re-open it under less toxic name-- like Motel 6 Baku. But Baku isn't the only city where the Trump name is keeping hotel rooms empty... even at heavily discounted prices.

The prestigious new hotel in DC that he's always trying to drum up business for is the cheapest 5-star in Washington-- and the most empty. And the Trump Towers in Istanbul, where the president of the country demanded the name be changed, is desperate to sell over a dozen luxury apartments that no one will buy at very deep discounts.
Property Turkey is privileged to offer to its clients 15 luxury apartments available for sale below market value within Istanbul's prestigious Trump Towers. This is a one-off offer for a limited period only and on a limited number of apartments.

  Trump Towers located in between Sisli and Mecidiyekoy is one of Istanbul's landmark mix-use complexes, where residences and commercial units always command a premium. The complex is one of Istanbul's most prestigious.
CNN reported that travel agents and events planners are avoiding the Trump brand entirely. In DC, "room rates also indicate the hotel may be lagging behind its competition. A Tuesday night stay at the Trump hotel was priced at $505 on, more than $200 cheaper than five-star alternatives like the Four Seasons and the Jefferson. Comparable hotels like the downtown Ritz-Carlton and Hay-Adams, meanwhile, had no open rooms." The new hotel "has been the target of protests and vandalism since it opened last month. And its namesake's presidential campaign has made the Trump name awkward at best and toxic at worst for those who specialize in the hotel industry. 'There certainly are people who are concerned about the message they send by spending money in Trump-branded hotels,' said David Loeb, a senior hotel analyst at the Robert W. Baird private equity firm. Brand research studies suggest those concerns are taking hold. A Foursquare analysis showed foot traffic at Trump's hotels, casinos and golf clubs is down 16% this year. And a Young & Rubicam report released Tuesday shows consumers think Trump himself is less fun, trendy and stylish than he was three months ago. That's bad news for Trump, who claims his name is worth more than $3 billion in real estate licensing and branding deals. Industry analysts say that number is exaggerated."

Travel + Leisure doesn't, as a rule, slag off potential advertisers, but the news is all over the hospitality industry: Trump Hotels Ditching Name For New Hotels. I don't know if Trump plans on having Barron run the business, but his new hotel ventures will be called "Scion."
Amidst reports that occupancy rates at Trump Hotels have slipped this election season, the company has announced that new brand hotels will no longer bear the Trump name.

The newest line of luxury hotels, geared towards millennials, will be called Scion, the company said.

“We wanted a name that would be a nod to the Trump family and to the tremendous success it has had with its businesses, including Trump Hotels, while allowing for a clear distinction between our luxury and lifestyle brands,” Trump Hotels CEO Eric Danziger said in a statement.

Although Trump Hotels has said the new name has nothing to do with the eponymous businessman’s presidential campaign, empty rooms at the hotels have caused officials “to reduce rates during the peak season," according to New York Magazine.

Nightly rates at the newly-opened Trump International Hotel in D.C. plummeted below $500 while practically every other five-star property was sold out for the International Monetary Fund conference two weeks ago. And after his remarks about Mexican immigrants, two celebrity chefs backed out of their contracts to open a restaurant in the hotel.

According to Hipmunk, bookings at Trump Hotels plummeted 59 percent during the first half of 2016 and data from Foursquare shows a 17 percent drop in foot traffic at Trump properties since June 2015, when the reality TV star announced his presidential bid.
Back to Trump Tower Baku. His crooked partners, the notorious Mammadov family, tried burning the building down for the insurance money. And further south, in the United Arab Emirates, Trump’s name and image were removed from a $6 billion golf and housing complex in Dubai.

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