Donald Trump’s politics have divided the nation in unforeseen ways, and now it’s adversely affecting his business. Though he likely thought that running for president would increase his profit margin, the opposite has occurred as his campaign has progressed.
His current hotels have his own name “Trump” displayed in large lettering on them, but that’s about to change. His company plans on putting the name “Scion” on all future hotels, supposedly because they want to reach Millenials by “allowing for a clear distinction between our luxury and lifestyle brands.”
They don’t plan on removing Trump’s name from current hotels, although based on their recent lack of success they should consider it. According to New York Magazine, the latest Trump International Hotel in Washington, D.C. has already had poor business in the time since it opened last month. The hotel has already had to reduce rates during peak season, despite every other luxury hotel in the area being sold out weeks in advance of a huge conference taking place nearby. Their prime location near the White House and beautiful and historic look have not helped it recover. The break-even rate for this hotel is $750 per night, but in recent weekends the hotel has sold rooms for lower than $500 per night.
Reservations throughout the company have plunged by more than 50 percent, likely because people now associate staying at his hotel or doing business there would equate to supporting the candidate. Trump has effectively destroyed his name and, therefore, his brand, which has forced his company to consider keeping his name off of future buildings. By replacing it with “Scion,” people might not make the immediate connection to Trump and consider staying there.
He’s already proving competitors right, however, because lawyers from the Hilton wrote a letter to the General Services Administration after Trump won the bid for the building back in 2012. The huge hotel company said that the GSA was setting themselves up for a “devastating failure for the historical landmark with a business partner whose history of repeated failure demonstrates that it cannot be counted on to deliver what it promises.” Since Trump’s hotel has tanked thus far, it appears that Hilton was correct in foreseeing Trump’s inevitable failure. His reputation for loss and unreliability is disappointing, considering many citizens still believe that he would be fit for the presidency.