Some hotels have removed President Donald Trump’s name from the building due to the brand’s value bearing his name “slipping without brakes”?
The Trump brand strength is sharply reduced
Since 2016, because of aggressive behavior as a presidential candidate, with provocative statements about Mexicans and Muslims, has severely affected the name of Donald Trump and the brand he has created during the past 30 years.
Before becoming a presidential candidate, Trump Real Estate will have a significant advantage over real estate in the same segment. Therefore, the price of this property will be added to the surplus value, also known as “Trump premium”. But since 2016, that advantage has completely disappeared, according to Redfin’s Taylor Marr analyst: “We can not add any surplus value to the Trump-related properties as before. “ .
With that, the price difference between the apartments that Trump provided compared to the equivalent apartments in the same segment has shrunk considerably. If the figure is 6.8% in 2015, then by 2016 only 1.7%.
During this period, many residents of the Trump Tower, Chicago, said instead of writing the name of the building they were living in, they just wrote the name of the street in the address. In New York, Keith Olbermann, a media expert, also stated, “I could not live in Trump’s building any more,” and then moved out of the building after “nine years happy here “.
Now, after a year in office, Trump’s assets have fallen by $ 400 million to $ 3.1 billion. According to Forbes magazine’s list of world billionaires, announced on March 6, Donald Trump’s position dropped 212 places on the list.
According to Forbes, the most famous building value of the Trump family fell $ 41 million last year. With the same fate, Trump’s Tower at 6, East 57th Street is even more bleak. Recently, the Nike Group announced that it will stop renting space of up to 6,000 square meters in the spring this year.
In addition, the golf course of the president also suffered equally serious consequences. Only three of his biggest golf courses in the states with most of his supporters are showing signs of improvement. In states that support former Secretary of State Hillary Clinton, the opposite is true, for example, in Los Angeles or two golf courses in Scotland, sales are down.
What is the stands for the Trump brand?
In some markets, such as Toronto and New York, due to the declining influence of the Trump brand, investors have dropped Trump out of the Trump branded hotels.
On March 5, according to media reports, the name Trump completely disappeared from the Trump Organization at the Trump Ocean Club hotel tower in Panama City, Panama, bringing the total number of hotels dropped to number 3.
In fact, over the past two years, the Trump brand has been removed from at least seven towers in four cities – Panama, New York, Rio and Toronto and possibly in Vancouver and Chicago.
“The city of Toronto has the principle of” diversity is power. There is no place for Trump in the image of the most diverse city in the world, “ said Josh Matlow, a city council member, after Trump made provocative remarks when he called Mexican are criminals and “Rape men”.
According to FairFX’s analysis of a travel currency, room rates in 12 of the 13 Trump hotels around the world fell between 10% and 60% in 2017. The strongest drop was Trump Las Vegas, Room for 2 nights decreased from $ 844 to $ 314 in the first few months. Trump Doral hotel room rates in Florida fell 53%, while the Trump Hotel in the UK fell by 57%.