The Trump Organization had a brutal 2020, but as other businesses are hopeful about vaccines allowing a better 2021, the former president's family company has a bleak economic outlook according to a new report by The Wall Street Journal.
"Former President Donald Trump saw sharp revenue declines across his family businesses last year as the Covid-19 pandemic took a steep toll on the Trump Organization's hotels and golf resorts, a marker of the many financial challenges Mr. Trump faces after leaving the White House," The Journal reported. "Newly released data from the Office of Government Ethics shows that the minimum revenue generated by Mr. Trump's businesses fell by nearly 40% from a year earlier, and declined even more at some of the company's most lucrative properties."
"The issues facing the Trump Organization are likely to get worse in the coming months. Some of the business's partners and clients said they would cut ties to Mr. Trump after his supporters stormed the Capitol in an effort to overturn President Biden's election win," the newspaper explained. "The disclosure, which covers 2020 and the first few weeks of 2021, shows business plunging at key Trump Organization properties. The Trump International Hotel in Washington, D.C., saw revenue fall to around $15 million compared with more than $40 million in 2019. The Trump National Doral Miami golf resort posted revenue of about $44 million, down over 40% compared with 2019."
"The latest disclosure is the first data to indicate the impact of Covid-19. It shows Mr. Trump's businesses taking in at least $278 million over the reporting period, down from at least $446 million in 2019," The Journal reported. "Besides the revenue falloff due to the pandemic, the Trump Organization has to contend with a substantial debt load. It has more than $400 million of loans coming due in the next few years, and refinancing the debt could be a challenge, particularly as once-loyal lenders to the Trump Organization such as Deutsche Bank AG seek to distance themselves from the former president."
Eric Trump, who ran the family business while his father was living in the White House, tried to put a rosy spin on the numbers.
"I have 75 million people who would follow my father to the ends of the Earth," he said. "He's got probably the most famous brand in the world. The opportunities for somebody like that are going to be endless."
Read the full report.