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Trump Org scraps plans for 2 hotel chains, blaming politics

NEW YORK (AP) — President Donald Trump’s company is scrapping plans for two new hotel chains announced two years ago, casting blame in part on a hostile political environment. The Trump Organization said Thursday that it will no longer try to open hotels under its Scion and American Idea brands catering to budget and mid-priced travelers, a departure from its focus on luxury hotels. The announcement comes as the company has posted losses at a few of its golf properties and brand experts say it has lost some of its appeal. “We live in a climate where everything will be used against us, whether by the fake news or by Democrats who are only interested in presidential harassment and wasting everyone’s time, barraging us with nonsense letters,” the president’s son, Eric Trump, said in an emailed statement. “We already have the greatest properties in the world and if we have to slow down our growth for the time being, we are happy to do it.” The rollout began with promises of fast success. The company said in March 2017 that nearly two dozen developers had already signed letters of intent to open mid-priced Scion hotels, and was enthusiastic about the future prospects. “It’s full steam ahead,” said Eric Danziger, who oversees the hotel business for the family. The only developer willing to strike a deal was Chawla Hotels of Mississippi. The Trump Organization owns or has licensed its name to 17 golf clubs and more than two dozen hotels and residential buildings around the world. More recently, it is facing blowback from Democrats in Congress for firing long-time workers at several of its U.S. golf clubs for being in the country illegally, raising doubts about its hiring practices amid the president’s vow to crack down on such workers and build a wall to keep more from coming in.
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