The investment firm that acquired the Washington, D.C., hotel formerly operated by former President Donald Trump’s company has lost the property in a foreclosure auction two years after buying it for $375 million.
The Wall Street Journal reported Miami-based CGI Merchant Group initially defaulted on its debt in 2023. The merchant bank BDT & MSD Partners took over the property on Monday after CGI failed to cure the default.
“We have actively engaged with CGI in a constructive manner, allowing ample time for them to explore financing and alternative options,” said a spokeswoman for BDT & MSD. “We have now taken control of the Waldorf Astoria Washington D.C. via foreclosure.”
BDT & MSD said it would retain the rights to the property while Hilton will continue operating the property under its Waldorf brand. However, CGI insisted it will regain the property rights.
“We are not done fighting for the Waldorf Astoria,” a spokeswoman for CGI said. “Even though the auction has occurred, we remain in intense discussions with BDT & MSD Partners and still have a finalized capital solution on the table to cure the loan default and recapitalize the asset.”
The property was originally the Post Office Building, which opened in 1899. Trump leased the property from the federal government in 2012 and reopened it as a hotel in 2016. During Trump’s presidency, the hotel was frequented by lawmakers and lobbyists, which raised complaints that Trump ran afoul of government ethics laws. The hotel’s lease was sold in 2022 and was rebranded by CGI as a Waldorf Astoria hotel.
Photo courtesy of Waldorf Astoria in Washington, D.C.
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