The Trump Organization says it will kick off its “American Idea” chain of mid-market hotels in the heart of Trump country.
In the latest and potentially one of the largest possible conflicts of interest for President Trump, his real estate company plans to open a new hotel chain supposedly inspired by his campaign.
The Trump Organization says it will kick off its “American Idea” chain of mid-market hotels in the heart of Trump country, with three locations set to open in Mississippi.
Trump’s adult sons, Donald Jr. and Eric — who claim to run the company without their father’s input — said the new chain comes from the “crash course in America” they got while traveling the country for their father’s campaign, which drew tremendous support from red states.
“We saw so many places and towns and so many stories, ” Donald Jr. said about the new hotels at a Trump Tower party.
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The Trump company announced the new venture while still constructing the first of its “Scion” hotel chain, which is expected to open four-star locations in smaller American cities that typically could not support a luxury Trump property. The debut Scion hotel is under construction in Mississippi.
All of the Mississippi hotels are owned by Chawla Hotels, but the Trump Organization still receives management and franchise fees. According to Chawla, the first Scion hotel will cost $20 million — with financing coming from the local Guaranty Bank — while each of the American Idea hotels will require up to $1.5 million for renovations on existing buildings.
The Mississippi hotels are among the largest new domestic ventures for the Trump Organization since President Trump took office — and so they once again raise conflict of interest questions that have dogged his presidency.
Trump claims that he has “divested” his business interests, but he still remains in charge of the Trump Organization, while claiming his sons run all of the daily operations. The sons, though, have admitted to keeping Trump updated on the company’s finances.
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The Mississippi hotels — just like Trump’s new Washington hotel, down the street from the White House — raise the potential for Trump to use his office for boosting the profits and profile of his business portfolio.
It also opens the door for foreign financial conflicts, since diplomats could see bookings at Trump hotels as a way to curry favor with the President.
Government ethics watchdogs have warned for months that Trump could be setting himself up for a violation of the emoluments clause, a provision in Constitution outlawing gifts from foreign leaders. Breaching the clause is a potentially impeachable offense.
