Is the Trump name a liability? Trump-branded hotel owner in Panama thinks so

by | Mar 5, 2018 | General News, News

The majority owner of a Trump-branded hotel in the country of Panama is alleging that the Trump Organization has misled the property’s staff

The majority owner of a Trump-branded hotel in the country of Panama is alleging that the Trump Organization has misled the property’s staff, according to reports from the American news organization CNN.

This marks the most recent development in what has become an ongoing four-month battle. On one side of this battle is the Trump Organization, which licensed its brand to the project in Panama 10 years ago, long before Donald Trump was elected president of the United States. On the other side of the battle is Miami-based investor Orestes Fintiklis, who bought the hotel’s amenities and a majority of its units in the past year.

Trying to Remove the Trump Name

Fintiklis controls the company that owns this hole, and he has been trying to remove the brand and to also terminate a management agreement with Trump, saying the property has “steadily been losing market share and stands in last place among its peer luxury hotels in all the relevant metrics for success in the hotel industry,” according to a lawsuit that was filed in January.

This lawsuit was filed by Fintiklis company, and it also claims that that a decline in occupancy at the hotel has had an ongoing impact on the property’s bottom line.

The Trump Organization’s Response

Meanwhile, the Trump Organization has responded by saying that Fintiklis has breached “virtually every contractual provision he agreed to,” a list that would include Fintiklis taking any steps that would terminate the management contract without some sort of court order, the Trump Organization’s attorney Alan Garten has told CNN.

As a result of this disagreement, the two sides have continued to be locked in arbitration and lawsuits dating back as far as October. This past week, however, has lead to new developments in the ongoing tensions, with CNN reporting that Fintiklis tried to enter the hotel in order to give dismissal notices to employees, but that he was then denied access to its administrative offices.

A Trend in Similarly-Branded Hotels

Fintiklis is not the only hotelier who has worked to remove the Trump brand and to also terminate a management contract with the company since President Donald Trump’s incredibly polarizing election victory in November 2016.

In fact, the property in Panama is the third to try and shed the president’s name since he was elected. In June, the owner of Trump International Hotel and Tower Toronto came to terms on a deal to end its own contract with the organization, while in November, a Trump-branded building that is located in Manhattan’s SoHo neighborhood negotiated a similar deal to do the same.

The Trump International Hotel and Tower Panama is a 70-story building that is shaped like a sail. It includes residential units as well as a casino and office space.Let’s take a look at a few other projects currently underway by Trump Hotel Collection:

Trump International Hotel & Tower Bali

Scion Westend

Trump International Resort & Golf Club Lido

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