Feb. 7 (Bloomberg) -- Trump Organization, headed by Donald Trump, the developer and reality-television star, plans to spend almost $200 million on its first hotel in Washington.
The U.S. General Services Administration selected the New York-based company to redevelop the historic Old Post Office building, located at 12th Street and Pennsylvania Avenue, into a 250-room luxury hotel with a restaurant, spa and conference facilities, the agency said in a statement today.
Trump Organization is seeking to profit from demand from government, business and leisure travelers to the city, said Ivanka Trump, the company’s executive vice president of development and acquisitions. Hotel occupancy in the capital was 69 percent last year through November, higher than the 61 percent rate for the entire U.S., according to Smith Travel Research Inc. of Hendersonville, Tennessee.
“A new luxury hotel hasn’t been introduced to D.C. in years, and there is no current pipeline of luxury hotel product given the lack of great available locations and the high cost of land and development,” Ivanka Trump said in a telephone interview today.
Trump Organization will spend almost $200 million on the project, the General Services Administration said. The agency and Trump Organization will devote a year to negotiating the agreement for the building’s redevelopment. Construction is expected to start in 2014 and be completed within two years after that, Ivanka Trump said.
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