Most Americans are familiar with the antics associated with Donald Trump’s presidential campaign. Win or lose, there are effects on the horizon that reach even further than the fate of the nation. New York magazine recently reported that the Trump Organization’s line of hotels — Trump Hotels (what else?) — was seeing a massive plummet in bookings as its namesake’s campaign wears forth. New York cites falling room rates, which are less than $500 in Washington D.C. with a “break-even rate” of at least $750, along with the fact that other nearby five-star hotels are completely sold out.
Following these developments, Travel + Leisure reports that new Trump Hotels will be rebranded without the Trump name. Instead, they’re rebranding as “Scion” hotels. The magazine does note a rebuttal from Ivanka Trump, who claims that “our business at Trump Hotels is stronger than ever” while doing her duty as executive vice president of development and acquisitions for the Trump Org. Yet T + L is sticking with their analysis while citing Hipsmunk and Foursquare, which both dig into how the hotels reportedly booked 59% fewer rooms during 2016’s first half. Here’s the damage:
Amidst reports that occupancy rates at Trump Hotels have slipped this election season, the company has announced that new brand hotels will no longer bear the Trump name. The newest line of luxury hotels, geared towards millennials, will be called Scion, the company said.
Nightly rates at the newly-opened Trump International Hotel in D.C. plummeted below $500 while practically every other five-star property was sold out for the International Monetary Fund conference two weeks ago. And after his remarks about Mexican immigrants, two celebrity chefs backed out of their contracts to open a restaurant in the hotel.
In addition to the all around bad news, the “international elite” appear to be shunning any association with the hotels. However, the Trump Org is still putting a happy spin on these developments and insisting that this rebranding is only due to the shift towards millennial consumers. Further, Trump Hotels CEO Eric Danziger insists that Scion is a clear “nod to the Trump family and to the tremendous success” while also allowing for a distinction between the old and new. Will there be a line of taco trucks outside the Scion hotels too? Stay tuned to Trump TV for updates.
UPDATE: According to Trump Hotels, Scion is a secondary brand, rather than a rebranding of Trump Hotels. CEO Eric Danziger provides clarification:
“Scion is a four-star lifestyle brand developed in response to the boom in social clubs and the ‘we’ economy. The name, which means ‘descendant of a notable family,’ is a nod to the Trump family and to the tremendous success it has had with its businesses, including Trump Hotels, while allowing for a clear distinction from the five-star luxury brand.
“We are leveraging our infrastructure and amazing talent to provide an exceptional experience to an even wider pool of guests with the launch of this new brand.
“Trump Hotels will continue to grow and expand its namesake properties — with the openings of Trump International Hotel Washington, D.C., on October 26, and the opening of Trump International Hotel and Tower Vancouver to follow. Scion will open its first properties in 2017, with locations to be announced.”