The Trump Hotel Vancouver has just closed permanently, meaning that there are no longer any Trump properties in Canada.
Trump Hotel Vancouver becomes insolvent
The Vancouver Sun is reporting that the Trump Hotel Vancouver is ceasing operations permanently. The pandemic is given as the reason for the hotel shutting down, though presumably there’s a bit more to it.
The 147-room Trump Hotel Vancouver was opened in February 2017 and is owned by TA Global Berhad, a Malaysian property company. As is the case with many things bearing the Trump name, this was simply a licensing deal with Trump, and the Trump family didn’t have a major stake in the hotel.
TA Global Berhad has two Canadian subsidiaries that leased and ran the Trump Hotel Vancouver, and they’re insolvent due to the pandemic. One of the company’s bankruptcy filings shows assets of $1.104 million and debts of $4.795 million.
Unfortunately the Trump Hotel Vancouver closing means hundreds of people are left without work, which is awful.
Trump Hotel Vancouver
Controversy surrounding the name
Unsurprisingly, the Trump licensing deal may not have been the best business decision, in retrospect. Lindsay Meredith, a Simon Fraser University marketing professor emeritus, said that the owners of the hotel probably “wish to hell” they hadn’t licensed rights to the Trump name:
“They’re probably looking at it as a convenient way to dump a deal they made. The Trump brand historically looked to be relatively stable, but it’s become ever-mercurial and a bloody lightning rod.”
I imagine the hotel won’t just sit empty forever, so it’ll be interesting to see if this is purchased and emerges as another brand. Could we see a Park Hyatt or St. Regis Vancouver, maybe?
Trump Hotel Vancouver
This isn’t the first Canadian property to lose Trump branding
The Trump Hotel Vancouver is the second Trump property in Canada to not do well. The Trump Hotel Toronto opened in 2012, and hadn’t been doing well financially. The property was sold off by the developers due to bankruptcy, and the property ended up being sold for less than the cost of debt in the project.
The hotel ended up being converted into a St. Regis.
With the Vancouver property failing as well, that means there are no more Trump properties in Canada.
The St. Regis Toronto (former Trump Hotel Toronto)
The Trump Hotel Vancouver has shut its doors just a few years after opening, and it’s also the second Trump Hotel in Canada to close in the past few years. I feel bad for all the people losing their jobs. Hopefully another investor picks up this hotel, and it can be rebranded as a luxury property with one of the major hotel groups.
What hotel brand would you like to see take over the Trump Hotel Vancouver?