FX.co ★ Trump’s business empire to face financial trouble

According to the latest statistics, the revenue of the Trump Organization has dwindled significantly over the year.

The coronavirus pandemic has had a negative impact on the business of former President of the United States Donald Trump. The Trump Organization largely consists of hotels, golf clubs, and commercial real estate. These are the sectors that have been most affected by the quarantine restrictions and have shown the most considerable revenue losses. However, the coronavirus is not the only problem that Trump has to deal with. His political image has been seriously damaged after the riots at the Capitol allegedly inflicted by him. Therefore, few dare to do business with Trump anytime soon.

Judging by statistics provided by the Office of State Ethics, the revenue of Trump properties sank by 40%. Some analysts do not rule out the possibility of a stronger decrease.

Besides, the Trump Organization is likely to face even more problems over the next few months as Trump has disgraced himself in the public eyes. Some of the organization's clients and partners have already expressed their willingness to cut all ties with both the former president and his company after the protests at the Capitol.

However, the Trump Organization’s management does not acknowledge the fact that there are any financial problems. Quite the opposite. Donald John Trump Jr. who serves as a trustee and executive vice president of the Trump Organization told reporters about the stable financial situation in the family business.

Yet, these statements have nothing to do with the official statistics for individual objects. For example, the revenue of the Trump International Hotel in Washington turned out to be markedly lower in 2020, totaling just $ 15 million compared to the previous year's figure of $40 million. The revenue of The Trump National Doral Golf Club in Miami plunged by about 40% compared to 2019, amounting to $44 million in 2020.

In 2020, the overall net profit of the Trump empire reached only $278 million, while in 2019 this figure was significantly higher - $ 446 million.

Trying to clarify the reason behind such huge losses, Eric Trump pointed to the quarantine measures that were introduced in the country against the background of the coronavirus pandemic. According to him, his father's company is not the only one that incurred tremendous losses. They do everything in their strength to cope with the current financial problems. So, the company's expenses have been drastically revised and reduced. Eric Trump is sure that these measures will help the company recoup some of its losses. As for Trump's golf clubs, they are in high demand as customers have made a choice in favor of outdoor recreation in the face of restrictive measures.

Among other things, Trump Jr. pointed out that the Trump Organization remained profitable last year despite lockdowns. However, he refused to disclose more details.