NEW YORK: After departing from the White House, former United States president Donald Trump has been facing a bigger branding crisis in his business empire as people are shunning Trump-branded properties, reported foreign newswires.
The Trump brand real estate, including residential, offices and commercial buildings as well as hotels and entertainment resorts, was associated with wealth and over-the-top-luxury before its founder became US president four years ago.
However, the brand is now associated with anti-government views, racism and extremism, which has affected the value of its real estate.
The Washington Post, citing the financial disclosure forms filed by Trump, revealed that the former president’s hotels, resorts and other properties had lost over US$120 million (RM485 million) in revenue last year.
The Covid-19 pandemic that forced long-term closures may have been one of the reasons, but another main reason is people and corporations do not want to be associated with Trump brands.
In early January this year, two non-profit organisations — TB Alliance and the Girl Scouts of Greater New York, were looking to vacate Trump’s buildings in Manhattan even before their leasing agreements had ended, according to Forbes’ report.
Meanwhile, properties in Manhattan, New York saw a 9% drop in terms of value last year. Amongst all, buildings that carry Trump’s brand name have lost 17% in value, reported US real estate and urban design website Curbed, citing data from UrbanDigs.
The report looked at seven Trump-branded buildings in Manhattan and three buildings on Riverside Boulevard that previously bore his name.
The average price of a Trump property in 2016 was valued at US$3,346 psf (RM13,536 psf). After his election and inauguration, the value shrank to US$1,903 in 2017, and further dipped to US$1,619 in 2020.
In comparison, Manhattan properties in general recorded an average value of US$1,815 in 2020, from US$1,995 in 2016.
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