Trump Reaches Deal on D.C. Hotel

The U.S. General Services Administration (GSA) has concluded negotiations with real estate mogul and reality TV star Donald Trump, who has signed a 60-year lease to redevelop the historic Old Post Office Pavilion in Washington, D.C., it announced this week.

“Redeveloping the Old Post Office with a private sector partner will save millions of taxpayer dollars while restoring a unique and important historic asset,” GSA Acting Administrator Dan Tangherlini said in a statement. “GSA is committed to delivering the best value for the American people and managing federal real estate assets efficiently. We are pleased that the negotiations have finished and the deal now moves to Congress for review.”

Trump, who will spend $200 million to restore the 114-year-old federal building, will turn the property into a luxury mixed-use development — Trump International Hotel, The Old Post Office, Washington, D.C. — that will include a luxury hotel with more than 260 guest rooms, “world renowned” restaurants, a spa and meeting space. The building’s historic clock tower will remain open to the public and will continue to be managed by the National Park Service.

“It is a great honor and privilege to be given the responsibility of transforming one of our country’s most important landmarks into what will be one of the great hotels of the world,” said Trump, chairman and president of The Trump Organization.

Added his daughter, Ivanka Trump, executive vice president of development and acquisitions, “It has been a tremendous pleasure to work with the GSA and the numerous agencies and organizations that have been involved in getting us to this important milestone in the project’s redevelopment. Our plans are virtually complete and we look forward to starting construction immediately upon turnover of the building.”

The GSA-Trump agreement now moves to Congress for review and approval. Pending its passage, construction will start in 2014 with a scheduled hotel opening in 2016.