It was a week ago Thursday when the federal government’s General Services Administration determined that President Donald Trump was not in violation of the lease for the D.C. area hotel that bears his name. But that didn’t stop CNN from finding some other real estate scenario to freak out about. “One more item on the conflict of interest watch as it were. The Trump organization pursuing perhaps another hotel in the nation’s capital? What is going on here,” wondered fill-in host John Berman on The Lead.
“Well, if it happens it would be really controversial,” claimed CNN Money Correspondent Christina Alesci. According to her, she acquired her information from a competitor of the Trump organization. “And he said the Trump organization has been scouting locations for months, multiple groups are actually interested in funding this project,” she explained. The obvious point that the person she talked could have an ulterior motive was never addressed, and she seemed to take her source at their word.
Passing along the concerns of Trump organization’s competitor, Alesci said: “The developer said that, quote, ‘Interest in partnering with the Trump organization has exploded since the election.’” That is a similar concern that NBC once had when they highlighted a pair of active liberals who were suing Trump, claiming his hotel was hurting their wine bar. Alesci noted such claims:
And it’s really been a flash point in this controversy over the President's conflict of interests. Trump goes to eat there, his cabinet secretaries are spotted there … And that raises the questions of whether you can buy access, and competing hotels and restaurants are crying unfair competition. Look, a second D.C. hotel would definitely open a new line of questioning at this point.
But again, according to a CBS report, “The lease prohibits government officials from profiting from the property, but the General Services Administration says there is no violation because the President has transferred his businesses to his children and will not get any money from the hotel.” So, since Trump left his business in-care-of his two sons and was not profiting from the historic post office hotel, it did not create a conflict of interest.
Following that same line of reasoning, the argument can be made that if the Trump organization constructed another D.C. hotel it wouldn’t be a conflict of interest either. And despite Alesci and Berman’ complaining about the current hotel, they never mentioned that the President was not in violation of the federal lease.
Alesci also mentioned that “The Trump organization in response says it is always looking for projects but it has nothing new to announce right now.” So it appears that they were hyping fears for something that may not be in the works at all.
Transcript below:
CNN
The Lead
March 30, 20174:23:33 PM Eastern
JOHN BERMAN: One more item on the conflict of interest watch as it were. The Trump organization pursuing perhaps another hotel in the nation’s capital? What is going on here?
CRISTINA ALESCI: Well, if it happens it would be really controversial. I spoke to one of the D.C. developers, a competitor to the Trump organization frankly, and he said the Trump organization has been scouting locations for months, multiple groups are actually interested in funding this project. Here’s what jumped out when I was reporting this. The developer said that, quote, “Interest in partnering with the Trump organization has exploded since the election.” The Trump organization in response says it is always looking for projects but it has nothing new to announce right now.
So they're not exactly denying it, and this hotel would be different than the existing one. It would be branded the Scion hotel, which is the mid-price line that the Trump organization announced in September. Again, that's different than the existing one. As you know, that one has the Trump name all over it. And it’s really been a flash point in this controversy over the President's conflict of interests. Trump goes to eat there, his cabinet secretaries are spotted there.
BERMAN: A lot.
ALESCI: And that raises the questions of whether you can buy access, and competing hotels and restaurants are crying unfair competition. Look, a second D.C. hotel would definitely open a new line of questioning at this point.
BERMAN: All right, Christina. Thank so much for being with us. Appreciate it.
