Toronto's Trump tower could get new name: sources

Fri Jun 16, 2017 4:40pm EDT
 
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By Alastair Sharp and Allison Lampert

TORONTO/MONTREAL (Reuters) - Marriott International Inc's St. Regis brand is the lead bidder to take over the brand and management rights of a downtown Toronto high-rise bearing the name of U.S. President Donald Trump, two people with knowledge of the matter said on Friday.

A third source said the Trump Organization already has agreed to a settlement that will see it walk away from its branding and management deal for the 65-story hotel and condo tower in the financial district of Canada's largest city.

It could still take four to six weeks to close the deal to rebrand the Trump International Hotel & Tower, one of the sources said, while another said it could close in two weeks.

"There are a number of hotel groups circling for the management," said one of the sources.

The sources, who declined to say how much the deals were worth, spoke on condition of anonymity because the privately held talks are confidential.

Trump, whose business connections were the subject of two lawsuits filed by members of Congress and Maryland and District of Columbia officials this week, has never owned the project. The building was developed by Talon International Inc, which later defaulted on a construction loan, and the property was bought in a court-run sale by JCF Capital ULC earlier this year.

That sale included 211 hotel units, 74 residential units and most of the commercial, retail and amenity space in the property.

Representatives of the Trump Organization have previously said they would resist any efforts to cut short the company's long-term contract. Trump Organization representatives were not immediately available for comment on Friday.   Continued...

The top of the 65-storey Trump International Hotel & Tower is seen in Toronto August 31, 2015. REUTERS/Chris Helgren