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Yahoo
02-07-2025
- Business
- Yahoo
Trump's Most Controversial Business Moves That Paid Off Big and What We Can Learn From Them
Long before entering politics President Donald Trump was well known as a real estate mogul, a reality TV star and for his personal life playing out in the tabloids. His household name has been splashed on hotels, golf courses and high-rise apartment buildings and he's always portrayed himself as a successful businessman, but not all of his dealings have been impressive. Read Next: Find Out: Trump has filed bankruptcy six times and has several failed business ventures like Trump Steaks, Trump University, Trump Vodka, Trump Shuttle and more, according to AOL. While many of Trump's business decisions were unfruitful, he has had controversial moves that shockingly paid off. Here are three deals that were surprisingly successful and what others can learn from them according to experts. In the 1970s Trump put himself on the map with New York real estate when he bought the Commodore Hotel next to Grand Central Terminal for an estimated $10 million, per the New York Times. He put another $70 million in for renovations and transformed the building into the Grand Hyatt Renovation, which was a major landmark of the city for decades.'The city thought he was nuts,' money expert Andrew Lokenauth and founder of Be Fluent in Finance was a controversial move because Trump worked out a deal to receive a 40-year tax abatement from NYC for renovations during a time when the city was recovering from a crippling financial distress, per NPR.'People were furious about giving tax breaks to a developer during a financial crisis,' Lokenauth that wasn't the only thing people were upset about. 'Trump had zero experience with major hotel renovations, and many thought he'd fail spectacularly,' said Lokenauth. 'Plus, he used incredibly aggressive negotiating tactics with the city — something I've seen sink many other developers — he even started construction before final approvals, which was a massive risk.'However, his shrewd deal paid off, according to Lokenauth.'The hotel became wildly profitable within two years and helped revitalize the entire area around Grand Central. I've run the numbers, and the return on investment was north of 400%.'The lesson: It's about timing and leverage. 'Trump saw value where others saw disaster,' Lokenauth said. 'And he used the city's desperation as leverage to get those tax breaks, adding the biggest wins often come from zigging when others zag.' These days Mar-a-Lago in Palm Beach, Florida is where Trump has glitzy parties, plays golf and resides when he's not in the Oval Office. But it was once a rundown property that he bought in 1985 for roughly $10 million, according to the Associated Press. 'It was considered financial suicide at the time,' said than 10 years after buying the massive estate, Trump was in financial ruin after many of his deals failed and according to AP, he couldn't afford the $3 million a year upkeep. To offset his costly expenses, he wanted to divide up the property lines and build mansions. The Palm Beach elite were outraged. 'They fought him tooth and nail, claiming it would destroy property values and bring the wrong element to the area,' Lokenauth town rejected the proposal, but did approve Trump's other idea of converting Mar-a-Lago into a private membership club where he charged pricey fees that covered his to Lokenauth, it was a move that helped Trump in the end. 'He turned their opposition into free publicity,' he lesson: Sometimes the strongest opposition indicates you're onto something big. And controversy, if managed correctly, can be an incredible marketing tool. 'When everyone says you're crazy, you might just be early,' Lokenauth said. In terms of politics, Trump has made many head-spinning controversial moves, but one business deal that turned out for the better according to Peter Diamond, a Federally Licensed Tax, Accounting, Real Estate, and Structure and Certified Bankability Expert® was renegotiating stated the North American Free Trade Agreement was 'worst trade deal ever made' per CNN and campaigned back in 2016 to renegotiate, which he did. The new agreement went into effect July 1, 2020, and includes big adjustments on environmental standards, labor policies and many other areas between the U.S, Mexico and Canada. According to Diamond it was a controversial move because Trump tackled a long-time trade agreement in an aggressive way that worked to his favor that other politicians wouldn't touch. 'He used tariffs, tough negotiation, and raw pressure — especially against Canada and Mexico — to essentially force a rewrite of the rules,' he said. 'That kind of hardline approach triggered backlash from economists, world leaders, and even members of his own party.' Despite backlash, Trump successfully negotiated stronger protections for American manufacturing, digital trade, and intellectual property, Diamond said. 'It was one of the rare deals backed by both business groups and labor unions.' According to AP, it wasn't the economic booster Trump claimed, but it has a positive impact. The lesson: 'When you negotiate from a position of strength, you can drive results others said were impossible,' Diamond explained. 'Most play defense while Trump played offense.' While some might see Trump's controversial moves that paid off as lucky breaks, Lokenauth sees something else. 'These moves show a pattern of seeing opportunity in controversy and using public opposition as a tool rather than an obstacle,' he said. 'That's something I emphasize in all my consulting work now.' More From GOBankingRates 3 Luxury SUVs That Will Have Massive Price Drops in Summer 2025 8 Common Mistakes Retirees Make With Their Social Security Checks How Much Money Is Needed To Be Considered Middle Class in Your State? This article originally appeared on Trump's Most Controversial Business Moves That Paid Off Big and What We Can Learn From Them Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
01-07-2025
- Business
- Yahoo
Donald Trump's 5 Boldest Real Estate Investments and Their Profits
Long before his career in politics, President Donald Trump was a wealthy real estate mogul. After taking over his father's real estate business in 1971, he went on to manage, acquire and sell many types of real estate properties and developments, according to the White House Historical Association. There were of course, real estate flips, some of which were acquired and then sold for a massive profit. Yes, there were losses too. See Next: Discover Next: Here are Trump's boldest real estate investments. In 1976, Trump partnered with Hyatt to acquire the Commodore Hotel in New York City for $10 million for his share, as reported by the New York Times. The remodel cost around $100 million and lasted around two years, from June 1978 to September 1980. The original renovations had a three story atrium, a glass facade and even a restaurant that was cantilevered over a sidewalk. In 1996, Trump sold his share to the Hyatt Organization for $140 million for a $130 million profit, per the Baltimore Sun. Trending Now: This hotel in Washington D.C. opened in 2016 at the city's old post office building, close to the White House, according to the Guardian. Trump spent around $200 million renovating it into a luxury hotel. In 2021, he sold the leasing rights for a reported $375 million and is now the Waldorf Astoria. When Trump still owned the property, expected annual revenue was much lower than expected at the $100 million per year. Instead, it only earned around $20 million per year. What used to be a skyscraper-like building in Atlantic City, New Jersey is now rubble and an empty lot. After opening in 1984, the casino was one of the most successful in the area. Visitors during that time may have even spotted celebrities like Warren Beatty, Jack Nicholson, Madonna and even Barbara Streisand. However, things seem to have gone downhill starting in 1991 when Trump decided to build the Trump Taj Mahal casino and poured more money into that building instead. Slowly, the Trump Plaza and Casino fell into disrepair, as there wasn't much time or attention put into the building. NPR reported the casino closed in 2014 and billionaire Carl Icahn purchased it in 2016. In 2021, the building was demolished. Originally called Scarlet City, the property was originally owned by Trump's father and Trump himself had a 4% state in it after he and his siblings inherited the property. Per AP News, these affordable housing unit buildings earned Trump around $5 million in a year or so, between January 2016 and April 2017. In 2018, other investors and stakeholders sold the property for $906 million. Trump reportedly earned about $36 million from the sale. Trump purchased Mar-a-Lago in 1985, which included the 75,000-square-foot historic mansion on a 16.4-acre estate for a cool $10 million, according to the Miami Herald. While it was initially one of his private residences, Trump converted part of it in 1994 into what's now called the Mar-a-Lago Club. Members can stay in guest rooms, use the amenities and a spa onsite. Trump and his family still have his residence in part of the grounds, closed off to others. The club is reported worth $50 million and earned $56.9 million in revenue in 2024, according to Newsweek. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates The New Retirement Problem Boomers Are Facing This article originally appeared on Donald Trump's 5 Boldest Real Estate Investments and Their Profits
Scoop
18-06-2025
- Business
- Scoop
Hospitality With Heart: Commodore Airport Hotel Christchurch Named NZ's Friendliest Hotel For 2025
Commodore Airport Hotel Christchurch has been named 2025 New Zealand's friendliest hotel by Travel Weekly, a leading Australian travel publication. The award, announced in June 2025, recognises guest feedback, service quality, and authentic hospitality, areas where the Commodore stood out for its personal touch and the visible presence of the Patterson family, who own and operate the hotel. To determine the friendliest hotels around the world, Travel Weekly analysed 12.6 million reviews of more than 14,000 4 to 5-star hotels. "This award reflects what we've always believed - that hospitality isn't just about providing a room, it's about creating genuine connections with every guest," said Michael Patterson, Director & General Manager of Commodore Hotel and Patterson Hospitality Group. "Our father Tom instilled in us that every guest interaction matters, and that philosophy guides everything we do." The recognition comes as no surprise to those who have witnessed the family's hands-on approach firsthand. "I was dropping my car off to try the Commodore's Christchurch airport parking service when I saw Michael Patterson walking past with a jug of water, helping a guest defrost their windscreen," said Rachel Alexander, CEO of Alexanders Digital Marketing. "It wasn't a grand gesture, just genuine care for someone who needed help." This award confirms Commodore Hotel's place as one of Christchurch's top accommodation providers. Located on Memorial Avenue near Christchurch Airport, the 157-room property has resort-style amenities including an indoor pool, gym, tennis court, pickleball courts, 24-hour shuttle, and airport parking, making it a practical and comfortable choice for both business and leisure stays. Run by three generations of the Patterson family, the hotel blends legacy and personal service, earning loyal guests from around the world. This same care is echoed across the Patterson Hospitality Group's other properties, Hotel Montreal in Central Christchurch and Queenstown Park Boutique Hotel where the Patterson family's legacy of warmth and attentive service continues.
Yahoo
13-06-2025
- Business
- Yahoo
What Trump's Real Estate Deals Teach Business Owners About Building Wealth
President Trump has captured the spotlight since the mid-2010s as a political figure. His first presidency came as a surprise in 2016. After losing the 2020 election, he became the second president in history to lose a reelection bid before winning again. Trending Now: Read Next: Since Trump has become synonymous with politics for a decade, it's easy to forget that he became a successful real estate investor and has plenty of insights to share. Ironically, his real estate career has been just as volatile as his presidency. Trump amassed great fortunes with strategic real estate investments in the 1980s and became a household name. Then, he almost lost everything in the 1990s and ascended to new heights in the 2000s. Trump's real estate deals offer plenty of valuable lessons for aspiring investors and people who want to make their mark in the world. It's not practical for everyone to get started with large real estate properties, but it should be an aspiration. Trump doesn't invest in single-family homes and that isn't how he made his mark in the beginning. In fact, his first deal was a 1,200-unit apartment complex in Cincinnati that he and his father bought. Check Out: Not everyone can start with that type of deal. Some investors accumulate multiple single-family homes before they move on to apartments. However, Trump explained the logic of investing in large-scale properties in 'The Art of the Deal.' 'It takes almost the same amount of energy to manage 50 units as it does 1,200-except that with 1,200, you have a much bigger upside,' he said. President Trump used a lot of debt to finance his deals. If he needed all of the cash ready to go, he wouldn't have the real estate empire that he has today. He used advanced strategies to minimize his investments in some properties. For instance, Trump secured an option agreement to purchase the Commodore Hotel from the bankrupt Penn Central. This gave him the option but not the obligation to buy the property. While waiting, he leveraged political connections and New York City's steady decline in the 1970s to get a sweetheart deal on the property. He received an unprecedented 40-year tax break on the property that only ended in 2020. Few investors can capitalize on those types of strategies. Trump had established himself as an ambitious real estate developer at a time when New York City was reeling economically. However, his organization has also taken out many loans. Over-leverage almost wiped him out in the 1990s, demonstrating the risk of this strategy. However, leverage is one of the quickest ways to scale a real estate portfolio. Trump didn't buy a property just for the sake of buying it. His book 'The Art of the Deal' explores intricate details of multiple deals. While you can buy stocks in a matter of seconds, Trump's description of multi-year build-ups leading up to deals resembles chess masters duking it out on the board. Waiting multiple years to swoop in allowed Trump to capitalize on bad market conditions. He also got to take advantage of competitors who were in weakened states and desperate to make deals. When a competitor is desperate to make a deal, it's easier for investors like Trump to find undervalued deals. He explained in 'The Art of the Deal' that he had to acquire Bonwit Teller to build Trump Tower. He mentioned that Genesco would likely try to get out of the deal as multiple wealthy investors approached them. However, Trump had been eying this property for years and had a one-page letter of intent from the seller. He detailed the smart and ruthless approach that allowed him to use this letter as leverage to secure a great deal at a great price. 'I could have litigated it and held up any sale of the Bonwit property for several years. Naturally, I let Genesco know I fully intended to do just that if they reneged on my deal. With creditors breathing down their necks, Genesco, I knew, didn't have a lot of time,' he said. Knowing yourself can help you find great deals. Knowing when the competition is weak may help you capitalize on extraordinary opportunities, especially if you have leverage. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 6 Popular SUVs That Aren't Worth the Cost -- and 6 Affordable Alternatives The 5 Car Brands Named the Least Reliable of 2025 This article originally appeared on What Trump's Real Estate Deals Teach Business Owners About Building Wealth
Yahoo
13-06-2025
- Business
- Yahoo
What Trump's Real Estate Deals Teach Business Owners About Building Wealth
President Trump has captured the spotlight since the mid-2010s as a political figure. His first presidency came as a surprise in 2016. After losing the 2020 election, he became the second president in history to lose a reelection bid before winning again. Trending Now: Read Next: Since Trump has become synonymous with politics for a decade, it's easy to forget that he became a successful real estate investor and has plenty of insights to share. Ironically, his real estate career has been just as volatile as his presidency. Trump amassed great fortunes with strategic real estate investments in the 1980s and became a household name. Then, he almost lost everything in the 1990s and ascended to new heights in the 2000s. Trump's real estate deals offer plenty of valuable lessons for aspiring investors and people who want to make their mark in the world. It's not practical for everyone to get started with large real estate properties, but it should be an aspiration. Trump doesn't invest in single-family homes and that isn't how he made his mark in the beginning. In fact, his first deal was a 1,200-unit apartment complex in Cincinnati that he and his father bought. Check Out: Not everyone can start with that type of deal. Some investors accumulate multiple single-family homes before they move on to apartments. However, Trump explained the logic of investing in large-scale properties in 'The Art of the Deal.' 'It takes almost the same amount of energy to manage 50 units as it does 1,200-except that with 1,200, you have a much bigger upside,' he said. President Trump used a lot of debt to finance his deals. If he needed all of the cash ready to go, he wouldn't have the real estate empire that he has today. He used advanced strategies to minimize his investments in some properties. For instance, Trump secured an option agreement to purchase the Commodore Hotel from the bankrupt Penn Central. This gave him the option but not the obligation to buy the property. While waiting, he leveraged political connections and New York City's steady decline in the 1970s to get a sweetheart deal on the property. He received an unprecedented 40-year tax break on the property that only ended in 2020. Few investors can capitalize on those types of strategies. Trump had established himself as an ambitious real estate developer at a time when New York City was reeling economically. However, his organization has also taken out many loans. Over-leverage almost wiped him out in the 1990s, demonstrating the risk of this strategy. However, leverage is one of the quickest ways to scale a real estate portfolio. Trump didn't buy a property just for the sake of buying it. His book 'The Art of the Deal' explores intricate details of multiple deals. While you can buy stocks in a matter of seconds, Trump's description of multi-year build-ups leading up to deals resembles chess masters duking it out on the board. Waiting multiple years to swoop in allowed Trump to capitalize on bad market conditions. He also got to take advantage of competitors who were in weakened states and desperate to make deals. When a competitor is desperate to make a deal, it's easier for investors like Trump to find undervalued deals. He explained in 'The Art of the Deal' that he had to acquire Bonwit Teller to build Trump Tower. He mentioned that Genesco would likely try to get out of the deal as multiple wealthy investors approached them. However, Trump had been eying this property for years and had a one-page letter of intent from the seller. He detailed the smart and ruthless approach that allowed him to use this letter as leverage to secure a great deal at a great price. 'I could have litigated it and held up any sale of the Bonwit property for several years. Naturally, I let Genesco know I fully intended to do just that if they reneged on my deal. With creditors breathing down their necks, Genesco, I knew, didn't have a lot of time,' he said. Knowing yourself can help you find great deals. Knowing when the competition is weak may help you capitalize on extraordinary opportunities, especially if you have leverage. Editor's note on political coverage: GOBankingRates is nonpartisan and strives to cover all aspects of the economy objectively and present balanced reports on politically focused finance stories. You can find more coverage of this topic on More From GOBankingRates Mark Cuban Warns of 'Red Rural Recession' -- 4 States That Could Get Hit Hard 10 Unreliable SUVs To Stay Away From Buying 7 Tax Loopholes the Rich Use To Pay Less and Build More Wealth This article originally appeared on What Trump's Real Estate Deals Teach Business Owners About Building Wealth Sign in to access your portfolio
