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Trump Hotels agrees to buy-out of its management of Toronto tower

Published 2017-06-27, 11:28 a/m
© Reuters.  Trump Hotels agrees to buy-out of its management of Toronto tower
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TORONTO, June 27 (Reuters) - The new owner of a Trump-branded hotel in downtown Toronto said on Tuesday that it had struck a deal with Trump Hotels to buy out its management contract for an undisclosed amount.

JCF Capital ULC did not say if it had reached a deal with another group to take over the management and branding of the 65-story Trump International Hotel & Tower in the city's financial district.

U.S. President Donald Trump, whose business connections have sparked lawsuits and criticism about potential conflicts of interest since he took office in January, had never owned the project. But his company had signed a long-term branding and management deal with the building's developer, Talon International.

JCF is the vehicle created by Juniper Capital Partners LLC and Cowie Capital Partners Inc that bought the tower's units not owned by individuals earlier this year in a court-run sale process after Talon defaulted on its debt.

"We are pleased to have reached this agreement with JCF and have enjoyed our relationship with them as the new owners of this property," Eric Danziger, CEO of Trump Hotels, said in a statement.

Sources told Reuters earlier in June that Marriott International Inc's MAR.O St. Regis brand is the lead bidder to take over the tower's brand and management rights, with one saying at the time that the Trump Organization had agreed to sever its connections.

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