Trump brand losing luster?

Even as Donald Trump battles for control of the failing casinos that bear his name, the developers of Trump International Hotel & Tower in Fort Lauderdale face a federal class action suit that claims buyers were misled about buying into the Trump brand.

The Trump International Hotel & Tower sits empty and incomplete on A1A. Buyers who put down a security deposit on condo units have been put on notice: If at least 50 percent of the buyers don’t close on their units the hotel won’t open. If the hotel doesn’t open, the owners can’t move in. That means the building may lose the elite Trump insignia because of a default on the licensing agreement.

The class action suit seeks a refund of security deposits to buyers who expected to move into units long ago, units bearing the Trump brand name. A separate false advertising lawsuit was recently filed on behalf of 55 buyers.

So how does this impact the Trump brand? With Trump-named projects struggling like other South Florida condos, the Donald’s properties are not immune to the economic downturn.

Click here to read the rest of my story in The Real Deal.

2 comments September 4th, 2009