In The Hospitality Industry Worldwide, Trump's Brand Is Now Completely Toxic-- Less Than Worthless

This past summer we were in Azerbaijan, primarily in Baku, the capital city. Really nice place to visit! We noticed that there was a huge hulking Trump Tower in the middle of the glittering skyline. But it was empty. In fact, it was closed down, having only opened for a week before firing the entire staff and shutting down the operation. Presumably they'll remove the toxic logo that the local bandits who own the building paid Trump to use, and re-open it under less toxic name-- like Motel 6 Baku. But Baku isn't the only city where the Trump name is keeping hotel rooms empty... even at heavily discounted prices.

The prestigious new hotel in DC that he's always trying to drum up business for is the cheapest 5-star in Washington-- and the most empty. And the Trump Towers in Istanbul, where the president of the country demanded the name be changed, is desperate to sell over a dozen luxury apartments that no one will buy at very deep discounts.

Property Turkey is privileged to offer to its clients 15 luxury apartments available for sale below market value within Istanbul's prestigious Trump Towers. This is a one-off offer for a limited period only and on a limited number of apartments.

  Trump Towers located in between Sisli and Mecidiyekoy is one of Istanbul's landmark mix-use complexes, where residences and commercial units always command a premium. The complex is one of Istanbul's most prestigious.

CNN reported that travel agents and events planners are avoiding the Trump brand entirely. In DC, "room rates also indicate the hotel may be lagging behind its competition. A Tuesday night stay at the Trump hotel was priced at $505 on Hotels.com, more than $200 cheaper than five-star alternatives like the Four Seasons and the Jefferson. Comparable hotels like the downtown Ritz-Carlton and Hay-Adams, meanwhile, had no open rooms." The new hotel "has been the target of protests and vandalism since it opened last month. And its namesake's presidential campaign has made the Trump name awkward at best and toxic at worst for those who specialize in the hotel industry. 'There certainly are people who are concerned about the message they send by spending money in Trump-branded hotels,' said David Loeb, a senior hotel analyst at the Robert W. Baird private equity firm. Brand research studies suggest those concerns are taking hold. A Foursquare analysis showed foot traffic at Trump's hotels, casinos and golf clubs is down 16% this year. And a Young & Rubicam report released Tuesday shows consumers think Trump himself is less fun, trendy and stylish than he was three months ago. That's bad news for Trump, who claims his name is worth more than $3 billion in real estate licensing and branding deals. Industry analysts say that number is exaggerated."

Travel + Leisure doesn't, as a rule, slag off potential advertisers, but the news is all over the hospitality industry: Trump Hotels Ditching Name For New Hotels. I don't know if Trump plans on having Barron run the business, but his new hotel ventures will be called "Scion."

Amidst reports that occupancy rates at Trump Hotels have slipped this election season, the company has announced that new brand hotels will no longer bear the Trump name.

The newest line of luxury hotels, geared towards millennials, will be called Scion, the company said.

“We wanted a name that would be a nod to the Trump family and to the tremendous success it has had with its businesses, including Trump Hotels, while allowing for a clear distinction between our luxury and lifestyle brands,” Trump Hotels CEO Eric Danziger said in a statement.

Although Trump Hotels has said the new name has nothing to do with the eponymous businessman’s presidential campaign, empty rooms at the hotels have caused officials “to reduce rates during the peak season," according to New York Magazine.

Nightly rates at the newly-opened Trump International Hotel in D.C. plummeted below $500 while practically every other five-star property was sold out for the International Monetary Fund conference two weeks ago. And after his remarks about Mexican immigrants, two celebrity chefs backed out of their contracts to open a restaurant in the hotel.

According to Hipmunk, bookings at Trump Hotels plummeted 59 percent during the first half of 2016 and data from Foursquare shows a 17 percent drop in foot traffic at Trump properties since June 2015, when the reality TV star announced his presidential bid.

Back to Trump Tower Baku. His crooked partners, the notorious Mammadov family, tried burning the building down for the insurance money. And further south, in the United Arab Emirates, Trump’s name and image were removed from a $6 billion golf and housing complex in Dubai.

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Visiting Azerbaijan-- Some Basics

See the dancing cave drawing over my head?

Two of my favorite congressmen advised me on my trip to Azerbaijan-- and one did even more than that, which I'll explain in a moment. The other congressman urged me to visit a statue in Baku of the current president's father, the former president (dictator), Heydar Aliyev. Statues of human beings are rare in Muslim-majority countries to begin with; it's something the religion proscribes, but Azerbaijan is a very secular country and there are statues of admired people all over. This particular one of Papa Aliyev depicts him sitting with one leg crossed and the sole of his shoe partially showing. Showing the sole of a shoe is generally perceived as an insult because the feet are often seen as unclean and shoes are always removed before entering a mosque or a home. My congressional friend told me he had asked his guide at the time if the statue was somewhat offensive to the Muslim population? The guide said yes, that was the point, to show that Azerbaijan's government is secular even though over 90% of the population is Muslim. Blunt-- but dictatorial oligarchs can be that way-- and often are.

Heydar Aliyev shows the soles of his shoe

The other congressman urged me to go see Gobustan (prehistoric caves, a nearby museum and, in the same region, Azerbaijan's famous mud volcanoes), the ancient Zoroastrian Atashgah Fire Temple in Surakhani, and Yanar Dag (the burning mountainside). We went to all of them and it was a much better use of time than just hanging around Baku (or Moscow).

Gobustan is about 40 miles southwest of Baku and we hired a taxi to take us there. The whole area is a UNESCO World Heritage Site, primarily because of its easily-accessible caves with their rock art engravings showing life in prehistoric times, some dating back 40,000 years.

Azerbaijan has hundreds of mud volcanoes and I have a feeling the few dozen we saw might not have been the most impressive ones. They were hard to get to-- no paved roads-- and not really erupting, more like bubbling and burping out mud. Every twenty years or so one of them really explodes shooting fire and mud hundreds of feet into the air. So far, this wasn't one of those years. But we did get to climb around the hillocks and Roland dipped his hands into the bubbling mud.



The Atashgah Fire Temple is very close to Baku, a site dated as far back as 730 AD but destroyed and rebuilt several times since. What we saw was a pentagonal complex from the 17th century, which has a courtyard surrounded by cells for pilgrims and monks and a fire alter structure in the middle. It's the principal Zoroastrian site of pre-Islamic Azerbaijan and the guide I hired made sure to tell me that famous Zoroastrians included Indira Gandhi, Freddie Mercury, Zubin Mehta and Meher Baba.

Yanar Dag was kind of a dud. It's a not especially impressive natural gas fire that burns eternally on the side of a hill and I was mixing it up in my mind with a similar but bigger phenomenum in Derweze, Turkmenistan, on the other side of the Caspian Sea, east of Azerbaijan, called the Gates of Hell.

Not many American tourists go to Azerbaijan. We nearly didn't ourselves. But our trip to Russia looked like we had planned on too many days in Moscow-- even with a trip to the Golden Ring towns of Vladimir and Suzdal-- so we decided on a side trip to Baku. It's not very far by plane and Azerbaijan has a good airline with new, well-maintained planes and it's relatively inexpensive-- both the plane flights and everything in the city itself. But it isn't easy to get to because of the visa situation. You have to have a visa and Azerbaijan inadvertantly-- I think inadvertently-- makes it difficult by channeling would-be tourists to Travisa, a private company/middleman that "helps" travelers get visas. Except they don't. They just charge a inordinate amount of money and get in the way, making it more difficult to get the visas. I had a nightmare experience with them once before-- when I was forced to use them for an Indian visa-- and I would never voluntarily use them.

When you want a Russian visa, you have no choice any longer except to go through one of these "helpful" contractors, Invisa Logistics Service (ILS), although scammers like Travisa are happy to charge you for sending your application on to ILS. When you apply for an Azerbaijani visa, there is a strong implication that there is a similar mandate and that you must go through Travisa, an implication that Travisa doesn't discourage. When I tried getting my Azerbaijani visa through Travisa, nothing worked and lots of time was wasted. They also kept trying to get me to give them money with the warning that if I couldn't get the visa for any reason-- which looked likely judging by their jaw-dropping incompetence-- they still kept the money. Excuses ranged from their online application doesn't work with Apple computers to I can't use their in-office computer-- after they asked me to drive to their office to do just that-- because they couldn't give me the pass code for their WiFi network because of "security." I decided to give up and go to Georgia or Armenia instead when someone who overheard my conversation with the unhelpful staffer who was guaranteeing I couldn't go to Azerbaijan, told me to just go to the Azerbaijan consulate in L.A. and that it would be faster and cheaper. And it was. And easy as pie. That's your free tip of the day. Get your visa directly from the Azerbaijan consulate and skip the Travisa horror show.

Roland, meanwhile, had his passport tied up in the regular Travisa hell-- weeks and weeks of complete nonsense and wasted time. Like, two weeks wasted on "you have to change the name of your hotel from the Leningrad Hotel to the St. Petersburg Hotel." But the name of the hotel is the Leningrad Hotel. It doesn't matter. You can't get a visa if you write you're going to a hotel named for Lenin. His application and passport went back and forth across the country three times before we realized there was no way he could get the Russian visa done in time to also get the Azerbaijani visa. That's where it's helpful to have a good congressman. For a civilian it's impossible-- in takes a minimum of 10days-- but for a congressman asking for a constituent... it takes a few hours. Roland got his visa just hours before he departed and off we went... to a country with the good sense to not patronize a glitzy, gaudy new Trump Tower that was forced to close down in less than a week due to lack of business.

There's a mosque between my hotel and the funicular

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The Trump Name Is Too Toxic For Azerbaijan, One Of The World's Most Corrupt Countries

I just got back from my first visit to Azerbaijan. I never expected to find such a wonderful place but it reminded me of a wealthier and more modern/Western Turkey. It's a little smaller than Maine and a little bigger than South Carolina with just over ten million inhabitants, more than New Jersey or Michigan and just about the same number as North Carolina. The rap on the country is that it's very wealthy but that all the wealth is concentrated in a few families' hands, cronies of the forever president, Ilham Aliyev, who first came to power in 2003 when his pop, Heydar Aliyev died. The elder Aliyev had been a former First Secretary of the Azerbaijani Communist Party, a member of the Soviet Politburo and of the KGB before deposing Azerbaijan's first Democratically-elected president Abulfaz Elchibey.

Before that unpleasantness, Azerbaijan was the world's first Muslim-majority secular state and parliamentary democracy before being overrun by the Soviets in 1920, Lenin saying he was sorry but the Soviets needed the oil. Azerbaijan lived under the Soviet yoke until it declared independence in 1991. Now it's a rich little country and Baku, the modern, bustling capital, looks-- architecturally-- like a cross between Paris and Dubai. And into this mix waddled Donald Trump a couple years ago.

One of the mainstays of the kleptocratic regime, Transportation Minister, Ziya Mammadov, who went from a lowly railway worker to a billionaire/Mafioso owns a lot of Azerbaijan. His son, Anar, is a shady character and a perfect fit for The Donald. It was only a matter of time before they found each other, which they did when Anar decided to rent Trump's name for his glitzy new hotel. He paid Trump between $2.5 and $2.8 million for the right to slap "Trump Tower" on his building and to get some consultations from Ivanka. In November, 2014, the Trump Organization announced that Trump Tower Baku was part of it's hotel empire and The Donald himself boasted that "Trump International Hotel & Tower Baku represents the unwavering standard of excellence of The Trump Organization and our involvement in only the best global development projects. When we open in 2015, visitors and residents will experience a luxurious property unlike anything else in Baku-- it will be among the finest in the world." Ivanka added that "This incredible building reflects the highest level of luxury and refinement, with extraordinary architecture inspired by the Caspian Sea and sophisticated interiors that seamlessly blend contemporary style with timeless appeal. We are looking forward to bringing our unparalleled Trump services and amenities to Azerbaijan.”

It sort of opened. Trump's partner, Anar, has been described by U.S. diplomats as "notoriously corrupt" and as working to launder money for the Iranian military. They hired a full staff and started renting rooms but never had a promised grand opening.

Trump often talks of hiring the best people and surrounding himself with people he can trust. In practice, however, he and his executives have at times appeared to overlook details about the background of people he has chosen as business partners, such as whether they had dubious associations, had been convicted of crimes, faced extradition or inflated their resumes.

...In the Azerbaijani case, Garten said the Trump Organization had performed meticulous due diligence on the company's partners, but hadn't researched the allegations against the Baku partner's father because he wasn't a party to the deal.

"I've never heard that before," Garten said, when first asked about allegations of Iranian money laundering by the partner's father, which appeared in U.S. diplomatic cables widely available since they were leaked in 2010.

Garten subsequently said he was confident the minister alleged to be laundering Iranian funds, Ziya Mammadov, had no involvement in his son's holding company, even though some of the son's major businesses regularly partnered with the transportation ministry and were founded while the son was in college overseas. Ziya Mammadov did not respond to a telephone message the AP left with his ministry in Baku or to emails to the Azerbaijan Embassy in Washington.

Garten told the AP that Trump's company uses a third-party investigative firm, which he did not identify, that specializes in background intelligence gathering and searches global watch lists, warrant lists and sanctions lists maintained by the United Nations, Interpol and others.

...Any American contemplating a business venture in Azerbaijan faces a risk: "endemic public corruption," as the State Department puts it. Much of that money flows from the oil and gas industries, but the State Department also considers the country to be a waypoint for terrorist financiers, Iranian sanctions-busters and Afghan drug lords.

The environment is a risky one for any business venture seeking to avoid violating U.S. penalties imposed against Iran or anti-bribery laws under the U.S. Foreign Corrupt Practices Act.

...Garten said the Trump Organization had performed background screening on all those involved in the deal and was confident Mammadov's father played no role in the project.

Experts on Azerbaijan were mystified that Trump or anyone else could reach that conclusion.

Anar Mammadov is widely viewed by diplomats and nongovernmental organizations as a transparent stand-in for the business interests of his father. Anar's business has boomed with regular help from his father's ministry, receiving exclusive government contracts, a near monopoly on Baku's taxi business and even a free fleet of autobuses.

"These are not business people acting on their own — you're dealing with daddy," said Richard Kauzlarich, a U.S. ambassador to Azerbaijan under President Bill Clinton in the 1990s who went on to work under the Director of National Intelligence during the George W. Bush administration.

"Whatever the Trump people thought they were doing, that wasn't reality," Kauzlarich said.

Anar Mammadov, who is believed to be 35, has said in a series of interviews that he founded Garant Holdings' predecessor-- which has arms in transportation, construction, banking, telecommunications and manufacturing-- in 2000, when he would have been 19. Anar received his bachelor's degree in 2003 and a master's in business administration in 2005-- both from a university in London.

Mammadov's statement that he founded the business in 2000 appeared in a magazine produced by a research firm in partnership with the Azerbaijani government. In other forums, he has said he started the business in 2005, though several of its key subsidiaries predate that period.

Now all the employees have been laid off and everyone around Baku says they want to wait a little while for people to forget the Trump taint before they re-brand the building and re-open it as something else-- anything else. even a Motel 6 would be a better bet than something related to Trump at this moment.

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