For all the talk about Donald Trump’s debt, most of his loans are actually in decent shape. They’re pledged against valuable assets, which throw off big profits. But there are exceptions. Chief among them: The president owes an estimated $340 million to Deutsche Bank—all of which is mortgaged against troubled properties. No wonder the German bank is reportedly eager to sever ties with the president.
A Deutsche Bank representative declined to comment on the record for this story. The bank has been in a similar situation with Trump previously. In 2005, the lender agreed to extend him $640 million so that he could build a 92-story skyscraper in Chicago. Trump opened the building in 2009, while the world was still reeling from the Great Recession. One day before the Deutsche Bank loan matured, Trump sued the bank for $3 billion in damages, claiming it had helped cause the financial crisis.
Eventually, the two parties made up, and the bank agreed to loan Trump more money against the property. As the country now contends with another crisis, the building appears to be in trouble once again. So does an estimated $45 million of outstanding Deutsche Bank debt, which comes due in 2024.
The truth is, a lot of people booking rooms in Chicago don’t like Trump anymore. In 2015, his Windy City hotel generated $16.6 million of net operating income, according to documents obtained by the Washington Post. But in 2016, the year Trump won the presidency, that figure declined to $9 million. By 2018, it had fallen all the way to $1.8 million. And that was pre-pandemic. At a meeting earlier this year, the hotel’s managing director sounded the alarm: “It’s going to be very, very tough to keep the boat afloat,” he said, according to the Post.
Things don’t appear to be much better at Trump National Doral, a golf resort in Miami. Trump purchased the property for $150 million in 2012, borrowing $106 million from Deutsche Bank. He proceeded to dump a reported $213 million of additional money into the resort. In 2015, as he was running for president, Trump took out a second mortgage of $19 million, making his liabilities an estimated $125 million. Given all that he invested into the place, you’d think Trump would now be generating supersized profits that would make his interest expenses an afterthought.
But things haven’t gone according to plan. From 2015 to 2017, as Trump’s political career was blossoming, revenues at Doral fell from $92 million to $75 million. Net operating income plunged…