Page 11 - aruba-today-20210122

A11
Business Friday 22 January 2021
Trump returns to a business empire ravaged by pandemic

NEW YORK (AP) — Don- ing of hotels, resorts, office
ald Trump is returning to a buildings, licensing deals
family business ravaged by and other assets took in at
pandemic shutdowns and least $278 million for 2020
restrictions, with revenue and the first few weeks of
plunging more than 40% at the new year, down more
his Doral golf property, his than a third from a mini-
Washington hotel and both mum of about $450 million
his Scottish resorts over the in 2019.
past year. The financial blow from
Trump's 2020 financial dis- former clients and busi-
closure released as he left ness partners cutting ties
office this week was just the to Trump is unclear, but it
latest bad news for his fi- could be sizable. The PGA
nancial empire after banks, of America canceled a
real estate brokerages championship tournament
and golf organizations an- at Trump's Bedminster club
nounced they were cutting in New Jersey, and several
ties with his company fol- banks said they would no
lowing the storming of the longer lend to the compa-
Capitol this month by his ny, making it more difficult
political supporters. to roll over its debt with new
The disclosure showed siz- In this Jan. 15, 2021 file photo, extra security barricades are outside the Trump Hotel in Washington. loans.
able debt facing the com- Associated Press In addition, New York City
pany of more than $300 said it would be canceling
million, much of it coming "The golf business has never The disclosure report filed than 60% from the year be- various contracts with the
due in the next four years, been stronger. We took in each year with federal eth- fore. company, including those
and a major bright spot: hundreds and hundreds ics officials shows only rev- Trump's Turnberry club in running skating rinks and a
Revenue at his Mar-a-Lago of new members," he said, enue figures, not profits, but Scotland took in less than golf club in the Bronx. Rev-
resort in Palm Beach, Flori- adding that profits were in the hit to Trump's business $10 million, down more enue at that course, the
da, his new post-presiden- the "tens of millions." appeared widespread. than 60%. Revenue at the Trump Golf Links at Ferry
cy home, rose by a few mil- Hinting at possible new ven- The National Doral Golf family's golf club in Aber- Point, fell 20% last year to
lion dollars. tures in the post-presidency Club outside of Miami, deen dropped by roughly $6.4 million.
Eric Trump, who with Don- era, Eric Trump raised the his biggest money maker the same proportion. Eric Trump dismissed the
ald Trump Jr. has run the prospect of a flurry of new among the family's golf The Mar-a-Lago, the Palm backlash, saying parts of
Trump Organization the licensing deals in which properties, took in $44.2 mil- Beach club where Trump the business that get less
past four years, told The the Trump name is put on lion in revenue, a drop of arrived Wednesday, saw attention, such as its com-
Associated Press in an in- a product or building for $33 million from 2019. The revenue rise 10% to $24.2 mercial buildings, are thriv-
terview Thursday that the a fee, a business that has Trump International Hotel million. Revenue at a golf ing.
disclosure doesn't tell the generated tens of millions in Washington, once buzz- club near that club and "I've signed 125,000 square
whole story, calling the for the company in the ing with lobbyists and dip- one in Charlotte, North feet of office space in
debt "negligible" and the past. lomats before operations Carolina, also rose, up the fourth quarter alone,"
outlook for the company "The opportunities are end- were cut back last year, about 5 percent to $13 mil- he said, referring to new
bright, especially at its golf less," he said, declining to generated just $15.1 mil- lion each. leases. "We hit it out of the
resorts and courses. give details. lion in revenue, down more In total, Trump's vast hold- park." q

U.S. home construction jumps 5.8% in December to 1.67 million

By MARTIN CRUTSINGER For the year, construction "We expect the pace of
WASHINGTON (AP) — began on 1.45 million units, housing starts to moder-
U.S. home construction up 4.8% from 2019 and the ate in 2021 as homebuild-
jumped 5.8% in December best pace since construc- ers confront constraints in-
to 1.67 million units, a 14- tion starts totaled 1.8 mil- cluding high lumber prices
year high that topped the lion units in 2006. That peri- and shortages of lots and
strongest annual showing od included a massive U.S. labor," said Nancy Vanden
from the country's builders housing boom that even- Houten, lead U.S. econo-
in 15 years. tually burst, kicking off the mist at Oxford Economics.
The better-than-expected catastrophic 2007-2009 re- Even with these constraints,
December gain followed cession. Vanden Houten believes
an increase of 9.8% in No- Housing has been one of home construction should
vember when housing the star performers this remain at healthy levels,
starts climbed to a sea- year even as the over- supported by low mort-
sonally adjusted annual all economy has been gage rates and strong
rate of 1.58 million units, wracked by the spread of demand when COVID-19 This Sept. 24, 2020 file photo shows a new home under con-
the Commerce Depart- the coronavirus. Record- cases begin to decline. struction in Houston.
ment reported Thursday. low mortgage rates and For December, construc- Associated Press
The December pace was the migration of Ameri- tion of single-family homes
the strongest since the cans to larger homes bet- increased by 7.8% to 1.23 rate of 437,000. cline of 7.2%. Construction
building rate reached 1.72 ter suited for home offices million units. Construction The Northeast was the rose 13.6% in the Midwest,
million units in September during the pandemic has of apartments with five or only region in the country 11.2% in the West and 1.3%
2006. fueled demand. more units fell by 2% to a that fell, suffering a de- in the South.q