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Indian-American hotelier partners with Trump Hotels to launch
07 June 2017, 03:42 | Ruby West
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While Trump Hotels' existing properties are in such major metropolises as New York, Washington and Chicago, the first three American Idea hotels will be in Mississippi, Donald Trump Jr. said in an interview at the event.
The first three hotels in the chain - in the MS cities of Cleveland, Clarksdale and Greenville - are operated by Chawla Hotels Inc., which will license the American Idea name and concept from Trump Hotels.
Trump's sons, who have taken over the company business while he serves as president, saw the need for budget-friendly accommodations while traveling during the campaign trail.
Danziger said Monday that the first property in Trump Hotels' new Scion chain is being built in Cleveland, Mississippi.
Scion is a four-star hotel chain meant to offer upscale service in US cities that could not support a full-fledged Trump luxury property. Ethics experts have argued that the arrangement doesn't do enough to separate him from his business interests.
President Trump and his family have been accused on various occasions of viewing their move into politics as a business and branding opportunity. The hotels are owned by Chawla Hotels Inc., which will license the American Idea name from Trump Hotels. "When the president became the president, we said we're not going to do anything internationally".
Mr. Chawla told the younger Mr. Trump that his father had been trying to open his first hotel in the late 1980s but was struggling to get financing.
The hotel project, which would create over 100 jobs, would also help Chawla and his company give back to the community in MS, he said, adding that people in his town are "very excited" about the project. Danziger said in March that he hoped to open as many as 100 Scion hotels in three years. Will local governments help the developers in securing zoning changes or permits to curry favor with the president? A Dallas developer who had signed a letter of intent with the Trump Organization revealed that he planned to raise money for a Scion hotel in the city from unnamed investors from Turkey, Qatar and Kazakhstan. He has said that any deals go through an "exhaustive, thorough" review.
The Trump Organization canceled talks with the developer after several news articles raised questions about whether the foreign investors might try to use their investments to influence the new administration. "We kind of look at it as flea market chic".
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