The Trump Corporation's first venture into the Canadian market may be falling apart, and not just literally.
Talon International Inc. — the company that developed Toronto’s 65-story Trump International Hotel & Tower — is now suing seven disgruntled investors who believe they were misled, according to a recent report from The Toronto Star.
The Canadian newspaper reports that "dozens" of parties who purchased suites in the new hotel-condo complex have been trying to renege on final payments. The payments average over $500,000.
The problem is that rising maintenance costs and exorbitant property taxes have cost investors more than they expected. Revenue from the hotel was supposed to offset rising property costs, but the Star adds "buyers say they’ve been told hotel occupancy is running anywhere from 10 to 50 percent and room rates are averaging about $300 per night instead of the $600 and up Talon had originally touted."
The project — already quite controversial in Toronto architecture circles —began construction in 2007. The hotel portion of the tower had a 'soft launch' at the end of January. Donald Trump is known to be a minority shareholder in the investment, though it's unclear exactly how much money Trump invested in the project.
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