The announcement that the club of the president will host the international summit comes when Trump finds himself in a twin crisis claiming his presidency – a hasty and confused withdrawal of Americans in Syria and a growing Congressional impeachment investigation.
White House chief of staff Mick Mulvaney, who announced the decision, said the administration was not concerned about the appearance of a conflict of interest while denouncing the president's offer.
"Doral was by far the best facility for this meeting," said Mulvaney. He said the administration had investigated 1
0 sites before deciding on them. Mulvaney quoted an anonymous site selector who told him, "It's almost as if they built this facility for this type of event."
Mulvaney said it was Trump's idea to hold the event at his resort.
"What about Doral?" He said, reporting on the president's comments in the White House dining room.
The G-7 summit alternates between places selected by the seven member countries and the European Union. The last time it happened in the US in 2012, President Barack Obama held it at the state-owned retreat at Camp David in Maryland. Prior to this, President George W. Bush held it in 2004 at the exclusive, secluded Resort Sea Island, Georgia.
That year, Trump had repeatedly indicated that he intended to award the event to himself. At this year's G-7 summit in Biarritz, France, in August, Trump said his helpers had investigated other sites and came back to tell him that Doral was the best. The site is located in the midst of office parks in the interior near the Miami Airport.
Trump then said. "It's not about me, it's about finding the right place." He especially praised the club's large parking lots.
The Doral Club is an integral part of Trump's portfolio. It earns him more revenue than any other hotel or golf club, and he has borrowed $ 125 million to buy it.
In recent years, however, land ownership has declined and profits have dropped 69 percent in three years. An expert hired by the Trump organization blamed Trump's politicized brand.
Trump's property was already home to US government officials, and his company said it did not want to take profits from the deal. Nevertheless, the properties of Trump can be expensive. For example, at its Mar-a-Lago club, the government paid Trump's company $ 546 a night for each employee staying in the club's guest rooms and $ 1,000 for a single night in White House staff drinking one of the bars of Mar-a-Lago
In this case, Trump's son Eric, who heads the Trump organization while his father is president, recently said Trump would not overstretch his own government if Doral had a choice ,
"That would actually have saved the US a tremendous amount of money, as they would not pay for huge amounts of rooms with a hotel company that will take the US government to hell," said Eric Trump on a forum called Yahoo Finance hosted last week
For the Trump organization, the event would bring guests to fill unoccupied spaces and create a flood of global publicity.
The summit will also come to Doral at a particularly good time – in June, when Miami is hot and its business usually falls sharply. In 2017, the hotel reported that June was the second slowest month, when only 38.3 percent of the rooms were occupied. Only August was slower at 31.1 percent.
Trump has more than 100 times visited his own estate as president – sometimes including foreign heads of state and government. These visits led to tens of thousands of dollars in revenue for his companies as the US government – and other governments – pay their employees to accompany him.
But that's a different story: Seven foreign leaders plus hundreds of other foreign workers would be staying at Trump's Resort. Trump is already facing lawsuits for allegedly violating the Constitution's prohibition on receiving "compensation" from foreign governments.
In this way, he could invite a tremendous expansion of the business in which these lawsuits are examined.
Trump bought the 57-year-old Doral Golf Resort in 2012 and borrowed $ 125 million from Deutsche Bank to fund the purchase. Afterwards, he invested money in the renovation and, according to the crew, relied heavily on a crew of Hispanic stonemasons, including some immigrant undocumented migrants.
However, since 2015, the revenue and profits of the 643-room club have shrunk, according to figures the Trump organization had forwarded to Miami-Dade County last year.
"They significantly outperform other resorts in the region," said Truste's Accountant Jessica Vachiratevanurak, who helped a district official last year to lower the tax burden on the property. According to Vachiratevanurak, the club's net operating income – a ratio that represents the amount remaining after the expenses have been paid – dropped 69 percent from 2017 onwards.
The Trump organization states that the real problems that deter visitors are the Zika virus and hurricanes. Doral's earnings rebounded slightly in 2018, according to Trump's presidential financial report, though it is unclear whether profits rose or fell.
In recent years, Doral has turned to Trump's political allies to replace part of his lost revenue. Last weekend, for example, a Pro Trump group called American Priority was a guest. At this event, a violent video was shown in which media representatives and some Democratic opponents shot, stabbed and beheaded Trump.
The election of Doral as the location of the G-7 seems to signal the collapse of the promises made by Donald Trump and Eric Trump at the start of the Trump presidency – when they promised to break the gap between Trump's private business and his new public office ,
"I will leave my great business altogether." Donald Trump then said.
"There are lines we would never cross, and that blends the business with anything government," said Eric Trump in 2017.