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Trump organization ends management of Toronto tower

28 June 2017
Trump organization ends management of Toronto tower

JCF Capital acquired the tower with the Trump brand and agreements in place previous year from former owner Talon International Development Corp., the developer run by Russian-Canadian billionaire Alex Shnaider.

The agreement to remove the the US president's brand marks the first step toward revamping the property, which has faced a history of construction delays and lawsuits.

The Trump name will be removed from a Toronto hotel complex after the property's owner, JCF Capital ULC, reached an agreement to buy out Trump Hotels' management contracts.

The rebranding initiative comes after the hotel's original developer, Talon International Development, defaulted on a 2007 loan, and then struggled to sell the property.

"We are pleased to have reached this agreement with JCF and have enjoyed our relationship with them as the new owners of this property", Eric Danziger, CEO of Trump Hotels, said in a statement.

Representatives from both JCF Capital and the Trump Organization had a positive outlook on the negotiations and promised to work together again in the future.

Since its opening, Talon had sold less than half of the tower's residential condos, and the hotel's occupancy rates have been lower than some investors in the rooms had hoped.

Trump-branded properties, including a recently opened tower in Vancouver, have been the target of protesters angry about the USA president's policies. In March of this year, JCF bought the hotel through a court-approved process.

The hotel will likely be operated under Marriott International Inc.'s St. Regis brand, people familiar with the plan said earlier this month.