TRUMP INTERNATIONAL HOTEL&TOWER VANCOUVER DECLARED BANKRUPTCY

The operator of an international hotel located in the Trump Tower in Vancouver, Canada has filed for bankruptcy. The reason for this step was a sharp drop in profitability caused by the absence of tourists from abroad. The borders between the countries closed during the pandemic have reduced the hotel's profitability to almost zero.

The "tower" itself was closed in March, and the operating expenses were driving TA Hotel Management Company straight to insolvency. This statement was made last Friday by the representative of a parent company TA Global Berhad, located in Malaysia. The operator is forced to go bankrupt, since the main business was the leasing of the hotel premises and their operation.

As we know, the borders of Canada remain closed to international travelers until the end of September (an exception is made for those who have the US citizenship).

The Trump Tower, named under a 2013 license agreement, is owned by the Holborn Group. Its assets, in turn, are owned by TA Global. The sparkling 69-storey building in the heart of Vancouver was spearheaded by Joo Kim Tia, who is the CEO of TA Global and a descendant of one of wealthiest tycoons in Malaysia.

The construction of the "tower" with a height of 188 meters was completed in 2016. It opened in 2017, a few months after Donald Trum had become a president of the United States. However, the inauguration ceremony, with a ceremony of cutting the ribbon, was overshadowed by the mass protests - local residents, including Vancouver Mayor Gregor Robertson, called the building a “beacon of racism,” protesting against Trump's name at one of Canada's largest structures.

The bankruptcy proceedings will be managed by the Grant Thornton Ltd. Company.

The first meeting of creditors is to be held on September 16. The experts still do not know what will happen to the private apartments that occupy the upper floors of the building. In 2016, 217 luxury rooms set a kind of record in Canada for the number of luxury apartments sold at a price of 1,615 Canadian dollars ($ 1,233) per square foot (0.093 square meters).