History
Donald Trump arranged financing for the project from the investment bank Bear Stearns – a $230 million bond offering – for which he received a $2.2 million commission.[9][10] During the financing, Ivanka Trump falsely claimed that over 90% of the units had been sold, and that their sale price was five times that of comparable units.[9][11] Ivanka Trump also exaggerated demand for the units, claiming in 2009 they were selling out even as potential buyers were being offered substantial discounts.[9][12] During the development, Donald Trump falsely implied that the Trump Organization had a financial stake in the project, and that it was acting as the developer, neither of which were true.[9]
The building was developed by Roger Khafif, President of the K Group, a Panama resort developer and three Colombian partners by Newland International Properties Corp. Khafif first conceptualized the project in 2005, and arranged a meeting with Donald Trump via Marvin Traub.[9][13] A contract was signed initiating the project in New York City in 2006.[13] Ivanka Trump was given a lead role in developing the project.[9]
The hotel opened on July 6, 2011, approximately one year behind schedule, in a ceremony attended by President Ricardo Martinelli.[9][1][14] In September 2011 Fitch Ratings downgraded $220 million in bonds that Newland International Properties Corp. was using to finance construction of the building from B-sf to CCsf because of "continued uncertainty over the willingness and ability" of buyers to take possession of apartment units.[15]
Newland licensed the Trump brand name for an initial fee of $1 million,[9][8] the hotel was the first international Trump "name branded" development to open.[7][16] Donald Trump reportedly personally profited between $30 million and $55 million from the project.[9]
The Trump Organization managed the hotel under contract until March 2018, when Cypriot businessman Orestes Fintiklis, who had bought a majority stake in the hotel condominium association, legally ousted them and had the Trump name removed from the building in 2015 and from the hotel March 5, 2018.[17] The hotel was temporarily renamed The Bahia Grand Panama prior to Marriott's involvement.[18]
On March 22, the Panamanian law firm Britton and Iglesias unsuccessfully petitioned Panamanian President Juan Carlos Varela to intercede and restore the Trump Organization's management team.[19][20]
On June 28, 2018, it was announced that the hotel would become a JW Marriott.[21] It was officially renamed on September 26, 2018.[22]
In June 2019 Fintiklis accused Trump companies of tax evasion.[23][24]
