According to the letter obtained by CNN, the majority shareholder of a hotel in Panama claims the president's Organization has been misleading the hotel's staff.
New owner is determined to end the management contract with the Trump organization
Orestes Fintiklis is a prominent investor in Miami who recently bought the Trump-branded hotel's majority shares. The letter obtained by CNN is only the latest twist in the investor's attempt to remove the president's brand. The Trump Organization licensed its brand to the hotel ten years ago. Fintiklis, who now owns majority units, claims the hotel has been losing money over the past years and has ended up last among other luxury hotels.
In the lawsuit filed by Fintiklis' investment company, Fintiklis says the hotel has been receiving a low number of clients which has a direct effect on the hotel's profits.
Trump's attorney, Alan Garten said since buying majority units, Fintiklis has ignored every agreement to by the two parties including one that restricts him from terminating the organization's management contract. The management agreement gives Trump’s organization exclusive rights to hire, fire and supervise employees of the hotel.
Since October the two organizations have been working out their differences in court until last week. The disagreement was heated up by a confrontation between the two parties. According to Fintiklis attorney, they were denied access to the hotel's administration office when Finktiklis went to deliver dismissal notices to hotel employees.
Garten also confirmed the reports but refused to give more detailed information about the incident.
In his letter, Fintiklis told the employees they were being lied to, and cheated by the Trump Organization. He also wrote that the organization was using the employees which put their employment and the Hotel at great risk. He also blamed the organization for recently firing some employees.
Other projects dropping the Trump brand
Since his election, the president’s organization has been taking hits as this might be the third Trump-branded project to lose the President’s name. Just last year, the owner of Trump International Hotel and Tower Toronto terminated the hotel’s contract with the organization after reaching an agreement.
Another Trump-branded building in Manhattan also struck a similar deal to drop the president’s name.
The high-end seventy-story building includes residential units, casinos, and office space. The hotel has been struggling and is near-drowning, according to media reports. Last year Fintiklis company bought three-quarters of the total units together with hotel’s amenities from its creditors. In spite of the change in ownership, the Trump’s management agreement signed in 2008 still holds
