Throughout his presidential campaign, Donald Trump has promoted his namesake business, holding events at Trump-branded hotels and golf courses from Scotland to Florida. As the race approaches its conclusion amid a torrent of controversy, his company is launching a new brand that won’t carry his name.
Scion, a line of hotels that will target younger clients, was unveiled last month in a press release that quoted three different Trump Organization executives, but not the candidate.
Since entering the race last year, Trump has offended groups including Mexicans, Muslims, the disabled and veterans. A video from 2005 that showed him bragging about making lewd advances on women prompted almost a dozen to say he’d harassed them -- claims that he strongly denies. Those associations will make corporate clients less likely to book Trump-branded properties, said Bruce Himelstein, a former chief marketing officer for Loews and Ritz-Carlton hotels.
“He’s now a polarizing figure. When he was putting his hotels together, he wasn’t,” said Himelstein, now a consultant. “There’s definitely an impact.”
His campaign has already reeled. A candidate that as recently as three weeks ago was in a close race is now waging an uphill battle to close a gap that’s grown to 5.9 percentage points nationally, according to a RealClearPolitics poll average.
Enter Scion. The new brand is planned for use at city and resort locations, Trump Hotels said when Scion was announced Sept. 28. The new hotels are intended to appeal “to a new and different type of guest in more locations around the globe,” Trump Hotels said.
Not Replacement
The Scion flag won’t replace the Trump brand, according to Trump Hotels. It was announced more than a week before the Washington Post published a 2005 video of Trump bragging about grabbing and kissing women. Trump Hotels said it will continue to expand its namesake properties, which include its new Washington hotel. The grand opening of that property, located five blocks from the White House, is scheduled for Wednesday. Trump Hotels are luxury properties, a tier above where Scion is aimed.
“We chose this name as a nod to the Trump family and their tremendous business successes, including Trump Hotels,” Eric Danziger, chief executive officer of Trump Hotels, said in an e-mail. “We want to acknowledge the association with Trump in a genuine way, while allowing the new lifestyle brand to stand on its own.”
Scattered evidence suggests travelers are choosing to check in elsewhere. It’s hard to measure the impact on Trump Hotels of his most inflammatory comments or the allegations of unwelcome sexual advances. The Trump Organization doesn’t disclose occupancy rates.