Just how divisive is the Trump name? Enough so that U.S. firm JCF Capital, the new owner of the Trump Toronto, is set to reportedly pay the Trump Organization millions of dollars to remove the name from hotel, many media outlets, including Fortune, are reporting.
The amount of the name-change was not disclosed, but a person with knowledge of the matter told Bloomberg that it cost at least $6 million and signage may be removed from the hotel by Aug. 1.
According to Reuters, JCF Capital acquired the 65-story hotel for $226 million. The downtown Toronto hotel originally opened under Trump's name in 2012. The firm, which was established by Juniper Capital Partners and Cowie Capital Partners, and the Trump Organization issued a joint statement Tuesday announcing the latest management agreement. According to the statement, the two companies may plan to team up again in the future.
"We are pleased to have reached this agreement with JCF and have enjoyed our relationship with them as the new owners of this property," said Eric Danziger, CEO of Trump Hotels.
The hotel was put on the market in early January with real estate company CBRE and receiver FTI Consulting Canada handling the sale. According to court documents, hotel developer Talon International reportedly attempted to sell the Trump hotel after defaulting on the loan, which was originally issued by Raiffeisen Bank International AG in 2007. On Oct. 3, 2016, JCF Capital bought the loan and notified Talon twice that month asking for repayment. JCF Capital said the debt matured in December 2016, and Talon had been in default since July 2, 2015.
Last October, the Trump Organization announced that hotels under its new brands—Scion and American Idea—won't bear the Trump name.