Why Don Jr.'s New Private Club Could Outperform the Trump Hotel

Why Don Jr.'s New Private Club Could Outperform the Trump Hotel

Donald Trump Jr. is stepping back into the hospitality scene—this time with a sharper strategy and a more lucrative model. His new venture, Executive Branch, an exclusive, invitation-only club in Washington, D.C., is already generating buzz not just for its potential influence, but for its profitability.

Reentering the scene: Donald Trump Jr., who owned a small share of his father's D.C. hotel, comes back to Washington with a new plan.

One of the first to join was David Sacks, a major player in both crypto and AI policy circles, who paid a reported $500,000 for top-tier membership. “We just wanted a place to hang out in D.C.,” Sacks said during a recent episode of the All-In podcast. With high-profile names lining up and hefty membership fees rolling in, the venture is positioning itself as the go-to social hub of President Trump’s second term.

A Smarter Strategy Than the Trump Hotel

During Donald Trump’s first presidency, the Trump International Hotel in D.C. became a social epicenter for allies, donors, and dealmakers. Despite its prominence, however, the hotel struggled financially. After investing over $200 million into its development, the Trump Organization failed to meet projected room rates and occupancy targets. Internal records released by the House Oversight Committee in 2021 revealed operating losses in three of the first four years.

Analyst Kevin Brown of Morningstar reviewed the documents and wasn’t impressed: “You should be able to generate positive margins, and these are flat to negative,” he said, calling the business “not necessarily well-run.”

Leaning Into Strengths, Avoiding Weaknesses

Unlike the hotel, Executive Branch doesn’t rely on a nightly stream of travelers. Instead, it's capitalizing on exclusivity, relationships, and event-driven revenue. The club is expected to heavily emphasize food, drinks, and private gatherings—areas where the Trump hotel did perform well. Its food-and-beverage services accounted for nearly 50% of revenue at the hotel, compared to the typical 25% for similar establishments.

Hospitality expert Joel Paige sees the difference as key: “They’re taking advantage of their network. It’s going to be very successful.”

Big Money Up Front

One of the most significant advantages Executive Branch has over the hotel is its revenue model. By charging large upfront membership fees, the club ensures immediate cash flow. Founding memberships reportedly go for $500,000, with more modest options available as well. Alongside Sacks, other high-profile investors and members include Chamath Palihapitiya, the Winklevoss twins, and several sons of prominent Trump allies.

This model, emphasizing exclusivity and upfront capital, sidesteps the high fixed costs and variable demand that weighed down the hotel.

The Bottom Line

Where the Trump Hotel struggled under the weight of nightly vacancies and fluctuating demand, Don Jr.’s Executive Branch is crafting a more resilient, modern business. With high-net-worth members, a strong brand among MAGA loyalists, and a focus on high-margin services, this new club is poised not only to become a political hotspot—but a profitable one.