Here's Why The Next Trump Project Might Be In Nashville

Key Concepts

• DT Marks Nashville LLC and DT Marks Nashville Member Corp.: Newly formed Delaware entities potentially linked to a Trump Organization project in Nashville.
• Licensing Ventures: Business model where Trump licenses his name and brand for properties he may not directly own, collecting fees.
• Corporation Service Company: The firm used by the Trump Organization to register new business entities.
• Trump International Hotel in Oman & Trump International Golf Club near Dubai: Examples of existing international licensing deals.
• Scion and American Idea: Non-namesake hotel brands launched by Eric and Don Jr. Trump.
• January 6th Riot: A significant event that negatively impacted the Trump brand and image.
• Divisive Brand: The Trump brand's polarizing nature in the United States.
• Gil Dieser: Trump's business partner who discussed strategies for marketing to his supporters.

Potential Trump Project in Nashville

On September 22nd, two new businesses, DT Marks Nashville LLC and DT Marks Nashville Member Corp., were established in Delaware. These entities follow a naming convention previously used by the Trump Organization for at least 20 other licensing ventures, often involving the president's initials, "Marks," and the location. While the Trump Organization has not officially confirmed any plans for a Nashville project, they have previously expressed interest. If this materializes, it would represent the former president's first new real estate licensing deal in the United States since at least 2017, indicating how his political return may be generating new business opportunities. Forbes was unable to verify the ownership or purpose of these new entities, and the Trump Organization did not respond to requests for comment.

Trump's Licensing Business Model and International Success

New Trump projects, similar to those in Vietnam, Romania, Qatar, and the UAE, often utilize the naming convention observed with the Nashville entities. A key aspect of this model is that Donald Trump does not always own the properties. Instead, he licenses his name for projects like the Trump International Hotel in Oman and the Trump International Golf Club near Dubai. These deals are managed through entities such as DT Marks Oman LLC and DT Marks Dubai LLC, from which he collects fees. Dozens of such licensing entities have been registered in Delaware via the Corporation Service Company. Since Donald Trump re-entered politics, his international licensing business has seen significant growth, increasing in value from $100 million to $500 million.

Domestic Licensing Challenges and Past Ventures

In contrast to his international success, Trump's domestic licensing business has experienced stagnation, failing to secure major new deals since the beginning of his first presidential term eight years prior. Early in that term, his sons, Eric and Don Jr., launched the Scion and American Idea hotel brands. These brands were designed to target markets outside of major liberal cities, which had been the primary focus of their father's previous ventures. At various times, representatives from the Trump Organization indicated they had between nine and 39 agreements associated with these new brands, including potential projects in Dallas, Cincinnati, Austin, New York, and Nashville. Reportedly, all but one of these agreements were profitable. The Trump sons eventually scaled back new acquisitions to concentrate on managing their father's existing assets, with plans to fully re-engage after his presidency.

Impact of January 6th and Brand Divisiveness

The January 6th riot significantly damaged the Trump brand and image, with one analyst predicting "permanent damage for decades." This event also led to Donald Trump being banned from social media platforms like Twitter and Facebook, and prompted certain banking partners to distance themselves. Following his departure from office, Donald Trump focused on revenue generation, including the launch of his own social media network. By 2022, new foreign opportunities began to emerge, particularly as Trump's 2024 presidential campaign gained momentum. However, the brand remained divisive within the United States.

Strategies for a Polarizing Brand

Upon leaving office, Donald Trump had only one U.S. real estate licensing agreement that was generating profit. Trump's business partner, Gil Dieser, observed that event planners often avoided Trump properties to avoid offending guests, preferring hotels like Weston. However, Dieser stated that they "pivoted" their strategy, recognizing that while "half of America maybe doesn't like him, but half of America does like him." He explained that in the digital age, it is easy to identify and target these supporters through specific campaigns, which helped to fill their hotels.

Nashville as a Potential Market

Any Trump-branded property in Nashville, a city with a liberal leaning within a predominantly conservative state, is likely to evoke strong emotions. Petitions emerged in 2017 when the Trump Organization first considered a Nashville property. While the First Family has a significant number of supporters in Tennessee, the individuals involved in the new project remain unclear. According to Dieser, now might be an opportune time for those looking to do business with Trump, as he is perceived to be "making the right moves" and "making himself look good," making his brand "hot right now" and a strong asset to sell.

Conclusion

The formation of DT Marks Nashville LLC and DT Marks Nashville Member Corp. suggests a potential resurgence of the Trump Organization's real estate licensing business in the United States, specifically in Nashville. This move leverages Donald Trump's renewed political presence and his established strategy of licensing his brand, particularly in international markets where it has seen substantial financial growth. Despite past domestic challenges and the significant negative impact of the January 6th riot on his brand's image, the Trump Organization, through partners like Gil Dieser, appears to be strategically targeting his base of supporters. The choice of Nashville, a politically mixed city, highlights the continued divisive nature of the Trump brand and the potential for both strong support and opposition to such a venture. The success of this potential project will depend on the organization's ability to navigate these sensitivities and capitalize on the loyalty of his supporters.