The Trump Organisation is calling the new mid-market chain "American Idea" and said it will start with three hotels in Mississippi.
At a party at Manhattan's Trump Tower, Donald Trump Jr said he and his brother, Eric, got a "crash course in America" while travelling across the country with their father's presidential campaign.
"We saw so many places and towns and so many stories," he said.
The first of dozens of hotels in another new Trump chain called "Scion" is also under construction in Mississippi, the company said.
The four Mississippi hotels for both chains will be owned by Chawla Hotels. The Trump Organisation will get management and franchise fees for the new ventures. Chawla Hotels owns 17 hotels under various franchise names.
Chawla Hotels was founded by the late V K Chawla, who was described as a war refugee from India. His son, Dinesh Chawla, said his father came to the United States as a legal immigrant from Canada.
The Scion hotel will be built from the ground up in Cleveland, Mississippi, in the Delta region that has a substantial blues music tourism industry. It will cost USD 20 million, with financing from Guaranty Bank, a local bank, Chawla said.
The three American Idea hotels will also be in the Delta, one each in Cleveland, Clarksdale and Greenville. Chawla said his company will renovate existing hotels and each renovation will cost up to USD 1.5 million. He said the renovation could take up to eight months.
Government ethics experts worry that developers seeking to curry favour with the president will be eager to help him in his new chains. They say their investments could work just like a campaign contributions, but without any limits on spending and disclosure requirements.
Trump Hotels CEO Eric Danziger has expressed confidence that his company can avoid any ethical trouble. He has said that any deals go through an "exhaustive, thorough" review.
Danziger said that American Idea brand would seek to capture the history and heritage of small towns by using local artifacts and materials. He threw out the idea of using things from towns to give hotels a local feel, like a vintage firetruck.
"It's about small town America," Danziger said. "We kind of look at it as flea market chic.
Disclaimer: No Business Standard Journalist was involved in creation of this content
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