Trump's SoHo hotel where rooms used to cost $700 a night is cutting rates and laying off staff

Trump SoHo is taking a beating.

The five-star Manhattan hotel is planning to lay off workers and reduce some of its services, WNYC’s Ilya Marritz and Andrea Bernstein reported Wednesday.

The hotel has lost a key tenant. Last month, Grubstreet reported that Koi, the high-end sushi restaurant located in the hotel, would close due to a decline in business. The restaurant was scheduled to close on June 19 but has reportedly shuttered a month earlier than planned, according to WNYC.

“Before Trump won we were doing great. There were a lot of people we had, our regulars, who’d go to the hotel but are not affiliated with Trump,” Jonathan Grullon, a busser and host at the restaurant, told GrubStreet. “And they were saying if he wins, we are not coming here anymore.”

WNYC reported that Trump SoHo is preparing to lay off 12 of its 80 housekeepers and get rid of nighttime turn-down service.

Hotel room rates have also dropped. Deluxe and Superior rooms at the hotel, which have views of Manhattan and the Hudson River, now cost less than $US400 per night on weekends. According to WYNC, in more popular times rooms cost around $US700.

A Trump hotel spokesperson did not immediately respond to Business Insider’s requests for comment.

The hotel is joint owned by two real estate development companies and managed by the Trump Organisation, which is currently being run by the president’s two oldest sons.

The hotel still has a certificate of excellence from TripAdvisor, which is given to hotels and restaurants that consistently earn good reviews from travellers. But a negative review on the site from this month said the hotel “looks like it’s going out of business.”

In September 2016, the Trump family announced that they will be launching a new chain of cheaper hotels, which are expected to cost between $US200 and $US300 a night. The new chain will be called Scion and hotels will not carry the Trump name.

NOW WATCH: People are trolling Dove on Twitter for releasing new soap bottles for different body types

Business Insider Emails & Alerts

Site highlights each day to your inbox.

Follow Business Insider Australia on Facebook, Twitter, LinkedIn, and Instagram.