WASHINGTON D.C. – A U.S. appeals court on Monday halted a $400 million ballroom project managed by the Trump Organization at the site of the former Trump International Hotel in Washington D.C. The U.S. Court of Appeals for the District of Columbia Circuit granted DTTM Operations LLC, an entity of the Trump Organization, 14 calendar days to file an appeal with the Supreme Court of the United States.

The ruling by the three-judge panel reverses a prior federal judge’s order that had blocked CGI Merchant Group, the current owner of the historic property, from taking over the ballroom space. The ballroom project, planned to span 21,500 square feet, represents a significant commercial development within the redeveloped Old Post Office building, which now operates as a Waldorf Astoria hotel.

The legal dispute originated following the 2022 sale of the Trump International Hotel for $375 million to CGI Merchant Group, a Miami-based investment firm. As part of the transaction, CGI acquired the lease for the federally owned building. However, a separate contract stipulated that DTTM Operations LLC would oversee the construction and future operation of the large ballroom space.

After the acquisition, CGI Merchant Group sought to terminate this contract with DTTM Operations LLC, citing breach of contract. DTTM subsequently filed a lawsuit, alleging wrongful termination. A federal judge initially sided with DTTM, issuing an injunction that prevented CGI from accessing or commencing work on the ballroom area. This injunction effectively stalled CGI's plans for the property's expansive event space.

The appeals court's recent decision found the lower court's injunction to be "plainly erroneous," thereby lifting the restriction on CGI. The appellate panel's order outlined specific next steps:

  • The court's mandate is to be temporarily stayed.
  • DTTM Operations LLC is granted 14 calendar days from the date of the order to seek a writ of certiorari from the Supreme Court.
  • Should DTTM fail to file an appeal within the specified timeframe, or if the Supreme Court denies such an appeal, the appeals court's judgment will take full effect, vacating the prior injunction against CGI.

This development places the future of the large ballroom project in Washington D.C. at a critical juncture. DTTM Operations LLC now faces a decision regarding whether to pursue a Supreme Court appeal, a move that would continue the legal battle over the high-value commercial space. If no appeal is filed or is unsuccessful, CGI Merchant Group will be permitted to proceed with its own plans for the ballroom, potentially altering the scope or timeline of the project initiated under the Trump Organization's management. Both parties have refrained from immediate public comment regarding the appeals court's decision.