Federal Government Pays Rack Rate to Stay at Trump’s Mar-a-Lago

A freedom of information act request unearthed a copy of a receipt for a government official’s two night stay at President Trump’s private club Mar-a-lago, sometimes referred to as the ‘Winter White House’ where Trump traveled seven times since his inauguration.

Given the number of high-profile presidential events at Mar-a-Lago, questions about who pays for meals and rooms have generally gone unanswered. When Japanese Prime Minister Shinzo Abe visited in February, the White House made a point of saying that Abe would stay at the club free of charge as a personal guest of Trump.


Credit: Mar-a-Lago

The receipt was provided by the US Coast Guard in response to a request to search their credit card records. A note on the receipt indicates it’s for a stay of someone related to the National Security Council.

In the hotel industry rack rate is the maximum a property charges for a room. You’ll sometimes see insanely high rates printed on the inside door of the room.

The invoice is for a two night stay at $546 per night described as rack rate.

The resort is 99% owned by the President’s revocable trust. He has owned it since 1995. Mar-a-Lago “includes two swimming pools, five red-clay tennis courts, the Trump Salon and the Trump Spa, as well as banquet facilities that host elaborate charity balls and weddings.”

The standard GSA lodging rate for Palm Beach in March 2017 was $182 per night.

Update: An expert on GSA rules tells me that federal travel regulations allow for reimbursement of actual expenses up to 300% of published per diem with authorization. Mar-a-Lago was priced at exactly 300% of published per diem. In other words, the amount was permissible — and clearly designed to be the maximum allowable amount to the penny.

(HT: @aheeger)

About Gary Leff

Gary Leff is one of the foremost experts in the field of miles, points, and frequent business travel - a topic he has covered since 2002. Co-founder of frequent flyer community InsideFlyer.com, emcee of the Freddie Awards, and named one of the "World's Top Travel Experts" by Conde' Nast Traveler (2010-Present) Gary has been a guest on most major news media, profiled in several top print publications, and published broadly on the topic of consumer loyalty. More About Gary »

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Comments

  1. Unless the hotel was sold out there’s no reason to be paying rack rates. Considering how much gov’t travel is taking place at Mar Lago, they should be offering a government rate like 99.9% other hotels do.

  2. @dude26: In many states (not sure of the stats), Federal government purchases, including hotel stays, are exempt from state and often local tax. Nothing new.

    I have no idea what happens on a regular basis, but one single receipt hardly warrants a click-bait “Federal Government Pays Rack Rate…” headline which of course implies that this is the standard practice. Maybe it is, maybe it isn’t but this doesn’t support that.

  3. @Ryan – thanks.

    This makes things even worse since the resort clearly knew to do a ‘tax exemption’, but whoops, they just ‘happened’ to charge the fed employee rack rate, because, you know – why not? The stupid tax payers don’t know (don’t forget – the Donald looooves his uneducated voters for a reason – they don’t know anything, and don’t care to know anything, except how much that beer costs, maybe).

    Sad!

  4. Am I missing something or are these rooms not bookable online? It looks like it’s a member’s only club and the only way to reserve rooms is by calling them. It’s very possible they only have the one rate at this property.

  5. I am not angry at trump. The scumbag is doing what scumbags do. I am angry at republicans. Let the fuckers drown.

  6. Nothing has to be “sold out” for a Government employee or contractor to pay more than the per diem rate for a hotel stay. If the hotels in the area don’t have any more rooms available at the per diem rate, the traveler has to fill out a “300% rule” form which has to be approved by the travelers manager, that form approves paying higher rates.

    This happens frequently, especially at hotels near military bases. Just like “standard rooms” used for award stays, most hotels usually have a limited supply of rooms available for the government rate, and they are certainly not required to provide any rooms at that rate. As a side note, a lot of the per diem/gov’t rates are higher than the best available rates at most hotels when I search the hotel sites directly.

    This entire post is “fake news” unless someone surveyed all the hotels in the area on the dates listed on the receipt to find out if they had Gov’t rate rooms available…

  7. Kevin just posted link to fake news.

    The fake news is that this has any laws. Our forefathers wanted us to live the frontier life. Take what you want, do what you please. The fake news is that these pretend fascists coming up fake laws and suppressing people using those fake laws.

  8. Trumps abuses of the presidency, his conflicts of interests, nepotism, blatant lies etc. etc. are so extensive and widespread that one instance (such as this) goes almost unremarked. Sad, as he might say.

  9. Seriously? Trump decides to hold events at his property and then has the government pay his property money so they can stay there and meet with him? When will people wake up to the fact that Trump is fleecing the country of every penny he can?

  10. Like is there some surprise here? I guess everyone thought Trump wouldn’t charge us taxpayers anything for food, beverage and hotel services when he orders government events and personal vacations to be held at his private clubs and golf courses. We are not only paying him for it, we are paying maximum prices. Trump is personally profiting from it! Unless you’re Trump or one of his “shoot somebody on fifth avenue” supporters.

    This type of unethical behavior is to be expected from a president who won’t release his tax returns and refuses to let the public know just how much he is making off of these trips to Mar a Lago, Bedminster, etc..

  11. Gary. Stay out of politics on your site. Stick with what made you successful. Articles like this aren’t it.

  12. Of course all the leftists will jump on the Trumpwagon, but I’m more concerned with why we have a rule that allows government employees to spend 300%(!!!) over the daily rate. Find another goddamn hotel. So tired of the way politics and government work is a cash cow instead of a service to its people.

  13. this site is becoming a liberal left wing anti Trump mouth-piece,, I’m sure none of this was written about ur pal Mr O when he was prez..Oh he was a saint tto the libs.,no trips never spent any $$$ what a celebrity

Comments are closed.