Trump Organization shelves Mississippi Delta hotel projects over politics: Report

The Trump Organization, citing the political climate, has shelved its prospects for two hotels in Mississippi, The New York Times reported Thursday. 

The proposed four-star Scion hotel in Cleveland was expected to open by the end of the year. The hotel was originally slated to open in the fall of 2018. 

A second line of hotels, called American Idea, were also expected to open later this year in Greenville, Cleveland and Clarksdale. 

"Plans for the two hotel chains, Scion and American Idea, are to be shelved indefinitely, most likely for the remainder of the presidency," the New York Times reported. 

Mississippi was the only state in the country where a Trump Organization hotel project was expected to come to completion, the Washington Post recently reported. 

The hotels are a collaboration between the Trump Organization, now run by Trump's sons, Donald Trump Jr. and Eric Trump, and Mississippi businessmen Dinesh and Suresh Chawla. The Chawlas, who own 18 hotels in Mississippi, planned to develop the hotels while the Trumps would brand and manage them.

In a statement about parting ways with the Chawlas, the Trump Organization left open the possibility of reviving the Scion and American Idea brands. Donald Jr. and Eric Trump praised the Chawlas and the would-be Scion property, predicting it would still be “an absolutely spectacular project,” according to reporting by the Times.

Dinesh Chawla said his company plans to move forward on the hotels without the Trumps. The terms of the deal were not disclosed, and it is unclear whether the Trumps were required to compensate the Chawlas in some way for pulling out. In the joint statement, the Chawlas said, “We understand their position completely," according to the Times.”

On his Facebook page, Chawla heaped praise on the Trump Organization and said the collaboration "never had any political discussions," adding "I never understood the media representation of these folks." 

Since the Trumps were handed the company in 2016, it has become the target of federal court cases and lost deals in some markets after partners complained about the brand, the Washington Post reported.

 Gov. Phil Bryant has shown public support for Trump and in February the state — through the Mississippi Development Authority — awarded a tax break worth up to $6 million for the Scion hotel project. The tax break would cover almost a third of the hotel development costs, according to building permits. 

Several residents of Cleveland supported the Scion hotel development, believing it will lead to additional jobs and revenue for the town, but others said they wouldn't be able to afford to stay at the four-star hotel.  

This is a developing story. 

Contact Justin Vicory at 769-572-1418 or jvicory@gannett.com. Follow @justinvicory on Twitter.