A spokeswoman for the Trump Organization said yesterday that the president's company told the developer not to pursue the deal with the city council.
The developer, Mike Sarimsakci, declined to comment when reached by phone.
City council member Philip Kingston, who opposed the project, said Sarimsakci told him and another council member this week that he was switching to another hotel operator because of local concern "about the Trump name."
Sarimsakci signed a letter of intent for a Scion hotel in a redeveloping section of downtown. Scion is a new brand that the Trump Organization is trying to roll out. It would feature lower prices than the luxury Trump Hotels and cater to a younger audience.
More From This Section
Ethics experts said that outside money, whether foreign or American, raised the possibility of people trying to gain favor with the Trump administration by doing business with the president's company.
The publicity around the Dallas project appears to have annoyed the Trump Organization.
The company does not announce deals before they are signed and prefers to keep the specifics of deals private, the Trump Organization spokeswoman said.