Plans for the new American Idea brand were reported earlier Monday by the New York Times, which said that the idea for the chain emerged from visits to dozens of small towns made by President Donald Trump's children during their father's campaign.
The hotels will have no connection to President Trump, and his name will not appear on any of the properties, Danziger told The New York Times.
President Trump has drawn criticism since January for refusing to sell his businesses, which ethics experts say pose conflicts for his White House role.
The first of dozens of hotels in another new Trump chain called "Scion" is also under construction in MS, the company said. The Trump Organization will license the American Idea brand name to at least three properties owned by Chawla Hotels, which will continue to manage day-to-day operations, the Times reported. The properties will come up in Cleveland, Clarksdale and Greenville in Mississippi. They said they didn't support Mr. Trump during the campaign but admire his approach to business and the brands he has created.
All four MS deals are franchise agreements for hotels owned by a family-run firm headed by Indian-American brothers, Dinesh and Suresh Chawla.
The Chawla brothers said they started discussing the idea with Trump Hotels in March.
The Trump organization filed to trademark the "American Idea" name in April, 2016.
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The Trump Organization executive added that President Trump's sons, who have taken over business operations while he's in office, saw space for a chain of hotels in small and midsize cities during their father's campaign a year ago.
Chawla and his brother own 17 hotels in Mississippi. He has said that any deals go through an "exhaustive, thorough" review.
The new chains are "problematic for the same reason all his other businesses are problematic: It provides opportunity for people to influence him by sending business his way", Clark said.
Danziger said the Dallas developer would never have gotten past his company's vetting, which had only begun as the media got hold of the story. Certainly the theme of the new franchise falls in line with the USA-first attitude of Trump's campaign, which championed the American yesteryear.
Danziger has expressed confidence that these steps can help avoid any ethical trouble.
"I wish I had their clean background", he quipped.