U.S. officials say the Trump International Hotel in Washington does not violate conflict-of-interest laws by operating in a 19th-century federal building.
Democrats had asked the General Services Administration, the agency that manages federal properties, to look into the hotel's lease in the government-owned Old Post Office, blocks from the White House.
Federal law prohibits an elected official from being both a landlord and a tenant.
The GSA said Thursday that Trump turned over his real estate empire to his sons, ensuring he will not personally profit from the luxury hotel while he is president.
But government ethics experts say the Trump name on a Washington hotel may attract high-profile guests and foreign officials who hope that staying and eating there may be an advantage in dealing with the White House.
The Trump hotel has become a popular spot for protesters against his administration.