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President Trump's eldest daughter gave a deposition this week in connection with the suit, being heard in a Washington, D.C., court. She condemned the investigation on Twitter.
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The District of Columbia and Maryland say Trump is violating the emoluments clauses of the Constitution that prohibit the president from receiving gifts or favors from foreign and state governments.
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President Trump may be forced to release some of his tax records to prosecutors in New York.
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A federal appeals court has granted President Trump a temporary stay of decision, saying he does not have to turn over eight years of tax records for a New York state criminal probe.
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The House oversight committee is investigating increased Air Force use of an airport with an official partnership with President Trump's Turnberry golf resort, as ethics questions swirl.
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The court ruled that the D.C. and Maryland attorneys general lacked the standing to bring the lawsuit. Another federal court is considering a separate case brought by Democratic members of Congress.
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The president reported a 10% drop in income from his Florida resort. Documents show the president's income remained in the hundreds of millions of dollars, but few specific figures were disclosed.
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A lawsuit involving President Trump and his D.C. hotel could hit the headlines in the fall of 2019, prime time in the next presidential campaign.
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President Trump's longtime fixer pleaded guilty on Thursday to lying to Congress about the real estate negotiations that Trump's business conducted with Russians in 2016.
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The president has been personally involved with the future of the FBI's Pennsylvania Avenue headquarters building, and Democrats say it is an abuse of power intended to help his hotel up the street.