Trump attended last year's dinner but was not in the room this year. Obama joked that it should be the perfect place for Trump -- a room full of reporters, celebrities and cameras.
"Is this dinner too tacky for the Donald?" Obama said. "Is he at home eating a Trump steak, tweeting out insults to Angela Merkel? What is he doing?"
He praised Trump's foreign policy chops, noting that the businessman previously owned the Miss Universe pageant and has extensive experience with "Miss Sweden, Miss Argentina, Miss Azerbaijan."
Obama also noted one area where Trump's experience might come in handy -- closing the Guantanamo Bay detainment facility.
"Trump knows a thing or two about running waterfront properties into the ground," he joked.