Hotel Lawyer in the Wall Street Journal on EB-5 financing for hotels
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By Jim Butler and the Global Hospitality Group®
Hotel Lawyers | Authors of www.HotelLawBlog.com14 February 2014
Hotel Lawyer in the Wall Street Journal on EB-5 financing for hotels
Over the past 2 years, we have released a number of articles here at www.HotelLawyer.com (and Hotel Law Blog) about the EB-5 Immigrant Investor Visa Program and how it has become a viable capital source for hotel development. Currently, the hotel lawyers at JMBM's Global Hospitality Group® have worked on more than 40 EB-5 projects all over the country, the largest portion of which involve hotel development.
We have said for some time that EB-5 financing has gone mainstream and is being used by institutional players. This seems to be further confirmed by The Wall Street Journal's February 12, 2013 article, Closed Casino Banks on U.S. Program written by Alexandra Berzon and Kris Hudson. My team and I were pleased to provide some information to the authors, and to be included in the article as follows:
"The EB-5 program has been around since the early 1990s, but its use is now increasing because more-traditional forms of financing are more difficult to obtain. Hotels, in particular, are popular choices for EB-5 investors because they most often produce the targeted number of jobs needed--in desk attendants, housekeepers, valets and managers--for the investor to keep their visas, according to Jim Butler, a partner in Los Angeles law firm Jeffer, Mangels, Butler & Mitchell LLP, which advises hoteliers on EB-5 financing."
We don't need to remind developers that traditional construction financing is difficult to find, and many of them have already discovered EB-5 financing to be a legitimate source of capital for their hotel developments around the country. But if you are new to the requirements or practical application of EB-5 financing, you need to understand how to meet specific government requirements. This is in addition to meeting the expectations of your foreign investors.
How to find out if EB-5 financing could work for your hotel development project
Yes, EB-5 financing is real! In a time where debt is difficult to secure, it can play a meaningful role in the capital stack. But EB-5 financing must be used appropriately and its requirements (set forth by the U.S. Citizen and Immigration Services or USCIS) are very specific.
My partners, Catherine Holmes and Victor Shum, have written some great articles on various key aspects of the EB-5 Immigrant Investor Visa Program and regularly help hotel developers take advantage of this opportunity where it is appropriate. We invite you to take a look at the free information on EB-5 financing for hotel development and to call us if you would like to discuss it further.
To learn more, go the HotelLawyer.com. Scroll down on the home page until you see "EB-5 financing" on the right side and click there. You will then see all the EB-5 articles we have posted.
Alternatively, here are links to a few of the articles in the collection.
EB-5 Lawyer with the latest wrinkle in EB-5 financing for hotels -- the Tenant Occupancy Issue
Chinese investment in U.S. hotels: what the real estate professionals want to know
Hotel Developers: Why a "regional center" may be the key to financing your next hotel development or expansion. And what you need to know . . .
How to use the EB-5 Immigrant Investor Visa Program for financing
This is Jim Butler, author of www.HotelLawBlog.com and hotel lawyer, signing off. We've done more than $60 billion of hotel transactions and have developed innovative solutions to unlock value from hotels. Who's your hotel lawyer?
Catherine Holmes is a transaction and finance partner with JMBM's Global Hospitality Group® and Chinese Investment Group™ and specializes in resort and hotel purchase and sale transactions, resort and urban mixed-use financing and development, hotel management and franchise agreements, and hospitality asset workouts. With her background in securities transactions, she also assists hotel developers with public and private offerings of securities. For more information, please contact Catherine Holmes at +1 310.201.3553 or cholmes@jmbm.com.
Victor Shum is a corporate and securities partner in JMBM's Global Hospitality Group® and Chinese Investment Group™. He has advised clients on EB-5 matters since 1999 and assists hotel developers on EB-5 financing as well as public and private securities, mergers and acquisitions, cross-border issues, and other strategic business transactions, including real estate transactions and intellectual property and technology licensing matters. For more information, please contact Victor Shum at +1 415.984.9611 or vshum@jmbm.com.
Our Perspective. We represent hotel lenders, owners and investors. We have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,300 properties all over the world. For more information, please contact Jim Butler at jbutler@jmbm.com or +1 (310) 201-3526.
Jim Butler is a founding partner of JMBM, and Chairman of its Global Hospitality Group® and Chinese Investment Group™. Jim is one of the top hospitality attorneys in the world. GOOGLE "hotel lawyer" and you will see why.
Jim and his team are more than "just" great hotel lawyers. They are also hospitality consultants and business advisors. They are deal makers. They can help find the right operator or capital provider. They know who to call and how to reach them.

Jim Butler is recognized as one of the top hotel lawyers in the world. He devotes 100% of his practice to hospitality, representing hotel owners, developers and lenders. Jim leads the Global Hospitality Group®—a team of 50 seasoned professionals with more than $60 billion of hotel transactional experience, involving more than 1,300 properties located around the globe.


