Articles Posted in Hotel Finance − Hotel Debt & Hotel Equity

Published on:

08 December 2015

Editor’s note: The EB-5 program has been renewed! The article below describes the changes to the EB-5 Immigrant Investor Visa program that were ALMOST enacted in December 2015. At the eleventh hour, Congress completely shelved all the proposals discussed below, and instead decided to continue the program, without any change, through September 15, 2016. 

For the current status of the EB-5 financing program, see “EB-5 Immigrant Visa program extension signed into law — without any changes. EB-5 financing continues for new development projects.

Hotel Lawyer preview of the new EB-5 financing rules.

Although minor tweaks and adjustments continue to be made to legislation in the final hours before Congress votes, it looks like we have a pretty good idea of what the new rules will be for EB-5 financing. Top takeaways for developers are:

  • The EB-5 regional center program will be extended for 5 years
  • Developers will be able to raise 60% more EB-5 capital on the same number of jobs
  • Minimum investment will be raised to $800,000 (not expected to deter investors)
  • TEAs will be forced into a “modified California model” of not more than 12 contiguous tracts
  • NOW is a good time to get started on EB-5 financing before the New Year rush
  • There will be much greater scrutiny and compliance required of those in the capital raising process, and there may be a trickle-down effect on developers (unless they want to form and use their own regional center)

Read on for more details. CONTINUE READING →

Published on:

 

02 October 2015

We are pleased that the Continuing Resolution passed by Congress yesterday includes a temporary extension of the EB-5 Regional Center Program. This extension allows the program to continue generating foreign direct investment and creating U.S. jobs through December 11, 2015.

In addition to extending the current program to December 11, this will also provide additional time for Congress to consider a long-term reauthorization bill that would include reform measures to strengthen federal oversight and the integrity of the program. Members of Congress from both parties and both the House and Senate are negotiating in good faith.

This week, two Senate bills were introduced that propose revisions to the EB-5 program.

Last week, our team closed $350 million in EB-5 financing for our developer clients. We have sourced more than $700 million in EB-5 financing for developer clients and believe the EB-5 program will continue to be an important source of funding for qualified projects.

We will continue to report on EB-5 developments as they unfold. CONTINUE READING →

Published on:

09 September 2015

 

Editor’s note: The EB-5 program has been renewed! Congress completely shelved all the proposals discussed below, and instead decided to continue the program, without any change, through September 15, 2016. 

For the current status of the EB-5 financing program, see “EB-5 Immigrant Visa program extension signed into law — without any changes. EB-5 financing continues for new development projects.

EB-5 is at a critical renewal point

The next 3 weeks are going to be crucial for the EB-5 industry as the current legislation sunsets on September 30, 2015. While the consensus is that this important program will be renewed, and perhaps made permanent, there are lots of currents circulating about possible changes in the program.

We want to share with you some keen insights we recently received.

EB-5 update and insights from an industry insider

Below is the full text of a letter recently sent to industry colleagues by Pat Hogan, President, CMB. Pat is one of the leading proponents of EB-5, and is also a founder and board member of the IIUSA (Invest In the USA) which is the national industry trade association for the EB-5 Regional Center Program.

Greetings,

I wanted to share my thoughts with you after having recently visited no less than 60 Congressional and Senatorial offices within the last 40 days. I also just attended the American Immigration Lawyers Association (AILA) EB-5 Investors Summit this past weekend in Las Vegas.

CONTINUE READING →

Published on:

23 June 2015

Jack Westergom, Managing Director of Manhattan Hospitality Advisors, discusses hotel operating agreements, asset management, and the RFP process in the video below.

Jack spoke with David Sudeck, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.

A transcript follows the video.

Jack Westergom discusses hotel operating agreements, asset management and cycles - Meet the Money®


David Sudeck: I’m David Sudeck. I’m a senior attorney with Global Hospitality Group® at Jeffer Mangels Butler & Mitchell. We’re here at the 25th Annual Meet the Money® Conference. I’m here with Jack Westergom, Managing Director of Manhattan Hospitality Advisors. Welcome.

Jack Westergom: Thank you. CONTINUE READING →

Published on:

22 June 2015

Vail Brown, Vice President of STR, discusses all-time highs in the hospitality market for multiple metrics, her predictions for the next few years, and STR’s expansion into food and beverage analysis in the following video.

Vail spoke with David Sudeck, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.

A transcript follows the video below.

Vail Brown discusses all-time highs in hotel supply growth, and other metrics - Meet the Money®


David Sudeck: I’m David Sudeck, I’m with Jeffer Mangels Global Hospitality Group. We’re here at the 2015 Meet the Money® Conference, which is the 25th Annual Meet the Money® Conference. We’re with Vail Brown, Vice President of STR. Welcome.

Vail Brown: Thank you. CONTINUE READING →

Published on:

18 June 2015

Deric Eubanks, Chief Financial Officer of Ashford Hospitality Trust, discusses why now is a great time to buy hotels, which segment provides the best opportunities, and how supply growth will affect the hospitality industry over the next few years.

Deric sat down with Bob Braun, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.

A transcript follows the video below.

Deric Eubanks talks about the hottest hospitality segments for investors - Meet the Money®


Bob Braun: Hi, I’m Bob Braun. I am a Partner at Jeffer Mangels Butler & Mitchell and I’m a senior member of our Global Hospitality Group, and I’m here with Deric Eubanks, who is the CFO of Ashford Hospitality Trust. We wanted to take a chance to talk about what you see in the market, and importantly, how Ashford is reacting to what you see in the market.

Deric Eubanks: Sure. CONTINUE READING →

Published on:

17 June 2015

Alice Gao, Senior Vice President of the Industrial and Commercial Bank of China, discusses ICBC’s global reach, its U.S. lending program, and recent deals in the video below.

Alice spoke with David Sudeck, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.

A transcript follows the video.

Alice Gao talks about hospitality opportunities with ICBC, the largest bank in the world


David Sudeck: We’re here at the Meet the Money® Conference 2015, which is the 25th Annual Hotel Investment Conference for JMBM. I’m sitting here with Alice Gao, Senior Vice President and Head of Commercial Banking with ICBC. Thank you for joining us. Nice to see you.

Alice Gao: Hi David, thank you for inviting me. CONTINUE READING →

Published on:

15 June 2015

Bill Blackham, President and CEO of Supertel Hospitality, speaks in the video below about new supply and assets coming to the marketplace for sale, changing guest expectations across different segments, and financing for new development.

Bill spoke with Bob Braun, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.

A transcript follows the video.

Bill Blackham discusses new hotel supply and assets for sale - Meet the Money®


Bob Braun: I’m Bob Braun, I am a partner at Jeffer, Mangels Butler and Mitchell. I’m part of the Global Hospitality Group®. I’m here at Meet the Money® 2015 for our 25th Anniversary, and I’m talking with Bill Blackham, who is the President and CEO of Supertel Hospitality. Bill, it’s good to have you here.

Bill Blackham: Thank you Bob, it’s nice to see you again. CONTINUE READING →

Published on:

12 June 2015

Elizabeth Braman, Chief Production Officer at Realty Mogul, discusses crowdfunding for hospitality real estate projects and the benefits to investors in the following video.

Elizabeth spoke with David Sudeck, a senior partner in the JMBM Global Hospitality Group®, as part of our video interview series on hotel finance and investment opportunities in 2015.

A transcript is below the video.

Elizabeth Braman discusses financing hospitality deals through crowd funding - Meet the Money®


David Sudeck: I’m David Sudeck. I’m with Jeffer Mangels Global Hospitality Group®. We’re here at the 25th Annual Meet the Money® Conference. I’m here with Elizabeth Braman, Chief Production Officer at Realty Mogul. Welcome.

Elizabeth Braman: Thank you. CONTINUE READING →

Published on:

11 June 2015

Mike Cahill, CEO and Founder of Hospitality Real Estate Counselors and co-chairman of the Lodging Industry Investment Council, speaks in the video below about activity in the 2015 hospitality market, the current cycle and where we may be headed next, distressed hotel sales from lenders, and interest rates and other potential disruptors to the hotel industry.

Mike’s conversation with Bob Braun, a senior partner in the JMBM Global Hospitality Group®, is part of our video interview series on hotel finance and investment opportunities in 2015.

A transcript follows the video.

CahillThumbForBlog


Bob Braun: Hi, I’m Bob Braun. I am a Partner with Jeffer Mangels Butler & Mitchell, and I am here at Meet the Money® 2015, our 25th anniversary, and I am sitting with Mike Cahill, CEO and founder of HREC. Mike, thanks very much for coming and spending a little time with us.

Mike Cahill: Thank you for having us. CONTINUE READING →