The article below was updated in July 2017 based upon an earlier version which appeared on HotelLawBlog.com.
The EB-5 immigrant investor visa program has provided billions of dollars of affordable construction financing for a wide variety of projects ranging from high tech and alternate energy to traditional types of commercial real estate.
Over the last decade, EB-5 investors have overwhelmingly chosen real estate projects, particularly those with hotel, multifamily, senior living, and mixed-use components. While the enabling legislation for the program does not limit the type of project financed, it does require that at least 10 new jobs be created in the United States for each investor seeking a visa.
This article discusses why hotels are consistently among the investments most favored for EB-5 financing, and why they are likely to remain so for some time to come.
Are hotels still the darling of EB-5 financing?
Jim Butler, Hotel & EB-5 Finance Lawyer
As EB-5 financing has become an important part of new development and construction financing over the past 5 to 10 years, EB-5 investors and EB-5 lenders have shown a strong preference for hotel projects. Here are some of the reasons that hotels continue to be the “darling” of EB-5 financing: CONTINUE READING →