Recently, a Chinese government delegation visited Jeffer Mangels Butler & Mitchell LLP. The delegation included some of the highest-ranking officials from a top Chinese government agency – “China State Administration of Foreign Exchange” – an agency that directly oversees the investment of $3 trillion of China’s foreign reserve. CONTINUE READING →
07 September 2016
Asians love the U.S. as a place to live, buy homes, invest, go to school, and run their businesses. Over the past five years, we have seen an unprecedented increase in foreign investment in the US — particularly as a new flood of Chinese investors joins the tide of Japanese, Korean, Malaysian and other Asian investors.
My partner Scott Harshman counsels foreign investor clients from all over the world. He tells them that it is urgent to get an early grip on potential U.S. tax consequences and structures when first contemplating their investment in the U.S. The key is doing the analysis BEFORE making the investment. The earlier, the better. Otherwise, the unfortunate foreign investor may become ensnarled in a messy tangle of tax and regulatory issues never imagined.
Here is what Scott says . . .
Tax Alert for foreign investors looking at U.S. investments
By Scott Harshman, Partner JMBM
Pre-immigration and Non-U.S. Resident Planning
It does not matter whether foreign individuals are investing in U.S. property and hoping to become residents in the U.S., or are planning to invest in U.S property without U.S. residence: the investment is particularly complex for these individuals.
The definition of “U.S. property” for international tax purposes is a term of art, and the details are complex. That is why – to avoid potential problems and minimize U.S. tax exposure – planning for the ownership of U.S. property should be done before the investment is made.
If this planning is well thought-out and structured properly, the foreign individual – and the business entities owned by such individual – can avoid many pitfalls associated with the U.S. tax and legal systems. CONTINUE READING →
24 June 2015
Bill Sipple, Executive Managing Director of HVS Capital, speaks in the video below about activity in different markets, limited service properties, and whether rising interest rates will have an effect on transactional activity.
Bill 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.
Bob Braun: Hi, I’m Bob Braun. I am a Partner at Jeffer Mangels Butler & Mitchell. I’m here at Meet the Money® 2015, our 25th anniversary. I’m here with Bill Sipple, who is the Executive Managing Director of HVS Capital. Bill, thanks for coming by and talking with us.
Bill Sipple: It’s good to be here, thanks. CONTINUE READING →
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.
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 →
For the latest articles on this subject, please click here.
26 April 2014
Some are calling it the “distressed real estate gold rush in Europe.” Others who have been expecting 1990s-style opportunistic investment opportunities for several years, now are seeing a change in European banks’ willingness to sell distressed loans at discounts to clean up their books. Several significant deals have been announced with big name investors and more are underway.
What is happening? And what is the opportunity for investors? Is it too late already?
Troubled European banks with soured real estate loans
Following the U.S. economic crash, Europe fell into recession and largely remains mired in a sluggish economy, high unemployment and depressed real estate values. European banks have suffered greatly along with their customers as real estate loans have soured.
According to a recent PricewaterhouseCoopers report, European banks were finally recognizing approximately $1.4 trillion in nonperforming loans at the end of 2013, up from $715 billion in 2008. For years after the financial crisis, the European banks were not marking down the loan collateral and classifying their loans. They took no decisive action to deal with their bad loans.
But now that is changing. European banks are at an inflection point. According to the PwC report, in 2013, banks sold $90.5 billion worth of troubled debt to investors, compared with $64 billion in 2012, an increase of more than 40%. The European Central Bank is the driving force in this new development and 2014 is likely to set new records.
Troubled loan purchases or restructuring deals are on a dramatic rise. Deals have been announced by the likes of Oaktree Capital Management, Apollo Global Management, Centerbridge Partners, Angelo Gordon, Kohlberg Kravis Roberts and Goldman Sachs.
15 November 2012
Hotel Lawyer with the new “Resource Guide to the U.S. Foreign Corrupt Practices Act”
In the last few years, a lot of hotel transactions have been completed in foreign countries or involving foreign investors. The significance of international hotel transactions has soared and many businesses have found that some of the most attractive opportunities involve crossing international borders.
On November 14, 2012, the US Department of Justice (DOJ) and the Securities & Exchange Commission (SEC) issued a 130-page document which is the most comprehensive effort by these agencies to provide long-awaited guidance to respond to complaints from companies that have complained about the ambiguity of the Foreign Corrupt Practices Act (FCPA).
The article below is by hotel lawyer Bob Braun, a senior member of JMBM’s Global Hospitality Group®, who has been spending more of his time lately representing owners, developers and investors in international investments and transactions involving hotels, resorts, mixed-use developments and other hospitality-related projects. In this article, he reminds us why the FCPA should always be at the top of our minds when we pursue international transactions, as he gives us the background on the FCPA and the significance of the new Guide from the DOJ and SEC.
5 January 2011
Jeffer Mangels Butler & Mitchell LLP (JMBM), one of California’s foremost full-service law firms, today announced that its Global Hospitality Group® facilitated the sale of the Sheraton Universal Hotel to Shenzhen New World Group Co. JMBM represented the receiver and structured the sale so that the 20-story, 451 room hotel could be conveyed while the hotel was in receivership.
15 September 2010
Hotel Joint ventures are springing up like weeds in the hotel industry.
Nearly two years after the collapse of the old economic order of easy money, the biggest players in the hotel industry are using the joint venture structure to seize opportunities for acquisitions and expansion.
But everyone knows joint ventures can be risky. Why is the JV model being used and is there a way to minimize the very real risks that exist in every joint venture?
In her article below, which was recently published by Hotel Business, hotel lawyer Catherine Holmes, a senior member of the JMBM Global Hospitality Group®, explains why the joint venture model is being used for hotel acquisitions and expansion, what inherent risks exist in the the JV structure, and offers “Four Keys to Success in Hotel Joint Ventures.”
Cathy’s straightforward and timely advice is based on her experience representing numerous hotel owners in the acquisition process, whether it is a debt or equity transaction, a joint venture, a public-private partnership, or a deal that requires a complex capital stack. She recently represented Formosa International Hotel Corporation in the acquisition of the Regent brand hotels with operations in Asia, Europe, the Middle East and the Caribbean.
22 April 2010
Hotel Lawyer with an update on successful Asian investor strategy
A number of years ago, JMBM’s Global Hospitality Group® trademarked Global Hospitality Advisor® to reflect both the global and advisory nature of our focused hospitality practice. We are very proud to use it today with reference to Formosa International, a client we represented in signing a definitive agreement for the acquisition of worldwide rights to the Regent brand and hotel business.
Author of www.HotelLawBlog.com
27 July 2007
Hotel Lawyer on GREEN hotel development. Jeffer, Mangels, Butler & Marmaro LLP (JMBM) announced today that The Hotel Developers Conference™ 2008 will focus entirely on green hotel development and renovation. Presented by the 50-lawyer team of JMBM’s Global Hospitality Group® this green hotel “summit” is co-sponsored by the University of Las Vegas (UNLV) and the Los Angeles Chapter of the United States Green Building Council (USGBC). More than 450 hospitality industry leaders are expected to attend, March 12-13, 2008, at the Green Valley Ranch Resort & Spa in Las Vegas, Nevada.
As we have said here on www.HotelLawBlog.com before: “Don’t wait for the GREEN. It is here”