News Archive Search
Hotel Developers: Why a 'Regional Centre' May Be the Key to Financing Your Next Hotel Development or Expansion
Hotel Developers: Why a "regional center" may be the key to financing your next hotel development or expansion. And what you need to know about finding a regional center to sponsor your EB-5 hotel financing program.
JMBM's hotel lawyers have represented hotel developers for decades. We know first hand that today's financial environment is one of the toughest for financing new development ever seen, even for experienced hotel developers with great projects.
But the EB-5 Immigrant Investor Visa Program may be one of the best financing sources now available. If you missed it, you will want to read, How to use the EB-5 Immigrant Investor Visa Program for financing.
Simply stated, the EB-5 investment program offers an alternative means of raising capital for hotel projects in the U.S. Our goal is to help hotel developers access this source of financing.
In this article, my partner, Catherine Holmes, gives you the information you need to understand how EB-5 Regional Centers work -- what they are, why you need one, and how to find one or create one.
EB-5 Investment Essentials for Hotel Developers:
By Catherine Holmes
In a previous article, we described how the EB-5 investment program can be used by hotel owners and developers to provide an additional source of financing for hotel development, expansion and acquisitions. Although EB-5 financing is not new, the number of potential investors seeking EB-5 visas from mainland China has increased dramatically just in the past year, which is why the amount of financing available through the EB-5 investment program has grown exponentially, and has the capacity to bring over $1 trillion of new financing into the United States. Since traditional sources of hotel development financing continue to be extremely limited, any hotel developer who is looking to finance a hotel development project over $10 million should consider whether the EB-5 investment program could provide a portion of that financing.
In this article, we explain why hotel developers need to seek EB-5 financing through regional centers, how to find a regional center for a hotel project, how to negotiate with a regional center and whether a developer can establish its own regional center for a hotel development.
Visit our sponsors