News for the Hospitality Executive
Investment: Why Asian investors are targeting U.S. hotels for
purchase and investment, and what could it mean for you?
By Jim Butler and the Global Hospitality Group®,
Author of www.HotelLawBlog.com
August 8, 2011
Hotel Investment: Why Asian investors are targeting U.S. hotels for purchase and investment, and what could it mean for you?
This week I was interviewed by several media sources to talk about the explosion of Asian investment - and particularly Chinese investment - in U.S. hotels and real estate. Nadja Brandt at Bloomberg News was kind enough to quote me in one of her articles on the subject, and Gigi Stone, Bloomberg TV anchor, had me in the Bloomberg TV studios for a brief interview and even briefer video clip! (Yes, Mom, it's long enough that you can tell it's me and she does say nice things about our Global Hospitality Group®). Bloomberg TV also made a point of highlighting JMBM's Chinese Investment Group™ which was recently announced.
The Chinese Investment Group™ . . . provides a gateway for Chinese investment in the United States.
Nadja Brandt's article (Asian Buyers Target U.S. Hotels as Affluence Increases Travel), discusses the just-completed iconic purchase by Hong Kong billionaire Cheng Yu-tung of 5 luxury hotel properties, including the Carlyle Hotel in Manhattan, and Rosewood properties including The Mansion on Turtle Creek and The Crescent in Dallas, The Inn of the Anasazi in Santa Fe, and Little Dix Bay in the British Virgin Islands.
The Cheng family also owns the Beverly Wilshire in Beverly Hills and once owned a stake in the Four Seasons Hotel in New York.
Bloomberg TV also made a point of highlighting JMBM's Chinese Investment Group™
Bloomberg's coverage of Chinese (and broader Asian) investment in the U.S. has really been top drawer, so if you are interested in this subject you will want to follow it. And if you want to go beyond the Bloomberg article, read on about why Asian investment is focused on US hotels.
Why are U.S. hotels so attractive to Asian investors?
Asian investment accounted for 8 percent of U.S. hotels purchased in 2010, and Jones Lang LaSalle expects that this amount will increase to the low double digits in 2011.
If you want to do business with these investors, it can be important to understand their motivations. What is it that Asian investors find attractive about US hotel investments? What are their goals and concerns? What are the drivers for this capital?
Here is our quick recap of some most important considerations we have seen underlying the explosion of direct foreign investment by Asian investors.
Asian investors continue to demonstrate a preference for real estate and hotel investments.
According to the U.S. Citizenship and Immigration Services ("USCIS"), applications for EB-5 visas virtually doubled in the first half of the 2011 fiscal year. And of this new wave of EB-5 applications, more than 70% of them are from mainland China. To better understand why a "regional center" is the best vehicle for EB-5 investment in hotels, restaurants, resorts and the like, see Hotel Developers: Why a "regional center" may be the key to financing your next hotel development or expansion. And what you need to know . . . .
According to recent reports there are more than 875,000 millionaires in China . . . growing at more than 12% per year . . . 115 billionaires [and] the wealthiest 0.05% of the Chinese have investable funds of more than $2.7 trillion.
It is estimated that direct foreign investment into the US by Chinese investors alone will exceed $5 billion in 2011, and about $1.2 billion of this will be through EB-5 investments. These figures are expected to increase significantly in coming years.
It is estimated that direct foreign investment into the US by Chinese investors alone will exceed $5 billion in 2011, and about $1.2 billion of this will be through EB-5 investments.
The Chinese Investment Group™ has sound strategies to maximize investment potential and financing opportunities resulting from the Asian growth phenomenon, including the EB-5 Immigrant Investor Visa Program for hotel financing
Foreign direct investment in U.S. real estate and hotels is a central focus at JMBM - particularly Chinese investment. We have been very active with Asian Pacific investors for more than 20 years, but the big changes of the past few years caused us to form JMBM's Chinese Investment Group™.
You will always be able to find the latest articles on this subject by going to Chinese investment.
And of this new wave of EB-5 applications, more than 70% of them are from mainland China.
The Chinese Investment Group™ is a dedicated team of hotel and real estate lawyers in JMBM's Global Hospitality Group® that provides a gateway for Chinese investment in the United States. Using experience gained from more than $60 billion in hotel transactions, involving more than 1,300 properties worldwide, together with substantial experience in general real estate transactions, the Group provides Chinese investors with legal and business advice to make prudent and economically successful hotel and real estate investments in the United States.
The Group and its network of reliable professional resources help Chinese investors identify, analyze, evaluate, validate, acquire, finance and manage hotel and real estate opportunities. The Group also represents selected hotel, restaurant and other real property owners and developers in structuring investments for foreign investors -- particularly Chinese investors -- using the EB 5 immigrant investor visa program.
Click here to learn more about JMBM's Chinese Investment Group™.
Click here for Simplified Chinese / 简 体中文
Click here for Traditional Chinese /繁體中 文
Click here to download a PDF file about the Chinese Investment Group™.
________________________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?
________________________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 [email protected] 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.
JMBM’s Global Hospitality Group®
The hotel lawyers in the Global Hospitality Group® of Jeffer Mangels Butler & Mitchell (JMBM) comprise the premier hospitality practice in a full-service law firm and are the authors of the Hotel Law Blog. We represent hotel owners, developers, investors and lenders and have helped our clients find business and legal solutions for more than $60 billion of hotel transactions, involving more than 1,000 properties worldwide. For more information about the Global Hospitality Group®, go to www.HotelLawBlog.com. For more information about full range of legal services provided by JMBM, go to www.JMBM.com.
Developers: Why a "regional center" may be the key to financing your
next hotel development or expansion. And what you need to know... /
Jim Butler / July 2011
to use the EB-5 Immigrant Investor Visa Program for financing / Jim
Butler / July 2011
Announces Formation of the Chinese Investment Group™ - Hotels, Real
Estate, EB-5 Immigrant Investor Visas / July 2011
Lawyer: How do you know when you should set up a captive insurance
company for your hotel? Take our "litmus test". / Jim Butler &
Gordon Schaller / July 2011
Lawyer: What you need to know about the "ancillary benefits" of setting
up a captive insurance company / Jim Butler & Gordon Schaller /
Lawyer: Are you thinking about setting up a captive insurance company?
Maybe you should be. . . / Jim Butler & Gordon Schaller / June
Lawyer in New York with pre-NYU industry forecast: Sunny with
occasional clouds and NO storms on the horizon / Jim Butler / June
Lawyer with the Executive Roundtable Results; Debt is returning, equity
is out looking, and we've passed the bottom of the trough. Why now is
the time to purchase a hotel. / Jim Butler / June 2011
Defense Lawyer: How to Quickly Lose Business. (No ADA-Compliant
Reservation System) / Jim Butler & David Sudeck / May 2011
Lawyer with Fresh Perspectives on the Hotel Industry from Smith Travel
/ Jim Butler / May 2011
Lawyers with PKF and Mark Woodworth's Lodging Overview / Jim Butler
/ May 2011
Lawyers' Updates on Capital and Debt Markets for Hotels, Transaction
Sales Data and Financings / Jim Butler / May 2011
Lawyer with Updates on Hotel Cap Rates, Values and Transactions /
Jim Butler / May 2011
Lawyer with nuggets from JMBM's Meet the Money® 2011 / Jim
Butler / May 2011
Lawyer: The hotel transaction market is heating up! / Jim Butler /
Lawyer with good news! A new federal court decision upholds condo hotel
structure. No "securities" involved as structured. Disgruntled condo
hotel unit purchaser lawsuit dismissed. / Jim Butler / April 2011
the Money®: Hotel Financing Renaissance is Underway! / Jim
Butler / April 2011
Global Hospitality Group® announces publication of The HMA
Handbook, a FREE practical guide for negotiating Hotel Management
Agreements for Hotel Owners, Developers, Investors and Lenders /
a Hotel? Don't Buy an ADA Lawsuit or DOJ Investigation / Jim Butler
/ March 2011
Lawyer on Hotel Management Agreements: Exculpation Clauses for
Protecting the Owner's Assets / Jim Butler / February 2011
Defense Lawyer: How to handle an ADA lawsuit....and How not to do it
/ Jim Butler / February 2011
Lawyer: 5 Key Elements for Good Hotel Management Agreement Budget
Provisions / Jim Butler / February 2011
improving fundamentals make 2011 the year of "Great Expectations" for
the Hotel Industry / Jim Butler / February 2011
the Hotel Lawyer: 2011 is starting as the year of "Great Expectations"
for the hotel industry! / Jim Butler / January 2011
ADA Defense Lawyer: How a recent ADA case affects all hotels but
particularly conference centers and meeting hotels / Jim Butler /
Lawyer: So, You Think You Want to Buy a Hotel? For savvy investors, the
time could be right / Jim Butler / January 2011
Universal Hotel Sale Facilitated by JMBM's Global Hospitality Group®
/ Jim Butler / January 2011