News for the Hospitality Executive |
Hotel
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? 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? by 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™. ________________________ ________________________ 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. |
Contact:
Jim Butler
|