EB-5 investments spur growth in the hospitality industry

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As markets struggle to regain stability, hoteliers and commercial property developers in the hospitality industry are increasingly looking to the EB-5 program as an alternate source of funding.

Introduced in 1990, the EB-5 Visa for Immigrant Investors Program allows foreign nationals to apply for a green card under the condition that they invest at least $1 million in a new or existing commercial enterprise, or a minimum of $500,000 in a Targeted Employment Area (TEA), a rural area or an area experiencing an unemployment rate of at least 150 percent of the national average.

Milwaukee's Third Ward will soon see anew, nine-story luxury hotel rise amidst the art galleries, boutiques, and restaurants in the city's historic fashion and art district. The ambitious project will be funded in large part by Indian investors through the EB-5 program. Real estate magnate Lorenzo Doumani has recently imploded his hotel, the Clarion in Las Vegas, to make way for a new mixed-use, non-gambling entertainment complex that is expected to cost between $500 million and $1 billion. Doumani is also looking to the EB-5 program for funding from international investors. In Miami, up to nine investors from the Gulf have agreed to invest in SkyRise Miami, a $430 million entertainment center and observation tower to be built on the shores of Biscayne Bay.

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Despite uncertain economic times, the hospitality industry general has thrived, thanks in large part to international tourism. Hotel owners who wish to take advantage of the opportunities offered by strong tourism but are having difficulty accessing traditional sources of capital can now ensure that their businesses remain healthy while helping create meaningful employment for qualified workers in their areas through the EB-5 program.

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Shalom Segelman is a real estate industry veteran and EB-5 specialist. Like this Facebook page for news and updates on the EB-5 program.