By David A. Sudeck —
This post is the third in a series presenting my current thoughts on the viability and timeliness of EB-5 financing for new hospitality construction. Each installment is published as a standalone piece and can be read independently of the others in the series.
- EB-5 and Hospitality Financing: A Structural Shift in Capital Markets
- EB-5 and Hospitality Financing: Rural TEAs—Still the Fast Lane
- EB-5 and Hospitality Financing: Urban EB-5 Is Still a Large-Scale Game (this post)
- EB-5 and Hospitality Financing: Leverage and Structure Matter More Than Price
- EB-5 and Hospitality Financing: Why EB-5 No Longer Slows Deals
- EB-5 and Hospitality Financing: How EB-5 Improves Equity Returns
- EB-5 and Hospitality Financing: Practical Steps for Developers
- EB-5 and Hospitality Financing: Why Now Is a Good Time
Outside rural Targeted Employment Area (“TEA”) projects, EB-5 capital is significantly more selective. Lender appetite for non-rural deals is generally concentrated on transactions exceeding $50 million, typically for high-profile developments in well-known locations. The reason is straightforward: EB-5 investors and the funds raising capital on their behalf need a compelling, globally marketable story. Projects anchored by recognizable brands in major markets meet that standard, whereas a $25 million select-service hotel in a secondary city generally does not.