(1) Operations Job Creation
A new hotel project is an excellent source of job creation. A daily operations staff, housekeeping, and ongoing guest services mean that an EB-5 investment in a hotel project has a higher chance of creating more than the requisite 10 jobs.
(2) Direct Job Creation
If the project’s construction phase lasts longer than 24 months, the USCIS regional center guidelines allow EB-5 investors to count the construction jobs as direct, permanent jobs. This crucial window of 24 months allows investors to count more jobs than those projects with construction lasting under 24 months.
(3) Full Capital Stack Counts Toward Job Creation
No matter what percentage the EB-5 investor’s $900,000+ represents of the total capital needed to mount the project, all money raised counts toward the EB-5 investor’s job creation requirements. This principle is not unique to hotel projects, but given the aforementioned expectation for high job creation, a $900,000 investment within the $200 million construction of a new hotel could result in significant job cushion.
(4) Job Cushion
The USCIS requires 10 jobs to be created per EB-5 investor. The term “job cushion” refers to any number of jobs over the required 10 jobs that each EB-5 investor can count. Projects that create direct, indirect, and induced jobs have a greater likelihood of creating more than 10 jobs per investor, which allows for a greater job cushion. If the $200 million EB-5 hotel project creates 800 permanent jobs, and even if just 12.5% of the money came from 50 EB-5 investors investing at $900,000 each, the total pro-rated number of jobs created that the USCIS would allocate to each EB-5 investor would be 28.5 jobs.
(5) Better Chances of Permanent Residence Status
Investors who choose projects with a high job cushion increase the probability of having their conditional permanent visas become fully permanent at the I-829 petition stage. Hotel projects that succeed may create a substantial number of permanent jobs for a relatively low percentage of EB-5 capital investment.
(6) Investment Safety
The marketplace recognizes new hotel investments as relatively safe for return on capital. The risk is especially low when compared with other potential EB-5 investment opportunities.
(7) Project Structure
Foreign investors find the structure of EB-5 hotel projects easy to understand. For first-time investors, the revenue models of hotels are often perceived as more straightforward than those of other projects. For instance, one of the greatest keys to a hotel’s success is a smart choice of location, something most investors can determine with little more than a map.
(8) Trusted Brands
Through hotel projects, EB-5 investors have an opportunity to work with trusted international hotel chains that have experience creating and sustaining successful hotels, which maximizes your opportunity for investment return and qualified projections of permanent job creation.
At EB5 Affiliate Network, we have comprehensive experience creating regional center hotel projects. Across the United States, international hotel chains and top-flight hotel development organizations have worked with our company to raise capital from EB-5 investors. Our team has the in-house resources to help guide you in your project.