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Hotel with pool

Hotel developers face higher interest rates in 2024, look to EB-5 as a cheaper funding source

The hotel industry in 2024 will continue to deal with expensive debt thus more developers are looking to use less-expensive EB-5 as an alternative funding source. EB-5 money is flexible and can be part of a capital stack, as senior debt or as a mezzanine component. For post-COVID EB-5 investors, hospitality has been a popular asset class. Hotels, in particular, are attractive because of the industry’s high job creation and dynamic pricing capabilities that provide a hedge against market fluctuations.

See the HotelsMag.com story

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