Int. J. Built Environment and Asset Management, Vol. 1, No. 4, 2015 329
Copyright © 2015 Inderscience Enterprises Ltd.
Financing hospitality projects using the
EB-5 program
Stephen Sewalk
Burns School of Real Estate and Construction Management,
Daniels College of Business,
University of Denver,
Denver, CO 80208, USA
Email: ssewalk@du.edu
K. Sunny Liston*
Chair of Real Estate and Finance,
Marylhurst University,
Marylhurst, OR 97036, USA
Email: sliston@marylhurst.edu
*Corresponding author
Amrik Singh
Fritz Knoebel School of Hospitality Management,
Daniels College of Business,
University of Denver,
Denver, CO 80208, USA
Email: amrik.singh@du.edu
Lauren Apsokardu
Burns School of Real Estate and Construction Management,
Daniels College of Business,
University of Denver,
Denver, CO 80208, USA
Email: lauren.apsokardu@gmail.com
Abstract: Starting with the 2008 recession, many projects have stalled or been
cancelled due to a lack of financing. Banks have become risk adverse and
equity investors, wanting to ensure that their investments pay-off, have
demanded high rates of return on these projects. Even as the economy recovers
slowly, funding for projects remains difficult to find. Owing to the lack of
financing since the financial crisis in 2008, funding available through EB-5
visas caught the attention of hospitality projects and in particular small hotel
developers and demand for this type of funding has been increasing. In this
case study we present the mechanics of EB-5 funding, discuss how to structure
a project and show the value of using this type of funding for hospitality
projects, specifically by analysing the proposed construction of a Hilton
Garden Inn in California.