Cornell Study Analyzes Effects of EB-5 Financing on Hotel Development

The Center for Hospitality Research | August 31, 2015

Ithaca, NY, August 31, 2015 - A federal program that encourages foreign residents to invest in U.S. projects can create distortions in the hotel development cycle, according to a study published by the Center for Hospitality Research (CHR) at Cornell University. The program, known as EB-5, offers U.S. citizenship to foreign residents whose investments create jobs in the United States. Hotel developers have taken advantage of the EB-5 program's relatively inexpensive capital, as detailed in the study, "Creative Capital: Financing Hotels via EB-5," by Arian Mahmoodi and Jan A. deRoos. The report, which is published in association with the...