for
HOTEL
Development
HOTEL INDUSTRY
BENCHMARKS FOR DETERMINING DEMAND
FOR NEW HOTELS
by Bruce Baltin and Catherine DeBono Holmes
For EB-5 financing of hotel projects, proving that new jobs will be created requires evidence that
there is a market demand for an additional hotel in the local market. The basic requirement for
any EB-5 financing is to show that a project will create at least 10 new jobs per EB-5 investor. For
new hotel projects that use EB-5 financing, it is necessary to show that the new hotel is not merely
taking jobs from existing hotels in the area, but actually creating new jobs. That requires evidence
that there is enough guest demand in a local market to allow a new hotel to open without causing
existing hotels in the area to lose occupancy. If the project owner can demonstrate that the demand
for hotel rooms already exists, it can show that opening a new hotel will create new jobs, without
taking away the jobs of the existing hotels in the area. How can a project owner demonstrate that
this demand for new hotel rooms exists?
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EB5 INVESTORS MAGAZINE