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Blank Rome says it published an analysis of EB-5 financing and hotel equity returns
Blank Rome said it published David Sudeck’s analysis of how EB-5 financing can change a hotel development’s capital structure and equity economics. The firm said the article, the sixth in a series, compares EB-5 with the financing layer it replaces rather than evaluating its pricing solely against conventional bank debt.
Key points
- Blank Rome illustrated a conventional structure with 65% senior debt and 15% mezzanine debt.Blank Rome — Hospitality Industry Insights
- The firm compared that example with an 80%-leverage structure combining EB-5 senior financing and C-PACE.Blank Rome — Hospitality Industry Insights
- Blank Rome’s example assumed around 8% annual interest on each of the EB-5 and C-PACE tranches.Blank Rome — Hospitality Industry Insights
- The firm said the benefit is that EB-5 may displace higher-cost mezzanine or preferred equity layers.Blank Rome — Hospitality Industry Insights