Hush Sohaili Quoted by Law360 on Considerations for Foreign Purchasers of U.S. Hotels
Law360, for its article “5 Considerations For Foreign Buyers Of US Hotels,” quoted Akin Gump real estate partner Hush Sohaili on issues, including hotel management, operations and taxes, faced by foreign buyers looking to purchase U.S. hotels.
Regarding financing and lenders’ location, Sohaili noted that, as was the case with Japanese banks during the Japanese investment boom of the late '80s and early '90s, many Chinese banks are now coming to the United States in order to help Chinese companies finance deals.
On relevant tax matters, he said that the key factor that foreign buyers should consider is the potential tax implications once a property is sold. Additionally, he noted that foreign purchasers should consider the question of hotel management, saying, “Especially if it’s a luxury hotel. How do you manage it? Do you have resources in place to be able to effectively do that in a foreign country?”
Furthermore, Sohaili stressed the complexity of hotel operations: “To buy a one-off hotel and to think that you will have the people in place to be able to really deal with it — that’s pretty challenging, because it’s such an active operational asset.”
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