FOUR SEASONS HOTEL NEW ORLEANS - EB5 PROJECT - IN 2020
Outlined below is our current Project open for investment in the EB-5 Immigrant Investor Program, through our Regional Centers for High Net Worth Immigration to USA and to obtain United States permanent residence (Green card):
Four Seasons Hotel and Residences, New Orleans, Louisiana
Four Seasons Hotel
Four Seasons Hotels and Resorts is a leading global brand for luxury hotels and residences. Four Seasons operates over 119 hotels in 46 countries, and Four Seasons private residences are in 25 locations internationally. Four Seasons’ objective is to be recognized as the
company that manages the finest hotels, resorts and residence clubs in any location in which they operate.
The Venture expects that the inherent quality of the Property, when combined with the Four Seasons brand, will result in a hotel attractive to the most discerning
guests, and condominium residences attractive to the most discerning buyers.
Four Seasons Hotel Features
Luxury and innovative features of Four Seasons Hotels include:
1. Custom made Four Seasons Mattress
2. Setting the Standard for Luxury Hospitality
- Round-the-clock laundry service, one-hour pressing, twice-daily housekeeping service, complimentary overnight shoeshine and European-style concierge service.
3. In-Room Conveniences
- Provide shampoo and other toiletries, hairdryers, monogrammed terry cloth bathrobes, and other amenities company-wide. 24-hour room service and complimentary newspapers.
4. Dining, Four Seasons Style
- Quality food and beverage in its hotels.
5. Spa and Wellness
- Full-service spa, with complimentary ice towels and spritzers poolside.
- Complimentary WiFi internet access on a global scale.
Features of the Four Seasons, New Orleans
The main features of the Four Seasons, Two Canal Street, New Orleans will be:
- 34-story, mixed-use development in New Orleans, Louisiana
- 341-key Four Seasons hotel on the lower floors, 92 luxury condominiums on the upper floors
- Four Seasons five-star services and amenities. Services and amenities will include two restaurants, approximately 32,000 square feet of meeting space, a spa and fitness center, a
roof-top pool and deck area, and a roof-top bar.
- The Four Seasons hotel will be located on floors 1 through 18 and total approximately 385,948 gross square feet. Floors 19-31 will be private residences.
- Construction began in the summer of 2018, it is expected to finalize in January 2021.
Project Partners - Four Seasons Hotel, New Orleans
The Joint Venture Equity Partners in the New Orleans Project are:
1. Richard Friedman
- Richard L. Friedman has been President of Carpenter & Company (The Project Developer), since 1973. He is the former Chairman of the National Capital Planning Commission under President Clinton. Mr. Friedman was appointed by President Obama to serve as Vice Chairman of the President’s
Export Council and is a Director of Four Seasons Hotels and Resorts.
2. Bill Gates
- Bill Gates is an investor in the project and a joint owner of the Four Seasons brand.
3. Alan and Sherry Leventhal
- Alan Leventhal is the founder-CEO of Boston-based real estate investment firm Beacon Capital Partners Seasons brand. Sherry Leventhal is a trustee of Tulane University, New Orleans.
4. The Juffali Family
- Saudi Arabia's largest private enterprise.
5. Four Seasons Hotel
6. Saudi Aramco
- Saudi Arabian Oil Company - one of the largest companies in the world by revenue.
EB-5 Project Features - Four Seasons Hotel, New Orleans
A. Project is Fully-Funded
- Total Construction Costs - $468 million comprised of Equity of $171 million (36.5%), Bank Loan- $177 million (37.8%) and EB-5 Funds - 120 million (25.7%).
B. Capital Guarantee to Complete Project
- The Senior Construction Loan can be increased, if required. EB-5 funds are just reducing the construction loan amount. Therefore, the project construction has strong capital guarantee to complete.
C. Targeted Employment Area
- The Project is located within a targeted employment area ("TEA"), as certified by the Louisiana Workforce Commission in a letter dated October 22, 2018. This allows immigrant investors to invest in the Project with the current EB-5 Program minimum investment per EB-5 investor of $900,000 USD of at-risk capital, since the new EB-5 Modification Regulations, effective from 21 November 2019.
D. Job Creation
- 4,047 total construction expenditure jobs created. This is 1.7 times the amount of EB-5 jobs needed and a 68% job cushion.
E. Investor Return
- There will be 2 Funds. Under the Qualified Purchaser Fund - the return will be 3.0% Per Year when Funds are deployed to the Project, and the General Fund - 0.25% Per Year when Funds are deployed to the Project.
F. I-924 Exemplar Approval
- The Project has I-924 Exemplar Approval, and many I-526 approvals already. Investing in exemplar projects provides investors with the assurance that their project has been pre-approved. The project has been evaluated and certified by USCIS to meet certain criteria delineated in the EB-5 requirements.
EB-5 Investors benefit from faster processing times for pre-approved projects, which are often significantly shorter than for non-exemplar projects.
G. Repayment of EB-5 Funds
- EB-5 funds will purchase a preferred equity interest in the hotel. The condominiums are already 30% sold. EB-5 will be paid back from either (a) sale of condos and/
or (b) refinance of the hotel, or (c) sale of the hotel.
H. Return of Capital
- Capital is returned if (1) I-829 is filed, (2) conditional green card has expired, and (3) the fund has been paid back.
Reasons to Invest in New Orleans Hotel Market
The Project will be located in the city of New Orleans, Louisiana, which is experiencing an increased hotel demand due to the following demand drivers:
1. Increase in Commercial Office Market
- Between 2012 to 2017, there has been an increase in rental rates in New Orleans from $17.04 to $18.61 per square foot.
2. Hotel Occupancy Rates
- As at March 2019, Occupancy stood at 84.4 percent, a 2 percent jump from last March. Revenue per room was $155.19, a 9.1 percent increase.
3. Proposed Hotel Developments
- There are 23 proposed hotel projects, totaling about 3,200 rooms that could open between 2018 and 2022. Aside from the Four Seasons Project, no other hotel planned development is considered a luxury hotel, apart from the the NOPSI Hotel New Orleans, which opened in 2017.
- Tourism generates about 40% of New Orleans’ tax revenues, with $7 billion in visitor spending per year. In the last 20 years the tourism industry in New Orleans has nearly doubled. Over one million visitors
attend the Mardi Gras celebrations each year. Other significant festivals include the French Quarter Festival (about 574,000 visitors) and the Jazz and Heritage Festival (450,000 visitors).
5. Hotel Demand is also driven by the following popular sites - near the Four Seasons in New Orleans:
- New Orleans Morial Convention Center - The convention center has 1.1 million square feet of space, two ballrooms, 140 meeting rooms, and a 4,000 square foot auditorium. It is the country’s seventh largest convention center. The convention center has contributed an average of 1.3 million room nights annually
to the local lodging market within the last five years.
- Mercedes-Benz Superdome - Situated in the city and has 77,000 seats and 166,000 square feet of convention floor space. The city is also a major sporting events destination, and the Superdome is home to the New Orleans Saints, the city’s NFL team.
- Colleges and Universities in New Orleans - New Orleans is home to Tulane University, University of New Orleans, Loyola University of New Orleans, and others, totaling about 50,000 students. The LSU Medical Center and
Tulane University Health Sciences Center are both medical research hubs that also attract visitation.
- Louis Armstrong New Orleans International Airport - In 2017, the Airport experienced 12.01 million passengers, a 4.4% increase over 2016.
- The Port of New Orleans - the sixth largest port by cargo volume in the United States, is a major economic engine in the area. Furthermore, about one million cruise ship passengers arrive through
the port each year to visit New Orleans.
Property Developer of the Four Seasons, Two Canal Street, New Orleans
Carpenter & Co. Project Developer
- Carpenter & Company (Founded in 1898) is the experienced and successful Property developer, and they have substantial experience of developing hotels, mixed-use projects and retail properties
- Carpenter has successfully developed projects valued today at more than $1.5 billion, and currently has under development projects totaling an additional $1 billion
- Carpenter’s CEO, Richard Friedman, sits on the Four Seasons Board of Directors and he began developing hotels and mixed-use projects in the early 1970's.
Carpenter & Co.- Previous Projects and EB-5 Track-Record
Previous projects undertaken by Carpenter & Co. include: the St. Regis San Francisco Hotel and Residences, and in the Boston area, the Liberty Hotel, the Logan Airport Hilton, the Brookline Marriott Courtyard,
and Charles Square and the Charles Hotel.
Their previous EB-5 project was the Four Seasons Hotel and Residences at One Dalton in Boston, which raised $159.5 million in EB-5 funds, and was completed in the 2nd quarter of 2019.
Project Development Team - Four Seasons, New Orleans
1. AECOM Tishman
- AECOM Tishman, founded in 1898, is one of the most successful construction firms in the world and is responsible for the construction of more than 500 million square
feet of space, including New York City’s One World Trade Center.
2. Woodward Design + Build
- Originally formed by Carl E. Woodward, an innovative New Orleans architect and early champion of the design+build process.
3. Cambridge Seven Associates, Inc.
- Cambridge Seven Associates was founded in 1962 by a group of designers who believed that their collaborative efforts would be far more effective than those of
any individual. Among Cambridge Seven’s projects are the Ministry of Education Headquarters in Kuwait, the Ring of Fire Aquarium in Osaka, Japan, the Liberty Hotel in Boston and the Four Seasons Hotel in Boston.
4. Trapolin Peer Architects
- Founded by Peter Trapolin in 1981, Trapolin-Peer Architects is a full-service architecture firm that specializes in context-sensitive designs for new construction and historic property renovation and restoration.
FOUR SEASONS HOTEL NEW ORLEANS – EB-5 VISA PROGRAM – INVESTOR PROJECT