Just as the nation’s economy was pulling out of the recession, the rising trend of Chinese investment in the U.S. real estate market begin to set a trend. The impact of Chinese investment in U.S. residential and commercial properties---including hotels--- has become increasingly progressive.
Institutional investors are attracted to the potential returns on a hotel project, along with the opportunity to expand their presence in the U.S. Hotel investment helps diversify Chinese investors' portfolios. Although Chinese investors have invested in all types of commercial real estate, office properties, multi-family properties, and hotel assets register the higher volumes in transactions. The buyers for hotels include private equities, tourism companies, real estate firms, construction companies, and institutional investors.
Individual Chinese investors are more conservative in buying in at reasonable prices and express a cautious interest in learning how to maintain real estate in the U.S. Furthermore, Chinese institutional investors have demonstrated an investment approach that values capital preservation and long-term business goals.
Chinese companies are looking at U.S. real estate as a stable way to diversify outside their own economy. Chinese buyers continue to invest heavily in U.S. real estate, especially in gateway markets in New York and California. Hence, the wave of Chinese investment in U.S. real estate appears anything but negligible or short-lived.
