90% of small hotels in Southern California are run by Chinese. Photo: Baidu.com
With the recovery of the real estate industry in the US, Chinese mainland investors have begun to purchase small hotels and inns in Southern California, according to The World Daily.
In the 1980s, most of the Taiwanese immigrants who had $200,000-$300,000 at hand would make a living in the US by purchasing a small hotel or an inn and running it. Meanwhile, running a hotel also solved their housing problems. They could buy a 50-room hotel with the payment of a $300,000 deposit, and the monthly earning could reach $10,000.
Because of the long hours involved, most of the offspring of the Taiwanese immigrants didn’t want to continue running their family hotels or inns. Therefore, the number of Taiwanese hotel owners and inn-keepers began to decrease.
However, in recent years, Chinese mainland investors have been reviving the trend with the purchase of small hotels and inns for the same reasons as the Taiwanese immigrants in the 1980s.
However, some immigrants from the Chinese mainland only invest money without being involved in the running of the hotels, such as Courtyard and Residence Inn near the L.A. Live, as prices are still low compared to the peak of 2007 and 2008, according to a hotel owner in Southern California. Last month, a Chinese mainland investor bought a 200-room hotel in San Pedro for $16 million, with each room costing $80,000. However, the price of each room could go up to $150,000 during peak periods.
A real estate broker said hotels and inns in good condition would cost much more than those in poor condition. But many Chinese investors still prefer hotels and inns sold at low prices because they think conditions of the rooms can be improved by fixing flaws and adding enhancements later.