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Investing in Hospitality: E-2 Visa Guide for Hotel Business

 

The travel and tourism industry collapsed across the world during the pandemic. According to the United Nations World Tourism Organization (UNWTO), international tourist arrivals fell by 72 percent over the first ten months of 2020, a decline that reflects the gravity of global travel restrictions and lockdowns. As reported by the U.S. National Travel and Tourism Office (NTTO), international visitor arrivals in the United States fell from 79.4 million in 2019 to 19.2 million in 2020, a decline of 76 percent. Border closures, flight suspensions, and health restrictions sharply reduced inbound travel, mirroring patterns seen in other major destinations.

When restrictions eased, demand rebounded sharply. Many analysts referred to this surge as revenge travel, describing consumers eager to spend savings on delayed leisure trips and family visits. According to the Moodie Davitt Report citing UNWTO data, world tourism is on track to recover almost 90 percent of pre-pandemic levels by the end of 2023, with arrivals hitting 87 percent of 2019 levels through September and some regions exceeding it.

In the United States, the rebound has been measurable and steady. According to the American Hotel & Lodging Association (AHLA), U.S. hotel occupancy is “projected to reach 63.38 percent in 2025, just 2.42 percentage points shy of the 2019 level of 65.80 percent,” marking a solid recovery from the 2020 low of 43.89 percent.

Supporting this stabilization, STR data featured in the same report show that occupancy rates in 2024 and 2023 (63.01 percent and 62.97 percent respectively) are nearly the same as the 2025 projection, indicating a new equilibrium.

For people pursuing the E-2 Treaty Investor Visa, this trend matters. The industry has transitioned from volatile surges to consistent demand. That stability creates a solid foundation for hotel investments that generate employment, maintain steady revenues, and support the long-term visa strategy.

 

E-2 Visa Requirements

The E-2 Treaty Investor Visa is available to nationals of countries that maintain a treaty of commerce and navigation with the United States. According to the U.S. Department of State, confirming treaty eligibility is the first step in pursuing this visa.

The structure of the hospitality industry aligns closely with the standards set by U.S. Citizenship and Immigration Services (USCIS). The program requires a substantial investment of capital, and while no minimum amount is defined, hotels, resorts, and restaurants typically demand significant funding. According to the American Hotel & Lodging Association (AHLA), the industry employed about 2.15 million workers in 2024 and is projected to employ 2.17 million in 2025, with wages and salaries exceeding $128 billion. AHLA also reports that guest spending tied to hotel stays is expected to reach $777.25 billion in 2025, contributing more than $85 billion in state, local, and federal taxes. These figures illustrate that hospitality enterprises consistently operate at a scale that meets the E-2 threshold for job creation and economic contribution.

Another requirement is that the business be real and operating, capable of generating more than minimal income. The AHLA forecast underscores this point, showing that demand translates into sustained spending across lodging, dining, retail, and transportation. An applicant who builds a business plan around these market conditions is not presenting a marginal enterprise but one grounded in the broader economic performance of the sector.

USCIS also requires that funds be irrevocably committed and placed at risk. In hospitality, this often involves property acquisition, renovation, equipment purchases, franchise agreements, or staffing commitments. These steps are directly tied to the operational needs of hotels and restaurants, making it straightforward for applicants to demonstrate that capital is actively deployed.

Finally, investors must show ownership or control. In this industry, that can mean holding at least 50 percent equity in a property, owning a controlling interest in a hospitality group, or assuming contractual authority over management. Because the sector relies heavily on active direction of daily operations, from staff oversight to guest services, it provides clear opportunities for investors to demonstrate the managerial role required under the E-2 visa.

 

Types of Hospitality Investments That Qualify

According to U.S. Citizenship and Immigration Services (USCIS), the E-2 visa does not restrict applicants to a single form of business. What matters is that the investment is substantial, at risk, and directed toward an active enterprise. In the hospitality industry, several models fit these requirements:

  • Acquiring an existing property
          Purchasing a hotel, resort, or restaurant can qualify if the investor takes an active role in management and maintains or expands employment. This option allows for faster entry since the enterprise is already operational.
  • Launching a new project
          Developing a hotel, opening a restaurant, or building a resort requires clear commitments in land, construction, equipment, and staffing. These investments are capital intensive and align with the E-2 standard for substantial investment and job creation.
  • Forming a franchise partnership
          Working with an established brand provides operational systems, marketing support, and name recognition. As long as the investor retains at least 50 percent ownership or managerial control, franchise ventures can meet E-2 criteria.
  • Pursuing boutique or niche concepts
          Smaller independent hotels, specialty restaurants, or event venues can also qualify if they create sustainable revenue and jobs. A detailed business plan is critical to show viability in these competitive markets.

Each of these approaches gives investors flexibility to align their resources and goals with the requirements of the E-2 visa.

 

Steps to Apply for an E-2 Visa in Hospitality

According to the U.S. Department of State, the application process begins with confirming that the applicant is a national of a treaty country. Once eligibility is established, investors typically move through the following steps:

  • Develop the business plan
          Applicants must present a clear and credible plan showing how capital will be invested, projected revenues, and the number of U.S. jobs created. This document helps demonstrate that the enterprise is more than marginal.
  • Commit the investment
          USCIS requires that funds be irrevocably committed and placed at risk. In hospitality, this may involve property acquisition, franchise agreements, renovations, equipment purchases, or staff hiring.
  • Establish control
          Investors must show they will direct and develop the business. This is usually demonstrated through ownership of at least 50 percent of the enterprise or through a contractual managerial role.
  • File the application
          Applicants outside the United States complete Form DS-160 and submit supporting documentation to the U.S. consulate in their home country. Those already in the United States may file Form I-129 with USCIS to request a change of status.
  • Attend the interview
          Consular officers or USCIS adjudicators evaluate whether the investment is substantial, the business is real and operating, and the applicant meets all requirements. Evidence often includes contracts, bank transfers, franchise or management agreements, and proof of operational activity.

According to USCIS, E-2 visas are generally valid for up to two years and can be renewed indefinitely as long as the enterprise remains active and continues to meet eligibility standards.

 

Key Considerations for Investors

The E-2 visa is a non-immigrant category. It does not provide a direct path to permanent residency, although it can be renewed indefinitely as long as the business continues operating. Spouses and unmarried children under 21 may accompany the principal investor, and spouses are eligible to apply for work authorization in the United States.

Investors should also understand that E-2 status is tied to the success of the enterprise. If the business fails or ceases operations, the visa status may end. Careful planning, strong capitalization, and compliance with U.S. regulations are essential for maintaining long-term eligibility.

 

Pros and Cons of Hospitality Investments for E-2 Applicants

Pros

  • Capital intensity makes it easier to show “substantial investment” for E-2 eligibility.
  • Hospitality projects generate steady employment, satisfying the requirement that the business is more than marginal.
  • Industry recovery has stabilized, supported by consistent occupancy and spending levels.
  • The sector benefits from multiple revenue streams, including lodging, dining, events, and leisure services.
  • Franchises and established brands provide proven systems that strengthen business viability.

Cons

  • High startup and operating costs can be a barrier for smaller investors.
  • Federal, state, and local regulations add complexity and compliance costs.
  • Performance is influenced by broader economic cycles and shifts in travel demand.
  • Market competition is strong, with established domestic and international players.
  • Because visa status is tied to the business, failure of the enterprise can lead to loss of E-2 eligibility.

 

Conclusion

Hospitality has regained its footing after the pandemic, with steady occupancy, strong guest spending, and millions of jobs supported across the country. For E-2 applicants, this sector offers a natural fit with visa requirements because investments are capital intensive, management is hands-on, and the businesses make a clear economic impact. Choosing hospitality means not only pursuing U.S. residency under the E-2 program but also building a venture in an industry that remains central to the American economy.

 

Sources

 

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