Hotel Feasibility Study in the Aberdeen, WA Micro Area

A very high quotient for hotels

Counting classes, hotel and motel comes in at 1 of 39 for Aberdeen; counting areas, Aberdeen is 90 of 807 for hotel and motel. All 26 approvals, worth $52.9 million, sit in Grays Harbor County and fall between FY2017 and FY2026. Measured as a location quotient, hotel and motel loans score 11.21x in Aberdeen, a larger share than nationally. The 11.21x reading means hotels take a share of SBA lending far larger than the national share, though this Aberdeen page does not call it distinctive.

7(a) carries all 26 loans, and 504 stands at 0. Median loan size is $1.8 million; beside the national median throughout hotels and motels that is 0.82x, and $667,500 marks the lower quartile and $3.3 million the upper. A franchise brand attaches to 23.1% of the loans, so independent properties are common. Aberdeen supplies just loans that SBA recorded for hotel and motel, so totals for Aberdeen say nothing about projects financed in Aberdeen some other way.

A holder with large dollars

Holder of 8 7(a) loans worth $24.9 million: Open Bank. That is a big share of Aberdeen's hotel dollars in one institution. These are notes of holdings, never a rating of any lender.

Six years print: FY2017 brings no loans and $0, 5 loans worth $8.6 million in FY2018, FY2020 brings 6 loans and $11.7 million, FY2023 at no loans and $0, FY2024 at 5 loans and $10.6 million and no loans worth $0 in FY2026. The pattern is lumpy, and every empty year is a complete one. Loan Analytics leaves out Aberdeen's both loss-side rates since the Aberdeen FY2017-to-FY2021 group includes under 30 loans, so in Aberdeen Loan Analytics' own rule bites. A blank rate in Aberdeen is never a zero.

From a lender's side, a micropolitan record with a quotient this high and a sizable share of dollars in one holder is concentrated, and a new request will be read relative to a small set of precedents. From a borrower's side, the brand share of 23.1% means many of these properties are independent. The class code treats every hotel and motel alike, which hides the service level.

The tests a study in Aberdeen has to pass

An Aberdeen area hotel plan should test room demand with evidence from the site's market, since a quotient this high invites the question of whether the market is already served. Set achievable rate against building or conversion cost and run the payment on a request near $1.8 million through a slow stabilisation. Federal rules set Aberdeen; so loans from counties Aberdeen does not place are left out of the totals.