Hotel Feasibility Study in the Albuquerque, NM Metro Area

Albuquerque: lodging first among classes

Albuquerque brings 45 of 807 in the area ranking for hotel and motel loans and 1 of 39 in Albuquerque’s class list. A 1.77x location quotient puts hotels first in the local class list and well above their weight in the country. SBA's files show 42 loans for $97.2 million, FY2017 to FY2026. Half of Albuquerque hotel loans fall from $1.3 million to $3.2 million, around a $2.2 million median that is 1.01x of the national hotel median. The median is close to the national one, and lodging is first among the 39 classes here.

In Albuquerque, hotel borrowers picked SBA 7(a) 30 times and SBA 504 12 times. About 73.8% of the Albuquerque hotel loans are franchised, as SBA records them. On the 7(a) side, Western Commerce Bank holds 8 loans worth $14.0 million. That is the lender on record, and nothing about Western Commerce Bank's standards follows from it. Only holdings count.

For hotel loans in Albuquerque, the cancellation and charge-off rates stay blank: Loan Analytics withholds a rate that too few loans support, and a blank is never zero. Three years print: FY2021 with 7 loans and $21.5 million, FY2022 with 10 loans and $22.8 million, and FY2024 with 6 loans and $10.2 million. The other years each hold too few loans to print.

What an Albuquerque lodging study tests

The hotel and motel code does not distinguish limited from full service, so service level is invisible in Albuquerque. Which hotel loans fall in the area is decided by each project's county against the July 2023 list; loans in unplaceable counties drop out. The study then needs to test the supply near the site, brand terms and renovation scope, and debt service at multi-million tickets, with an appraisal that stands on its own. Coverage should be run near $1.3 million and near $3.2 million, the edges of the middle half around the $2.2 million median. A study should be specific about the corridor, the brand, the room count and the renovation scope, and show how debt service holds if occupancy runs behind plan in the early years. These figures are context for a hotel assessment at an Albuquerque site, and approval is never promised.