Hotel Feasibility Study in the Bakersfield-Delano, CA Metro Area

Kern County lodging: a high concentration

Hotel and motel loans rank second locally in Bakersfield-Delano, 2 of 39, and 28 of 807 nationally. At 2.60x, the location quotient shows lodging claiming a much heavier portion of area lending than the national mix would. The file counts 56 loans and $138.1 million approved across FY2017 to FY2026, all located in Kern County, CA, so metro and county coincide. A median of $2.3 million is 1.07x the national median, and central loans range from $1.4 million to $3.3 million.

Kern County hotel lending is 48 loans of 7(a) beside 8 of 504, and franchise flags cover 67.9%, which makes brand standards and franchise terms a routine part of these deals. Hotels and motels sit in a single code, so the study should state its own property type, since limited-service and full-service blur. US Metro Bank is the one holder listed, with 7 loans and $13.9 million, an SBA holder entry with no judgment of the bank.

Floors and years

Bakersfield cancellations stand at 10.0% or higher across the FY2017 to FY2024 approvals; the undisbursed-inclusive ceiling matches at 10.0%. Its charge-off rate is held back, and a hole there is no zero. The yearly record prints only five years: FY2017 with 8 loans and $19.7 million, FY2018 with 5 and $13.1 million, FY2019 with 7 and $16.1 million, FY2020 with 10 and $19.9 million and FY2021 with 10 and $25.9 million. Everything from FY2022 on is held back, so the page cannot show whether lending slowed or sped up.

Only loans in Kern County, CA, appear, since that county is the whole of the metro under the 2023 delineation, so a study should compare the site with Kern County rooms alone and not with the wider Central Valley.

Bakersfield rooms: the evidence a study needs

Hotel work in Kern County tests demand drivers specific to Kern County, against rooms already open in Kern County. The cost of the build or renovation is set against the $2.3 million midpoint, and occupancy and daily rate must carry debt service coverage. The appraisal values the operating hotel with the real estate. The finished Loan Analytics work comes from Daniel Smith, MAI, and nothing here predicts a lender's answer.