Hotel Feasibility Study in the Baton Rouge, LA Metro Area

Baton Rouge: hotel and motel lending

In Baton Rouge, over FY2017 to FY2026, SBA approved 28 hotel and motel loans, worth $77.7 million of gross dollars approved. Inside Baton Rouge, hotel and motel lending is placed 4 of 39 against every other class here; Baton Rouge is placed at 81 of 807 across every metro and micro area on hotel and motel loans. Baton Rouge's 1.59x location quotient gives hotel and motel more weight locally. Baton Rouge's median loan size comes to $2.9 million. The central half of Baton Rouge loans runs from $1.8 million to $3.4 million, and the median stands at 1.32x the class median nationally. Baton Rouge hotel and motel loans are large and heavily franchised: a median of $2.9 million at 1.32x, a middle half from $1.8 million to $3.4 million, and a franchise share of 75.0%. Fourth in the local table (4 of 39) and 81 of 807 nationally, the class has a 1.59x location quotient. FY2021 and FY2022 carry the printed volume, at $20.5 million and $18.2 million.

For Baton Rouge, Loan Analytics withholds the 7(a) loan count along with the 504 loan count; too few loans sit behind either. Franchised units make up 75.0% of the Baton Rouge loans. In Baton Rouge, no holder gets to five loans. Baton Rouge therefore lists no lender. County by county: East Baton Rouge Parish, LA has 18 loans; Livingston Parish, LA has 5 loans.

Baton Rouge: floors, limits and years

For Baton Rouge, only some years can be given: FY2021 records 8 loans totalling $20.5 million; FY2022 has 5 loans totalling $18.2 million. In FY2020, FY2023 and FY2026, Baton Rouge records 0 loans and $0. Baton Rouge's FY2026 is a complete fiscal year. Baton Rouge's withheld years are: FY2017 to FY2019, FY2024 and FY2025. The years held back for Baton Rouge differ from none. A cancellation rate for Baton Rouge: not published, fewer than 30 loans. The Baton Rouge charge-off rate: withheld, below 30 loans. Baton Rouge's minimum is Loan Analytics' own. Baton Rouge has a thin FY2017 to FY2021 group. Baton Rouge sits on the July 2023 list. Each loan reaches Baton Rouge through its county. Baton Rouge omits unmatched loans. One code covers all Baton Rouge lodging. Baton Rouge cannot separate select-service from full-service. Baton Rouge hotels and motels share a single code.

Baton Rouge: what a study must test

Baton Rouge lodging needs a study that names the brand with its fees and improvement demands, and shows what rate and occupancy the rooms must achieve for a loan near $2.9 million. East Baton Rouge Parish holds 18 of the 28 loans, so place the site against lodging in that parish. Properties of different service levels share one code, so compare similar ones. A weak-season cash flow and verifiable income should round out the case.