Hotel Feasibility Study in the Boston-Cambridge-Newton, MA-NH Metro Area

Boston-Cambridge-Newton: hotel and motel lending

For Boston-Cambridge-Newton, in FY2017 through FY2026, SBA approved 34 hotel and motel loans, carrying $60.8 million in gross dollars. Within Boston-Cambridge-Newton, hotel and motel lending ranks 18 of 39 among the asset classes, while Boston-Cambridge-Newton sits at 59 of 807 against all metro and micro areas ranked by hotel and motel loans. At 0.12x, Boston-Cambridge-Newton's location quotient puts hotel and motel below the nation. Loan size is where Boston-Cambridge-Newton stands apart: median $1.6 million. The central half of Boston-Cambridge-Newton loans spans $661,250 to $2.2 million, and the median comes to 0.76x the class median nationally. The 0.12x location quotient is a very light weighting for hotels, yet the area still stands 59 of 807 nationally and hotels rank 18 of 39 locally. The median of $1.6 million is 0.76x the class median nationally, so these are not large-hotel loans by national standards, and SBA 504 carries 23 of the 34 loans.

Of Boston-Cambridge-Newton's 34 loans, 11 are SBA 7(a), 23 SBA 504. Franchise-affiliated units make up 23.5% of the Boston-Cambridge-Newton loans. The Boston-Cambridge-Newton lender tables show that Granite State Economic Development Corporation, as current holder, carries $16.7 million across 10 SBA 504 loans, and New England Certified Development Corporation is the holder of 7 SBA 504 loans, $16.1 million in all. Boston-Cambridge-Newton's holder rows record present holders only. Boston-Cambridge-Newton applicants gain no evidence of bank requirements here. By county: Rockingham County, NH has 9 loans; Middlesex County, MA has 8 loans.

Boston-Cambridge-Newton: years, floors and limits

Boston-Cambridge-Newton can show only some years: FY2023 shows 9 loans totalling $15.6 million; FY2025 has 8 loans valued at $12.7 million. In FY2026, a complete fiscal year, Boston-Cambridge-Newton has 0 loans and $0. Held back for Boston-Cambridge-Newton: FY2017 to FY2022 and FY2024. The years held back for Boston-Cambridge-Newton do not mean none. The Boston-Cambridge-Newton cancellation rate: withheld, fewer than 30 loans in the cohort. The charge-off rate in Boston-Cambridge-Newton: withheld, below 30 loans in the cohort. Boston-Cambridge-Newton's minimum is Loan Analytics' own. Boston-Cambridge-Newton has a small FY2017 to FY2021 cohort. Boston-Cambridge-Newton takes the July 2023 list. Boston-Cambridge-Newton assigns each loan by county. Boston-Cambridge-Newton omits unmatched loans. A single code covers all Boston-Cambridge-Newton lodging. Boston-Cambridge-Newton can not separate select-service from full-service. Boston-Cambridge-Newton hotels and motels share one code.

Boston-Cambridge-Newton: what to test

A Boston-area hotel study should test the property's position against the lodging already in its submarket, the brand and its cost, and the room-rate and occupancy assumptions behind revenue. With a median near $1.6 million the project may be a modest one, so the cost of construction or renovation per room must be compatible with the rate the market can pay. The loan payment must still be met in the weakest season, and because an appraiser values the operating hotel, the forecast has to survive that scrutiny.