Hotel Feasibility Study in the Charleston-North Charleston, SC Metro Area

Charleston-North Charleston: hotel and motel lending

Within Charleston-North Charleston, during FY2017 to FY2026, SBA recorded 27 hotel and motel loans, carrying $83.9 million in gross approvals. Inside Charleston-North Charleston, hotel and motel lending ranks 7 of 39 on the list of asset classes. Nationally, Charleston-North Charleston lands at 86 of 807 in every metro and micro area for hotel and motel loans. Charleston-North Charleston's location quotient is 1.09x, above the national share. Charleston-North Charleston stands apart on size: median $3.3 million. The central half of Charleston-North Charleston loans lies between $2.4 million and $4.2 million, and the median comes to 1.52x the class median nationally. Charleston-North Charleston hotel loans are large, with a median of $3.3 million at 1.52x, and franchise-affiliated at 77.8%. The middle half runs $2.4 million to $4.2 million, and GBank holds 5 SBA 7(a) loans worth $16.5 million. Hotels sit seventh (7 of 39) among the area's classes, near the national weighting at 1.09x.

Of Charleston-North Charleston's 27 loans, 22 are SBA 7(a), 5 SBA 504. Franchised units make up 77.8% of the Charleston-North Charleston loans. Among lenders named for Charleston-North Charleston GBank, as current holder, carries $16.5 million across 5 SBA 7(a) loans. Charleston-North Charleston's holder entries show present holders only. Charleston-North Charleston borrowers learn nothing of lender credit policy from them. By county: Charleston County, SC has 14 loans; Berkeley County, SC has 7 loans; Dorchester County, SC has 6 loans.

Charleston-North Charleston: years, floors and limits

For Charleston-North Charleston, only some years can be shown: FY2022 shows 5 loans totalling $11.6 million. Not published for Charleston-North Charleston: FY2017 to FY2021 and FY2023 to FY2026. Charleston-North Charleston's withheld years are never zeros. The Charleston-North Charleston cancellation rate: withheld, under 30 loans in the cohort. Any Charleston-North Charleston charge-off rate: suppressed, fewer than 30 loans in all. Charleston-North Charleston's cut-off is Loan Analytics' own. Charleston-North Charleston has a thin FY2017 to FY2021 group. Charleston-North Charleston takes the 2023 July list. Charleston-North Charleston admits a loan only by its county. Charleston-North Charleston omits unmatched loans. One code covers all Charleston-North Charleston lodging. Charleston-North Charleston cannot separate select-service from full-service. Charleston-North Charleston hotels and motels share a single code.

Charleston-North Charleston: what to test

Charleston lodging sponsors should state the flag and what it demands, then test nightly rate, occupancy and seasonality against the room count for a loan near $3.3 million. Charleston County holds 14 loans, Berkeley County 7 and Dorchester County 6, so place the site in its county and compare with lodging there. Cost per room, whether built or renovated, has to sit against that rate. A weak season must still pay the instalments, and the appraisal will verify operating records.