Hotel Feasibility Study in the Dallas-Fort Worth-Arlington, TX Metro Area

The Dallas record for hotel and motel projects

Dallas supplies 264 SBA approvals to lodging properties from FY2017 and FY2026, for $892.1 million in gross dollars. Inside the country Dallas ranks 3 of 807 among metro and micro areas for these loans, by SBA's count, and locally the class is 10 of 39 against its local peers. At $3.7 million, the Dallas median sits above the national class midpoint, a ratio of 1.70x. Measured by location quotient, 0.90x, hotel and motel projects take a smaller slice of loans around Dallas compared with the country. Most borrowers received amounts between $2.2 million and $5.0 million.

Programs, franchises and lenders in Dallas

Of the 264 approvals, 216 are 7(a) loans and 48 are 504 loans, which reports which SBA program hotel and motel projects borrowers tend to use around Dallas. Within 504 lending, 11 loans sit with Capital Certified Development Corporation, 8 with LiftFund, Inc.. Under 7(a) lending, by SBA's count, the largest holder is US Metro Bank, with 27 loans; Bank of Hope ranks second at 22, and Commonwealth Business Bank is third at 18. The franchise share of Dallas approvals is 82.6%. SBA names the current holder of every loan, so the Dallas entries describe where sit hotel and motel loans now, and they do not describe the way a lender underwrites; no lender's requirements can be inferred.

Where in Dallas and when

Project counties rank Dallas County, TX first (79), Tarrant County, TX next (67) and Collin County, TX third (32). By year, FY2021 is the high mark for hotel and motel projects in Dallas (42 loans, $147.7 million) and FY2022 the low (15 loans, $58.1 million).

Floors and limits behind the Dallas figures

Dallas should be judged as a county-based figure: as a rule, SBA's county of the project, in this cell, assigned by name against the metropolitan list of July 2023, sets which lodging loans belong to Dallas. Over FY2017 to FY2024, 10.1% or more of Dallas hotel and motel approvals were called off after approval, a floor, lifted to 12.7% as an upper bound if undisbursed approvals are included. Hotels and motels sit under a single code, so select-service and full-service properties in Dallas blur together here. Nothing is printed for charge-offs for hotel and motel loans in Dallas: the disbursed cohort is too small, and silence should not be taken as evidence of no losses.

Feasibility questions for hotels and motels around Dallas

Begin with demand when hotel and motel projects are being weighed for Dallas: rate position among rivals, plus room demand from travelers. A record of 264 loans is context, rather than proof for one location. An appraiser for a Dallas project has to deal with flagged against independent operation and value of rooms against land. Then, Dallas hotel and motel projects need a coverage ratio that holds through a slow opening, as reported, since the cancellation and charge-off floors print that not every approved loan performs. Nothing here promises an approval; it simply offers lenders and borrowers a common reference in Dallas. Next comes cost, counting reserve for replacements and housekeeping and desk payroll, set against the Dallas median loan of $3.7 million.