Hotel Feasibility Study in the Dayton-Kettering-Beavercreek, OH Metro Area

Dayton's hotels: most loans are franchised

Hotels and motels in the Dayton-Kettering-Beavercreek area drew 51 loans worth $117.9 million between FY2017 and FY2026, and 84.3% of those loans financed franchised properties. Hotels are the third class in the metro, 3 of 39, the location quotient of 1.50x says the class carries more weight here than nationally, and the metro stands 31 of 807. The median of $2.1 million is 0.96x the national median, so the ticket size is close to the national figure while franchised properties dominate the loans.

Holders and counties

Half of the loans fall between $1.5 million and $3.2 million. The program split is 43 loans for 7(a) and 8 for 504. GBank holds 7 loans under 7(a) worth $27.0 million, a very large average, and a second holder has 5 worth $14.1 million; these entries are SBA's holder records. Montgomery County supplies 30 of the loans, Greene County 13 and Miami County 8. The 7 loans GBank holds average well above the area median, so the large end of the range sits with few holders while the median itself is far lower.

The code covers hotels and motels together, so the record mixes hotels and motels. Counts: 6 loans in FY2017 ($8.1 million), 6 in FY2020 ($11.8 million), 8 in FY2021 ($21.9 million), 6 in FY2022 ($16.1 million), 5 in FY2023 ($14.0 million) and 5 in FY2024 ($12.1 million). FY2018, FY2019, FY2025 and FY2026 are withheld, and the cell publishes no outcome rate of either kind, so nothing should be assumed about cancellation or charge-off. Counties on the 2023 area list decide which loans belong to Dayton.

Testing a flagged hotel in the Dayton area

With brands so common, a study should begin with the franchise: the required product, the fees, the improvement schedule and the brand's own market data. Then it must test demand sources and the competitive set for occupancy and rate, the cost of construction or acquisition, and whether cash flow covers the debt while occupancy builds. Because the median sits near $2.1 million, a project far above that level needs a stated reason, and one far below it should say what is left out. Where 504 funds the real estate, the study should show the building and the operating business as separate valuation lines. Nothing printed here predicts an outcome.