Hotel Feasibility Study in the Deltona-Daytona Beach-Ormond Beach, FL Metro Area

Hotels and motels in the Daytona Beach area

Lodging is the third class, 3 of 39, in the Deltona-Daytona Beach-Ormond Beach, FL area, and nationally the area is 77 of 807. The record shows 29 approved loans, and gross dollars reach $84.5 million over the span FY2017 to FY2026. A location quotient of 1.45x puts lodging well beyond its national share of local loans, and its median loan of $2.8 million is 1.30x the class's national median.

Loan range, programs and the holder

Loans from $1.3 million to $4.4 million form the middle half, a wide band covering modest properties and larger ones. SBA 7(a) holds 18 loans and SBA 504 holds 11. Franchise brands attach to 51.7%. Florida First Capital Finance Corporation, Inc. prints alone among holders, with 5 SBA 504 loans that add up to $13.2 million. County counts are not printed.

FY2017 reads 0 loans and $0, an empty year for hotels. FY2021 shows 7 loans and $18.4 million, and FY2024 shows 5 loans and $14.3 million. Where a year is missing, the count behind it was too small to print, which is a different matter from none. Daytona-area hotel loans are too few in the cohort, fewer than 30, for Loan Analytics to publish cancellation or charge-off rates.

Limits, and what a Daytona-area hotel study has to test

Because the code is shared by all lodging, the loans here may be very different properties, from a roadside motel to a full-service hotel. An area is formed from the counties on the July 2023 list. A study should test the guest segments, the rate and occupancy the property can hold in a weak period, the cost of building or renovating against a typical loan of $2.8 million, and the franchise fees and required upgrades. Debt service should be shown with a cushion, in a downturn as well as a normal year, and the appraiser must put a number on the operating hotel as well as the land and building. Because the loans here are large, a lender will also split the cost between land and building on one side and furniture, fixtures and franchise-required improvements, which lose value quickly, on the other.