Hotel Feasibility Study in the Flagstaff, AZ Metro Area

Flagstaff: where hotel or motel lending stands

Lodging dominates Flagstaff lending: hotels and motels rank first of 39 locally, with a location quotient of 6.38x. From FY2017 through FY2026, SBA approved 33 loans for hotels and motels in Flagstaff, AZ, $86.6 million together. At home in Flagstaff the class sits 1 of 39, while the area is 61 of 807 on the national list. Flagstaff lending leans toward hotels and motels, with the location quotient at 6.38x. Set against the national median, Flagstaff, AZ's median of $2.6 million comes to 1.18x, a larger loan than the norm elsewhere.

The band for the middle half of hotel or motel loans starts at $1.8 million and ends at $3.1 million. A proposal's place in this Flagstaff band is an early test. The 504 program holds 11 Flagstaff loans, against 22 under 7(a). SBA's franchise flag gives hotels and motels a share of 60.6% in Flagstaff. A reviewer reads requests against $2.6 million. The usual spread runs $1.8 million to $3.1 million. The brand decision belongs in the study. The program counts guide the structure choice. Because hotels and motels share a code, a study cannot tell from this page which format each loan financed.

Flagstaff: holders, places and years

The county table lists Coconino County, AZ (33 loans). The years that print are FY2021 (7 loans, $19.8 million) and FY2022 (6 loans, $15.7 million). Unlisted years are suppressed. The counts behind them are small. None of them is a zero. The Flagstaff years that print are too sparse. Lenders compare plans with the Flagstaff record. Evidence for the project must come separately.

Underwriting a hotel or motel in Flagstaff

For Flagstaff, neither cancellation nor charge-off rates print. There is no cohort of 30 loans. Withheld does not mean zero. The 2023 federal delineation sets each area. The county sets a loan's area. Counties are matched on name. Unmatched loans appear in no area. Context here is $86.6 million on 33 loans. The totals leave the project case open. A sponsor planning a hotel or motel near Flagstaff should expect the study to test weekday and weekend room demand; reserve funding for replacements; parking and access to the property; all-in project cost with furnishings against the $2.6 million median; net income after franchise fees; the competing supply near the site; speed of occupancy ramp-up; and the going-concern appraisal. This page offers no assurance to hotel or motel sponsors. Every request is judged separately.