Hotel Feasibility Study in the Fresno, CA Metro Area

Where Fresno stands on lodging

Among the 39 classes tallied for Fresno, CA, hotels and motels finish 6 of 39, a solid but not leading part of the local SBA book. The record covers 34 approved loans and $84.5 million in gross dollars, FY2017 through FY2026, and set beside every other metro and micro area the class stands 59 of 807. Fresno's location quotient, 1.17x, puts lodging modestly ahead of its share of loans across the country. The area's median loan, $2.2 million, comes to 1.03x the class's median across the nation, which is to say close to it.

Programs, brands and counties

SBA 7(a) accounts for 22 of the loans and SBA 504 for 12, a split that leans toward 7(a) while still giving 504 a substantial role. Brand affiliation is high: 58.8% of the loans carry a franchise flag. Loans from $1.3 million to $3.8 million form the middle half, so most Fresno hotel loans sit at the price of a modest property and not a large resort. Fresno County, CA records 29 loans and Madera County, CA records 5. No lender is named on this page.

Of the individual years, only two show figures. FY2017 carries 9 loans and $25.6 million, and FY2021 carries 8 loans and $21.5 million. Those two years carry a heavy share of the dollars on the page, so a reader should treat the total as uneven. A year without a figure was suppressed because only a few loans stand behind it; suppression is not an absence of loans. Fresno hotels carry no rate for cancelled approvals and none for charge-offs: a cohort needs 30 loans for Loan Analytics to print one, and this one has fewer.

Limits, and what a Fresno hotel study must test

A single industry code covers hotels and motels, which keeps these figures from splitting limited service and full service, and Fresno itself is drawn from the county where each financed project sits, on the July 2023 delineation, with unplaceable counties dropped. A study of a Fresno-area hotel has to test which guest the property will draw, the rate and occupancy it can hold in a soft year, and the fees and brand upgrades a flag brings. Revenue net of those costs is what the debt service must be tested against, with a cushion, and the appraisal must reach a value for the going concern as well as the bricks.