Hotel Feasibility Study in the Hilton Head Island-Bluffton-Port Royal, SC Metro Area

Hotels and motels in the Hilton Head area

Lodging weighs far more heavily in the Hilton Head area's loans than in loans nationally, with a location quotient of 3.55x, and hotels and motels sit second among the area's classes, 2 of 39. SBA approved 30 loans worth $89.2 million between FY2017 and FY2026, and the area is 67 of 807 nationally. At $3.1 million, the median loan is 1.42x the class's national median, so loans here are also large. For a sponsor, that pairing of heavy local weight and large loans means the area's lodging record is built on sizable properties, and a new project will be compared with them.

Sizes, brands, counties and one holder

From $2.0 million to $4.0 million runs the middle half of loans. Franchise brands attach to 80.0% of them. Jasper County, SC records 17 loans and Beaufort County, SC records 13. GBank is the only name with enough loans to print, 6 under SBA 7(a), and its total is $15.7 million. The program split is not printed.

FY2017 shows 6 loans and $15.2 million. FY2026 shows 0 loans and $0, and since FY2026 is a full fiscal year, that is a real absence of approvals. Years not shown are hidden because each has only a few loans behind it, and a hidden year is not a year without loans. The Hilton Head lodging cohort falls short of Loan Analytics' minimum of 30 loans, so the page shows nothing for cancelled approvals or charge-offs.

Limits, and what a lodging study here has to test

Lodging has a single code, so limited service cannot be separated from full service in this set. Which loans count as Hilton Head is settled by matching each financed site's county, by name, to the July 2023 list. A feasibility study should test which guests the property will draw and when, the nightly rate and occupancy it can sustain in its weakest season, and the franchise requirements that come with a flag, a flag being carried by 80.0% of the loans. With a typical loan of $3.1 million, debt service needs a margin, and the appraiser must weigh the operating business together with the real estate.