Hotel Feasibility Study in Illinois

Illinois hotels sit near the national pattern

Illinois hotel lending looks much like hotel lending nationally, with a few local twists. The location quotient of 0.97x puts Illinois hotels almost exactly at their national weight, the median loan of $2.3 million is 1.07x the class median nationwide, and no headline figure here clears our distinctness margin against both Illinois's all-industry record and the hotel class in other states. Illinois ranks 7 of 53 among states for hotel and motel loans, with 406 approvals and $984.7 million approved over FY2017 to FY2026, and in-state the class places 6 of 39. What the cell adds is local detail: which lenders, which counties and which outcome floors an Illinois hotel deal meets.

Flags, lenders and where the loans went

Most of these are flagged hotels. Franchise codes appear on 76.1% of Illinois hotel loans, so most borrowers underwrite against a brand's demand system and its property improvement plan. The middle half of loans runs from $1.1 million to $3.5 million. SBA 7(a) carried 325 loans and SBA 504 carried 81. The 7(a) side is dominated by Millennium Bank, with 87 loans worth $240.9 million, and GBank, with 59 worth $178.7 million. SomerCor 504, Inc. leads among certified development companies with 45 loans and $100.9 million. Cook County has 98 loans, but the list reaches well downstate, with Champaign at 19 and Peoria and Tazewell at 17 each, alongside Will at 30 and Lake at 28. FY2024 was the dollar high, $159.0 million on 52 loans.

Floors and the study a hotel lender expects

Cancellation took at least 8.1% of Illinois hotel approvals made in FY2017 to FY2024, or 9.6% on the ceiling with undrawn loans included. Charge-offs have reached 2.2% of the 178 Illinois hotel loans with funds out in FY2017 to FY2021, and 0.56% inside five years; open Illinois hotel loans can still push both higher. At a $2.3 million median, an Illinois hotel lender reads the study line by line. It has to forecast occupancy and average daily rate from the specific market's demand generators, the competitive set and new supply in the pipeline, and present it in the form a hotel lender and appraiser recognise. It has to test the brand choice, the property improvement plan or construction budget, and show debt service coverage through a ramp-up year, not only at stabilisation. The appraisal will rest on the same income forecast, so the study's numbers and the appraiser's need to reconcile.

One coding limit applies to every Illinois figure: a motel and a hotel carry the same industry code, so limited-service, select-service and full-service Illinois properties are blended together in these figures.