Hotel Feasibility Study in the Jacksonville, FL Metro Area

A hotel record that is larger than the average

Hotel and motel lending in the Jacksonville area is both numerous and heavy. SBA approved 56 loans between FY2017 and FY2026 for $180.2 million, and a midpoint of $3.4 million stands at 1.57x the class's national midpoint, above the national figure for the class. Loans in the typical range start at $2.0 million and reach $4.6 million. The area is 28 of 807 for hotel and motel loans, hotels rank 5 of 39 within the metro, and a quotient of 0.98x puts the class at essentially its national share.

Franchise flags dominate

The share of loans to franchised properties is 67.9%, so a flag with a brand is the usual route and any brand's property-improvement plan, fee and territory rules become part of the cost. The code covers hotels and motels together and cannot tell limited service from full service, which matters because their costs and revenue per room differ a great deal.

A 504-heavy lender table

Program counts show 34 in 7(a) against 22 in 504, a large 504 share, and the named holders are 504 companies: Florida First Capital Finance Corporation, Inc. is listed on 14 loans worth $39.3 million and Florida Business Development Corporation on 8 worth $27.1 million. The figures are SBA's current-holder records and tell nothing of any holder's present stance. Duval County has 38 loans and St. Johns County 13.

Years and floors

Printed years: FY2017 with 9 loans and $26.8 million, FY2018 with 10 and $31.4 million, FY2019 with 5 and $17.8 million, FY2020 with 5 and $9.6 million, FY2021 with 6 and $20.4 million, and FY2024 with 8 and $28.8 million. Others are withheld. A floor of 13.7% describes cancellation among approvals dated FY2017 through FY2024; no ceiling version and no charge-off rate is printed.

Underwriting a Jacksonville hotel

A study must settle service level and brand first, then test demand from business and leisure travel to the area; this page shows no occupancy or room rate, so the study has to supply them from lodging-industry sources and from competing properties' performance. It should test construction or renovation cost against a loan near $3.4 million, the franchisor's improvement requirements, and the stabilization period, since a new property rarely opens at its mature occupancy. Coverage of the loan payment has to hold through that ramp, and the appraisal will test value as a going concern separately from the real estate.