Hotel Feasibility Study in the Killeen-Temple, TX Metro Area

Killeen-Temple: hotels lead the class list

Lodging heads the Killeen-Temple, TX list in SBA's file, with hotels and motels at 1 of 39 classes, while the area stands 63rd of 807 for hotel and motel loans. Two ratios frame the class: 3.35x for location quotient and 0.90x for median loan against its national counterpart ($1.9 million). SBA approved 31 loans totalling $70.4 million in Killeen-Temple over FY2017 to FY2026. A typical Killeen-Temple request lands somewhere from $1.3 million to $3.2 million, the middle half of the file. Franchise units are 74.2% of the loans, so most of the lodging in this record carries a brand.

FY2017 shows 0 loans and $0. FY2019 shows 7 loans worth $13.2 million, FY2021 shows 6 worth $11.9 million, and FY2023 shows 0 loans and $0. Those zeros are printed values. In Killeen-Temple, a gap means few loans, not none. Killeen-Temple gets no program breakdown here. Outcome rates stop at Killeen-Temple, whose cohort has fewer than 30 loans.

What the code does not separate

One code covers hotels and motels, and limited-service and full-service flags are lumped together. A reader should not take the median as that of any one flag or tier. No bank in Killeen-Temple holds 5 loans, so none is shown. Put the figures side by side and a pattern emerges that a lender will read at once: a class ranked first locally, at more than three times its national weight, financed at a median slightly under the national one. The weight is the larger of the two departures from the national figures; the size is close to ordinary.

A Killeen-Temple lodging plan: what must hold up

Underwriters will press on occupancy, nightly rate and revenue for each available room against land, building and furnishings, and on whether debt service survives an occupancy below plan. Any franchise fees and brand standards belong in cost and margin. The appraiser values a hotel on income, so every revenue line needs a source, and a ramp-up year is standard. At a median near $1.9 million and a heavy local weight, the competing properties around the actual site matter more than any area ratio, and so does the strength of the brand being considered.