Hotel Feasibility Study in the Las Vegas-Henderson-North Las Vegas, NV Metro Area

Hotels with a very low quotient

Las Vegas appears at 77 of 807 on the national list of areas for hotel and motel loans, and the hotel and motel class holds 12 of 39 in Las Vegas. All 29 approvals, worth $86.3 million, sit in Clark County and fall between FY2017 and FY2026. Hotel and motel loans take a lighter slice of SBA lending in Las Vegas than nationally (location quotient 0.32x). At 0.32x, hotels carry a small share of SBA lending relative to the national weight of the class.

Median loan size is $2.8 million; beside the national figure for hotels and motels that is 1.29x, and the middle half of loans spans $1.9 million up to $4.6 million. Of the 29, 20 are 7(a) and 9 are 504. A franchise brand attaches to 44.8% of the Las Vegas loans, so a borrower may reasonably consider an independent format. A reader weighing Las Vegas should remember that these hotel and motel figures cover SBA-recorded loans just, so a plan in Las Vegas requires separate proof of revenue.

Year and floors

Only one year is printed, FY2018, with 5 loans and $11.4 million. Loan Analytics leaves out Las Vegas's both loss-side rates because the Las Vegas FY2017 to FY2021 pool has below 30 loans, below Loan Analytics' own cut-off for Las Vegas. A missing rate in Las Vegas should never be read as zero. No lender is recorded for Las Vegas's hotel and motel cell. Because one code stands for the whole hotel class, the service level of any property in Las Vegas is unknown.

A quotient well under one does not say the market is small or sizable. It says that, among SBA loans in Las Vegas, hotels take a lighter share than they do nationally. From a lender's side, that is context for how Las Vegas's SBA lending is spread over classes. For anyone applying, it is a reason to rely on evidence from the site's own market.

What to test before lending in Las Vegas

A Las Vegas area hotel plan has to show room demand from the site's own market, an achievable rate against the cost of building or converting, and payment cover on a loan near $2.8 million through a gradual stabilisation. The study should state its service level since the code cannot, and the revenue forecast must hold up under appraisal. The federal delineation draws Las Vegas, so loans from counties Las Vegas fails to match stay dropped from its totals.