Hotel Feasibility Study in the Little Rock-North Little Rock-Conway, AR Metro Area

Hotels first on the local list

Counting classes, hotel and motel ranks at 1 of 39 for Little Rock; counting areas, Little Rock is 67 of 807 for hotel and motel. From FY2017 through FY2026, 30 loans were approved for $74.8 million, and Pulaski County supplies 25 of them. Set beside the national mix, Little Rock yields 1.93x: hotel and motel loans take a larger slice there.

The program mix is all 7(a): 30 loans, with 504 at 0. The middle loan, at $2.3 million, stands at 1.05x the national median throughout hotels and motels, and the interquartile band stretches from $1.5 million to $3.1 million. That is a notably tight band, with little spread between a small property and a big one. The franchise share is not shown. In Little Rock, these totals cover SBA loans for hotel and motel and omit any other source of funds, which a hotel and motel study in Little Rock should keep in view.

A lender whose name carries a number

Port 51 Lending LLC: 5 of the 7(a) loans, $10.2 million. That is a big block of dollars on five loans, so its loans run big. Holders are named; how lenders choose borrowers is beyond this Little Rock page.

Just one year appears: FY2021, with 7 loans and $14.9 million. We hold back Little Rock's two outcome rates as the Little Rock FY2017 to FY2021 set of loans includes under 30 loans, under our own rule for Little Rock. A missing rate in Little Rock is unknown, not nil. A single code spans hotels and motels, and the data cannot split select-service from full-service properties.

A Little Rock hotel plan requires local evidence of room demand, a rate set relative to what building or converting costs, and payment cover on a loan near $2.3 million. The class sits first on the Little Rock list and 7(a) carries every loan, so the study should explain why the market has room for one more property. The federal delineation draws Little Rock; and loans from counties Little Rock cannot match are left out of the totals.

Using the Little Rock cell

The middle band here is unusually tight, from $1.5 million to $3.1 million, so a lender can place almost any hotel proposal in the cell relative to a close span of precedents, and a borrower whose project falls well outside it should expect to be asked why. Since Pulaski County supplies 25 of the 30 loans, the Little Rock record is close to a single-county record, and a site in another county of Little Rock area has fewer direct comparisons on this page.