Hotel Feasibility Study in the Los Angeles-Long Beach-Anaheim, CA Metro Area

Los Angeles lodging is a thin slice of a huge market

The location quotient of 0.31x is the plainest fact in this cell: hotels and motels take far less of Los Angeles-Long Beach-Anaheim lending than of the national mix, and inside the market the class ranks only 14 of 39. Yet the market itself is 6 of 807 for hotel loans, with 186 approvals worth $486.5 million. The median is $2.4 million, 1.09x the national class figure, and the interquartile band runs from $1.1 million to $4.2 million.

Of the 186 loans, 155 used SBA 7(a) and 31 used SBA 504. Franchise flags cover 29.6%, so independents dominate a market people assume is branded. A single code sits behind the class, so the file cannot say which loans were limited service and which full service. Cancelled approvals from FY2017 to FY2024 start at 9.8%, and The ceiling and the write-off rate are both withheld, which leaves those two blank without making them nil.

Lenders and counties

Open Bank holds 20 SBA 7(a) loans and $42.0 million, ahead of US Metro Bank with 16 and $41.8 million, Commercial Bank of California with 9, and New Omni Bank National Association and American Continental Bank with 8 each, whose totals are $24.3 million and $24.1 million. On SBA 504, Business Finance Capital leads with 10 loans and $29.3 million, followed by The Mortgage Capital Development Corporation at 7 and CDC Small Business Finance Corp. at 5. All of it is SBA's holder data. Los Angeles County, CA has 132 loans and Orange County, CA 54.

Approvals were 28 loans and $43.3 million in FY2017, crested at 34 loans and $91.8 million in FY2021, and ended at 12 loans and $36.3 million in FY2026, with a low of 11 in FY2025. When few approvals are recent, lenders have fewer fresh comparables, so appraisal evidence matters more. Placement of the 186 loans follows project counties, using the 2023 delineation.

Testing a Los Angeles hotel

A study has to separate airport, tourism and corporate demand across Los Angeles and Orange Counties, tally existing rooms, and weigh the construction or renovation bill against $2.4 million. Room rate and occupancy must carry the debt, and an appraiser values the operating business. 186 approvals offer context only. A lender reading the Los Angeles package sees our work; Daniel Smith, MAI, countersigns it, and with 186 loans shown, approval is never promised.