Hotel Feasibility Study in the Macon-Bibb County, GA Metro Area

Hotels in Macon-Bibb: the heaviest local concentration in this set

With a location quotient of 6.24x, hotels and motels loom far larger in Macon-Bibb County, GA lending than they do nationally. They take first place, 1 of 39, on the local class list, and the area is 67 of 807 on the metro and micro list. The $1.9 million median loan is 0.90x the nationwide median, a little under. Between FY2017 and FY2026, 30 approvals total $69.8 million, and 25 of them are in Bibb County.

Brands, sizes and years

Brand affiliation is the norm: 80.0% of the loans are franchised. A band of $1.1 million to $3.0 million holds the middle half. FY2018 shows 6 loans and $15.0 million, and FY2021 shows 5 loans and $12.9 million. Other years are hidden, as are the program counts. No lender is named. The early group of loans is thin, so floors for cancellation and charge-off are left off; read the gap as unknown.

What the single code hides

One industry code serves both limited-service and full-service lodging, and the data cannot separate them. A modest roadside select-service property and a larger hotel with dining and meeting rooms raise different questions, and these figures cannot tell the two apart.

For a lender, the 80.0% franchise share means most files here arrive with a brand's own standards attached, and the study will be read next to the franchisor's approval process. For a borrower, a 6.24x concentration shows that hotel requests are a familiar kind of file in this area.

Testing a Macon-Bibb lodging project

With brand ties on four of five loans, the study should first read the franchise agreement: the brand's property improvement plan, fees that come ahead of debt service, and any area protection. Then build room revenue from occupancy and average daily rate by season, with competing rooms nearby and a ramp that lets a new hotel take time to reach stability. Operating cost per available room, reserves for furniture and fixtures, and building cost must be set out. At $1.9 million a loan, equity and a payment coverage ratio that holds at lower occupancy are likely lender requirements. Hotels are valued on income, including the value of the flag, so keep real estate apart from brand and operations.