Hotel Feasibility Study in the Medford, OR Metro Area

Medford hotels: a first-ranked class with a split franchise share

Hotels and motels rank first, 1 of 39, in the Medford, OR Metro Area, and a 2.83x location quotient puts lodging at more than twice its national share of local loans. The area is 86 of 807 for the class. The $1.9 million median loan is 0.87x the nationwide median, a little under, and franchised hotels make up 44.4% of loans, so independent properties are a majority. Jackson County carries all 27 approvals, which total $56.9 million over FY2017 to FY2026.

The range and the one big year

A span from $1.2 million to $2.6 million holds the middle half of loans. Just FY2020 prints: 5 loans and $13.9 million, nearly a quarter of the dollars. Remaining years stay out of view, because small counts are suppressed. Under West Coast Community Bank, SBA files 5 loans and $7.6 million, so read it as a holdings ledger. Program counts are hidden.

One code for every kind of lodging

Both limited-service and full-service lodging file under a single industry code, which leaves a modest motel and a larger hotel looking alike in these totals. Medford: empty cancellation and charge-off cells, because the early group inside 27 loans is thin, so read the blank as unknown.

What the franchise split implies

With brand ties on fewer than half the loans, a borrower planning an independent property has precedent here, and a lender will look in the study for what a franchisor would otherwise impose: marketing, reservations and standards that an independent must supply itself. A borrower choosing a brand should read the agreement closely.

What a Medford lodging study must test

Build the revenue case from occupancy and room rate for each season, with nearby supply counted and a ramp for a new property. The study should price the property improvement plan if a brand is chosen, or the marketing and distribution budget if the hotel is independent. Operating cost per room, reserves for furnishings and the cost of the building all belong in the plan. A median near $1.9 million means lenders will ask for equity and for payment coverage at lower occupancy. Hotels are appraised on income, so land and building must be kept apart from the business.