Hotel Feasibility Study in Montana

Hotels as a leading Montana class

Inside Montana, hotels and motels are 3 of 39 classes, and the location quotient of 1.41x shows the class is far more prominent in the state than nationally. By loan count Montana sits 41 of 53, a reflection of its small population. From FY2017 to FY2026 SBA approved 64 loans and $123.5 million, so dollars per loan are high. The median loan is $1.7 million, which is 0.80x the nationwide median, with the central band of loans running $916,500 to $2.5 million. The median is the distinctive metric: Montana properties are financed at tickets below the national hotel norm even as the state leans on lodging more than most.

Programs, brands and lenders

Loans under SBA 7(a) number 52 and those under SBA 504 number 12. Franchise affiliation reaches 42.2% of loans, so branded flags matter, but a large share are independent motels and lodges. Capital Matrix, Inc. leads the 504 list with 6 loans and $12.6 million. In 7(a), First Western SBLC, LLC holds 8 loans worth $12.0 million, trading under the Peachtree Group name. Flathead County, home to Glacier tourism, has 11 loans, Yellowstone 8, Custer 6 and Gallatin 5. Approvals were steady in dollars through FY2022 to FY2025, with $13.4 million, $12.1 million, $12.3 million and $12.5 million, then FY2026 brought 9 loans and $26.3 million, with FY2018 as the low at 3 loans.

Cancellation, withheld losses and the code limit

The cancellation floor is 10.9% for approvals through FY2024, and the bound that counts undisbursed loans is identical. Montana lodging has no published loss rate, because too few loans (under 30) funded in the FY2017 to FY2021 window, and silence must not be read as zero. One code covers hotels and motels, so limited service and full service cannot be separated, and the same code is shared across the whole lodging category. A median of $1.7 million could describe a rural motel or a flagged select-service hotel.

What a Montana lodging study must test

Seasonality is the first test. Montana demand is concentrated in a few summer months and winter ski periods, so a study has to model monthly occupancy and rate, not an annual average, and check that debt service coverage holds through the low season. It should assess competing supply near the park gateways and the cost of labor housing. Brand requirements, property improvement plans and franchise fees affect cost and cash flow. The appraisal should value the property as an operating business, with the market's seasonality visible. Loan Analytics publishes this record for borrowers and lenders comparing a proposal with approved loans.