Hotel Feasibility Study in Nebraska

Franchise-led lodging

Nebraska hotel lending is dominated by brand-affiliated properties and by one 504 lender. Over FY2017 to FY2026 the state shows 54 approvals worth $123.0 million, an average well above the median of $2.0 million, which is 0.91x the national hotel median. The central band of loans stretches from $691,500 to $3.7 million. Franchise brands appear in 74.1% of loans, the highest share among the hotel pages in this group, and SBA 7(a) and SBA 504 each account for 27 loans. Nebraska is 43 of 53 for the class and 8 of 39 within the state; a location quotient of 0.82x says hotels weigh a little less here than nationally.

One lender carries the 504 side

Nebraska Economic Development Corporation has 24 loans worth $52.4 million, the only lender named for the state. Douglas County leads the geography with 9 loans, then Hall with 8, Lancaster with 7 and Sarpy with 6, while Buffalo, Cheyenne, Lincoln and York each have 3. A borrower comparing financing options will find that a single development company sets the pattern for the 504 loans.

A volatile history

The yearly record is lumpy. FY2017 holds 11 loans worth $23.1 million, FY2018 only 2 worth $379,000, and FY2020 and FY2021 a single loan each, at $2.3 million and $5.0 million. Volume then rebuilt: FY2025 shows 6 loans and $22.9 million, and FY2026 shows 9 loans and $21.5 million. A recent pickup of this size means plenty of loans have yet to season.

Cancellation floor and omitted loss rate

Cancellation took at least 12.8% of the FY2017 to FY2024 approvals, and the strict count of unfunded loans lands on the same figure. A loss rate stays unprinted for Nebraska hotels, because the early disbursed pool is smaller than 30 loans; its absence tells us nothing about safety.

What a Nebraska study must test

A Nebraska hotel study has to separate the demand sources that fill rooms: interstate travel, business and government stays, events, sports and agricultural trade. It should build occupancy and daily rate from competing properties of the same brand tier, then test whether the new room count adds to supply the market can absorb. With a median near $2.0 million, cost per room against rate decides the economics. The loan-payment test should carry franchise fees and a property improvement reserve through a soft year, since the appraisal is a valuation of the operating hotel as a business. Hotels and motels share one code, so budget and full-service rooms are blended in these numbers.