Hotel Feasibility Study in the New York-Newark-Jersey City, NY-NJ Metro Area

150 hotel and motel loans in New York

Loan size and the cancellation floor are the two figures that differ from both the state and the class nationally. Gross approvals of $508.4 million cover 150 hotel and motel loans in the New York-Newark-Jersey City area, FY2017 through FY2026. Sizes center near $4.2 million, and the middle half sit between $1.9 million and $5.0 million. Compared with the national median for hotel and motel, New York-Newark-Jersey City stands at 1.92x, which is above it.

Where New York-Newark-Jersey City stands, 14 of 39 in class

By program, 7(a) has 119 loans and 504 has 31. The franchise share is 36.7%. The class holds 14 of 39 among New York industries, and New York, NY holds 7 of 807 among areas for hotel and motel. The New York-Newark-Jersey City quotient is 0.20x, meaning the class is lighter in New York-Newark-Jersey City than nationally. By county, Queens County, NY leads with 26 loans, then Suffolk County, NY with 15 and New York County, NY with 12.

New York lenders, years and the $508.4 million file

New York approvals were highest in FY2017 (28 loans, $88.4 million) and lowest in FY2023 (7 loans, $24.0 million). Among 7(a) holders of hotel and motel loans, 30 loans and $144.2 million at NewBank; 17 loans and $59.8 million at Hanover Community Bank; 10 loans and $44.0 million at The Bank of Princeton. SBA's file ties 30 New York loans to NewBank as the current holder in New York, NY; it says nothing of how NewBank underwrites. On the 504 side, Trenton Business Assistance Corporation is listed with 19 loans and $59.4 million. The cancellation floor is 23.7%; the ceiling is blank because Loan Analytics withholds it, and blank is not zero. Despite 150 loans, no charge-off rate is printed for hotel and motel, since too few disbursed loans sit behind it, and silence is not zero.

The New York study: demand, cost, coverage, appraisal at $5.0 million

For hotel and motel in New York, the first question is the seasonal swing in demand, room rates and the mix of business and leisure guests, measured site by site. The New York build or purchase has to absorb a reserve for the ramp-up, a brand's property requirements and reservation and property systems, and New York, NY figures should replace national rules of thumb. Run the payment on a $4.2 million loan against New York cash flow; if coverage slips in a weak year, resize the loan. The appraiser checks New York, NY collateral too, namely furniture and fixtures, the real estate and the franchise flag; a New York, NY study anticipates each. The 150 loans frame the study, but whether a given project here is approved depends on the project and on its lender.

Method for New York's 150 loans

Each of the 150 loans in New York-Newark-Jersey City is assigned by project county. County names, Queens County, NY among them, are matched to New York, NY using the July 2023 delineation. The 150 New York lodging loans blend limited-service and full-service properties under a single code. Each rate names its own cohort of years, and the two loss measures do not cover the same span.