Hotel Feasibility Study in Oregon

Oregon hotels: large loans across small counties

Hotels and motels are Oregon's 3 of 39 SBA class by loan count, and the state's 199 approvals over FY2017 to FY2026 carried $392.9 million, ranking Oregon 20 of 53 among states. The location quotient, 1.12x, puts lodging slightly above its national weight in Oregon. Loans are large in absolute terms, with a median of $1.8 million, yet that is 0.81x the national hotel midpoint. Measured against Oregon's full SBA record and against lodging nationally, no headline figure differs by the required margin, so this Oregon cell reads as an ordinary one.

Jackson, Lincoln and other counties

Oregon's hotel lending is spread well beyond Portland's Multnomah County, which has only 11 loans: Jackson County has 27, Lincoln 21, Clatsop and Douglas 14 each and Lane 12. Half of Oregon approvals fall between $906,000 and $2.7 million. Franchised properties take 41.7%, and 7(a) carried 150 loans to 504's 49. Readycap Lending, LLC and Columbia Bank hold 15 loans each, worth $30.8 million and $10.1 million; Celtic Bank Corporation's 14 reached $37.1 million, and Commonwealth Business Bank and United Midwest Savings Bank National Association hold 9 apiece. Among certified development companies Evergreen Business Capital holds 20 for $34.8 million and The Mortgage Capital Development Corporation 12 for $33.0 million, with Cascade Capital Funding at 7 and Northwest Business Development Association at 5.

Clean repayment, modest cancellations

Oregon's hotel loans have repaid: of the 107 disbursed across FY2017 to FY2021, none is charged off, a 0.00% rate both to date and over five years, which remains a floor while the loans are open. Cancellations run at a floor of 10.1% on FY2017 to FY2024 approvals and 10.7% at the ceiling. The series peaked early, with 34 loans and $74.7 million in FY2017, and fell to 11 loans and $13.6 million in FY2024 before recovering to 20 loans in both FY2025 and FY2026. A clean record does not lower the bar for a borrower, because loans of this size are sized to income the property must actually earn.

For an Oregon hotel, the feasibility work has to establish demand by segment and season, and the rooms already competing in the county. Cost covers acquisition or construction and any brand-mandated renovation. Coverage has to work on trailing annual results for a purchase, or on a stabilised year after ramp-up for a new build. Because hotel value is income value, the appraisal and the study's revenue projection must reconcile, and a lender will lend on the lower. A single code covers hotels and motels, so service level is invisible in these figures.