Hotel Feasibility Study in the Peoria, IL Metro Area

Hotels and motels in the Peoria area

Lodging leads the Peoria, IL metro area's SBA record: hotels and motels are first of the area's classes, 1 of 39. The location quotient is 6.41x, so lodging fills a far bigger share of the area's approved loans than of loans nationwide. SBA approved 35 loans worth $70.2 million in FY2017 to FY2026, and the area is placed 57 of 807 nationally for hotels and motels. The median loan of $1.9 million is 0.88x the class's national median, so the loans are somewhat smaller than the usual lodging loan elsewhere.

Loan sizes and who holds the largest

Between $1.0 million and $2.5 million sits the middle half of loans. Tazewell County, IL records 17 of the loans. GBank alone prints among the holders, at 8 SBA 7(a) loans and $21.4 million, a large sum for one name. SBA's record lists present holders and is silent on how any loan came about. Neither the program split nor the franchise share is printed.

Two years print a volume: FY2025 with 7 loans and $9.6 million, and FY2026 with 7 loans and $22.2 million, a complete fiscal year. Dollars rose steeply between them while the loan count held. Every earlier year is hidden for lack of loans, and nothing should be read into a hidden year. Peoria's cohort is also under the 30 loans that Loan Analytics requires before printing a cancellation or charge-off rate. Under the lodging code limited service and full service look alike, and Peoria membership depends on a loan's project county being on the July 2023 list.

What a hotel study in Peoria has to test

With lodging such a large share of the local record, a feasibility study should ask whether the market has room for another property, and for which guest. It has to test the rate and occupancy the site can earn against the properties already trading, the cost of land, build and franchise requirements against a typical $1.9 million loan, and coverage of the debt payment in a weak year. A lender will want the appraisal to value the business as a going concern and the real estate separately. Because recent dollars are climbing, the study should also test whether construction cost has outrun the revenue case.