Hotel Feasibility Study in the Portland-South Portland, ME Metro Area

Portland: hotels fifth in class, with more 504 than 7(a)

Portland accounts for 43 approved hotel and motel loans from FY2017 through FY2026, totaling $49.7 million. Portland is 43 of 807 among metropolitan and micropolitan areas for hotel and motel, and hotel and motel is 5 of 39 there. The location quotient of 1.14x lifts hotel and motel somewhat above its national weight in Portland. York County, ME carries 27 of the loans.

Portland loans center on $527,000, with an inner half from $227,500 up to $1.5 million. Beside the country's median, Portland comes to 0.24x, a sign of lighter projects. That ratio is the lowest of any hotel page here, which suggests small properties or older motels. Portland borrowers used 7(a) for 16 loans and 504 for 27. Fixed-asset financing outweighs working capital, which fits building purchases. Franchise brands stand behind 18.6% of the Portland loans.

One development company

Granite State Economic Development Corporation is named alone, and its loans account for a large dollar total. $39.2 million across 27 loans at Granite State Economic Development Corporation hold the 504 loans shown. Each Portland entry lists a count and dollars, not the habits of institutions.

SBA holds back the cancellation figures for Portland, so outcomes cannot be ranked. The yearly record includes FY2017 (11 loans, $3.8 million) and FY2020 (6 loans, $4.2 million). For Portland, omitted years rest on thin counts. Hotels and motels share one code here, so lodging cannot be sorted by service level. The July 2023 list of counties defines Portland, so some loans are absent.

Where a Portland study must dig

Small properties depend on the season, so the study should model monthly occupancy and rate through a summer peak and a quiet winter, and show how many months of the year actually pay the debt. Demand should be split between leisure and business travel, and any new rooms arriving in the market should be checked for effects on rate. Since the 504 program funds real estate and long-lived equipment, the project file needs a property condition report and a capital plan for rooms, roofs and systems. Booking-platform fees cut average rate. Valuation of an older motel has to weigh special-purpose use, the income approach and resale options if the business fails. Given the large 504 presence, the file should include a property condition report, a capital plan for roofs, systems and rooms, and a reserve schedule the lender can check against actual cash flow.