Hotel Feasibility Study in the Providence-Warwick, RI-MA Metro Area

Hotels in the Providence-Warwick area

The Providence-Warwick, RI-MA Metro Area holds 36 SBA loans to hotels and motels between FY2017 and FY2026, with $76.7 million in gross dollars. Hotels and motels hold 12 of 39 places among the area's classes, while a ranking of areas by hotel and motel loans puts Providence-Warwick at 55 of 807. The location quotient of 0.47x leaves lodging at under half its national weight. The median loan of $1.6 million equals 0.73x the national median; the middle half spans $795,500 to $3.5 million. We do not mark any of these as distinctive.

Programs, brands and holders

Program mix leans toward real property: 22 loans are SBA 504 and 14 are SBA 7(a). Franchise affiliation is 50.0%, so half the loans sit under a flag. Among 504 holders as SBA reports them, New England Certified Development Corporation holds 8 loans worth $13.4 million and Bay Colony Development Corporation holds 7 loans worth $12.2 million. Both entries describe holdings only, not how either organization operates. Kent County, RI shows 12 loans, Washington County, RI 9, and Bristol County, MA and Newport County, RI 5 each.

Years and withheld rates

FY2017 is the single year with enough loans to print: 6 loans and $5.8 million out of the metro's 36. Each of the other years sits below the display line, so Providence-Warwick has no trend to draw and none should be assumed. With fewer than 30 hotel loans disbursed in FY2017 to FY2021, the line Loan Analytics draws, so Providence-Warwick shows neither rate.

Testing a Providence-Warwick hotel

A hotel project at a median near $1.6 million has to prove its occupancy and average rate against the properties it will compete with, test the seasonal pattern of its own county, and show that debt service holds in a weak quarter. With half the loans under a flag, the study should compare a flagged and an independent case, including brand fees and property improvement plans. Because one code spans all lodging, limited-service and full-service hotels sit together in these numbers. The appraisal rests on the income approach, so the income forecast has to tie to the appraiser's number. County placement follows the July 2023 map.