Hotel Feasibility Study in the Richmond, VA Metro Area

Hotels in Richmond

Ranking classes, hotel and motel ranks at 6 of 39 for Richmond; counting areas, Richmond is 63 of 807 for hotel and motel. Across FY2017 to FY2026 the files hold 31 approvals worth $81.8 million, with 10 in Chesterfield County and 10 in Henrico County. With a quotient of 0.98x, Richmond gives hotel and motel loans a smaller share of SBA lending than the country.

$2.7 million is the median loan here, 1.23x the national figure for hotels and motels, and a middle band reaches from $1.3 million up to $3.6 million. A franchise brand attaches to 71.0% of the loans, so most projects carry brand standards. This cell does not show the way the Richmond loans divide between 7(a) and 504 for Richmond. Richmond: the totals count merely SBA-recorded hotel and motel loans, so a study in Richmond should use them as one input among several for hotel and motel.

Years and floors

Two years print: FY2020 with no loans and $0, and FY2021 with 12 loans and $26.0 million. That is a sharp swing between adjacent years, and each is a complete fiscal year. The page lists no lender for Richmond's hotel and motel cell. Loan Analytics withholds Richmond's two outcome rates as the Richmond FY2017-to-FY2021 cohort includes under 30 loans, under Loan Analytics' own cut-off for Richmond. A blank rate in Richmond is unknown, not nil.

One industry code covers the entire hotel and motel family, and the Richmond study has to say which service level it addresses.

A Richmond hotel plan should show how many room-nights the site's market will fill, a rate that market supports, and building and brand cost set relative to a loan near $2.7 million. A slow stabilisation case belongs beside the base case, and Chesterfield County and Henrico County hold the shown comparables, so a site elsewhere needs its own comparables. Federal rules set Richmond, and loans from counties Richmond fails to match stay excluded from its totals.

A lender's and a borrower's view of Richmond

A lender looking at this cell sees a class near the middle of the Richmond list, a franchise share of 71.0%, and a very uneven record: the page prints a year with no loans next to a year with the biggest total it shows. That unevenness argues against reading any one year as ordinary. A sponsor should read Richmond's middle band as the span of hotel requests that have closed here, and should expect a reviewer to ask which brand the project would carry and what the brand requires in cost and timeline.