Hotel Feasibility Study in the San Diego-Chula Vista-Carlsbad, CA Metro Area

San Diego hotel lending is built from large loans. The median loan of $3.2 million is 1.49x the national figure for hotels and motels, with the central loans from $1.8 million to $4.7 million. Across FY2017 to FY2026 the area shows 60 approvals totaling $192.2 million, placing the area 26 of 807 on the national class ranking, though hotels hold just 11 of 39 spots in the area's own ladder and the location quotient of 0.42x is well beneath parity. The record is few, large loans.

Franchise-heavy and all in one county

San Diego County, CA supplies all 60 loans, so the metro and the county are identical here. Franchise units are 56.7% of loans, so branded flags dominate, and 7(a) supplies 45 loans and 504 the other 15. The Mortgage Capital Development Corporation is listed with 5 loans and $16.5 million, and First General Bank with 5 loans and $20.2 million, both averages above the already large median.

Years and the missing loss figures

Annual rows are lumpy: 7 loans and $19.1 million in FY2017, 7 loans and $25.6 million in FY2018, 9 loans and $30.7 million in FY2020, 8 loans and $26.9 million in FY2021 and 7 loans and $18.6 million in FY2022. FY2025 had 6 loans and $25.5 million, and FY2026 had 6 loans and $18.7 million. The FY2019, FY2023 and FY2024 rows are masked. Cancellation and charge-off rates never reach the page; Loan Analytics withholds them, and the gap does not mean losses were nil.

Because it is one code for hotels and motels

Hotels and motels share a code in which limited-service and full-service properties blur together, so a study must say which product the project is. Demand testing should rest on occupancy, room rate and revenue per available room in the exact submarket, whether downtown, airport, coast or Chula Vista, and on the supply pipeline. The cost test should price land or the existing building, the franchise's property improvement plan and furnishings against the $3.2 million median. Stress occupancy when checking the loan payment, given the franchise fee load. The appraisal has to split property value from the value of the operating business, and counties follow the July 2023 area map. With 60 loans in all and no more than 9 in any printed year, the cell is a thin sample, so property-level evidence should carry the case.