Hotel Feasibility Study in the San Francisco-Oakland-Fremont, CA Metro Area

San Francisco-Oakland-Fremont stands out for loan size. The $3.7 million median is 1.69x the national median for hotels and motels, central loans run from $1.8 million to $5.0 million, and the 46 approvals between FY2017 and FY2026 total $148.2 million. In the national ladder the area is at 39 of 807 for the class, though hotels hold only 15 of 39 spots locally and the location quotient of 0.29x is far under parity.

Programs, flags and the lender record

The program split is nearly even: 25 loans through 7(a) and 21 through 504. Franchise units are 34.8% of loans, so brand terms touch roughly a third of the borrowers in this record. Pinnacle Bank (CA) shows 9 loans and $32.2 million; The Mortgage Capital Development Corporation shows 8 loans and $25.3 million. By county, Alameda County, CA has 15 loans, San Mateo County, CA 14 and San Francisco County, CA 11.

Years shown and hidden

FY2017 had 9 loans and $24.9 million and FY2018 9 loans and $24.8 million. FY2020 had 5 loans and $17.1 million. FY2025 had 7 loans and $28.0 million, while FY2026 had 5 loans and $13.3 million. Loan Analytics withholds FY2019 and FY2021 through FY2024, along with the cancellation and charge-off figures, because each rests on too few loans; withheld does not mean zero.

What a Bay Area hotel study has to test

Because one code spans limited-service and full-service properties as well as motels, defining the product comes first. The study should test land or acquisition price and replacement cost against income, using rate and occupancy for the exact submarket. Franchise agreements and property improvement plans belong in the budget. Debt service coverage should be run on stressed occupancy and a slow ramp. The appraiser must separate real estate, furnishings and business value. The median of $3.7 million, with the middle half from $1.8 million to $5.0 million, gives the range for coverage tests, and 46 loans are too few to stand in for a submarket study. Counties follow July 2023 definitions, and the lender lines reflect only what SBA records each bank as holding or having held.