Hotel Feasibility Study in the Show Low, AZ Micro Area

Show Low: a location quotient above eleven times the national share

Hotels and motels take 1 of 39 among Show Low's classes in SBA's file, and Show Low sits at 86 of 807 among areas. Show Low's location quotient of 11.11x is the largest of any ratio on this page, but this cell is set apart by its median loan, which at $1.4 million is 0.63x the national median for the class. Put plainly, hotel loans are very common in Show Low relative to the national book, and they are notably smaller than the national hotel loan. SBA's file for Show Low adds up to 27 loans and $53.9 million across FY2017 to FY2026.

Half the loans sit between $867,500 and $2.4 million, with the rest above and below. Franchise units are 63.0% of the loans. All 27 loans sit in Navajo County, so the entire record is a single-county one and a site outside that county has no direct precedent in it. Program mix for Show Low is not shown on this page. No lender appears for Show Low; none holds as many as 5.

FY2022 shows 5 loans worth $11.4 million. In FY2025 the file records 0 loans and $0, and FY2026 posts 5 loans worth $13.6 million in a finished year, so the latest printed year carries the most dollars of the three. Fiscal years absent for Show Low had too few loans. Both outcome rates for Show Low stay unpublished: under 30 loans. Three points are not a trend, but they show how a small cell can swing on a few large loans.

What a Show Low hotel study must demonstrate

A median 0.63x the national figure invites a lender to ask whether a proposed hotel is smaller than the national norm or simply financed less heavily. The study has to show rooms, occupancy and nightly rate against land, building and furnishings costs, a payment covered if occupancy falls short, and any brand fees. Hotels and motels are lumped under a single industry code, so the figures blend tiers, and the study should name which tier the project is. The competing properties near the site matter more than any ratio on this page, and the appraisal will rest on income.

Reading the weight with care

A location quotient of 11.11x says hotels make up a very large part of the area's loans relative to the nation. It does not say why, and the page offers no cause. What a lender can safely take from it is that SBA lending to hotels is an established pattern here, with 27 loans over FY2017 to FY2026, and that a new request will be read against a record with a median of $1.4 million and a middle half from $867,500 to $2.4 million.