Hotel Feasibility Study in the Stockton-Lodi, CA Metro Area

Large hotel loans in San Joaquin County

Stockton-Lodi, CA has 30 loans to hotels and motels over FY2017 to FY2026, adding to $92.1 million, every one in San Joaquin County. At $3.2 million the median is 1.49x the nationwide hotel loan, and the central half lies between $1.4 million and $4.9 million, so these are big-ticket credits. Hotels are fifth among 39 classes locally; across areas the metro is 67 of 807; and a location quotient of 1.45x puts lodging a little above its national weight. Each figure here is simply what the metro's record shows.

Two programs, two named holders

Stockton-Lodi hotels split 17 to 13 across SBA 7(a) and SBA 504, a fairly even use of both programs. Franchise affiliation is 63.3%. The Mortgage Capital Development Corporation holds 6 of the 504 loans, worth $29.3 million, and in the 7(a) program Pinnacle Bank (CA) has 7 loans worth $15.3 million, as SBA reports current holders. Both entries describe holdings and say nothing about how either institution lends.

Years that print

FY2018 prints 5 loans and $11.7 million, FY2021 prints 5 loans and $12.4 million, and FY2022 prints 7 loans and $24.7 million, the largest figure of the printed years. FY2024 printed no loans at all: 0 loans, $0. The remaining years are blank for want of volume, not zero. No cancellation or charge-off rate appears: Stockton-Lodi's total for FY2017 to FY2021 does not reach the 30 loans that Loan Analytics' own rule requires.

What a Stockton hotel study has to test

At these loan sizes the study carries real weight, so it should be built from the ground up: occupancy and average rate against the true competitive set, the seasonal pattern, operating cost per room, brand fees and improvement requirements given the 63.3% franchise share, and a debt service test that survives a weak quarter. A project in the upper range, near $4.9 million, must show why it needs that much and what the 504 structure adds. Hotels and motels sit together in the code, so service level cannot be read from these figures. The income approach will carry the appraisal, and the project's county decides which metro it belongs to.