Hotel Feasibility Study in the Tucson, AZ Metro Area

Hotels in Pima County

Two ranks place Tucson: 3 of 39 for hotel and motel on Tucson's own class list, and 52 of 807 for the area itself. The 37 approvals, worth $98.7 million, all sit in Pima County and were booked over FY2017 to FY2026. At 1.41x, Tucson puts a bigger slice of SBA lending into hotel and motel loans than the national mix does. The page flags no metric as distinctive, so these are descriptive figures.

In Tucson the middle hotel loan is $2.6 million, 1.18x the national figure, and half of all loans land between $1.3 million and $3.9 million. The 7(a) program accounts for 24 loans and 504 for 13, so the 504 route is a real second channel in Tucson. Franchise brands account for 70.3% of the loans, which means a borrower planning a flagged property should price brand standards into the project from the outset. All above describes SBA loans in Tucson; other funding for hotel and motel projects in Tucson sits outside these figures.

Holders of the 504 loans

Within the 504 loans, SBA shows Arizona Capital Source holding 7, worth $11.2 million, and The Mortgage Capital Development Corporation holding 6, worth $15.0 million. The second name carries fewer loans but more dollars, so its loans run larger. The holder line is a fact about the Tucson loans, not a grade of lenders.

The page prints two years: FY2018 brings 6 loans and $15.2 million, and FY2021 brings 7 loans and $25.7 million. We withhold Tucson's two loss-side rates given that the Tucson FY2017-to-FY2021 pool holds under 30 loans, and in Tucson Loan Analytics' own method takes over. A withheld rate in Tucson does not mean none. Because every kind of hotel and motel sits under one code, a study should name the service level it tests.

What lenders in Tucson will ask for

A Tucson hotel plan starts with demand: occupancy and rate backed by evidence from the site's own market. Next come building and brand costs measured beside a loan within the Tucson band from $1.3 million to $3.9 million, then payment cover through a slow first stabilisation. An appraiser will price the hotel as a running business, so the forecast has to hold up. The federal county grouping defines Tucson, and loans from counties Tucson does not place are dropped from the totals.