Hotel Feasibility Study in Wisconsin

Wisconsin hotels: smaller tickets, a 504 habit

Wisconsin finances hotels with SBA at a steady clip, 254 approvals worth $429.6 million from FY2017 to FY2026, but the typical loan is small for the class. The Wisconsin median is $1.4 million, 0.63x the hotel median nationwide, and our screen finds that gap wide enough against both Wisconsin lending overall and hotels across the country to call it distinctive. The middle of the range sits between $570,375 and $2.5 million. Those amounts suit roadside and small-market properties, resort motels and the purchase of existing select-service hotels.

What also marks the state is how much of the hotel book runs through SBA 504: 96 approvals against 158 under 7(a). WBD, Inc. alone now holds 81 Wisconsin hotel 504 loans worth $135.0 million, by far the largest position in the cell; Racine County Economic Development Corporation holds 10 worth $10.0 million. Among 7(a) holders, Shoreham Bank's 15 loans total $42.9 million and GBank's 16 total $41.6 million; Millennium Bank holds 8 worth $20.5 million, while IncredibleBank and The Stephenson National Bank and Trust hold 6 each. Franchised hotels are 57.5% of loans. With a location quotient of 1.06x, hotels hold about their national share of Wisconsin's SBA lending; Wisconsin sits 17 of 53 by hotel loan count, and lodging is 4 of 39 among Wisconsin classes.

No losses to date

Wisconsin's 113 hotel loans funded across FY2017 to FY2021 have not produced a single charge-off, with 0.00% both to date and within five years, floors that can still rise. Cancellation is 11.4% of Wisconsin hotel approvals from FY2017 through FY2024, and 12.4% with undisbursed loans counted. Lending has held up since FY2020, with 37 approvals in FY2021 and 32 in FY2024 the strongest years and 23 in FY2026.

What a Wisconsin hotel study must test

Milwaukee County leads with 20 approvals, Dane has 16, Sheboygan 12, and Brown and Racine 11 each, while Door, Kenosha and Walworth counties have 9 apiece, so seasonal leisure markets sit beside the metros in this record. Demand should be measured by segment and by season, with weekday corporate and weekend leisure demand tested separately, and the competitive set's occupancy and rate across the year. On cost, price the flag's required renovations when buying and get fresh construction bids when building. Test debt service coverage on the slowest months, not just the annual average, because a seasonal hotel must carry its debt through winter. For a 504 loan, the appraisal must stand on the real property alone, with furniture, fixtures and going concern value set aside. Coding note: the industry code combines hotels with motels, so no Wisconsin figure here separates limited service from full service.