SBA 504 Hotel Feasibility Study in Tennessee

The Tennessee hotel and motel (SBA 504) record at a glance

$89.6 million in gross dollars, spread over 34 loans in the 504 program for hotel and motel projects in Tennessee, is what SBA authorized in Tennessee from FY2017 to FY2026. Standing: 30 in the Tennessee hotel and motel (SBA 504) approvals, and 1 of 39 across Tennessee's own asset classes. Representative size: $2.8 million. Compared with hotel and motel (SBA 504) lending nationwide, Tennessee runs at 1.36x on that median, a heavier loan size. The middle half of Tennessee loans run from $1.3 million to $3.7 million. Franchised clients account for 85.3% of the 34 loans. Across 34 loans, nothing in Tennessee clears the distinctness margin, so this lending sits close to its broader parent groups and Tennessee readers should turn to Tennessee's lender, county and timing detail.

For Tennessee hotel and motel: institutions and local spread

The certified development companies with the most Tennessee hotel and motel loans are Brightbridge, Inc., 24 loans at $65.1 million. Since SBA names each Tennessee hotel and motel loan's holder now, Brightbridge, Inc. may have been an acquirer rather than an originator. Within Tennessee, the counties with the most loans are Hamilton with 5, Davidson with 4, Knox with 4 and Madison with 4. On the calendar for Tennessee, approvals peaked at 8 loans, worth $20.6 million, in FY2024, with FY2026 at 0 loans and $0; the series opened in FY2017 at 1.

Tennessee hotel and motel: what to make of the outcome floors

Our Tennessee hotel and motel cancellation figure is not printed: only a few of the 34 loans sit in the FY2017 to FY2024 cohort; treat the Tennessee gap as withheld, not as zero hotel and motel cancellations. Charge-offs get no printed rate for Tennessee hotel and motel: among the 34 loans, too few sit in the disbursed cohort for FY2017 to FY2021 to support a figure, so the Tennessee number stays withheld; a blank here is never a zero for hotel and motel. Lenders should treat these Tennessee rates, drawn from 34 loans, as floors, not as final outcomes. The class has a classification limit worth knowing in Tennessee: hotel credit in Tennessee arrive in one single class covering hotels and motels, with nothing to way to split limited service and full service.

The tests an SBA 504 hotel and motel study in Tennessee has to answer

With 504, each of the 34 Tennessee hotel and motel projects is financed in layers, where a certified development company supplies one Tennessee layer, a separate hotel and motel lender supplies another, and the Tennessee borrower covers the rest; the hotel and motel study must show how the whole Tennessee structure is covered. A Tennessee hotel and motel feasibility study assembles a competitive set and tests if Tennessee demand has room for added keys. Per-room building cost, the flag requirements and furniture, fixtures all sit inside the Tennessee budget. The coverage test needs to run on $2.8 million and again at $3.7 million, with a slower scenario, so a Tennessee reader can see where hotel and motel the margin thins. An appraiser in Tennessee will test for average rate and fill relative to the competitive set, and the study should do the same. A borrower who is approaching Brightbridge, Inc. can treat its 24 loans here as background alone, because SBA's figures describe past loans and not what a lender will require.

Daniel Smith, MAI, signs the Tennessee hotel and motel study: the $89.6 million authorized before is a reference point, and the hotel and motel study itself settles the project issues; Tennessee approval is never assured here.