SBA 7(a) Hotel Feasibility Study in Maryland

What Maryland shows for hotel and motel (SBA 7(a)) loans

Across FY2017 and FY2026, SBA approved 57 loans in the 7(a) program to hotel and motel projects in Maryland, totalling $177.9 million of gross approvals. Ordering the states by hotel and motel (SBA 7(a)) loan counts puts Maryland at 34; within Maryland itself, this class holds 12 of 39 across the asset classes. Centre size: $2.9 million. Relative to SBA 7(a) hotel and motel lending nationwide, Maryland runs at 1.31x on the median, a larger ticket size. The middle half of Maryland approvals fall from $1.7 million to $5.0 million. 71.9% of these Maryland loans went to franchised businesses. At $2.9 million, the median loan is the measure that distinguishes Maryland's SBA 7(a) hotel and motel cell from both parent: hotel and motel across both programs in Maryland, and SBA 7(a) hotel and motel lending nationally.

Who lends, where and when in Maryland

The lenders holding the most Maryland hotel and motel loans are GBank at $44.9 million across 12 loans and Hanover Community Bank at $22.8 million across 6 loans. The Maryland hotel and motel ranking follows whoever holds each Maryland loan; the original lender of those 12 loans may differ. By county, Baltimore City with 8, Allegany with 5, Anne Arundel with 5 and Baltimore with 4 lead the hotel and motel loans in Maryland. On the calendar for Maryland, approvals peaked at 14 loans, worth $41.2 million, in FY2021, with FY2026 at 6 loans and $20.1 million, while FY2017 opened the series with 5.

Maryland: outcomes, read as minimums for hotel and motel

A minimum of 4.8% for cancellations, with the ceiling at 4.8%, covers FY2017 to FY2024 Maryland hotel and motel approvals, so open loans add nothing. Too few of the 57 hotel and motel loans were disbursed in Maryland between FY2017 and FY2021 to support a hotel and motel charge-off rate; we withhold that figure, and the gap it leaves is not a zero. Every Maryland hotel and motel rate above is a minimum, since open hotel and motel loans among the 57 may yet fail. The class carries a coding limit worth knowing in Maryland: SBA draws no line exists between a Maryland limited-service hotel from an upscale one; motels share a single classification.

Issues a hotel and motel (SBA 7(a)) study in Maryland has to pass

Under 7(a), one lender underwrites the whole Maryland hotel and motel request, and across 57 loans a part of each is guaranteed, and the hotel and motel study has to stand under that Maryland lender's underwriting issues. A Maryland hotel and motel study assembles a set of comparable hotels and tests if Maryland demand can fill more keys. Per-key construction cost, brand affiliation standards and FF&E each sit in the Maryland budget. Stress the Maryland hotel and motel numbers at the $2.9 million median plus at $5.0 million: coverage that holds only under a best year will not be enough. Hotel valuations capitalise mature revenue per room and operating income, so our forecast must give a ramp-up curve an appraiser will accept. Institutions such as GBank appear in this Maryland record; the record is history, and what GBank or any other Maryland lender wants from a hotel and motel study is its own to state.

What Maryland lenders authorized before is history, 57 loans' worth; a hotel and motel study signed by Daniel Smith, MAI, for Maryland answers the project and site issues, and these Maryland figures promise no approval.