SBA 7(a) Hotel Feasibility Study in Montana

The Montana hotel and motel (SBA 7(a)) record at a glance

$102.1 million in gross dollars, spread over 52 loans in the 7(a) program for hotel and motel projects in Montana, is what SBA backed in Montana from FY2017 to FY2026. Lining the states up of SBA 7(a) hotel and motel loan counts, Montana lands at 35; within Montana itself, this class holds 3 of 39 among the asset classes. Typical size: $1.8 million. Compared with hotel and motel (SBA 7(a)) loans nationwide, Montana runs at 0.80x on that median, a smaller ticket profile. Between $896,750 and $2.5 million lies the middle half of the approvals in Montana. The franchise share of Montana loans is 36.5%. At $1.8 million, the Montana median is not an outlier among 52 loans; for Montana, use the lender names and local spread instead.

For Montana hotel and motel: lender names, counties and the yearly pattern

Montana's hotel and motel loans sort by county as follows: Flathead with 9, Custer with 5, Yellowstone with 5 and Big Horn with 4. Year by year in Montana, approvals peaked at 9 loans, worth $26.3 million, in FY2026; the series began in FY2017 at 6.

Montana: cancellations, charge-offs and one hotel and motel coding limit

Cancellation after approval come to at least 8.1% for Montana FY2017 to FY2024 hotel and motel approvals, and the upper bound landing at the same 8.1%. Among Montana hotel and motel loans funded in FY2017 to FY2021, the 52-loan record leaves a cohort of charge-offs too thin to rate; we give no Montana number and imply no zero for hotel and motel. Lenders should take these Montana rates, drawn from 52 loans, as minimums, never as settled results. One coding limit shapes Montana hotel and motel numbers: SBA draws no line separates a select-service property and an upscale one; motels share the same classification.

The work behind a Montana hotel and motel loan application

With 7(a), one lender reviews the entire Montana hotel and motel request, and across 52 loans a share of each is guaranteed, so the hotel and motel study has to hold up under that Montana lender's underwriting matters. A Montana hotel and motel study builds a competitive set and tests if the market can fill added rooms. Flag requirements, property-improvement cycles and pre-opening costs should get itemised in the Montana budget. Stress the Montana hotel and motel numbers at the $1.8 million median and at $2.5 million: coverage that survives only in the good case is not enough. Hotel valuations capitalise mature room revenue and operating margin, so the study must give an occupancy curve the appraiser can accept.

Treat the Montana hotel and motel history above, 52 loans, as background: a hotel and motel study from Loan Analytics for Montana, signed by Daniel Smith, MAI, for hotel and motel, does the project-level Montana testing, and nothing here assures Montana approval of a hotel and motel loan.