SBA 7(a) Hotel Feasibility Study in Nevada

Nevada hotel and motel lending in SBA's records

In Nevada, SBA 7(a) approved 63 loans in the hotel and motel class. Across FY2017 to FY2026 in Nevada that came to $129.3 million gross. Counting hotel and motel loans, Nevada ranks 33 across states for hotel and motel under this program, and hotel and motel sits 9 of 39 among Nevada classes. A median of $1.5 million is 0.68x of the national hotel and motel median under SBA 7(a), so Nevada runs below the norm. For hotel and motel in Nevada, the middle half spans $919,250 to $3.0 million, and franchise flags mark 47.6% of Nevada hotel and motel loans.

Who holds the hotel and motel loans, and where

The largest named hotel and motel holder in Nevada is US Metro Bank: 10 loans worth $26.4 million; behind it Open Bank, 8 loans ($17.1 million); GBank, 5 loans ($12.2 million). Holders in Nevada are those SBA currently lists. The Nevada hotel and motel county count starts with Clark at 20, Washoe at 10, Humboldt at 8, Elko at 7, Carson City at 6.

Timing of Nevada approvals

The Nevada hotel and motel calendar shows 3 loans ($4.2 million) in FY2019, then in Nevada 2 in FY2020 ($6.1 million), and in Nevada 8 in FY2021 ($25.9 million), 3 in FY2023 ($7.0 million) and 3 in FY2024 ($8.9 million) against Nevada's peak of 13 in FY2018.

Hotel and motel cancel and charge-off floors

In Nevada, approval did not always mean a hotel and motel loan: of FY2017 to FY2024 Nevada approvals, at least 20.8% ended in Nevada cancellation, with 20.8% the ceiling if undisbursed hotel and motel loans are added. Nevada hotel and motel: in the FY2017 to FY2021 funded cohort of 31 loans, the Nevada charge-off floor is 0.00% and the hotel and motel five-year figure is 0.00%.

Nevada: what a hotel study must settle

A lender weighing a Nevada hotel will first ask where room nights come from: leisure, business travel, extractive-industry crews or event overflow, and how much of that demand is already captured by existing keys. A study has to test supply in the competitive set, build or acquisition cost against a ticket near $1.5 million, and debt service coverage through a ramped occupancy with a slow-season case beside it. The appraiser will value the hotel on income, so the revenue forecast must survive that test. Franchise affiliation, flagged on 47.6% of loans, adds fees and brand standards that belong in the operating budget.

Nevada lodging and the single hotel code

Hotels and motels sit under one industry code, which means Nevada full-service resorts and limited-service roadside inns are pooled together here. The study should say which product the borrower is building before any comparison with these totals.