SBA 7(a) Hotel Feasibility Study in New York

Cancellation is what defines New York hotels

Across FY2017 to FY2026, New York hotels and motels drew 261 loans under SBA 7(a), $632.5 million in all. The median loan of $2.2 million matches the 7(a) hotel median elsewhere, a ratio of 1.00x, and the central half runs from $680,000 to $4.2 million. What separates this cell from the state and the class is cancellation: 17.7% of the loans approved from FY2017 into FY2024 fell away, and the ceiling matches at 17.7%, so the floor is also the whole of what the data show.

Rank and brand mix

New York stands 12 by state count for hotel loans under 7(a), and hotels hold 12 of 39 within the state, so this is a middling asset for New York. Franchise loans account for 46.7%, close to an even split between branded and independent properties. The industry code does not separate limited-service from full-service hotels, nor motels from either.

Lenders and counties

NewBank leads with 30 loans and $144.2 million, closely followed by Hanover Community Bank with 29 and $73.7 million. Peapack Private Bank and Trust has 14 loans and $40.4 million, Beacon Bank and Trust 13 and $12.3 million, and The Bank of Princeton 11 and $43.0 million. As SBA reports, each loan is listed under its current holder, so these figures describe books. The map is led by Queens with 24 loans and Onondaga with 20, with Erie at 14, Warren at 13, Suffolk at 12 and New York County at 11.

Charge-offs and the trend

The loss record is good so far. In the cohort of 130 loans that funded across FY2017 to FY2021, 0.77% show up as charged off to date, and the printed five-year figure is 0.00%, though both are floors. Volume has been falling: 40 loans in FY2017 and 42 in FY2019, against 16 in FY2025 and 19 in FY2026, with FY2026 dollars of $44.5 million.

Testing a New York hotel

A New York hotel study should build the revenue forecast from a named competitive set, with occupancy and daily rate by season, and should test whether the location serves leisure, business or institutional demand. Because the cancellation floor is high, it should show a path to closing: the flag approval, the property improvement plan, the equity and the environmental review. Coverage has to be shown after reserves and franchise fees. The appraisal should estimate value on income, since a hotel is a going concern whose real estate cannot be separated from its operations.