COLORADO · NAICS NAICS 7211 family
Colorado hotel and motel projects split between Front Range business demand in Denver and Colorado Springs and a mountain resort economy from Summit County through the Vail Valley and Aspen. Lender packages turn on a credible third-party study that ties flag standards, average daily rate, occupancy, and revenue per available room to the local trade area, modeling resort and metro seasonality separately and stress-testing coverage.
FEASIBILITY TRIGGER
Hotels are on the SOP 50 10 8 special-purpose list, so a third-party feasibility study is normally required, the appraisal must come from an industry-experienced going-concern appraiser, and equity rises to 15 percent, or 20 percent for a startup flag.
Between FY2010 and FY2026, SBA lenders approved and disbursed 532 7(a) and 504 loans for hotel projects in Colorado, totaling $955.4 million in approved financing at an average of $1.8 million per loan. Colorado ranks #10 of 38 states tracked for hotel SBA lending volume and accounts for 2.7% of national hotel SBA dollar volume. 71.8% of these loans were made under the 7(a) program, the remainder under 504. 59 loans have been approved since FY2024.
| Disbursed loans (FY2010–FY2026) | 532 |
| Approved volume | $955.4 million |
| Average loan size | $1.8 million |
| 7(a) share | 71.8% |
| Approvals since FY2024 | 59 |
| State rank by loan count | #10 of 38 |
Among the 406 seasoned loans in this segment (approvals FY2010–FY2021), 4.2% reached adverse resolution — purchased, liquidated, or charged off. The national benchmark for hotel is 4.4%, against 7.3% across all industries. That is broadly in line with the national benchmark for this asset class.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
An adverse-resolution rate of 4.2%, close to the national hotel benchmark of 4.4%, puts Colorado deals in this class on ordinary SBA credit footing. Across 532 loans averaging $1.8 million, the underwriting question is deal-specific: a rigorous third-party feasibility study is where documented demand and stressed coverage decide the credit outcome.
Every Colorado hotels and motels project we underwrite follows the same lender ready process: independent market analysis, site and technical review, and financial projections tested against SBA SOP 50 10 8 standards. Our SBA feasibility study consultants guide explains scope, timing, deliverables, and what lenders and CDCs expect in the report.
Colorado projects most often pencil under SBA 504 because the 50/40/10 structure delivers up to 90 percent financing on owner-occupied real estate at a fixed debenture rate, decisive in a state where Front Range land costs run high. SBA 7(a) covers acquisitions, working capital, and equipment, and from July 4, 2026 eligible borrowers can combine 7(a) and 504 for up to $10 million in total program credit.
Colorado hotels drew $40.7 million across just 19 calendar 2025 loans, among the largest average tickets in the state, split between Front Range business demand and mountain resort seasonality whose opposite curves a study must model separately.
For a national view of this asset class, see our hotel SBA feasibility overview, and read our related analysis in the hotel lending research on our blog. Lenders and sponsors can engage a hotel feasibility study consultant for SBA loans.
Compare neighboring markets: California, Connecticut, Texas.
Public SBA and CDC program records, cited as program evidence
SBA 504 through B:Side Capital with Mountain Valley Bank
Mountain lodging property, national program evidence
Walden, Jackson County, Colorado
$15,188,000 SBA 504 through TMC Financing
58,370 square foot hotel closed May 29, 2025, national program evidence
Marina, Monterey County, California
Fifteen-minute scoping call, written proposal inside one business day, firm fixed fee before you sign.
Book a MeetingOur SBA feasibility study consultants prepare lodging and hospitality studies for lenders, CDCs and sponsors. See pricing, methodology or request a fixed fee quote.
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