NEW JERSEY · NAICS NAICS 7211 family
New Jersey hotel and motel projects split between the Hudson waterfront and metro core, where rate and occupancy run with the New York market, and the Shore, where compressed summer demand defines the year. 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 and tests coverage under stress.
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.
From FY2010 through FY2026, New Jersey recorded 264 SBA-disbursed hotel loans across the 7(a) and 504 programs, representing $551.4 million in approved financing at an average loan size of $2.1 million. The state sits at rank #21 of 38 for hotel SBA lending volume and holds 1.6% of the national hotel dollar pool. 7(a) accounts for 85.2% of the count, 504 for the rest, with 18 fresh approvals dated FY2024 or later.
| Disbursed loans (FY2010–FY2026) | 264 |
| Approved volume | $551.4 million |
| Average loan size | $2.1 million |
| 7(a) share | 85.2% |
| Approvals since FY2024 | 18 |
| State rank by loan count | #21 of 38 |
Among the 216 seasoned loans in this segment (approvals FY2010–FY2021), 6.9% reached adverse resolution — purchased, liquidated, or charged off. The national benchmark for hotel is 4.4%, against 7.3% across all industries. That performance runs above the national benchmark for this asset class, which is a factor lenders weigh in their credit decision.
Source: SBA 7(a) and 504 FOIA loan-level data, as of March 31, 2026. Disbursed loans only. See data methodology.
A 6.9% adverse-resolution rate against the national hotel benchmark of 4.4% tells credit committees to scrutinize revenue projections and coverage assumptions closely on New Jersey deals in this class. A rigorous third-party feasibility study — built on documented demand, defensible pricing, and stressed coverage — carries meaningful weight in that underwriting conversation, particularly at an average loan size of $2.1 million across 264 loans.
Every New Jersey 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.
New Jersey 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, which matters where North Jersey land and improvement costs run with the metro New York market. 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.
Jersey City ran roughly 80 percent occupancy at a $260 average daily rate in 2025, up sharply from 2019, while the Shore's lodging stock runs on compressed seasonal curves, two demand models a study must keep separate.
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: New Hampshire, New Mexico, Texas.
Public SBA and CDC program records, cited as program evidence
$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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