NEW YORK · NAICS NAICS 7211 family

    SBA Hotels and Motels Feasibility Study in New York

    New York hotel and motel projects split into two analytical worlds: a compressed downstate market where Manhattan and the outer boroughs run at sector-leading occupancy and rate, and an upstate boutique and Finger Lakes corridor where leisure seasonality drives the projection. A credible study keeps the comp sets separate, defends average daily rate, occupancy, and revenue per available room against the right peers, and stress-tests 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.

    SBA Lending Data: Hotels and Motels in New York

    New York generated 543 SBA-disbursed hotel loans between FY2010 and FY2026, worth $1.07 billion in approved 7(a) and 504 financing at an average of $2.0 million per deal. Ranked #8 of 38 states for hotel SBA volume, the state captures 3.1% of national hotel dollars. 73.1% of the loans ran through 7(a) with 504 covering the remainder; 67 approvals have posted since FY2024.

    Disbursed loans (FY2010–FY2026)543
    Approved volume$1.07 billion
    Average loan size$2.0 million
    7(a) share73.1%
    Approvals since FY202467
    State rank by loan count#8 of 38

    Among the 414 seasoned loans in this segment (approvals FY2010–FY2021), 9.9% 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.

    What this means for your loan application

    A 9.9% adverse-resolution rate against the national hotel benchmark of 4.4% tells credit committees to scrutinize revenue projections and coverage assumptions closely on New York 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 $2.0 million across 543 loans.

    Work with SBA feasibility study consultants

    Every New York 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.

    Program fit

    New York projects often fit SBA 504 where owner-occupied real estate anchors the deal, with the 50/40/10 structure delivering up to 90 percent financing at a fixed debenture rate, while SBA 7(a) covers acquisitions, working capital, and equipment. From July 4, 2026 eligible borrowers can combine 7(a) and 504 for up to $10 million in total program credit.

    New York evidence

    New York City led all top-25 U.S. markets in 2025 occupancy, ADR, and RevPAR and tops the 2026 construction pipeline, while upstate boutique and Finger Lakes lodging runs on leisure seasonality, two comp-set worlds 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 Mexico, North Carolina, Texas.

    Program evidence

    Public SBA and CDC program records, cited as program evidence

    American Beech boutique portfolio

    SBA 504 refinance through Pursuit

    Refinance across a boutique hotel and restaurant portfolio, program evidence

    New York

    Frequently asked questions

    Related project types in New York

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