TEXAS · NAICS NAICS 7211 family
Texas hotel and motel projects run from Triangle corridor properties in Dallas-Fort Worth, Houston, San Antonio, and Austin to interstate lodging along I-35, I-10, and I-45. Studies tie flag standards, average daily rate, occupancy, and revenue per available room to documented trade-area demand, then stress-test coverage against shoulder-season and downside scenarios the lender's credit committee can defend.
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, Texas recorded 1,876 SBA-disbursed hotel loans across the 7(a) and 504 programs, representing $4.44 billion in approved financing at an average loan size of $2.4 million. The state sits at rank #2 of 38 for hotel SBA lending volume and holds 12.7% of the national hotel dollar pool. 7(a) accounts for 84.2% of the count, 504 for the rest, with 241 fresh approvals dated FY2024 or later.
| Disbursed loans (FY2010–FY2026) | 1,876 |
| Approved volume | $4.44 billion |
| Average loan size | $2.4 million |
| 7(a) share | 84.2% |
| Approvals since FY2024 | 241 |
| State rank by loan count | #2 of 38 |
Among the 1,426 seasoned loans in this segment (approvals FY2010–FY2021), 6.7% 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 6.7% adverse-resolution rate against the national hotel benchmark of 4.4% tells credit committees to scrutinize revenue projections and coverage assumptions closely on Texas 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 $2.4 million across 1,876 loans.
Every Texas 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.
Texas 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, which matters for larger Texas Triangle and I-35 corridor projects.
Triangle corridor lodging demand continues to anchor the asset class, with 2026 FIFA World Cup matches in the Dallas and Houston metros lifting near-term comp sets.
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: Tennessee, Virginia, California.
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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