USDA B&I Feasibility Study Case Study: A 100-Room Extended-Stay Hotel at Exit 138 in Rayville, Louisiana, Beside a $50 Billion Data Center Campus, Not Feasible as Proposed and Feasible as Restructured

A 100-room economy extended-stay hotel of the ECHO Suites, WoodSpring or Everhome class proposed on a cleared 3.37-acre commercial tract on McGowan Lane at the Interstate 20 Exit 138 interchange in Rayville, Richland Parish, Louisiana, listed at $1,250,000 after a prior $750,000 ask, in a parish with no zoning ordinance, financed under USDA Business and Industry as a new business. The demand generator is the data center campus between Rayville and Delhi, announced at $10 billion in December 2024 and expanded to more than $50 billion in July 2026, with more than 7,500 workers at peak construction, about 1,000 permanent roles, and construction running through 2030. At a $14,145,000 total project cost and the program's 25 percent equity for construction guaranteed before completion, the hotel covers at 1.55x in its first full year and 0.67x in its third, because the first full year is 2029 and the third is 2031, the year the construction ends. Restructured at a $6,650,000 B&I loan and $7,495,000 of equity, with a cash flow sweep applying half of the construction-period excess to principal, the hotel covers at 1.20x in 2031, 1.32x in 2032 and 1.41x in 2033 on 65 percent occupancy at a $96 rate. Determination: not feasible as proposed; feasible as restructured, conditioned on the sweep, a funded reserve, the parish permit and the campus schedule being carried as the demand schedule.

Model study prepared by MMCG Invest | Michal Mohelsky, J.D., FMVA | October 2, 2026

MMCG concludes that the proposed 100-room extended-stay hotel on McGowan Lane at Exit 138 in Rayville, Louisiana is not feasible as proposed and is feasible as restructured. The site is a cleared interstate tract at the interchange nearest the largest construction project in the state, the parish imposes no zoning, and the demand in 2029 and 2030 is beyond question: more than 7,500 construction workers at peak on a campus whose operator has announced more than $50 billion of investment, a parish whose workday population has grown by about 8,000 on a base of 19,500, and a housing market in which rents have risen from $600 to $700 a month to $2,500. The proposal fails on timing and on the capital stack. A hotel that closes its loan in the first quarter of 2027 and completes construction in mid-2028 has its first full operating year in 2029 and its third in 2031, and 2031 is the first year after the campus operator's own schedule ends construction. At the program's 25 percent equity and a $10,609,000 loan, the hotel covers at 1.55x in 2029 and 1.14x in 2030, then at 0.67x in 2031 and 0.79x in 2033, because the demand base that remains after construction, about 1,000 permanent campus roles, their vendors and visitors, the utility's plant staff, the interstate and the parish's commercial base, fills about 65 percent of 100 rooms at a $96 rate and produces about $770,000 of cash flow against $981,000 of debt service.

Restructured at a $6,650,000 B&I loan, 47 percent of cost, with $7,495,000 of equity and a covenant applying 50 percent of the cash flow after debt service in 2029 and 2030 to principal, the hotel covers at 2.48x and 1.82x during construction, reduces its balance by about $706,000 before the demand declines, and covers at 1.20x in 2031, 1.32x in 2032 and 1.41x in 2033 on the reduced balance; without the sweep it reaches 1.25x in 2033. The restructured credit is one a USDA reviewer can approve and a bank can hold: it is sized to the demand that will exist when the campus is complete, it uses the construction period to de-lever rather than to justify leverage, and it leaves the sponsor, not the guarantee, carrying the premium that the boom has put on the land and the pro forma. The determination is conditioned on the sweep covenant, a $398,100 funded interest and operating reserve, the parish building permit at the 1 percent fee, the franchisor's approval of the prototype on the site, and the lender's underwriting carrying the campus's published construction schedule, not the trailing parish sales tax, as the demand schedule.

This is an MMCG model study: a complete feasibility analysis performed on a real, publicly marketed parcel using public data, prepared to show USDA Business and Industry lenders, Rural Development state offices and extended-stay developers how MMCG tests a construction-driven hotel against the generator's own schedule rather than against the trailing demand. It is not a client engagement. MMCG has no relationship with the landowner, the listing broker, any franchisor, the campus operator, the utility, the parish or any prospective developer, and the analysis does not represent an offer, an appraisal or a recommendation to buy the parcel. Figures drawn from the listing, the parish assessor's published millage table, the Louisiana Association of Tax Administrators, the Louisiana Tax Commission, the campus operator's own announcements, the utility's announcements, press reporting on the parish and hotel directories are identified as such. Figures labeled MMCG assumption are underwriting inputs set by MMCG from industry benchmarks, including the first economy extended-stay prototype's published cost per key, the 2026 extended-stay performance reports and current B&I loan pricing. Items that could not be verified from a primary source at the study date are listed in the Conditions and Limitations section rather than estimated silently: in particular, whether the parcel lies inside the Town of Rayville's limits, the parish's current millage, the Town of Rayville's water and sewer capacity and connection fees, the police jury's RV park moratorium ordinance, the number of crew housing sites parishwide, the competitors' room counts and rates from their own sites, and the 104-room hotel the listing describes.

The Project will operate as a franchised economy extended-stay hotel of 100 studio suites on the 3.37-acre tract on McGowan Lane at the Interstate 20 Exit 138 interchange in Rayville, Richland Parish, Louisiana, under an extended-stay flag of the ECHO Suites, WoodSpring Suites or Everhome Suites class following franchise approval. The physical program comprises a four-story interior-corridor building of about 46,000 gross square feet with 100 studio suites of about 300 square feet, each with a full kitchen comprising a two-burner cooktop, full refrigerator, microwave and sink, a work surface and a queen bed, a lobby with a 24-hour market and vending, a guest laundry with commercial washers and dryers, a fitness room, a small meeting and work lounge and two elevators, with 110 surface parking spaces including 12 truck and trailer spaces, on a site plan that places the building at the interstate-facing frontage with a monument sign visible from Interstate 20. The hotel will operate 24 hours a day, 365 days a year, on the extended-stay staffing model of a general manager, an assistant manager, front desk coverage on three shifts with overnight self-service check-in, a weekly housekeeping rotation and a maintenance technician, for about 9 full-time equivalents at the normalized occupancy and about 12 during the construction period. The sponsor will hold the land, the building and the operating business in a single-asset entity that borrows the B&I guaranteed loan, with the principals providing the personal guarantees the program requires and operating the hotel directly. The Project is positioned as the interchange's only purpose-built extended-stay product, at a $115 nightly rate in 2029 declining to $96 at the normalized year, with weekly rates at a 20 percent discount and monthly rates at a 30 percent discount capped at 20 percent of room nights after 2030, against the exterior-corridor economy motels at the interchange and in Delhi and the 122-room economy extended-stay hotel in West Monroe 30 miles west.

Marketing and Sales Strategy

The primary channel during construction is the campus's general contractors and their subcontractors, the utility's generating plant and transmission contractors, and the equipment and systems vendors who rotate crews on one-to-four week schedules and who are the extended-stay product's natural customer; the general manager holds block agreements priced at the weekly rate with a 29-night cap per stay through 2030 and a 20 percent room-night cap on monthly stays thereafter. The second channel is the franchisor's reservation system and loyalty program, which supplies the interstate and relocation demand that the hotel must build before 2031 and that is its base after. The third channel is the campus's permanent operation: its operations staff, its hardware and facilities vendors, its visiting engineers and auditors, and the utility's plant staff and maintenance contractors, whom the general manager solicits from 2028 as the plants come online and the campus's first halls go live. Retention runs through the loyalty program, the kitchens, the laundry and the truck parking, which the interchange's motels do not offer.

Amenities

The parcel is a cleared, level, professionally surveyed 3.37-acre commercial tract on McGowan Lane at the Rayville exit of Interstate 20, listed at $1,250,000, or $370,920 per acre, through MLS 216433 with Coldwell Banker Group One Realty; a listing of the same tract at $750,000, or $222,552 per acre, remains displayed on one aggregator, and the broker's current narrative describes two-phase and three-phase electric service, two independent water sources, no flood zone, high interstate visibility and proximity to the newest 104-room hotel development. The 67 percent increase in the ask between the two listings is itself a market fact, and so is the parish police jury president's August 2026 statement that he now fields calls from out-of-town investors drawn by rising land values. A 6.92-acre tract at 28 McGowen Lane is marketed as commercial property near the data center, and a 4-acre tract on Highway 80 was reduced by $200,000 to $775,000 in July 2026. Richland Parish has no zoning ordinance, so the listing shows no zoning and the hotel faces no use test.

Richland Parish had about 20,000 residents at the 2020 census and about 19,500 on the 2025 estimate, with Rayville at about 3,300 and Delhi at about 2,600. The campus operator announced a $10 billion data center on 2,250 acres between the two towns in December 2024 with 500 direct and more than 1,000 indirect permanent jobs and 5,000 construction workers at peak, reported 3,700 construction workers on site in December 2025 with a peak of 5,000 expected by June 2026, restructured the project as a $27 billion joint venture in October 2025, and in July 2026 announced an expansion to 5 gigawatts and more than $50 billion of investment supporting more than 7,500 jobs at peak construction and about 1,000 roles once operational, with more than $1 billion of local road, water and wastewater improvements. The electric utility is building two combined-cycle generating plants on the corridor, expected to be complete and operational by late 2028, with 1,500 to 1,800 construction jobs on the units, 3,500 to 5,000 on substation and transmission work and 44 permanent positions. Parish sales tax collections nearly doubled in 2025, the police jury holds more than $20 million in reserve, and local officials estimate about 8,000 additional people in the parish on a workday.

The site's liability is the same fact as its strength. The campus schedule runs construction through 2030. The crew housing market is being built to absorb it: the general contractor's subcontractor is building a 130-acre complex with more than 300 full-service RV sites near the campus, two RV parks totaling up to 700 hookups were under construction in early 2026, and the police jury has imposed a moratorium on further RV parks. A hotel that opens in mid-2028 captures the last two and a half years of a demand that then falls to a fraction of its peak, and the study is built around that timing.

Richland Parish has no zoning ordinance. Press reporting in August 2026 describes a parish that has had no need for zoning laws, whose police jury handles variance requests, permit fees and setbacks from property lines, and which is hiring a consulting firm to produce a report by the end of 2026 that could lead to the parish's first zoning laws. The parish typically requires payment of about 1 percent of construction cost to obtain a building permit, which the budget carries as a separate line. Neither the Town of Rayville nor the Town of Delhi published a zoning ordinance the study could locate, and whether the McGowan Lane tract lies inside the Town of Rayville's corporate limits was not confirmed; the study carries the parish's millage for the Rayville special district outside the town and discloses the in-town case. The entitlement path is a parish building permit and the state fire marshal's plan review, with no rezoning, variance or site plan hearing, and the determination carries no entitlement contingency beyond the permit and the confirmation of the corporate limits. The study notes that the pending zoning study could affect any project not permitted before the parish adopts an ordinance, and conditions on the permit being issued before closing.

The Project is financed under USDA Business and Industry, which applies no transient revenue test; the hotel is an eligible business under 7 CFR 5001.105, which names hotels and motels, and its site is in a rural area, since Richland Parish has no city or town of more than 50,000 people. The study nonetheless projects revenue by length-of-stay band, because the sponsor may refinance under SBA 7(a) or 504 after stabilization and because a USDA reviewer reads an extended-stay projection for whether the hotel is in substance workforce housing dependent on a single employer. Stays of 30 nights or more are carried at 30 percent of revenue in 2029, 25 percent in 2030 and 10 percent from 2031, with the operating plan capping monthly stays at 20 percent of room nights after 2030.

Electric service is at the site at two-phase and three-phase according to the broker, and the parish's police jurors have stated that the campus will not leave the parish short of water. The Town of Rayville's water and sewer capacity, connection fees and whether municipal sewer reaches the tract were not located, and the budget carries $180,000 for water, sewer and electric connection, tap and capacity fees, with an on-site treatment allowance in the contingency if municipal sewer is not available; the utility service letters are a condition precedent.

Property tax is computed from the Richland Parish Assessor's published millage table, last updated as a 2021 estimate, which places the parishwide rate at 49.60 mills and the total inside the Rayville special district outside the town at 81.74 mills, with the Town of Rayville's 12.65 mills added inside the corporate limits. Louisiana assesses land at 10 percent, commercial improvements at 15 percent and business personal property at 15 percent of fair market value. At a $1,250,000 land value, an $8,500,000 assessor value for the improvements and $1,420,000 of furniture, fixtures and equipment, the assessed value is about $1,613,000 and the annual tax about $131,800 outside the town, or $152,200 inside it, and the study carries $132,000 in 2029 escalating 2.5 percent a year with the in-town case as a sensitivity. The school board reset the parish's 2026 millage in September 2025 at rates the study could not retrieve, and the current millage is a disclosed item. Sales tax on room rentals is 9.25 percent in the parish outside the towns and 10.75 percent inside Rayville, comprising the 5 percent state rate on hotel rooms effective January 1, 2025 and the local rate; no parish, Rayville or Delhi hotel occupancy tax was found in the state statute that authorizes tourist commission occupancy taxes, which does not list Richland Parish. The sales tax is collected from the guest.

The trade area for an interstate extended-stay hotel is the generators within a 20-minute drive and the interstate, not the parish's population. The Monroe metropolitan area, which includes Richland Parish, had an all-occupation mean wage of $22.74 an hour in May 2024, a building and grounds cleaning mean of $13.78 and an office and administrative support mean of $18.83; the study builds housekeeping at $12.50 and the front desk at $13.50 for the normalized year with construction-period wages 15 percent higher, and the extended-stay model's weekly housekeeping rotation keeps the labor line below a transient hotel's. The demand base in the construction period is the campus's 3,700 to 7,500 workers and the utility's generating plant and transmission workforce, net of those housed in the crew complex, the RV parks, rented housing and the Monroe hotels; the demand base after 2030 is the campus's 1,000 permanent roles and their vendors, visiting engineers and auditors, the utility's 44 permanent plant staff and its maintenance contractors, the interstate's transient and relocation traffic, the parish's courthouse, hospital and agricultural commercial demand, and the overflow from Monroe's branded hotels.

The demand model separates the hotel's room nights into a dated contract segment and a permanent segment and carries each on its own schedule. Contract demand is the campus and utility construction workforce. The campus operator's published schedule runs construction through 2030, and the utility's plants complete in late 2028; the study carries the contract segment at 55 points of occupancy in 2029, 40 points in 2030 as the campus moves from structure to fit-out and the utility work ends, and zero from 2031. Permanent demand is carried at 25 points in 2029, 32 points in 2030 and 60 points in 2031 rising to 65 points by 2033, built from the campus's 1,000 permanent roles and the room nights a technical campus of that size generates in vendors, visitors and relocations, which the study sizes at about 20 points of a 100-room hotel; the utility's plant staff and maintenance contractors at about 5 points; and the interstate, relocation and commercial base at about 40 points, consistent with the occupancy the interchange's economy motels ran before December 2024 and the national extended-stay segment's structural occupancy advantage of about 12 percent over comparable transient hotels.

The penetration test is the interchange's own supply and the workforce housing. The subject's 100 rooms are about 42 percent of the roughly 240 hotel rooms at Exits 138 and 153 after it opens, so its share of the parish's hotel room nights is structural. The competing supply for the contract segment is not hotels but crew beds: more than 300 complex sites and up to 700 RV hookups, which the study counts as about 1,000 beds competing for the seven-to-twenty-nine night segment and which explain why the hotel's contract segment is carried at 55 points rather than the 90-plus points the interchange's motels are running today. The 122-room economy extended-stay hotel in West Monroe is the subject's direct competitor for the monthly segment and the ceiling on its monthly rate. The study carries no new hotel supply at the interchange because none was verified, and runs the 104-room hotel in the broker's listing as a sensitivity.

MMCG identified five hotels in Richland Parish, the extended-stay and branded supply in Monroe and West Monroe, and the workforce housing under construction. Room counts, construction years and addresses are from hotel directories and the lodge's own social media page; no current rate was taken from a brand site. Directory room counts conflict for two properties and are disclosed.

Competitor Number 1: Super 8 by Wyndham Rayville. This 76-room economy hotel (exterior corridor; one directory reports 78 rooms) was built in 2001 and renovated in 2011, with two stories. It is located at 116 Cottonland Drive, Rayville, LA 71269, at I-20 Exit 138. No current rate was captured from the brand's site.

Competitor Number 2: The Richland Lodge, formerly Days Inn by Wyndham Rayville. This 33 to 37 room economy hotel (exterior corridor; directories report 33, 36 and 37 rooms) was built in 1998 and renovated in 2016, with two stories. It is located at 125 Maxwell Drive, Rayville, LA 71269, at I-20 Exit 138. An aggregator showed a $137 low rate in the week before the study date.

Competitor Number 3: Best Western Delhi Inn. This 44 to 45 room midscale hotel (exterior corridor per the motor club directory) was built in 1984 and renovated in 1992, with 22 suites and two stories. It is located at 135 Snider Road, Delhi, LA 71232, at I-20 Exit 153. The motor club directory shows an undated $99 rate.

Competitor Number 4: Executive Inn Express. This 48-room economy hotel (two stories; corridor type not stated) was built in 1998 and renovated in 2005. It is located at 113 Snider Road, Delhi, LA 71232. A directory shows an undated $70 rate.

Competitor Number 5: Champions Black Bear Lodge. This 17-room independent lodge is located at 231 Black Bear Drive, Delhi, LA 71232, adjoining the Black Bear Golf Course. Its opening year and rates were not retrieved at the study date.

Competitor Number 6: WoodSpring Suites West Monroe. This 122-room economy extended-stay hotel (interior corridor, brand standard) is located at 230 Blanchard Street, West Monroe, LA 71291, about 30 miles west of the subject. It is the only purpose-built extended-stay product in the region and the subject's direct competitor for monthly stays. Its opening year and rates were not retrieved at the study date.

The Rayville Motel, a 24-room independent exterior-corridor motel at 1134 Harrison Street in town, is listed for sale at $650,000 and is sub-scale and off the interchange. The branded transient supply in Monroe and West Monroe, including a 90-room Courtyard, a Hampton Inn and Suites, a Residence Inn, a Comfort Suites, a 77-room Quality Inn and Suites, a 97-room Red Roof Inn and the 69-room downtown soft-brand hotel that opened in May 2025, absorbs the branded demand the campus generates and sets the rate ceiling. The workforce housing supply comprises the 130-acre crew complex with more than 300 full-service RV sites, two RV parks with up to 700 hookups under construction in early 2026, and the Cotton Patch and Antley Pines parks; the parish's moratorium on further RV parks caps that supply, but its ordinance number and expiration were not retrieved.

The subject's rate is set from the extended-stay segment's national pattern and the parish's construction-period pricing. Second-quarter 2026 extended-stay hotels nationally ran a $126 rate and 77 percent occupancy, with economy extended-stay well below that rate; the interchange's economy motels are reported at $130 to $140 during the construction peak against $70 to $99 in Delhi. The study carries the subject's nightly rate at $115 in 2029 and $105 in 2030, below the motels' construction-period rates because the extended-stay product sells on the weekly rate, then $92 in 2031, $94 in 2032 and $96 in 2033, the normalized rate for a new interior-corridor product with kitchens against exterior-corridor motels at $70 to $99 and a West Monroe extended-stay hotel at a comparable level. Weekly rates for seven-to-twenty-nine night stays are carried at a 20 percent discount and monthly rates at a 30 percent discount, with the blended rate reflecting the length-of-stay mix in each year. Other income, which comprises the market, laundry, pet fees and cancellation fees, is carried at 2 percent of rooms revenue. Lease-up concessions are not carried.

Construction runs 15 months from a loan closing in the first quarter of 2027, with opening in the second quarter of 2028 and the first full year carried as 2029; the partial 2028 year is carried at the reserve.

The projection declines before it stabilizes, which is the shape of a construction-driven hotel and the reason the loan is sized to 2031 and after. The hotel earns about $2.6 million of cumulative cash flow after reserve in 2029 and 2030 against about $1.2 million of restructured debt service, and the determination's sweep applies half of the excess to principal while the demand lasts.

Location: McGowan Lane, Rayville, LA 71269 Size in SF (Gross): 46,000 Rooms: 100

Source: Marshall & Swift CoreLogic, MMCG

Total project cost of $141,450 per room sits above the roughly $117,000 per key reported for the first economy extended-stay prototype built in 2024, reflecting two years of construction cost escalation, a boom-market land price of $12,500 per room and the parish's permit fee, and well below the national limited-service range of about $170,000 to $197,000 per room, because the extended-stay prototype carries no breakfast area, pool or meeting space. The reserve of $398,100 funds the partial 2028 opening year. The guarantee fee is carried on the as-proposed loan and falls to about $159,600 on the restructured loan.

Loan Assumptions (as proposed)

Loan Assumptions (restructured)

The restructuring sizes the loan to the 2033 normalized cash flow at 1.25x and uses the construction period to reduce the balance rather than to support it. The additional $3,959,000 of equity is the amount of the project that the campus's construction, not its operation, is being asked to pay for.

The Project is an eligible business in an eligible rural area under 7 CFR Part 5001: hotels and motels are named as eligible uses in Section 5001.105, and Richland Parish has no city or town of more than 50,000 people. The guaranteed loan exceeds $1,000,000 to a new business, so an independent feasibility study is required under Section 5001.306, and this study addresses the five elements the regulation names: economic feasibility through the parish's employment base and the campus and utility schedules; market feasibility through the segmented demand analysis and the competitive supply including workforce housing; technical feasibility through the extended-stay prototype's fit to the contract and permanent demand; financial feasibility through the pro forma, the coverage schedule by year and the post-construction sizing; and management feasibility through the sponsor's experience and the franchisor's operating support. The borrower's equity is 25 percent as proposed, the program's requirement where the guarantee is issued before construction is complete, stated as balance sheet equity; the restructured case carries 53 percent. The guarantee is 80 percent because the loan exceeds $5,000,000, the upfront fee is 3 percent of the guaranteed amount and the annual retention fee is 0.55 percent of the outstanding guaranteed balance, at fiscal 2026 terms. The real estate term is 30 years. The study presents the sensitivities a USDA reviewer expects: the standard occupancy, rate, cost and interest cases, the post-generator case as the base case for 2031 and after, and the new-supply case.

The 2033 normalized operating budget at 65 percent occupancy and a $96 blended rate is built by line on a Uniform System of Accounts basis for a 100-suite economy extended-stay hotel in Richland Parish.

Gross operating profit before the management fee and fixed charges is about $1.22 million, a 52 percent margin, which sits between the 45 percent a well-run upper midscale transient hotel earns and the 60 percent the economy extended-stay franchisors project for their prototypes, because the study carries utilities, maintenance and administration at a rural operator's levels rather than the brand's. Labor is built at $12.50 for housekeeping and $13.50 for the front desk on the extended-stay staffing model of about 9 full-time equivalents. Franchise fees are carried at the economy extended-stay brands' contractual 5.5 percent royalty and 3.5 percent marketing contribution. The 3 percent management fee is carried although the sponsor will operate. Property tax reflects the parish's 81.74 mills outside the town on the 10 and 15 percent assessment ratios, escalated; insurance is carried at $1,390 per room in 2033 for a new sprinklered building in north Louisiana, escalating 5 percent a year from $1,150 in 2029. The FF&E reserve ramps from 2 percent in 2029 to 4 percent from 2031.

The restructured hotel covers at 2.48x and 1.82x in the two construction years, dips to 1.07x in 2031 when the contract segment ends, and reaches 1.25x in 2033 on the normalized base. The sweep changes the shape: applying half of the 2029 and 2030 cash flow after debt service, about $706,000, to principal reduces the balance to about $5.85 million before 2031, re-amortizes debt service to about $548,000, and lifts coverage to 1.20x in 2031, 1.32x in 2032 and 1.41x in 2033; the determination conditions on the sweep for that reason. As proposed at 25 percent equity and a $10,609,000 loan, the same operating projection produces coverage of 1.55x in 2029, 1.14x in 2030, 0.67x in 2031, 0.74x in 2032 and 0.79x in 2033 against annual debt service of $980,800; the as-proposed loan fails in the third year, and the as-proposed row is the determination.

At 2033 rates, the restructured hotel's fixed operating cost before the sweep is $683,300, comprising administrative and general, property operations, utilities, property tax and insurance, and its variable cost is 36.2 percent of rooms revenue for the rooms department, franchise fees, sales and marketing, the management fee and the FF&E reserve.

The 1.25x threshold sits at the forecast by design before the sweep, and about four points below it after the sweep. The 1.0x threshold at 58.0 percent and the operating break-even at 30.6 percent are the margins of safety: the hotel carries its restructured debt at an occupancy the parish's exterior-corridor motels ran before the campus existed, and it covers its operating costs at half that.

The restructured hotel with the sweep holds coverage above 1.0x in every single-factor case and above 1.25x in the base, stronger-demand and extended-construction cases; without the sweep it falls below 1.0x in the combined case and the new-supply case. The as-proposed structure fails in the base case. The extended-construction case is the one the sponsor will argue and the one the study declines to carry as base: the campus operator has announced construction through 2030, and a reviewer who underwrites to a longer schedule is underwriting to an announcement that has not been made.

The determination of not feasible as proposed and feasible as restructured is subject to the following conditions precedent on the restructured program:

The following items could not be verified from a primary source at the study date and are disclosed: whether the McGowan Lane tract lies inside the Town of Rayville's corporate limits; the Richland Parish Assessor's current millage, last published as a 2021 estimate, and the 2026 school board rates; the Town of Rayville's water and sewer capacity and connection fees; the police jury's RV park moratorium ordinance number, date, scope and expiration, and the number of crew housing and RV sites approved parishwide; the room counts, corridor types and current rates of the parish competitors and the West Monroe extended-stay hotel from their own or the brands' sites; the existence, brand and schedule of the 104-room hotel the listing describes; and the campus operator's and the utility's workforce figures beyond their own announcements, which no parish, state or utility workforce plan corroborates.

This model study applies the methodology described on MMCG's hotel feasibility study, USDA hotel feasibility study and extended-stay hotel feasibility study pages. MMCG prepares hotel feasibility studies for SBA 7(a) and 504, USDA Business and Industry and conventional lenders nationwide, with engagements from $4,900 and delivery in 9 to 16 business days.