Buying an Americas Best Value Inn franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 29 7(a) loans to buy an existing Americas Best Value Inn (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $52.5M. The median loan was $1,564,000, 142% higher than the $645,250 median for all SBA-financed acquisitions. 3 of these loans were approved in the last two fiscal years.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Americas Best Value Inn resale loans landed between $1,052,200 and $2,313,000.
- Lender experience exists. GBank alone has financed 11 Americas Best Value Inn resales.
- Guaranty. The SBA guaranteed 80% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing an Americas Best Value Inn resale
The median SBA 7(a) loan for an Americas Best Value Inn resale was $1,564,000 across 29 loans (FY2018 to FY2026). GBank, First Western SBLC, LLC d/b/a Peachtree Group and Celtic Bank Corporation have financed the most Americas Best Value Inn resales. Of 20 seasoned loans (FY2018 to FY2021), none were charged off, against the 3.5% average for all SBA acquisition loans.
Americas Best Value Inn acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 5 | $6.6M | $1,400,000 | |
| FY2019 | 5 | $8.6M | $1,795,100 | |
| FY2020 | 3 | $5.2M | $790,000 | |
| FY2021 | 7 | $18.5M | $3,140,000 | |
| FY2022 | 5 | $6.6M | $1,456,500 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 1 | $1.9M | $1,929,700 | |
| FY2025 | 1 | $820K | $820,000 | |
| FY2026 | 2 | $4.2M | $2,098,500 |
How often do these acquisition loans fail?
Of the 20 Americas Best Value Inn acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 10 have already been paid in full.
For comparison, Americas Best Value Inn has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the same cohort. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.
"Charged off" is the SBA's final loss action on a defaulted loan after collection efforts. It lags default by a year or more, which is why only older cohorts are measured. It is not the same as a delinquency rate, and loans still outstanding can still fail. See charge-off in the glossary.
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Lenders financing Americas Best Value Inn resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 11 | 37.9% | $18.8M | |
| 2 | First Western SBLC, LLC d/b/a Peachtree Group | 3 | 10.3% | $5M | |
| 3 | Celtic Bank Corporation | 2 | 6.9% | $3.2M | |
| 4 | Hanmi Bank | 2 | 6.9% | $3.1M | |
| 5 | Royal Business Bank | 1 | 3.4% | $3.9M | |
| 6 | Open Bank | 1 | 3.4% | $3.9M | |
| 7 | VelocitySBA, LLC | 1 | 3.4% | $3.2M | |
| 8 | Centerstone SBA Lending, Inc. | 1 | 3.4% | $3M | |
| 9 | Bank of Hope | 1 | 3.4% | $1.9M | |
| 10 | Columbia Bank | 1 | 3.4% | $1.8M |
States where Americas Best Value Inn units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 4 | 13.8% | $4.5M | |
| 2 | California | 3 | 10.3% | $8.7M | |
| 3 | Colorado | 3 | 10.3% | $8.2M | |
| 4 | North Carolina | 2 | 6.9% | $6.2M | |
| 5 | Virginia | 2 | 6.9% | $3.2M | |
| 6 | Tennessee | 2 | 6.9% | $3.2M | |
| 7 | Minnesota | 2 | 6.9% | $2.5M | |
| 8 | Illinois | 2 | 6.9% | $2M | |
| 9 | Washington | 1 | 3.4% | $3.9M | |
| 10 | Georgia | 1 | 3.4% | $2.4M |
Seller note standby terms and third-party consents are reviewed before closing.
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Questions buyers ask
How much do buyers borrow to buy an Americas Best Value Inn franchise?
The median SBA 7(a) loan for an Americas Best Value Inn resale was $1,564,000 across 29 loans (FY2018 to FY2026). The middle half of loans ran from $1,052,200 to $2,313,000. The loan excludes the buyer's equity and any seller note and may include working capital, so the price is usually higher than the loan.
Which banks finance Americas Best Value Inn acquisitions?
GBank has made the most SBA acquisition loans for Americas Best Value Inn (11, 38% of the total). First Western SBLC, LLC d/b/a Peachtree Group, Celtic Bank Corporation, Hanmi Bank follow.
What interest rate and term do Americas Best Value Inn acquisition loans carry?
The average initial rate at approval was 6.39% (a blend of fixed and variable loans across several rate environments, so treat it as context, not a quote). The median term was 25 years.
Is an Americas Best Value Inn resale riskier than other SBA-financed acquisitions?
In the seasoned cohort (FY2018 to FY2021), none charged off, against the 3.5% average for all SBA acquisition loans.
Where are Americas Best Value Inn units being bought with SBA loans?
Texas (4), California (3), Colorado (3), North Carolina (2), Virginia (2). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Hotels (except Casino Hotels) and Motels acquisitions
- Texas acquisitions
- California acquisitions
- Colorado acquisitions
- GBank
- First Western SBLC, LLC d/b/a Peachtree Group
- Celtic Bank Corporation
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Americas Best Value Inn" (franchise code S0112). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.