Buying a Candlewood Suites franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 12 7(a) loans to buy an existing Candlewood Suites (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $56.7M. The median loan was $4,989,500, 673% higher than the $645,250 median for all SBA-financed acquisitions. 4 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 Candlewood Suites resale loans landed between $4,504,250 and $5,000,000.
- Lender experience exists. GBank alone has financed 3 Candlewood Suites resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Candlewood Suites resale
The median SBA 7(a) loan for a Candlewood Suites resale was $4,989,500 across 12 loans (FY2018 to FY2026). GBank, Everwise Credit Union and Bank of Hope have financed the most Candlewood Suites resales. Too few of these loans are old enough to measure a charge-off rate; the average for all SBA acquisition loans is 3.5%.
Candlewood Suites acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 1 | $4.2M | $4,230,000 | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 2 | $9.6M | $4,779,500 | |
| FY2023 | 1 | $4.8M | $4,780,000 | |
| FY2024 | 4 | $19.3M | $5,000,000 | |
| FY2025 | 2 | $10M | $5,000,000 | |
| FY2026 | 2 | $8.9M | $4,442,500 |
How often do these acquisition loans fail?
Fewer than 20 Candlewood Suites acquisition loans are old enough to measure losses reliably, so no charge-off rate is shown. The benchmark across all SBA acquisition loans in the FY2018 to FY2021 cohort is 3.5% by count. 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.
Seller note standby terms and third-party consents are reviewed before closing.
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Lenders financing Candlewood Suites resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 3 | 25.0% | $14.3M | |
| 2 | Everwise Credit Union | 2 | 16.7% | $10M | |
| 3 | Bank of Hope | 1 | 8.3% | $5M | |
| 4 | Hanover Community Bank | 1 | 8.3% | $5M | |
| 5 | Open Bank | 1 | 8.3% | $5M | |
| 6 | VelocitySBA, LLC | 1 | 8.3% | $4.8M | |
| 7 | Gulf Coast Bank | 1 | 8.3% | $4.6M | |
| 8 | American Pride Bank | 1 | 8.3% | $4.2M | |
| 9 | Shoreham Bank | 1 | 8.3% | $3.9M |
States where Candlewood Suites units are bought
The purchase agreement decides what you bought, not the loan approval.
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Questions buyers ask
How much do buyers borrow to buy a Candlewood Suites franchise?
The median SBA 7(a) loan for a Candlewood Suites resale was $4,989,500 across 12 loans (FY2018 to FY2026). The middle half of loans ran from $4,504,250 to $5,000,000. 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 Candlewood Suites acquisitions?
GBank has made the most SBA acquisition loans for Candlewood Suites (3, 25% of the total). Everwise Credit Union, Bank of Hope, Hanover Community Bank follow.
What interest rate and term do Candlewood Suites acquisition loans carry?
The average initial rate at approval was 8.50% (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 a Candlewood Suites resale riskier than other SBA-financed acquisitions?
Too few Candlewood Suites acquisition loans are old enough to measure. The benchmark for all SBA acquisition loans is 3.5% charged off in the FY2018 to FY2021 cohort.
Where are Candlewood Suites units being bought with SBA loans?
Texas (4), Indiana (2), Ohio (2), Kentucky (1), Nebraska (1). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
The purchase agreement decides what you bought, not the loan approval.
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Related
- All Hotels (except Casino Hotels) and Motels acquisitions
- Texas acquisitions
- Indiana acquisitions
- Ohio acquisitions
- GBank
- Everwise Credit Union
- Bank of Hope
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Candlewood Suites" (franchise code S0340). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.