Buying a Clarion Inn franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 24 7(a) loans to buy an existing Clarion Inn (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $73.7M. The median loan was $3,127,500, 385% 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 Clarion Inn resale loans landed between $2,378,000 and $3,556,950.
- Lender experience exists. GBank alone has financed 6 Clarion Inn resales.
- Guaranty. The SBA guaranteed 76% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Clarion Inn resale
The median SBA 7(a) loan for a Clarion Inn resale was $3,127,500 across 24 loans (FY2018 to FY2026). GBank, First Western SBLC, LLC d/b/a Peachtree Group and The Huntington National Bank have financed the most Clarion Inn 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%.
Clarion Inn acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $10.6M | $3,369,800 | |
| FY2019 | 3 | $9.3M | $2,495,000 | |
| FY2020 | 2 | $6.4M | $3,181,500 | |
| FY2021 | 3 | $8.6M | $2,840,000 | |
| FY2022 | 2 | $4.2M | $2,116,500 | |
| FY2023 | 4 | $12.2M | $3,539,500 | |
| FY2024 | 3 | $8.8M | $1,968,000 | |
| FY2025 | 1 | $2.7M | $2,700,000 | |
| FY2026 | 3 | $10.8M | $3,400,000 |
How often do these acquisition loans fail?
Fewer than 20 Clarion Inn 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.
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Lenders financing Clarion Inn resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 6 | 25.0% | $17.8M | |
| 2 | First Western SBLC, LLC d/b/a Peachtree Group | 3 | 12.5% | $9.4M | |
| 3 | The Huntington National Bank | 2 | 8.3% | $7.2M | |
| 4 | Celtic Bank Corporation | 2 | 8.3% | $3.3M | |
| 5 | Royal Business Bank | 1 | 4.2% | $4.7M | |
| 6 | Bank of Oak Ridge | 1 | 4.2% | $4.4M | |
| 7 | Beacon Bank and Trust | 1 | 4.2% | $4M | |
| 8 | Community State Bank | 1 | 4.2% | $3.4M | |
| 9 | First Internet Bank of Indiana | 1 | 4.2% | $3.4M | |
| 10 | Customers Bank | 1 | 4.2% | $3.1M |
States where Clarion Inn units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Virginia | 4 | 16.7% | $13.3M | |
| 2 | South Carolina | 3 | 12.5% | $12.1M | |
| 3 | Indiana | 3 | 12.5% | $8.3M | |
| 4 | North Carolina | 2 | 8.3% | $6.3M | |
| 5 | Tennessee | 2 | 8.3% | $4.9M | |
| 6 | Washington | 1 | 4.2% | $5M | |
| 7 | Idaho | 1 | 4.2% | $4.7M | |
| 8 | Wisconsin | 1 | 4.2% | $3.4M | |
| 9 | Illinois | 1 | 4.2% | $3.4M | |
| 10 | Alabama | 1 | 4.2% | $3.2M |
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsFree consultation. All 50 states.
Questions buyers ask
How much do buyers borrow to buy a Clarion Inn franchise?
The median SBA 7(a) loan for a Clarion Inn resale was $3,127,500 across 24 loans (FY2018 to FY2026). The middle half of loans ran from $2,378,000 to $3,556,950. 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 Clarion Inn acquisitions?
GBank has made the most SBA acquisition loans for Clarion Inn (6, 25% of the total). First Western SBLC, LLC d/b/a Peachtree Group, The Huntington National Bank, Celtic Bank Corporation follow.
What interest rate and term do Clarion Inn acquisition loans carry?
The average initial rate at approval was 7.45% (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 Clarion Inn resale riskier than other SBA-financed acquisitions?
Too few Clarion Inn 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 Clarion Inn units being bought with SBA loans?
Virginia (4), South Carolina (3), Indiana (3), North Carolina (2), Tennessee (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.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Hotels (except Casino Hotels) and Motels acquisitions
- Virginia acquisitions
- South Carolina acquisitions
- Indiana acquisitions
- GBank
- First Western SBLC, LLC d/b/a Peachtree Group
- The Huntington National Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Clarion Inn by Choice Hotels/Clarion Inn & Suites by Choice Hotels/Clarion Pointe by Choice Hotels" (franchise code S0385). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.