Buying a Comfort Suites franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 34 7(a) loans to buy an existing Comfort Suites (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $135M. The median loan was $4,220,000, 554% higher than the $645,250 median for all SBA-financed acquisitions. 11 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 Comfort Suites resale loans landed between $3,197,125 and $5,000,000.
- Lender experience exists. GBank alone has financed 8 Comfort Suites 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 Comfort Suites resale
The median SBA 7(a) loan for a Comfort Suites resale was $4,220,000 across 34 loans (FY2018 to FY2026). GBank, First Western SBLC, LLC d/b/a Peachtree Group and Bank of Hope have financed the most Comfort 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%.
Comfort Suites acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $13.5M | $4,287,500 | |
| FY2019 | 1 | $2.7M | $2,700,000 | |
| FY2020 | 1 | $5M | $5,000,000 | |
| FY2021 | 6 | $22.5M | $4,009,750 | |
| FY2022 | 4 | $14.4M | $3,399,000 | |
| FY2023 | 6 | $23.6M | $4,520,000 | |
| FY2024 | 2 | $7.6M | $3,817,500 | |
| FY2025 | 5 | $23.8M | $5,000,000 | |
| FY2026 | 6 | $22.2M | $3,607,500 |
How often do these acquisition loans fail?
Fewer than 20 Comfort 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.
Terms signed in the LOI shape the purchase agreement that follows.
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Lenders financing Comfort Suites resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 8 | 23.5% | $35.6M | |
| 2 | First Western SBLC, LLC d/b/a Peachtree Group | 4 | 11.8% | $13.7M | |
| 3 | Bank of Hope | 3 | 8.8% | $14.2M | |
| 4 | Commonwealth Business Bank | 2 | 5.9% | $9.3M | |
| 5 | Merchants Bank of Indiana | 2 | 5.9% | $7.6M | |
| 6 | The Huntington National Bank | 2 | 5.9% | $7.5M | |
| 7 | Community First Bank of the Heartland | 1 | 2.9% | $5M | |
| 8 | Everwise Credit Union | 1 | 2.9% | $5M | |
| 9 | Metro City Bank | 1 | 2.9% | $5M | |
| 10 | Open Bank | 1 | 2.9% | $4.5M |
States where Comfort Suites units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 11 | 32.4% | $42.4M | |
| 2 | Georgia | 5 | 14.7% | $19.5M | |
| 3 | Illinois | 3 | 8.8% | $12.6M | |
| 4 | Indiana | 3 | 8.8% | $12M | |
| 5 | Ohio | 3 | 8.8% | $11.2M | |
| 6 | Wisconsin | 2 | 5.9% | $9.2M | |
| 7 | Alabama | 1 | 2.9% | $5M | |
| 8 | North Carolina | 1 | 2.9% | $5M | |
| 9 | South Carolina | 1 | 2.9% | $5M | |
| 10 | Louisiana | 1 | 2.9% | $4.2M |
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 a Comfort Suites franchise?
The median SBA 7(a) loan for a Comfort Suites resale was $4,220,000 across 34 loans (FY2018 to FY2026). The middle half of loans ran from $3,197,125 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 Comfort Suites acquisitions?
GBank has made the most SBA acquisition loans for Comfort Suites (8, 24% of the total). First Western SBLC, LLC d/b/a Peachtree Group, Bank of Hope, Commonwealth Business Bank follow.
What interest rate and term do Comfort Suites acquisition loans carry?
The average initial rate at approval was 7.48% (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 Comfort Suites resale riskier than other SBA-financed acquisitions?
Too few Comfort 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 Comfort Suites units being bought with SBA loans?
Texas (11), Georgia (5), Illinois (3), Indiana (3), Ohio (3). State counts follow where the brand has units and where SBA lending is most active generally; see the state pages for the overall picture.
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Related
- All Hotels (except Casino Hotels) and Motels acquisitions
- Texas acquisitions
- Georgia acquisitions
- Illinois acquisitions
- GBank
- First Western SBLC, LLC d/b/a Peachtree Group
- Bank of Hope
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Comfort Suites by Choice Hotels" (franchise code S2785). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.