Buying a Days Inn franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 128 7(a) loans to buy an existing Days Inn (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $320M. The median loan was $2,205,000, 242% higher than the $645,250 median for all SBA-financed acquisitions. Volume fell 25% from FY2024 to FY2026. 27 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 Days Inn resale loans landed between $1,729,500 and $3,370,450.
- Lender experience exists. GBank alone has financed 33 Days Inn 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 Days Inn resale
The median SBA 7(a) loan for a Days Inn resale was $2,205,000 across 128 loans (FY2018 to FY2026). GBank, First Western SBLC, LLC d/b/a Peachtree Group and Open Bank have financed the most Days Inn resales. Of 56 seasoned loans (FY2018 to FY2021), none were charged off, against the 3.5% average for all SBA acquisition loans.
Days Inn acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 13 | $35M | $2,550,000 | |
| FY2019 | 21 | $54.3M | $2,200,000 | |
| FY2020 | 10 | $24.3M | $2,135,000 | |
| FY2021 | 12 | $26.3M | $1,958,800 | |
| FY2022 | 20 | $47.2M | $2,235,250 | |
| FY2023 | 13 | $34.2M | $2,160,000 | |
| FY2024 | 12 | $28.8M | $2,142,500 | |
| FY2025 | 18 | $46.2M | $2,409,000 | |
| FY2026 | 9 | $23.5M | $2,167,000 |
How often do these acquisition loans fail?
Of the 56 Days 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. 36 have already been paid in full.
For comparison, Days 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 Days Inn resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 33 | 25.8% | $82.1M | |
| 2 | First Western SBLC, LLC d/b/a Peachtree Group | 10 | 7.8% | $18.9M | |
| 3 | Open Bank | 9 | 7.0% | $27.2M | |
| 4 | The Huntington National Bank | 7 | 5.5% | $17.8M | |
| 5 | United Midwest Savings Bank National Association | 7 | 5.5% | $15M | |
| 6 | Centerstone SBA Lending, Inc. | 6 | 4.7% | $16.3M | |
| 7 | Celtic Bank Corporation | 5 | 3.9% | $15.8M | |
| 8 | Global One Bank | 4 | 3.1% | $14.5M | |
| 9 | American Pride Bank | 3 | 2.3% | $9.8M | |
| 10 | Bank of Hope | 3 | 2.3% | $9.5M |
States where Days Inn units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Ohio | 13 | 10.2% | $31.6M | |
| 2 | Texas | 11 | 8.6% | $31.8M | |
| 3 | Georgia | 8 | 6.3% | $19.2M | |
| 4 | Virginia | 7 | 5.5% | $18.6M | |
| 5 | Illinois | 7 | 5.5% | $18.1M | |
| 6 | North Carolina | 7 | 5.5% | $15.7M | |
| 7 | Florida | 6 | 4.7% | $23.1M | |
| 8 | Missouri | 6 | 4.7% | $12.9M | |
| 9 | Mississippi | 6 | 4.7% | $12.7M | |
| 10 | South Carolina | 5 | 3.9% | $10.8M |
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Questions buyers ask
How much do buyers borrow to buy a Days Inn franchise?
The median SBA 7(a) loan for a Days Inn resale was $2,205,000 across 128 loans (FY2018 to FY2026). The middle half of loans ran from $1,729,500 to $3,370,450. 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 Days Inn acquisitions?
GBank has made the most SBA acquisition loans for Days Inn (33, 26% of the total). First Western SBLC, LLC d/b/a Peachtree Group, Open Bank, The Huntington National Bank follow.
What interest rate and term do Days Inn acquisition loans carry?
The average initial rate at approval was 7.20% (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 Days 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 Days Inn units being bought with SBA loans?
Ohio (13), Texas (11), Georgia (8), Virginia (7), Illinois (7). 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
- Ohio acquisitions
- Texas acquisitions
- Georgia acquisitions
- GBank
- First Western SBLC, LLC d/b/a Peachtree Group
- Open Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Days Inn / Days Inn by Wyndham" (franchise code S0488). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.