Buying a Fairfield by Marriott franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 21 7(a) loans to buy an existing Fairfield by Marriott (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $93.5M. The median loan was $5,000,000, 675% higher than the $645,250 median for all SBA-financed acquisitions. 10 of these loans were approved in the last two fiscal years.
Terms signed in the LOI shape the purchase agreement that follows.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Fairfield by Marriott resale loans landed between $4,075,000 and $5,000,000.
- Lender experience exists. GBank alone has financed 4 Fairfield by Marriott 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 Fairfield by Marriott resale
The median SBA 7(a) loan for a Fairfield by Marriott resale was $5,000,000 across 21 loans (FY2018 to FY2026). GBank, Open Bank and First Western SBLC, LLC d/b/a Peachtree Group have financed the most Fairfield by Marriott 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%.
Fairfield by Marriott acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 5 | $19.1M | $3,835,700 | |
| FY2022 | 1 | $5M | $5,000,000 | |
| FY2023 | 3 | $11.6M | $4,075,000 | |
| FY2024 | 2 | $7.8M | $3,914,000 | |
| FY2025 | 6 | $30M | $5,000,000 | |
| FY2026 | 4 | $20M | $5,000,000 |
How often do these acquisition loans fail?
Fewer than 20 Fairfield by Marriott 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 Fairfield by Marriott resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 4 | 19.0% | $20M | |
| 2 | Open Bank | 3 | 14.3% | $15M | |
| 3 | First Western SBLC, LLC d/b/a Peachtree Group | 3 | 14.3% | $12.2M | |
| 4 | Shoreham Bank | 2 | 9.5% | $7.5M | |
| 5 | Embassy National Bank | 1 | 4.8% | $5M | |
| 6 | Farmers State Bank of Alto Pass, Illinois | 1 | 4.8% | $5M | |
| 7 | Global One Bank | 1 | 4.8% | $5M | |
| 8 | United Midwest Savings Bank National Association | 1 | 4.8% | $5M | |
| 9 | Community Banks of Colorado, A Division of NBH Bank | 1 | 4.8% | $4.6M | |
| 10 | Byline Bank | 1 | 4.8% | $4.1M |
States where Fairfield by Marriott units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Ohio | 4 | 19.0% | $16.9M | |
| 2 | Texas | 3 | 14.3% | $14.3M | |
| 3 | Nebraska | 2 | 9.5% | $7.5M | |
| 4 | Georgia | 2 | 9.5% | $6.8M | |
| 5 | Florida | 1 | 4.8% | $5M | |
| 6 | Massachusetts | 1 | 4.8% | $5M | |
| 7 | Michigan | 1 | 4.8% | $5M | |
| 8 | North Carolina | 1 | 4.8% | $5M | |
| 9 | Oklahoma | 1 | 4.8% | $5M | |
| 10 | Oregon | 1 | 4.8% | $5M |
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 Fairfield by Marriott franchise?
The median SBA 7(a) loan for a Fairfield by Marriott resale was $5,000,000 across 21 loans (FY2018 to FY2026). The middle half of loans ran from $4,075,000 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 Fairfield by Marriott acquisitions?
GBank has made the most SBA acquisition loans for Fairfield by Marriott (4, 19% of the total). Open Bank, First Western SBLC, LLC d/b/a Peachtree Group, Shoreham Bank follow.
What interest rate and term do Fairfield by Marriott acquisition loans carry?
The average initial rate at approval was 7.69% (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 Fairfield by Marriott resale riskier than other SBA-financed acquisitions?
Too few Fairfield by Marriott 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 Fairfield by Marriott units being bought with SBA loans?
Ohio (4), Texas (3), Nebraska (2), Georgia (2), Florida (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.
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
- Ohio acquisitions
- Texas acquisitions
- Nebraska acquisitions
- GBank
- Open Bank
- First Western SBLC, LLC d/b/a Peachtree Group
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Fairfield by Marriott/Fairfield Inn & Suites by Marriott/Fairfield Inn by Marriott/Fairfield by Marriott Inn & Suites" (franchise code S0620). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.