Buying a Hampton Inn & Suites franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 8 7(a) loans to buy an existing Hampton Inn & Suites (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $39.9M. The median loan was $5,000,000, 675% higher than the $645,250 median for all SBA-financed acquisitions. 3 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 Hampton Inn & Suites resale loans landed between $5,000,000 and $5,000,000.
- Lender experience exists. GBank alone has financed 2 Hampton Inn & 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 Hampton Inn & Suites resale
The median SBA 7(a) loan for a Hampton Inn & Suites resale was $5,000,000 across 8 loans (FY2018 to FY2026). GBank, Byline Bank and Global One Bank have financed the most Hampton Inn & 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%.
Hampton Inn & Suites acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 1 | $4.9M | $4,900,000 | |
| FY2022 | 2 | $10M | $5,000,000 | |
| FY2023 | 1 | $5M | $5,000,000 | |
| FY2024 | 1 | $5M | $5,000,000 | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 3 | $15M | $5,000,000 |
How often do these acquisition loans fail?
Fewer than 20 Hampton Inn & 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 Hampton Inn & Suites resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 2 | 25.0% | $10M | |
| 2 | Byline Bank | 1 | 12.5% | $5M | |
| 3 | Global One Bank | 1 | 12.5% | $5M | |
| 4 | Hanover Community Bank | 1 | 12.5% | $5M | |
| 5 | Open Bank | 1 | 12.5% | $5M | |
| 6 | Shoreham Bank | 1 | 12.5% | $5M | |
| 7 | American Pride Bank | 1 | 12.5% | $4.9M |
States where Hampton Inn & Suites units are bought
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 Hampton Inn & Suites franchise?
The median SBA 7(a) loan for a Hampton Inn & Suites resale was $5,000,000 across 8 loans (FY2018 to FY2026). The middle half of loans ran from $5,000,000 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 Hampton Inn & Suites acquisitions?
GBank has made the most SBA acquisition loans for Hampton Inn & Suites (2, 25% of the total). Byline Bank, Global One Bank, Hanover Community Bank follow.
What interest rate and term do Hampton Inn & Suites acquisition loans carry?
The average initial rate at approval was 7.28% (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 Hampton Inn & Suites resale riskier than other SBA-financed acquisitions?
Too few Hampton Inn & 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 Hampton Inn & Suites units being bought with SBA loans?
Ohio (2), Texas (2), Alabama (1), Maryland (1), New Mexico (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
- Alabama acquisitions
- GBank
- Byline Bank
- Global One Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Hampton Inn & Suites by Hilton" (franchise code S5593). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.