Buying a Hawthorn franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 7 7(a) loans to buy an existing Hawthorn (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $28.6M. The median loan was $4,400,000, 582% higher than the $645,250 median for all SBA-financed acquisitions. 1 of these loans were approved in the last two fiscal years.
Seller note standby terms and third-party consents are reviewed before closing.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Hawthorn resale loans landed between $3,475,000 and $5,000,000.
- Lender experience exists. GBank alone has financed 2 Hawthorn 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 Hawthorn resale
The median SBA 7(a) loan for a Hawthorn resale was $4,400,000 across 7 loans (FY2018 to FY2026). GBank, United Midwest Savings Bank National Association and West Coast Community Bank have financed the most Hawthorn 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%.
Hawthorn acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $3.8M | $3,750,000 | |
| FY2019 | 1 | $4.4M | $4,400,000 | |
| FY2020 | 2 | $7.3M | $3,639,500 | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 1 | $5M | $5,000,000 | |
| FY2023 | 1 | $3.2M | $3,200,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $5M | $5,000,000 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Hawthorn 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 Hawthorn resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 2 | 28.6% | $9.4M | |
| 2 | United Midwest Savings Bank National Association | 1 | 14.3% | $5M | |
| 3 | West Coast Community Bank | 1 | 14.3% | $5M | |
| 4 | Harvest Small Business Finance, LLC | 1 | 14.3% | $3.8M | |
| 5 | Shoreham Bank | 1 | 14.3% | $3.2M | |
| 6 | Metro City Bank | 1 | 14.3% | $2.3M |
States where Hawthorn units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Ohio | 3 | 42.9% | $12.6M | |
| 2 | Florida | 2 | 28.6% | $8.8M | |
| 3 | California | 1 | 14.3% | $5M | |
| 4 | Georgia | 1 | 14.3% | $2.3M |
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Questions buyers ask
How much do buyers borrow to buy a Hawthorn franchise?
The median SBA 7(a) loan for a Hawthorn resale was $4,400,000 across 7 loans (FY2018 to FY2026). The middle half of loans ran from $3,475,000 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 Hawthorn acquisitions?
GBank has made the most SBA acquisition loans for Hawthorn (2, 29% of the total). United Midwest Savings Bank National Association, West Coast Community Bank, Harvest Small Business Finance, LLC follow.
What interest rate and term do Hawthorn acquisition loans carry?
The average initial rate at approval was 6.79% (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 Hawthorn resale riskier than other SBA-financed acquisitions?
Too few Hawthorn 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 Hawthorn units being bought with SBA loans?
Ohio (3), Florida (2), California (1), Georgia (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
- Florida acquisitions
- California acquisitions
- GBank
- United Midwest Savings Bank National Association
- West Coast Community Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Hawthorn / Hawthorn Suites by Wyndham / Hawthorn Suites / Hawthorn Extended Stay / Hawthorn Extended Stay by Wyndham" (franchise code S0793). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.