Buying a Holiday Inn Express franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 46 7(a) loans to buy an existing Holiday Inn Express (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $203M. The median loan was $4,821,000, 647% higher than the $645,250 median for all SBA-financed acquisitions. 13 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 Holiday Inn Express resale loans landed between $4,126,250 and $5,000,000.
- Lender experience exists. GBank alone has financed 11 Holiday Inn Express 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 Holiday Inn Express resale
The median SBA 7(a) loan for a Holiday Inn Express resale was $4,821,000 across 46 loans (FY2018 to FY2026). GBank, First Western SBLC, LLC d/b/a Peachtree Group and Celtic Bank Corporation have financed the most Holiday Inn Express 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%.
Holiday Inn Express acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $8.8M | $4,415,000 | |
| FY2019 | 3 | $11.8M | $3,681,000 | |
| FY2020 | 3 | $13.5M | $4,425,400 | |
| FY2021 | 8 | $33.8M | $4,507,500 | |
| FY2022 | 9 | $36.1M | $4,425,000 | |
| FY2023 | 3 | $12M | $5,000,000 | |
| FY2024 | 5 | $23.7M | $5,000,000 | |
| FY2025 | 3 | $14.1M | $4,646,000 | |
| FY2026 | 10 | $49.1M | $5,000,000 |
How often do these acquisition loans fail?
Fewer than 20 Holiday Inn Express 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 Holiday Inn Express resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 11 | 23.9% | $53.4M | |
| 2 | First Western SBLC, LLC d/b/a Peachtree Group | 7 | 15.2% | $24.9M | |
| 3 | Celtic Bank Corporation | 3 | 6.5% | $14.4M | |
| 4 | Bank of Hope | 2 | 4.3% | $10M | |
| 5 | Shoreham Bank | 2 | 4.3% | $10M | |
| 6 | United Midwest Savings Bank National Association | 2 | 4.3% | $10M | |
| 7 | TowneBank | 2 | 4.3% | $8.5M | |
| 8 | Woori America Bank | 2 | 4.3% | $7M | |
| 9 | BancFirst | 1 | 2.2% | $5M | |
| 10 | Commonwealth Business Bank | 1 | 2.2% | $5M |
States where Holiday Inn Express units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Texas | 19 | 41.3% | $77.3M | |
| 2 | Ohio | 4 | 8.7% | $18.7M | |
| 3 | Illinois | 4 | 8.7% | $18.7M | |
| 4 | Mississippi | 3 | 6.5% | $13.3M | |
| 5 | Oklahoma | 3 | 6.5% | $13M | |
| 6 | Michigan | 2 | 4.3% | $10M | |
| 7 | Pennsylvania | 2 | 4.3% | $10M | |
| 8 | Georgia | 2 | 4.3% | $9.9M | |
| 9 | Wyoming | 2 | 4.3% | $9.4M | |
| 10 | West Virginia | 2 | 4.3% | $8.3M |
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
Questions buyers ask
How much do buyers borrow to buy a Holiday Inn Express franchise?
The median SBA 7(a) loan for a Holiday Inn Express resale was $4,821,000 across 46 loans (FY2018 to FY2026). The middle half of loans ran from $4,126,250 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 Holiday Inn Express acquisitions?
GBank has made the most SBA acquisition loans for Holiday Inn Express (11, 24% of the total). First Western SBLC, LLC d/b/a Peachtree Group, Celtic Bank Corporation, Bank of Hope follow.
What interest rate and term do Holiday Inn Express acquisition loans carry?
The average initial rate at approval was 6.72% (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 Holiday Inn Express resale riskier than other SBA-financed acquisitions?
Too few Holiday Inn Express 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 Holiday Inn Express units being bought with SBA loans?
Texas (19), Ohio (4), Illinois (4), Mississippi (3), Oklahoma (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.
The purchase agreement decides what you bought, not the loan approval.
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Related
- All Hotels (except Casino Hotels) and Motels acquisitions
- Texas acquisitions
- Ohio acquisitions
- Illinois acquisitions
- GBank
- First Western SBLC, LLC d/b/a Peachtree Group
- Celtic Bank Corporation
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Holiday Inn Express/Holiday Inn Express & Suites" (franchise code S2794). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.