Buying a Howard Johnson franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing Howard Johnson (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $18.2M. The median loan was $2,705,000, 319% higher than the $645,250 median for all SBA-financed acquisitions.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Howard Johnson resale loans landed between $2,416,125 and $3,812,500.
- Lender experience exists. Hanmi Bank alone has financed 1 Howard Johnson resales.
- Guaranty. The SBA guaranteed 77% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Howard Johnson resale
The median SBA 7(a) loan for a Howard Johnson resale was $2,705,000 across 6 loans (FY2018 to FY2026). Hanmi Bank, HomeTrust Bank and PromiseOne Bank have financed the most Howard Johnson 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%.
Howard Johnson acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 1 | $2.4M | $2,351,500 | |
| FY2019 | 1 | $4.4M | $4,449,000 | |
| FY2020 | 2 | $6.8M | $3,380,000 | |
| FY2021 | 1 | $1.8M | $1,800,000 | |
| FY2022 | 1 | $2.8M | $2,800,000 | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 0 | $0 | - | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Howard Johnson 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.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
Lenders financing Howard Johnson resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hanmi Bank | 1 | 16.7% | $4.4M | |
| 2 | HomeTrust Bank | 1 | 16.7% | $4.2M | |
| 3 | PromiseOne Bank | 1 | 16.7% | $2.8M | |
| 4 | Wallis Bank | 1 | 16.7% | $2.6M | |
| 5 | Columbia Bank | 1 | 16.7% | $2.4M | |
| 6 | First Western SBLC, LLC d/b/a Peachtree Group | 1 | 16.7% | $1.8M |
States where Howard Johnson units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | California | 1 | 16.7% | $4.4M | |
| 2 | North Carolina | 1 | 16.7% | $4.2M | |
| 3 | Texas | 1 | 16.7% | $2.8M | |
| 4 | South Carolina | 1 | 16.7% | $2.6M | |
| 5 | Florida | 1 | 16.7% | $2.4M | |
| 6 | Tennessee | 1 | 16.7% | $1.8M |
Seller note standby terms and third-party consents are reviewed before closing.
Submit Transaction DetailsSBA-financed deals. All 50 states.
Questions buyers ask
How much do buyers borrow to buy a Howard Johnson franchise?
The median SBA 7(a) loan for a Howard Johnson resale was $2,705,000 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $2,416,125 to $3,812,500. 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 Howard Johnson acquisitions?
Hanmi Bank has made the most SBA acquisition loans for Howard Johnson (1, 17% of the total). HomeTrust Bank, PromiseOne Bank, Wallis Bank follow.
What interest rate and term do Howard Johnson acquisition loans carry?
The average initial rate at approval was 5.71% (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 Howard Johnson resale riskier than other SBA-financed acquisitions?
Too few Howard Johnson 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 Howard Johnson units being bought with SBA loans?
California (1), North Carolina (1), Texas (1), South Carolina (1), 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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Advertise on this site: lenders, brokers, valuation and insurance firms. See options
Related
- All Hotels (except Casino Hotels) and Motels acquisitions
- California acquisitions
- North Carolina acquisitions
- Texas acquisitions
- Hanmi Bank
- HomeTrust Bank
- PromiseOne Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Howard Johnson / Howard Johnson by Wyndham" (franchise code S0830). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.