Buying a Microtel Inn & Suites franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 27 7(a) loans to buy an existing Microtel Inn & Suites (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $79.4M. The median loan was $3,050,000, 373% higher than the $645,250 median for all SBA-financed acquisitions. 5 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 Microtel Inn & Suites resale loans landed between $2,117,500 and $3,779,850.
- Lender experience exists. GBank alone has financed 7 Microtel Inn & Suites resales.
- Guaranty. The SBA guaranteed 79% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Microtel Inn & Suites resale
The median SBA 7(a) loan for a Microtel Inn & Suites resale was $3,050,000 across 27 loans (FY2018 to FY2026). GBank, First Western SBLC, LLC d/b/a Peachtree Group and The Huntington National Bank have financed the most Microtel 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%.
Microtel Inn & Suites acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 5 | $17M | $3,448,000 | |
| FY2019 | 1 | $3.1M | $3,093,000 | |
| FY2020 | 3 | $8.2M | $1,873,400 | |
| FY2021 | 10 | $29.6M | $3,075,000 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 3 | $5.5M | $1,300,000 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 2 | $7.6M | $3,800,000 | |
| FY2026 | 3 | $8.4M | $2,550,000 |
How often do these acquisition loans fail?
Fewer than 20 Microtel 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.
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Lenders financing Microtel Inn & Suites resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 7 | 25.9% | $20.8M | |
| 2 | First Western SBLC, LLC d/b/a Peachtree Group | 3 | 11.1% | $11M | |
| 3 | The Huntington National Bank | 2 | 7.4% | $3.5M | |
| 4 | United FCU | 1 | 3.7% | $5M | |
| 5 | Centerstone SBA Lending, Inc. | 1 | 3.7% | $4.6M | |
| 6 | Colony Bank | 1 | 3.7% | $4.2M | |
| 7 | FirstBank | 1 | 3.7% | $4M | |
| 8 | Countybank | 1 | 3.7% | $3.9M | |
| 9 | HomeTrust Bank | 1 | 3.7% | $3.7M | |
| 10 | American Commerce Bank, National Association | 1 | 3.7% | $3.4M |
States where Microtel Inn & Suites units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | North Carolina | 4 | 14.8% | $16.8M | |
| 2 | Ohio | 4 | 14.8% | $10.3M | |
| 3 | Georgia | 3 | 11.1% | $10.6M | |
| 4 | Virginia | 2 | 7.4% | $8.1M | |
| 5 | Florida | 1 | 3.7% | $5M | |
| 6 | Alabama | 1 | 3.7% | $4M | |
| 7 | South Carolina | 1 | 3.7% | $3.9M | |
| 8 | California | 1 | 3.7% | $3.1M | |
| 9 | Texas | 1 | 3.7% | $2.7M | |
| 10 | Colorado | 1 | 3.7% | $2.6M |
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How lenders classify Microtel Inn & Suites
Lenders code each loan to a NAICS industry. For Microtel Inn & Suites the codes used were:
| # | Industry | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Hotels (except Casino Hotels) and Motels | 26 | 96.3% | $76.3M | |
| 2 | Lessors of Nonresidential Buildings (except Miniwarehouses) | 1 | 3.7% | $3.1M |
Questions buyers ask
How much do buyers borrow to buy a Microtel Inn & Suites franchise?
The median SBA 7(a) loan for a Microtel Inn & Suites resale was $3,050,000 across 27 loans (FY2018 to FY2026). The middle half of loans ran from $2,117,500 to $3,779,850. 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 Microtel Inn & Suites acquisitions?
GBank has made the most SBA acquisition loans for Microtel Inn & Suites (7, 26% of the total). First Western SBLC, LLC d/b/a Peachtree Group, The Huntington National Bank, United FCU follow.
What interest rate and term do Microtel Inn & Suites acquisition loans carry?
The average initial rate at approval was 6.45% (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 Microtel Inn & Suites resale riskier than other SBA-financed acquisitions?
Too few Microtel 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 Microtel Inn & Suites units being bought with SBA loans?
North Carolina (4), Ohio (4), Georgia (3), Virginia (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.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
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Related
- All Hotels (except Casino Hotels) and Motels acquisitions
- North Carolina acquisitions
- Ohio acquisitions
- Georgia acquisitions
- GBank
- First Western SBLC, LLC d/b/a Peachtree Group
- The Huntington National Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Microtel Inn & Suites by Wyndham" (franchise code S1109). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.