Buying a Ramada franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 23 7(a) loans to buy an existing Ramada (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $70.8M. The median loan was $2,905,000, 350% higher than the $645,250 median for all SBA-financed acquisitions. 2 of these loans were approved in the last two fiscal years.
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Ramada resale loans landed between $1,808,500 and $4,083,500.
- Lender experience exists. GBank alone has financed 10 Ramada 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 Ramada resale
The median SBA 7(a) loan for a Ramada resale was $2,905,000 across 23 loans (FY2018 to FY2026). GBank, First Western SBLC, LLC d/b/a Peachtree Group and Hanover Community Bank have financed the most Ramada 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%.
Ramada acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $12.4M | $5,000,000 | |
| FY2019 | 4 | $15.3M | $3,793,500 | |
| FY2020 | 3 | $8.4M | $3,300,000 | |
| FY2021 | 4 | $10.7M | $2,730,000 | |
| FY2022 | 3 | $8.3M | $1,677,000 | |
| FY2023 | 1 | $1.9M | $1,940,000 | |
| FY2024 | 3 | $8.9M | $2,256,000 | |
| FY2025 | 1 | $3.5M | $3,475,000 | |
| FY2026 | 1 | $1.6M | $1,552,200 |
How often do these acquisition loans fail?
Fewer than 20 Ramada 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 Ramada resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 10 | 43.5% | $27.2M | |
| 2 | First Western SBLC, LLC d/b/a Peachtree Group | 2 | 8.7% | $6.8M | |
| 3 | Hanover Community Bank | 1 | 4.3% | $5M | |
| 4 | IncredibleBank | 1 | 4.3% | $5M | |
| 5 | New Millennium Bank | 1 | 4.3% | $5M | |
| 6 | The Bank of Princeton | 1 | 4.3% | $5M | |
| 7 | Mountain Pacific Bank | 1 | 4.3% | $4.2M | |
| 8 | Celtic Bank Corporation | 1 | 4.3% | $2.7M | |
| 9 | Lone Star Bank | 1 | 4.3% | $2.6M | |
| 10 | First Bank | 1 | 4.3% | $2.4M |
States where Ramada units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Pennsylvania | 3 | 13.0% | $7.7M | |
| 2 | Illinois | 3 | 13.0% | $4.8M | |
| 3 | Michigan | 2 | 8.7% | $6.6M | |
| 4 | North Carolina | 2 | 8.7% | $6.1M | |
| 5 | Colorado | 1 | 4.3% | $5M | |
| 6 | Florida | 1 | 4.3% | $5M | |
| 7 | Georgia | 1 | 4.3% | $5M | |
| 8 | Maine | 1 | 4.3% | $5M | |
| 9 | New Jersey | 1 | 4.3% | $5M | |
| 10 | Idaho | 1 | 4.3% | $4.2M |
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 Ramada franchise?
The median SBA 7(a) loan for a Ramada resale was $2,905,000 across 23 loans (FY2018 to FY2026). The middle half of loans ran from $1,808,500 to $4,083,500. 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 Ramada acquisitions?
GBank has made the most SBA acquisition loans for Ramada (10, 43% of the total). First Western SBLC, LLC d/b/a Peachtree Group, Hanover Community Bank, IncredibleBank follow.
What interest rate and term do Ramada acquisition loans carry?
The average initial rate at approval was 6.97% (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 Ramada resale riskier than other SBA-financed acquisitions?
Too few Ramada 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 Ramada units being bought with SBA loans?
Pennsylvania (3), Illinois (3), Michigan (2), North Carolina (2), Colorado (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.
Advertise on this site: lenders, brokers, valuation and insurance firms. See options
Related
- All Hotels (except Casino Hotels) and Motels acquisitions
- Pennsylvania acquisitions
- Illinois acquisitions
- Michigan acquisitions
- GBank
- First Western SBLC, LLC d/b/a Peachtree Group
- Hanover Community Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Ramada / Ramada by Wyndham / Ramada Plaza / Ramada Plaza by Wyndham" (franchise code S1400). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.