Buying a Red Lion Hotels franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 7 7(a) loans to buy an existing Red Lion Hotels (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $12.7M. The median loan was $1,166,000, 81% 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.
Submit Transaction DetailsSBA-financed deals. All 50 states.
What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Red Lion Hotels resale loans landed between $839,100 and $3,101,350.
- Lender experience exists. Simmons Bank alone has financed 2 Red Lion Hotels 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 Red Lion Hotels resale
The median SBA 7(a) loan for a Red Lion Hotels resale was $1,166,000 across 7 loans (FY2018 to FY2026). Simmons Bank, Bank of Utah and Mountain Pacific Bank have financed the most Red Lion Hotels 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%.
Red Lion Hotels acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $5.6M | $1,166,000 | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 1 | $3.1M | $3,140,500 | |
| FY2021 | 1 | $3.1M | $3,062,200 | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 1 | $166K | $166,200 | |
| FY2024 | 0 | $0 | - | |
| FY2025 | 1 | $728K | $728,200 | |
| FY2026 | 0 | $0 | - |
How often do these acquisition loans fail?
Fewer than 20 Red Lion Hotels 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 Red Lion Hotels resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Simmons Bank | 2 | 28.6% | $1.3M | |
| 2 | Bank of Utah | 1 | 14.3% | $3.5M | |
| 3 | Mountain Pacific Bank | 1 | 14.3% | $3.1M | |
| 4 | Touchmark National Bank | 1 | 14.3% | $3.1M | |
| 5 | Nicolet National Bank | 1 | 14.3% | $950K | |
| 6 | OakStar Bank | 1 | 14.3% | $728K |
States where Red Lion Hotels units are bought
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 Red Lion Hotels franchise?
The median SBA 7(a) loan for a Red Lion Hotels resale was $1,166,000 across 7 loans (FY2018 to FY2026). The middle half of loans ran from $839,100 to $3,101,350. 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 Red Lion Hotels acquisitions?
Simmons Bank has made the most SBA acquisition loans for Red Lion Hotels (2, 29% of the total). Bank of Utah, Mountain Pacific Bank, Touchmark National Bank follow.
What interest rate and term do Red Lion Hotels acquisition loans carry?
The average initial rate at approval was 7.00% (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 Red Lion Hotels resale riskier than other SBA-financed acquisitions?
Too few Red Lion Hotels 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 Red Lion Hotels units being bought with SBA loans?
Michigan (2), Idaho (1), Washington (1), Arkansas (1), Kansas (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.
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Related
- All Hotels (except Casino Hotels) and Motels acquisitions
- Michigan acquisitions
- Idaho acquisitions
- Washington acquisitions
- Simmons Bank
- Mountain Pacific Bank
- Touchmark National Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Red Lion Hotels/ Red Lion Inn & Suites" (franchise code S1412). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.