Buying a Sleep Inn franchise: SBA acquisition loan data

What this tells a buyer

• Price range to expect. Loan size tracks purchase price. Half of Sleep Inn resale loans landed between $2,665,275 and $4,233,000.
• Lender experience exists. GBank alone has financed 17 Sleep Inn 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.

How Sleep Inn compares

The median for Sleep Inn resale loans is $3,657,700, above the $2,621,250 median for hotels and motels and well above the $645,250 median for all SBA-financed acquisitions nationally.

The middle half runs $2,665,275 to $4,233,000, against $283,000 to $1,465,000 nationally; the median term is 25 years, longer than the national median of 10 years; the average initial rate is 6.79%, below the 7.76% national average.

None of the seasoned loans were charged off, against 0.8% for hotels and motels and 3.5% for all acquisition loans.

Loan size distribution

Most Sleep Inn resale loans (100%) were $1M or more, and the largest single band is $2M and over at 96%, against 17% of all acquisition loans.

Bands are fixed dollar ranges chosen for comparison. They are not SBA program limits.

Lender concentration

GBank made 31% of Sleep Inn resale loans, and the top three lenders together made 43%. 3 of the 28 lenders involved made three or more. Only 3 lenders have repeat experience here. That is a rough guide to how many banks have seen this kind of deal before.

Recent activity

In FY2025 and FY2026 combined, 13 Sleep Inn resale loans were approved. Fewer than 10 loans were approved in FY2023 and FY2024, so no change is computed. The median was $4,100,000, slightly above the $3,657,700 median across all years.

Financing a Sleep Inn resale: what lenders financed

The median SBA 7(a) loan for a Sleep Inn resale was $3,657,700 across 54 loans (FY2018 to FY2026). GBank, First Western SBLC, LLC d/b/a Peachtree Group and Citizens Bank have financed the most Sleep Inn resales. Of 30 seasoned loans (FY2018 to FY2021), none were charged off, against the 3.5% average for all SBA acquisition loans.

Sleep Inn acquisition loans by year

How often do these acquisition loans fail?

Of the 30 Sleep Inn acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), none have been charged off by the SBA. 20 have already been paid in full.

For comparison, Sleep Inn has none charged off, against the 3.5% average across all SBA 7(a) acquisition loans in the same cohort. 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.

Related

• All Hotels (except Casino Hotels) and Motels acquisitions
• Georgia acquisitions
• Florida acquisitions
• South Carolina acquisitions
• GBank
• First Western SBLC, LLC d/b/a Peachtree Group
• Citizens Bank
• All franchise brands

Brand name as recorded by lenders in the SBA file: "Sleep Inn by Choice Hotels/Sleep Inn & Suites by Choice Hotels" (franchise code S1582). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.