Buying a Spark by Hilton franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 6 7(a) loans to buy an existing Spark by Hilton (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $22.9M. The median loan was $3,949,000, 512% higher than the $645,250 median for all SBA-financed acquisitions. 4 of these loans were approved in the last two fiscal years.
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 Spark by Hilton resale loans landed between $3,463,000 and $4,117,000.
- Lender experience exists. GBank alone has financed 4 Spark by Hilton resales.
- Guaranty. The SBA guaranteed 75% of the dollars lent here.
- What the file leaves out. The SBA file does not record franchisor transfer terms or fees.
Financing a Spark by Hilton resale
The median SBA 7(a) loan for a Spark by Hilton resale was $3,949,000 across 6 loans (FY2018 to FY2026). GBank, Bank of Hope and Farmers State Bank of Alto Pass, Illinois have financed the most Spark by Hilton 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%.
Spark by Hilton acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 0 | $0 | - | |
| FY2019 | 0 | $0 | - | |
| FY2020 | 0 | $0 | - | |
| FY2021 | 0 | $0 | - | |
| FY2022 | 0 | $0 | - | |
| FY2023 | 0 | $0 | - | |
| FY2024 | 2 | $9M | $4,509,000 | |
| FY2025 | 3 | $9.8M | $3,324,000 | |
| FY2026 | 1 | $4.2M | $4,150,000 |
How often do these acquisition loans fail?
Fewer than 20 Spark by Hilton 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.
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAll 50 states. Free consultation.
Lenders financing Spark by Hilton resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 4 | 66.7% | $15.5M | |
| 2 | Bank of Hope | 1 | 16.7% | $4.2M | |
| 3 | Farmers State Bank of Alto Pass, Illinois | 1 | 16.7% | $3.3M |
States where Spark by Hilton units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Missouri | 2 | 33.3% | $5.9M | |
| 2 | Indiana | 1 | 16.7% | $5M | |
| 3 | Tennessee | 1 | 16.7% | $4.2M | |
| 4 | Georgia | 1 | 16.7% | $4M | |
| 5 | South Carolina | 1 | 16.7% | $3.9M |
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 Spark by Hilton franchise?
The median SBA 7(a) loan for a Spark by Hilton resale was $3,949,000 across 6 loans (FY2018 to FY2026). The middle half of loans ran from $3,463,000 to $4,117,000. 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 Spark by Hilton acquisitions?
GBank has made the most SBA acquisition loans for Spark by Hilton (4, 67% of the total). Bank of Hope, Farmers State Bank of Alto Pass, Illinois follow.
What interest rate and term do Spark by Hilton acquisition loans carry?
The average initial rate at approval was 8.75% (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 Spark by Hilton resale riskier than other SBA-financed acquisitions?
Too few Spark by Hilton 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 Spark by Hilton units being bought with SBA loans?
Missouri (2), Indiana (1), Tennessee (1), Georgia (1), South Carolina (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.
The purchase agreement decides what you bought, not the loan approval.
Request Engagement AssessmentAll 50 states. Free consultation.
Advertise on this site: lenders, brokers, valuation and insurance firms. See options
Related
- All Hotels (except Casino Hotels) and Motels acquisitions
- Missouri acquisitions
- Indiana acquisitions
- Tennessee acquisitions
- GBank
- Bank of Hope
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Spark by Hilton" (franchise code S7770). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.