Buying a Travelodge franchise: SBA acquisition loan data
Since FY2018, SBA lenders have approved 35 7(a) loans to buy an existing Travelodge (classified mostly as Hotels (except Casino Hotels) and Motels), totaling $80.6M. The median loan was $1,949,000, 202% higher than the $645,250 median for all SBA-financed acquisitions. 8 of these loans were approved in the last two fiscal years.
Seller note standby terms and third-party consents are reviewed before closing.
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What this tells a buyer
- Price range to expect. Loan size tracks purchase price. Half of Travelodge resale loans landed between $1,500,000 and $2,985,050.
- Lender experience exists. GBank alone has financed 10 Travelodge 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 Travelodge resale
The median SBA 7(a) loan for a Travelodge resale was $1,949,000 across 35 loans (FY2018 to FY2026). GBank, First Western SBLC, LLC d/b/a Peachtree Group and Hanmi Bank have financed the most Travelodge 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%.
Travelodge acquisition loans by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 2 | $6.7M | $3,362,500 | |
| FY2019 | 4 | $6.7M | $1,702,500 | |
| FY2020 | 6 | $11.3M | $1,518,500 | |
| FY2021 | 5 | $9.5M | $1,715,000 | |
| FY2022 | 4 | $13.3M | $3,160,300 | |
| FY2023 | 2 | $3.2M | $1,620,000 | |
| FY2024 | 4 | $11.1M | $2,608,000 | |
| FY2025 | 5 | $10.1M | $1,949,000 | |
| FY2026 | 3 | $8.5M | $3,100,000 |
How often do these acquisition loans fail?
Fewer than 20 Travelodge 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.
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Lenders financing Travelodge resales
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 10 | 28.6% | $20M | |
| 2 | First Western SBLC, LLC d/b/a Peachtree Group | 3 | 8.6% | $4.8M | |
| 3 | Hanmi Bank | 2 | 5.7% | $6.7M | |
| 4 | US Metro Bank | 2 | 5.7% | $5.4M | |
| 5 | PCB Bank | 1 | 2.9% | $5M | |
| 6 | Embassy National Bank | 1 | 2.9% | $3.5M | |
| 7 | Celtic Bank Corporation | 1 | 2.9% | $3.3M | |
| 8 | Port 51 Lending LLC | 1 | 2.9% | $3.2M | |
| 9 | Southwestern National Bank | 1 | 2.9% | $3.1M | |
| 10 | America First Federal Credit Union | 1 | 2.9% | $3M |
States where Travelodge units are bought
| # | State | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Colorado | 3 | 8.6% | $10.4M | |
| 2 | California | 3 | 8.6% | $10.2M | |
| 3 | Washington | 3 | 8.6% | $6.7M | |
| 4 | Georgia | 3 | 8.6% | $5.8M | |
| 5 | Texas | 3 | 8.6% | $4.7M | |
| 6 | South Carolina | 3 | 8.6% | $3.7M | |
| 7 | Virginia | 2 | 5.7% | $6.4M | |
| 8 | Michigan | 2 | 5.7% | $6M | |
| 9 | Indiana | 2 | 5.7% | $4.1M | |
| 10 | Alabama | 2 | 5.7% | $4.1M |
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 Travelodge franchise?
The median SBA 7(a) loan for a Travelodge resale was $1,949,000 across 35 loans (FY2018 to FY2026). The middle half of loans ran from $1,500,000 to $2,985,050. 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 Travelodge acquisitions?
GBank has made the most SBA acquisition loans for Travelodge (10, 29% of the total). First Western SBLC, LLC d/b/a Peachtree Group, Hanmi Bank, US Metro Bank follow.
What interest rate and term do Travelodge acquisition loans carry?
The average initial rate at approval was 7.21% (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 Travelodge resale riskier than other SBA-financed acquisitions?
Too few Travelodge 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 Travelodge units being bought with SBA loans?
Colorado (3), California (3), Washington (3), Georgia (3), Texas (3). 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.
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Related
- All Hotels (except Casino Hotels) and Motels acquisitions
- Colorado acquisitions
- California acquisitions
- Washington acquisitions
- GBank
- First Western SBLC, LLC d/b/a Peachtree Group
- Hanmi Bank
- All franchise brands
Brand name as recorded by lenders in the SBA file: "Travelodge by Wyndham" (franchise code S1814). Figures are aggregates of public SBA data and are not provided or endorsed by the franchisor.