Hotels and Motels acquisitions in Alabama: SBA loan data
Since FY2018, SBA lenders have approved 38 7(a) loans to buy an existing business classified as Hotels and Motels in Alabama, totaling $96.7M. The median loan was $2,220,500. That is 8.0% of the 476 acquisition loans in Alabama.
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How this compares
The median Hotels and Motels loan in Alabama is 182% higher than the $787,850 median for all Alabama acquisitions, and 15% lower than the $2,621,250 median for Hotels and Motels acquisitions nationwide (2,310 loans).
This combination has too few seasoned loans for a reliable charge-off rate. Nationally, 0.8% of seasoned Hotels and Motels acquisition loans were charged off, and 3.5% of seasoned Alabama acquisition loans of any type.
Hotels and Motels acquisition loans in Alabama by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 3 | $6.5M | $2,301,000 | |
| FY2019 | 3 | $4.7M | $1,522,500 | |
| FY2020 | 4 | $8.5M | $2,165,400 | |
| FY2021 | 8 | $22.3M | $2,398,500 | |
| FY2022 | 6 | $10.7M | $1,800,000 | |
| FY2023 | 3 | $7.7M | $2,700,000 | |
| FY2024 | 4 | $13.3M | $3,562,500 | |
| FY2025 | 5 | $15.6M | $3,000,000 | |
| FY2026 | 2 | $7.4M | $3,690,000 |
How often do these acquisition loans fail?
Fewer than 20 Hotels and Motels in Alabama 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.
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Top lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 8 | 21.1% | $19.4M | |
| 2 | Peoples Bank | 3 | 7.9% | $8M | |
| 3 | Celtic Bank Corporation | 2 | 5.3% | $7.7M | |
| 4 | Centerstone SBA Lending, Inc. | 2 | 5.3% | $7.1M | |
| 5 | State Bank of Texas | 2 | 5.3% | $5M |
Top franchise brands
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Motel 6 | 5 | 13.2% | $6.7M | |
| 2 | Best Western | 3 | 7.9% | $13.2M | |
| 3 | Super 8 | 3 | 7.9% | $5.6M | |
| 4 | Days Inn | 3 | 7.9% | $5.4M | |
| 5 | Quality Inn | 2 | 5.3% | $6.4M |
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Questions buyers ask
How much do SBA loans for Hotels and Motels acquisitions in Alabama run?
The median SBA 7(a) loan was $2,220,500 across 38 loans (FY2018 to FY2026), with the middle half between $1,419,700 and $3,686,250. 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 Hotels and Motels acquisitions in Alabama?
GBank (8), Peoples Bank (3), Celtic Bank Corporation (2), Centerstone SBA Lending, Inc. (2), State Bank of Texas (2). Some lenders repeatedly finance this industry in this state; the counts above show which.
How often do Hotels and Motels acquisition loans fail in Alabama?
Fewer than 20 loans in this combination are old enough to measure losses reliably, so no rate is shown. The national benchmark for all SBA acquisition loans is 3.5% (FY2018 to FY2021 cohort).
Are franchised businesses part of Hotels and Motels acquisitions in Alabama?
32 of the 38 loans (84%) involved a franchise brand, most often Motel 6 (5).
Seller note standby terms and third-party consents are reviewed before closing.
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Related
- All Alabama acquisitions
- Financing one? How to get an SBA loan to buy a hotel or motel
- Hotels and Motels nationally
- Hotels and Motels in Texas
- Hotels and Motels in Georgia
- Hotels and Motels in California
- Hotels and Motels in North Carolina
- Hotels and Motels in Ohio
- Hotels and Motels in Illinois
- Hotels and Motels in Florida
- Hotels and Motels in Indiana
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- Broilers and Other Meat Type Chicken Production in Alabama
- Insurance Agencies and Brokerages in Alabama
- Full-Service Restaurants in Alabama
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- General Automotive Repair in Alabama
- Plumbing, Heating, and Air-Conditioning Contractors in Alabama
Small samples move a lot: each loan in this combination is 3% of the count. Industry is the NAICS code the lender recorded. See the methodology.