Hotels and Motels acquisitions in California: SBA loan data
Since FY2018, SBA lenders have approved 150 7(a) loans to buy an existing business classified as Hotels and Motels in California, totaling $509M. The median loan was $3,591,250. That is 2.9% of the 5,184 acquisition loans in California.
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How Hotels and Motels in California compares
| Measure | Hotels and Motels in California | California, all industries | Hotels and Motels, nationwide | All acquisitions |
|---|---|---|---|---|
| Median loan | $3,591,250 | $600,000 | $2,621,250 | $645,250 |
| Middle half of loans | $2,250,925 to $4,910,625 | $296,225 to $1,395,000 | $1,644,250 to $4,100,000 | $283,000 to $1,465,000 |
| Average initial rate | 6.47% | 7.87% | 7.11% | 7.76% |
| Median term | 25 years | 10 years | 25 years | 10 years |
| Charge-off rate (seasoned loans) | 0.0% | 4.1% | 0.8% | 3.5% |
| Loans in sample | 150 | 5,184 | 2,310 | 48,902 |
The median for loans to buy hotels and motels in California is $3,591,250, well above the $600,000 median for all California acquisitions, above the $2,621,250 median for Hotels and Motels acquisitions nationwide and well above the $645,250 median for all SBA-financed acquisitions nationally.
The middle half runs $2,250,925 to $4,910,625, 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 6.47%, below the 7.76% national average.
None of the seasoned loans were charged off, against 4.1% for all California acquisitions, 0.8% for Hotels and Motels acquisitions nationwide and 3.5% for all acquisition loans.
Loan size distribution
| Loan size | Hotels and Motels in California | All acquisitions |
|---|---|---|
| Under $350K | 1% | 30% |
| $350K to under $1M | 3% | 33% |
| $1M to under $2M | 15% | 19% |
| $2M and over | 80% | 17% |
Most loans to buy hotels and motels in California (95%) were $1M or more, and the largest single band is $2M and over at 80%, against 17% of all acquisition loans.
Bands are fixed dollar ranges chosen for comparison. They are not SBA program limits.
Lender concentration
Pinnacle Bank made 17% of loans to buy hotels and motels in California, and the top three lenders together made 37%. 15 of the 40 lenders involved made three or more. Repeat experience is spread across many banks. That is a rough guide to how many banks have seen this kind of deal before.
Recent activity
In FY2025 and FY2026 combined, 19 loans to buy hotels and motels in California were approved. That is 14% fewer than the 22 approved in FY2023 and FY2024. The median was $2,920,000, below the $3,591,250 median across all years.
Hotels and Motels acquisition loans in California by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 14 | $40.8M | $2,382,000 | |
| FY2019 | 18 | $48.8M | $2,986,000 | |
| FY2020 | 27 | $105M | $4,203,000 | |
| FY2021 | 25 | $78.6M | $3,235,000 | |
| FY2022 | 25 | $91.6M | $4,550,000 | |
| FY2023 | 13 | $46.6M | $3,745,000 | |
| FY2024 | 9 | $36.1M | $4,465,000 | |
| FY2025 | 9 | $32.2M | $4,120,000 | |
| FY2026 | 10 | $29.7M | $2,715,350 |
How often do these acquisition loans fail?
Of the 84 Hotels and Motels in California 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. 50 have already been paid in full.
For comparison, Hotels and Motels in California 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.
Seller note standby terms and third-party consents are reviewed before closing.
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Top lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Pinnacle Bank | 26 | 17.3% | $89.6M | |
| 2 | Open Bank | 20 | 13.3% | $70.8M | |
| 3 | First General Bank | 10 | 6.7% | $43.7M | |
| 4 | US Metro Bank | 9 | 6.0% | $31.4M | |
| 5 | Celtic Bank Corporation | 8 | 5.3% | $27.5M |
Top franchise brands
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Motel 6 | 22 | 14.7% | $91.8M | |
| 2 | Best Western | 8 | 5.3% | $34.5M | |
| 3 | Quality Inn | 8 | 5.3% | $29M | |
| 4 | Super 8 | 5 | 3.3% | $14.8M | |
| 5 | Rodeway Inn | 4 | 2.7% | $19.3M |
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Questions buyers ask
How much do SBA loans for Hotels and Motels acquisitions in California run?
The median SBA 7(a) loan was $3,591,250 across 150 loans (FY2018 to FY2026), with the middle half between $2,250,925 and $4,910,625. 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 California?
Pinnacle Bank (26), Open Bank (20), First General Bank (10), US Metro Bank (9), Celtic Bank Corporation (8). Some lenders repeatedly finance this industry in this state; the counts above show which.
How often do Hotels and Motels acquisition loans fail in California?
Of 84 seasoned loans (FY2018 to FY2021), none were charged off, against the 3.5% rate for all SBA acquisition loans. With a sample this size, treat the figure as a direction, not a precise rate.
Are franchised businesses part of Hotels and Motels acquisitions in California?
83 of the 150 loans (55%) involved a franchise brand, most often Motel 6 (22).
How much do you need down for an SBA loan to buy a hotel or motel in California?
The SBA requires the buyer to make an equity injection, commonly 10% of total project cost, and a lender may ask for more. The SBA file does not record injections, so the figures here are the financed portion: the median for loans to buy hotels and motels in California was $3,591,250, and the middle half ran $2,250,925 to $4,910,625.
How long does an SBA acquisition loan take?
For a change-of-ownership 7(a) loan, 45 to 90 days from application to close is typical. It varies by lender and by how quickly third-party reports, such as the business valuation and appraisal, come back. The SBA file records approval dates, not application dates, so this site cannot measure it. Lenders approved 19 loans to buy hotels and motels in California in FY2025 and FY2026.
Which banks make SBA loans for a hotel or motel in California?
By loan count, FY2018 to FY2026: Pinnacle Bank (26), Open Bank (20), First General Bank (10), US Metro Bank (9), Celtic Bank Corporation (8). Pinnacle Bank made 17% of loans to buy hotels and motels in California. Counts show past approvals only and do not predict whether a lender will approve a particular deal.
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Related
- All California acquisitions
- Hotels and Motels nationally
- Hotels and Motels in Texas
- Hotels and Motels in Georgia
- 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
- Hotels and Motels in Virginia
- Full-Service Restaurants in California
- Beer, Wine, and Liquor Retailers in California
- Limited-Service Restaurants in California
- Gasoline Stations with Convenience Stores in California
- Convenience Retailers in California
- General Automotive Repair in California
- Supermarkets and Other Grocery Retailers in California
- Assisted Living Facilities for the Elderly in California
Small samples move a lot: each loan in this combination is 1% of the count. Industry is the NAICS code the lender recorded. See the methodology.
Cite this data
SBA Acquisition Data, "Hotels and Motels in California: SBA acquisition loan data", https://sbaacquisitiondata.com/state/ca/hotels-except-casino-hotels-and-motels-721110 (data as of September 30, 2026). Source: U.S. Small Business Administration 7(a) loan file, data.sba.gov. Aggregated by SBA Acquisition Data.
The figures on this page are also published as JSON at https://sbaacquisitiondata.com/data/state/ca/hotels-except-casino-hotels-and-motels-721110.json.