Hotels and Motels acquisitions in Illinois: SBA loan data
Since FY2018, SBA lenders have approved 103 7(a) loans to buy an existing business classified as Hotels and Motels in Illinois, totaling $276M. The median loan was $2,550,000. That is 5.8% of the 1,779 acquisition loans in Illinois.
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How Hotels and Motels in Illinois compares
| Measure | Hotels and Motels in Illinois | Illinois, all industries | Hotels and Motels, nationwide | All acquisitions |
|---|---|---|---|---|
| Median loan | $2,550,000 | $650,000 | $2,621,250 | $645,250 |
| Middle half of loans | $1,632,500 to $3,623,500 | $300,000 to $1,551,000 | $1,644,250 to $4,100,000 | $283,000 to $1,465,000 |
| Average initial rate | 7.44% | 7.78% | 7.11% | 7.76% |
| Median term | 25 years | 10 years | 25 years | 10 years |
| Charge-off rate (seasoned loans) | 2.4% | 4.5% | 0.8% | 3.5% |
| Loans in sample | 103 | 1,779 | 2,310 | 48,902 |
The median for loans to buy hotels and motels in Illinois is $2,550,000, well above the $650,000 median for all Illinois acquisitions, in line with 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 $1,632,500 to $3,623,500, 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 7.44%, below the 7.76% national average.
Seasoned loans were charged off at 2.4%, well below the 4.5% rate for all Illinois acquisitions, well above the 0.8% rate for Hotels and Motels acquisitions nationwide and below the 3.5% rate for all acquisition loans.
Loan size distribution
| Loan size | Hotels and Motels in Illinois | All acquisitions |
|---|---|---|
| Under $350K | 3% | 30% |
| $350K to under $1M | 14% | 33% |
| $1M to under $2M | 16% | 19% |
| $2M and over | 68% | 17% |
Most loans to buy hotels and motels in Illinois (84%) were $1M or more, and the largest single band is $2M and over at 68%, against 17% of all acquisition loans.
Bands are fixed dollar ranges chosen for comparison. They are not SBA program limits.
Lender concentration
GBank made 34% of loans to buy hotels and motels in Illinois, and the top three lenders together made 53%. 11 of the 27 lenders involved made three or more. A few banks carry most of the volume. That is a rough guide to how many banks have seen this kind of deal before.
Recent activity
In FY2025 and FY2026 combined, 23 loans to buy hotels and motels in Illinois were approved. That is 10% more than the 21 approved in FY2023 and FY2024. The median was $3,048,000, above the $2,550,000 median across all years.
Hotels and Motels acquisition loans in Illinois by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 11 | $25.9M | $2,550,000 | |
| FY2019 | 12 | $26.5M | $2,285,750 | |
| FY2020 | 10 | $27.7M | $2,544,000 | |
| FY2021 | 8 | $18.1M | $1,800,400 | |
| FY2022 | 18 | $45.5M | $2,362,250 | |
| FY2023 | 6 | $17M | $2,917,750 | |
| FY2024 | 15 | $45.7M | $3,376,000 | |
| FY2025 | 16 | $46M | $3,054,000 | |
| FY2026 | 7 | $23.8M | $2,621,200 |
How often do these acquisition loans fail?
Of the 41 Hotels and Motels in Illinois acquisition loans approved from FY2018 to FY2021 (the seasoned cohort, every loan at least about five years old), 1 have been charged off by the SBA, a rate of 2.4% by loan count and 0.4% by dollars. 27 have already been paid in full.
For comparison, the charge-off rate across all SBA 7(a) acquisition loans in the same cohort is 3.5%, so Hotels and Motels in Illinois is 31% lower than the acquisition-loan average. 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 | 35 | 34.0% | $109M | |
| 2 | Millennium Bank | 11 | 10.7% | $32.4M | |
| 3 | First Western SBLC, LLC d/b/a Peachtree Group | 9 | 8.7% | $12.6M | |
| 4 | Merchants Bank of Indiana | 5 | 4.9% | $14.2M | |
| 5 | Byline Bank | 4 | 3.9% | $13.7M |
Top franchise brands
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Super 8 | 13 | 12.6% | $28.4M | |
| 2 | Quality Inn | 10 | 9.7% | $24.9M | |
| 3 | Country Inn and Suites by Radisson | 7 | 6.8% | $30.2M | |
| 4 | Days Inn | 7 | 6.8% | $18.1M | |
| 5 | Motel 6 | 7 | 6.8% | $15.2M |
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Questions buyers ask
How much do SBA loans for Hotels and Motels acquisitions in Illinois run?
The median SBA 7(a) loan was $2,550,000 across 103 loans (FY2018 to FY2026), with the middle half between $1,632,500 and $3,623,500. 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 Illinois?
GBank (35), Millennium Bank (11), First Western SBLC, LLC d/b/a Peachtree Group (9), Merchants Bank of Indiana (5), Byline Bank (4). Some lenders repeatedly finance this industry in this state; the counts above show which.
How often do Hotels and Motels acquisition loans fail in Illinois?
2.4% of 41 seasoned loans (FY2018 to FY2021) were charged off, against 3.5% 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 Illinois?
85 of the 103 loans (83%) involved a franchise brand, most often Super 8 (13).
How much do you need down for an SBA loan to buy a hotel or motel in Illinois?
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 Illinois was $2,550,000, and the middle half ran $1,632,500 to $3,623,500.
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 23 loans to buy hotels and motels in Illinois in FY2025 and FY2026.
Which banks make SBA loans for a hotel or motel in Illinois?
By loan count, FY2018 to FY2026: GBank (35), Millennium Bank (11), First Western SBLC, LLC d/b/a Peachtree Group (9), Merchants Bank of Indiana (5), Byline Bank (4). GBank made 34% of loans to buy hotels and motels in Illinois. Counts show past approvals only and do not predict whether a lender will approve a particular deal.
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Related
- All Illinois acquisitions
- 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 Florida
- Hotels and Motels in Indiana
- Hotels and Motels in Virginia
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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 Illinois: SBA acquisition loan data", https://sbaacquisitiondata.com/state/il/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/il/hotels-except-casino-hotels-and-motels-721110.json.