SBA Acquisition Data

Hotels and Motels acquisitions in Louisiana: SBA loan data

Since FY2018, SBA lenders have approved 35 7(a) loans to buy an existing business classified as Hotels and Motels in Louisiana, totaling $87.3M. The median loan was $2,432,600. That is 8.1% of the 430 acquisition loans in Louisiana.

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acquisition loans
35
FY2018 to FY2026
total approved
$87.3M
gross loan amount
median loan
$2,432,600
middle half: $1.4M to $3.2M
avg initial rate
6.94%
at approval, mixed years
median term
25 years
300 months
charge-off rate
4.5%
FY2018 to FY2021 cohort, 22 loans

How this compares

The median Hotels and Motels loan in Louisiana is 211% higher than the $782,250 median for all Louisiana acquisitions, and 7% lower than the $2,621,250 median for Hotels and Motels acquisitions nationwide (2,310 loans).

On losses, 4.5% of seasoned Hotels and Motels loans in Louisiana were charged off, 29% lower than the 6.4% rate for all Louisiana acquisitions, and 469% higher than the 0.8% rate for the industry nationally.

Hotels and Motels acquisition loans in Louisiana by year

Hotels and Motels in Louisiana: SBA acquisition loans by fiscal year. SBA fiscal years run October 1 to September 30.
Fiscal yearLoansTotal approvedMedian loan
FY2018 6
$13.2M $2,140,000
FY2019 4
$10.5M $2,556,900
FY2020 4
$12.7M $3,406,300
FY2021 8
$16.7M $1,899,500
FY2022 4
$11.8M $2,995,500
FY2023 1
$4.2M $4,190,000
FY2024 3
$7.7M $2,750,000
FY2025 3
$7M $1,709,000
FY2026 2
$3.5M $1,746,500

How often do these acquisition loans fail?

Of the 22 Hotels and Motels in Louisiana 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 4.5% by loan count and 2.8% by dollars. 9 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 Louisiana is 29% higher than the acquisition-loan average. Non-acquisition 7(a) loans (every other stated purpose) approved FY2018 to FY2021 charged off at 6.2%.

Small sample: 22 seasoned loans. A single additional charge-off would move this rate by about 4.5 percentage points. Read it as a direction, not a precise figure.

"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 ranked by SBA acquisition loans
#LenderLoansShareDollars
1First Western SBLC, LLC d/b/a Peachtree Group6
17.1%$12.4M
2Celtic Bank Corporation4
11.4%$8.3M
3Metro City Bank3
8.6%$10.6M
4United Midwest Savings Bank National Association3
8.6%$7.4M
5New Millennium Bank2
5.7%$7.9M

Top franchise brands

Franchise ranked by SBA acquisition loans
#FranchiseLoansShareDollars
1Days Inn3
8.6%$7M
2Sleep Inn2
5.7%$7.2M
3Best Western2
5.7%$6.9M
4Hampton Inn2
5.7%$3.5M
5Studio 62
5.7%$3.4M
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Questions buyers ask

How much do SBA loans for Hotels and Motels acquisitions in Louisiana run?

The median SBA 7(a) loan was $2,432,600 across 35 loans (FY2018 to FY2026), with the middle half between $1,439,500 and $3,200,000. 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 Hotels and Motels acquisitions in Louisiana?

First Western SBLC, LLC d/b/a Peachtree Group (6), Celtic Bank Corporation (4), Metro City Bank (3), United Midwest Savings Bank National Association (3), New Millennium Bank (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 Louisiana?

4.5% of 22 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 Louisiana?

23 of the 35 loans (66%) involved a franchise brand, most often Days Inn (3).

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Related

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.