Hotels and Motels acquisitions in Tennessee: SBA loan data
Since FY2018, SBA lenders have approved 49 7(a) loans to buy an existing business classified as Hotels and Motels in Tennessee, totaling $135M. The median loan was $2,444,000. That is 7.9% of the 624 acquisition loans in Tennessee.
- Loans, FY2018-FY2026
- 49
- Median loan
- $2,444,000 (middle half $1,800,000 to $3,740,000)
- Top lender
- GBank (18%, 9 loans)
- Charge-off, FY2018-FY2021 loans
- 0.0% (all-acquisition: 3.5%)
- FY2026 loans (latest complete year)
- 4
SBA lenders approved 49 7(a) loans to buy a business classified as Hotels and Motels in Tennessee from FY2018-FY2026, with a median of $2,444,000 and a middle half of $1,800,000 to $3,740,000. GBank made 18% of them. None of 24 seasoned loans were charged off, against the 3.5% all-acquisition rate.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentFree consultation. All 50 states.
How Hotels and Motels in Tennessee compares
| Measure | Hotels and Motels in Tennessee | Tennessee, all industries | Hotels and Motels, nationwide | All acquisitions |
|---|---|---|---|---|
| Median loan | $2,444,000 | $807,000 | $2,621,250 | $645,250 |
| Middle half of loans | $1,800,000 to $3,740,000 | $350,000 to $1,701,750 | $1,644,250 to $4,100,000 | $283,000 to $1,465,000 |
| Average initial rate | 7.29% | 7.90% | 7.11% | 7.76% |
| Median term | 25 years | 10 years | 25 years | 10 years |
| Charge-off rate (seasoned loans) | 0.0% | 2.8% | 0.8% | 3.5% |
| Loans in sample | 49 | 624 | 2,310 | 48,902 |
The median for loans to buy hotels and motels in Tennessee is $2,444,000, well above the $807,000 median for all Tennessee acquisitions, slightly below 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 $1,800,000 to $3,740,000, 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 7.29%, below the 7.76% national average.
None of the seasoned loans were charged off, against 2.8% for all Tennessee 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 Tennessee | All acquisitions |
|---|---|---|
| Under $350K | 2% | 30% |
| $350K to under $1M | 4% | 33% |
| $1M to under $2M | 27% | 19% |
| $2M and over | 67% | 17% |
Most loans to buy hotels and motels in Tennessee (94%) were $1M or more, and the largest single band is $2M and over at 67%, against 17% of all acquisition loans.
Bands are fixed dollar ranges chosen for comparison. They are not SBA program limits.
Lender concentration
GBank made 18% of loans to buy hotels and motels in Tennessee, and the top three lenders together made 35%. 3 of the 28 lenders involved made three or more. Only 3 lenders have repeat experience here. That is a rough guide to how many banks have seen this kind of deal before.
Recent activity
In FY2025 and FY2026 combined, 11 loans to buy hotels and motels in Tennessee were approved. Fewer than 10 loans were approved in FY2023 and FY2024, so no change is computed. The median was $2,840,000, above the $2,444,000 median across all years.
Hotels and Motels acquisition loans in Tennessee by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 6 | $16.5M | $2,268,500 | |
| FY2019 | 8 | $17.4M | $2,000,500 | |
| FY2020 | 4 | $11.7M | $2,670,500 | |
| FY2021 | 6 | $15.6M | $2,052,000 | |
| FY2022 | 5 | $14.1M | $2,617,500 | |
| FY2023 | 5 | $14.3M | $3,847,500 | |
| FY2024 | 4 | $10.7M | $2,090,000 | |
| FY2025 | 7 | $23.9M | $2,920,000 | |
| FY2026 | 4 | $10.4M | $2,185,000 |
How often do these acquisition loans fail?
Of the 24 Hotels and Motels in Tennessee 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. 14 have already been paid in full.
For comparison, Hotels and Motels in Tennessee 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.
Terms signed in the LOI shape the purchase agreement that follows.
Request Engagement AssessmentAlex Lubyansky leads every engagement.
Top lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | GBank | 9 | 18.4% | $25.4M | |
| 2 | First Western SBLC, LLC d/b/a Peachtree Group | 4 | 8.2% | $8.4M | |
| 3 | Celtic Bank Corporation | 4 | 8.2% | $7.2M | |
| 4 | Bank of Hope | 2 | 4.1% | $8.7M | |
| 5 | North State Bank | 2 | 4.1% | $7.8M |
Top franchise brands
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Red Roof Inn | 4 | 8.2% | $11.3M | |
| 2 | Baymont | 4 | 8.2% | $11.1M | |
| 3 | Comfort Inn | 4 | 8.2% | $10.9M | |
| 4 | Days Inn | 4 | 8.2% | $8.9M | |
| 5 | Motel 6 | 3 | 6.1% | $6.9M |
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 SBA loans for Hotels and Motels acquisitions in Tennessee run?
The median SBA 7(a) loan was $2,444,000 across 49 loans (FY2018 to FY2026), with the middle half between $1,800,000 and $3,740,000. 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 Tennessee?
GBank (9), First Western SBLC, LLC d/b/a Peachtree Group (4), Celtic Bank Corporation (4), Bank of Hope (2), North State 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 Tennessee?
Of 24 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 Tennessee?
43 of the 49 loans (88%) involved a franchise brand, most often Red Roof Inn (4).
How much do you need down for an SBA loan to buy a hotel or motel in Tennessee?
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 Tennessee was $2,444,000, and the middle half ran $1,800,000 to $3,740,000.
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 11 loans to buy hotels and motels in Tennessee in FY2025 and FY2026.
Which banks make SBA loans for a hotel or motel in Tennessee?
By loan count, FY2018 to FY2026: GBank (9), First Western SBLC, LLC d/b/a Peachtree Group (4), Celtic Bank Corporation (4), Bank of Hope (2), North State Bank (2). GBank made 18% of loans to buy hotels and motels in Tennessee. Counts show past approvals only and do not predict whether a lender will approve a particular deal.
That draft favors the seller. We review it for the buyer, line by line.
Submit Transaction DetailsAlex Lubyansky leads every engagement.
Advertise on this site: lenders, brokers, valuation and insurance firms. See options
Related
- All Tennessee 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
- Limited-Service Restaurants in Tennessee
- Full-Service Restaurants in Tennessee
- Insurance Agencies and Brokerages in Tennessee
- All Other Specialty Trade Contractors in Tennessee
- Offices of Certified Public Accountants in Tennessee
- Fitness and Recreational Sports Centers in Tennessee
- Broilers and Other Meat Type Chicken Production in Tennessee
- General Automotive Repair in Tennessee
Small samples move a lot: each loan in this combination is 2% of the count. Industry is the NAICS code the lender recorded. See the methodology.
Cite this data
SBA Acquisition Data, "Hotels and Motels in Tennessee: SBA acquisition loan data", https://sbaacquisitiondata.com/state/tn/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/tn/hotels-except-casino-hotels-and-motels-721110.json.