Hotels and Motels acquisitions in Washington: SBA loan data
Since FY2018, SBA lenders have approved 68 7(a) loans to buy an existing business classified as Hotels and Motels in Washington, totaling $215M. The median loan was $3,115,000. That is 3.4% of the 2,006 acquisition loans in Washington.
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How this compares
The median Hotels and Motels loan in Washington is 361% higher than the $675,000 median for all Washington acquisitions, and 19% higher than the $2,621,250 median for Hotels and Motels acquisitions nationwide (2,310 loans).
On losses, none of the 37 seasoned Hotels and Motels loans in Washington were charged off, against the 3.4% rate for all Washington acquisitions, and against the 0.8% rate for the industry nationally.
Hotels and Motels acquisition loans in Washington by year
| Fiscal year | Loans | Total approved | Median loan | |
|---|---|---|---|---|
| FY2018 | 6 | $16.9M | $2,686,000 | |
| FY2019 | 10 | $27M | $1,985,000 | |
| FY2020 | 7 | $10.3M | $1,769,900 | |
| FY2021 | 14 | $43M | $3,110,000 | |
| FY2022 | 12 | $47.6M | $4,624,900 | |
| FY2023 | 6 | $23.3M | $3,979,000 | |
| FY2024 | 5 | $15.7M | $3,360,000 | |
| FY2025 | 4 | $12.2M | $3,140,000 | |
| FY2026 | 4 | $19.1M | $4,800,000 |
How often do these acquisition loans fail?
Of the 37 Hotels and Motels in Washington 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. 19 have already been paid in full.
For comparison, Hotels and Motels in Washington 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.
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Top lenders
| # | Lender | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Open Bank | 13 | 19.1% | $42.7M | |
| 2 | Mountain Pacific Bank | 13 | 19.1% | $41.5M | |
| 3 | Bank of Hope | 10 | 14.7% | $30.9M | |
| 4 | UniBank | 5 | 7.4% | $13.8M | |
| 5 | US Metro Bank | 3 | 4.4% | $12M |
Top franchise brands
| # | Franchise | Loans | Share | Dollars | |
|---|---|---|---|---|---|
| 1 | Quality Inn | 5 | 7.4% | $21.6M | |
| 2 | Motel 6 | 5 | 7.4% | $14.9M | |
| 3 | Super 8 | 3 | 4.4% | $9.9M | |
| 4 | Days Inn | 3 | 4.4% | $9.8M | |
| 5 | Travelodge | 3 | 4.4% | $6.7M |
The purchase agreement decides what you bought, not the loan approval.
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Questions buyers ask
How much do SBA loans for Hotels and Motels acquisitions in Washington run?
The median SBA 7(a) loan was $3,115,000 across 68 loans (FY2018 to FY2026), with the middle half between $1,964,025 and $4,525,000. 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 Washington?
Open Bank (13), Mountain Pacific Bank (13), Bank of Hope (10), UniBank (5), US Metro Bank (3). Some lenders repeatedly finance this industry in this state; the counts above show which.
How often do Hotels and Motels acquisition loans fail in Washington?
Of 37 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 Washington?
37 of the 68 loans (54%) involved a franchise brand, most often Quality Inn (5).
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Related
- All Washington 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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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.