Industry data
Financing for hotels and motels: what the loan data shows
2,351 SBA 7(a) loans went to hotels and motels recently, at a median of $2,577,000. The lenders that make them, the terms they write, and what underwriters look at.
2,351 SBA 7(a) loans went to hotels and motels in the most recent fiscal years, at a median of $2,577,000 over 25 years. 33.6% went to new or under-two-year-old businesses, and the most active lender was GBank.
What a hotels and motel loan actually looks like
These are approvals, not advertised ranges. Computed from SBA 7(a) loan-level FOIA data released 2026-06-30.
| Measure | Hotels and motels | All 7(a) borrowers |
|---|---|---|
| Loans approved, fiscal years 2023 to 2026, using data released June 2026 | 2,351 | 214,102 |
| Median loan | $2,577,000 | $150,000 |
| 25th - 75th percentile | $1,400,000 - $4,122,900 | $50,000 - $500,000 |
| Median term | 25 years | 10 years |
| Median initial rate | 9.00% | 10.25% |
| Share to new businesses | 33.6% | 33.6% |
| Charge-off rate, FY2010-19 | 2.4% | 7.1% |
What stands out
Reading these figures against all 7(a) borrowers:
- Loans here run larger than average. The median of $2,577,000 is 1618% above the $150,000 national median. Expect lenders in this market to be geared toward bigger deals, and expect a small request to get less attention.
- Startup share is about average, at 34% against 34% nationally.
- No single lender dominates, but the top three made 28% of these loans, so the shortlist below covers most of the active market.
- Rates run lower here. The median initial rate of 9.00% is 1.25 points below the 10.25% national median, which usually tracks loan size and perceived sector risk rather than geography.
- This market has performed well. Its FY2010-2019 charge-off rate of 2.4% is below the 7.1% overall figure, which is part of why lenders compete for it.
- Terms are long, at a median of 25 years, which almost always means real estate is securing a large share of these loans.
What lenders look at in this sector
Hotels are the largest loans on this site by a wide margin, and they are underwritten like commercial real estate rather than like a business: RevPAR, occupancy, average daily rate, the brand's flag and the PIP (property improvement plan) the franchisor will demand. A PIP obligation discovered late is the single most common way a hotel deal blows up.
Which lenders actually fund hotels and motels
Ranked by loans approved in this niche. The median, startup share and rate describe each lender's own loans to hotels and motels, not its national averages — which is how you spot a genuine specialist.
| Lender | Loans | Median loan | Startup share | Median rate |
|---|---|---|---|---|
| GBank | 382 | $3,522,500 | 24% | 8.50% |
| US Metro Bank | 142 | $2,592,000 | 28% | 8.50% |
| Shoreham Bank | 127 | $2,880,000 | 48% | 9.50% |
| Bank of Hope | 98 | $2,862,500 | 52% | 8.50% |
| Readycap Lending, LLC | 98 | $2,600,000 | 63% | 9.62% |
| Peoples Bank | 77 | $2,760,000 | 64% | 9.00% |
| Open Bank | 74 | $3,529,000 | 5% | 8.88% |
| First Western SBLC, LLC | 63 | $1,893,000 | 8% | 9.50% |
| Enterprise Bank & Trust | 63 | $3,160,000 | 65% | 8.50% |
| Port 51 Lending LLC | 58 | $2,400,000 | 19% | 8.50% |
Where these businesses borrow
Most active states for hotels and motels: Texas (350), Ohio (143), California (134), Georgia (131), North Carolina (126), Illinois (111).
Which financing fits
| Product | Fit for this sector | Typical cost |
|---|---|---|
| SBA 504 | Strong fit — real estate is carrying these deals | 6.0% - 7.5% effective, fixed |
| SBA 7(a) | The dominant vehicle in this niche | 10.0% - 14.0% APR |
| Commercial mortgage | If you are buying the building | 6.5% - 9.5% APR |
| Equipment financing | For the hard assets, often cheaper separately | 7.0% - 30.0% APR |
| Business acquisition loan | If you are buying an existing operation | 10.0% - 14.0% APR |
Before you apply
- Check coverage first. Run the payment through the affordability calculator at 1.25x.
- Shortlist from the lender table, favouring ones whose median loan here is close to what you need.
- Assemble the documents — see the checklist.
- If you are buying rather than starting, read business acquisition loans first; the injection rules and diligence are different.