Travelodge Franchise Failure Rate
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Travelodge franchisees defaulted on 4.5% of SBA 7(a) loans between FY2010 and FY2019 — 3 of 66 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Hotels (except Casino Hotels) and Motels industry average of 3.0%.
- 4.5%SBA default rate3 of 66 loans
- 66loans resolvedapproved FY2010–FY2019
- 3.0%Hotels (except Casino Hotels) and Motels averageall SBA loans in the industry
- 28th lowestindustry rankof 29 Hotels (except Casino Hotels) and Motels brands
| SBA default rate | 4.5% |
|---|---|
| Loans approved | 66 |
| Loans charged off | 3 |
| Date range | FY2010–FY2019 |
| Industry | Hotels (except Casino Hotels) and Motels |
| Industry average | 3.0% |
| Data source | U.S. SBA 7(a) FOIA loan data |
Most SBA default figures published online use loans approved since 2020 — loans that have had six years or less to fail — so those rates are floors, not outcomes. Every rate on this site is computed from the matured FY2010–FY2019 cohort: loans that have been paid in full or charged off, so the result is settled. Loans approved since 2020 are shown as counts so early charge-offs are visible without being mistaken for a rate.
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026. Figures also in the comparison table below.
About 1 in 22 Travelodge SBA borrowers failed to repay — above the Hotels (except Casino Hotels) and Motels average of 3.0%.
What is the Travelodge franchise failure rate on SBA loans?
Travelodge is a Hotels (except Casino Hotels) and Motels franchise. This page reports the outcome of every SBA 7(a) loan the U.S. Small Business Administration's public FOIA file attributes to Travelodge franchisees: 66 loans approved between fiscal 2010 and 2019, of which 3 were charged off. Loan statuses are as of June 30, 2026, and the cohort has matured, so these are settled outcomes rather than projections.
- SBA 7(a) loans approved FY2010–FY201966
- Charged off3
- Charge-off rate4.5%
- Hotels (except Casino Hotels) and Motels franchise benchmark3.0%
- Brand vs industry1.5x
- All-franchise SBA benchmark10.2%
- Average loan size, 2010s cohort$1,632,745
How does Travelodge compare with other Hotels (except Casino Hotels) and Motels franchises?
The table sets Travelodge's charge-off rate beside its Hotels (except Casino Hotels) and Motels peers and the two economy-wide benchmarks. All figures use the same cohort — SBA 7(a) loans approved FY2010–FY2019, statuses as of June 30, 2026 — and the same denominator of resolved loans, so they are directly comparable.
| Measure | Travelodge | Hotels (except Casino Hotels) and Motels | All franchises | All SBA borrowers |
|---|---|---|---|---|
| Default (charge-off) rate | 4.5% | 3.0% | 10.2% | 8.0% |
| Loans in sample | 66 | — | — | — |
| Defaults | 3 | — | — | — |
| Average loan size | $1,632,745 | — | — | — |
Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
Show the numbers behind this chart
| Fiscal year | Loans | Charged off | Rate |
|---|---|---|---|
| FY2010 | 4 | 0 | 0.0% |
| FY2011 | 9 | 0 | 0.0% |
| FY2012 | 6 | 1 | 16.7% |
| FY2013 | 7 | 1 | 14.3% |
| FY2014 | 11 | 1 | 9.1% |
| FY2015 | 9 | 0 | 0.0% |
| FY2016 | 4 | 0 | 0.0% |
| FY2017 | 16 | 0 | 0.0% |
How to read this
A charge-off means a franchisee borrowed, operated, and failed severely enough that the SBA wrote off the government-guaranteed loan. Unlike franchisor marketing or Item 19 disclosures, this is an observed outcome recorded by a federal agency. One caveat cuts the other way: SBA borrowers are typically less capitalized than all-cash buyers, so these rates can overstate risk for well-funded operators.
How reliable is this number?
Travelodge's figure rests on 66 resolved SBA 7(a) loans approved between fiscal 2010 and 2019. That cohort has matured, so the rate is a settled outcome, not a projection. With 66 resolved loans, one default moves the rate by about 1.5 percentage points. Loans approved since 2020 are excluded from the rate because most are still outstanding; they appear on this page as counts only. Every Travelodge figure is recomputed from the public SBA FOIA file on each rebuild.
Based on 66 resolved loans — directional, not precise.
Is Travelodge in financial trouble? What the SBA data shows
Travelodge's SBA 7(a) default rate was 4.5% for loans approved FY2010–FY2019 (3 of 66 loans charged off) — 28th lowest of 29 Hotels (except Casino Hotels) and Motels brands tracked here. A default rate close to the Hotels (except Casino Hotels) and Motels average of 3.0% is, on its own, neither a warning sign nor a reassurance.
Frequently asked
- What is Travelodge's franchise failure rate?
- Travelodge franchisees defaulted on 4.5% of SBA 7(a) loans between FY2010 and FY2019 — 3 of 66 loans were charged off — according to U.S. Small Business Administration data. That is higher than the Hotels (except Casino Hotels) and Motels industry average of 3.0%.
- How does Travelodge compare to other Hotels (except Casino Hotels) and Motels franchises?
- Travelodge's 4.5% SBA default rate is higher than the Hotels (except Casino Hotels) and Motels industry average of 3.0%. See every Hotels (except Casino Hotels) and Motels franchise ranked on the Hotels (except Casino Hotels) and Motels industry page. Hotels (except Casino Hotels) and Motels franchises →
- What does 'SBA default rate' mean?
- An SBA default rate is the share of SBA 7(a) loans, approved FY2010–FY2019 and since resolved (paid in full or charged off), that were charged off — written off after the borrower failed to repay. It is not a measure of unit closures.
Source
Source: U.S. Small Business Administration, 7(a) loan program charge-off data, FY2010–FY2019. Franchise data is matched on the SBA's franchise code / brand name. "Failure rate" here means the share of approved loans (resolved: paid in full or charged off) that were charged off; it is not a measure of unit closures. Last updated September 30, 2026.
Every brand in one table, with percentiles and breakdowns by year, industry and loan size: franchise SBA default rates, all 415 brands.
Cite this page
Franchise Default Rates (2026). Travelodge franchise SBA 7(a) default rate, FY2010–FY2019 cohort: 4.5% (3 of 66 loans charged off). Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/franchise/travelodge/ · Data & methodology · Download the dataset (CSV)