Hotels (except Casino Hotels) and Motels Franchise Failure Rates: 29 Brands Ranked (SBA Data)
SBA 7(a) loan default data, FY2010–FY2019 · Updated 2026
Hotels (except Casino Hotels) and Motels franchises defaulted on 3.0% of SBA 7(a) loans between FY2010 and FY2019, according to U.S. Small Business Administration data. This page ranks 29 brands with 2,959 loans (71 charged off); rates range from America's Best Inns & Suites (0.0%) to Comfort Inn (4.7%).
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.
How do Hotels (except Casino Hotels) and Motels franchises perform on SBA loans?
Across the 29 Hotels (except Casino Hotels) and Motels brands tracked here, 2,959 SBA 7(a) loans were approved between fiscal 2010 and 2019 and 71 were charged off. That is a pooled rate of 2.4% for these brands against a 3.0% industry average for all SBA 7(a) Hotels (except Casino Hotels) and Motels loans, franchised or not. 0 brands with 20+ loans ran at more than twice the industry benchmark. 4 brands with 40+ loans recorded zero defaults. Statuses as of June 30, 2026.
- Brands tracked29
- SBA 7(a) loans, FY2010–FY20192,959
- Charged off71
- Pooled rate, these brands2.4%
- Hotels (except Casino Hotels) and Motels industry average (all SBA 7(a) loans)3.0%
- All-franchise benchmark10.2%
- All SBA borrowers8.0%
- Lowest rateAmerica's Best Inns & Suites · 0.0%
- Highest rateComfort Inn · 4.7%
Which Hotels (except Casino Hotels) and Motels franchise brands have the highest and lowest SBA default rates?
Every Hotels (except Casino Hotels) and Motels brand tracked here, ranked from lowest to highest SBA default rate. Click a column heading to re-sort. Type in the filter to find a brand.
| Rank | Brand | Rate | Charged off | Loans |
|---|---|---|---|---|
| 1 | America's Best Inns & Suites † | 0.0% | 0 | 15 |
| 2 | Candlewood Suites | 0.0% | 0 | 22 |
| 3 | Choice Hotels International Inc. | 0.0% | 0 | 66 |
| 4 | Fairfield Inn/inn & Suites † | 0.0% | 0 | 17 |
| 5 | Holiday Inn Express | 0.0% | 0 | 49 |
| 6 | Howard Johnson | 0.0% | 0 | 41 |
| 7 | Microtel Inn and Suites | 0.0% | 0 | 43 |
| 8 | Studio 6 † | 0.0% | 0 | 18 |
| 9 | Rodeway Inn | 1.2% | 1 | 80 |
| 10 | Comfort Inn & Suites | 1.3% | 2 | 156 |
| 11 | Red Roof Inn | 1.3% | 2 | 152 |
| 12 | Ramada | 1.6% | 1 | 63 |
| 13 | Econo Lodge | 1.8% | 3 | 165 |
| 14 | Best Western | 2.0% | 4 | 201 |
| 15 | Knights Inn | 2.0% | 1 | 51 |
| 16 | Hampton Inns | 2.2% | 1 | 46 |
| 17 | Days Inn | 2.3% | 7 | 310 |
| 18 | Super 8 | 2.5% | 7 | 279 |
| 19 | Quality Inn | 2.8% | 10 | 358 |
| 20 | Motel 6 | 3.1% | 5 | 162 |
| 21 | Sleep Inn | 3.2% | 2 | 63 |
| 22 | Americas Best Value Inn | 3.3% | 3 | 90 |
| 23 | Clarion Hotel | 3.7% | 1 | 27 |
| 24 | Holiday Inn | 4.0% | 3 | 75 |
| 25 | Baymont Inn & Suites | 4.2% | 4 | 95 |
| 26 | La Quinta Inn & Suites | 4.3% | 4 | 94 |
| 27 | Country Inn & Suites | 4.4% | 4 | 91 |
| 28 | Travelodge | 4.5% | 3 | 66 |
| 29 | Comfort Inn | 4.7% | 3 | 64 |
Source: U.S. SBA 7(a) FOIA loan data. Loans approved FY2010–FY2019, statuses as of June 30, 2026. Download the CSV.
How to read this: a default rate is only as steady as the number of loans behind it. Brands with fewer than 20 loans are marked †. With so few loans, one default moves the rate by 5 percentage points or more. Their rates are statistically noisy. Read them as flags to check, not as rankings to trust. Rate = loans charged off ÷ loans approved FY2010–FY2019 and since resolved.
All industries: franchise failure rates by industry.
Frequently asked
- Which Hotels (except Casino Hotels) and Motels franchises have the highest SBA default rates?
- Among Hotels (except Casino Hotels) and Motels brands with 20 or more SBA 7(a) loans approved FY2010–FY2019, the highest charge-off rates were Comfort Inn (4.7%), Travelodge (4.5%), Country Inn & Suites (4.4%). Source: U.S. SBA FOIA dataset, statuses as of June 30, 2026.
- What is the Hotels (except Casino Hotels) and Motels franchise SBA default rate benchmark?
- Hotels (except Casino Hotels) and Motels franchise borrowers charged off 3.0% of SBA 7(a) loans approved FY2010–FY2019, compared with 10.2% for all franchises and 8.0% for all SBA borrowers.
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.
Cite this page
Franchise Default Rates (2026). Hotels (except Casino Hotels) and Motels franchise SBA 7(a) default rates, FY2010–FY2019 cohort: 29 brands, pooled 2.4%. Derived from U.S. SBA FOIA data, loan statuses as of June 30, 2026.
https://franchisefailurerates.com/industry/hotels-except-casino-hotels-and-motels/ · Data & methodology · Download the dataset (CSV)