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Financing a Holiday Inn Express with an SBA loan

Since FY2020, 36 Holiday Inn Express locations changed hands on an SBA 7(a) loan. Here is what those deals looked like, what the brand costs to open, which lenders wrote the loans, and where the brand stands with the SBA.

Holiday Inn Express franchising: development.ihg.com

Acquisition loans
36
since FY2020
Median loan size
$4,863,950
FY2025 to FY2026 Q3
Median rate
8.00%
at approval
Total approved
$38M
FY2025 to FY2026 Q3

What a Holiday Inn Express deal looks like

Holiday Inn Express is an established brand in the SBA loan file: 36 acquisitions cleared underwriting in the last five years. The median loan was $4,863,950 at 8.00 percent. Amortized over 25 years, that is about $37,541 a month, or $450,489 a year in debt service. SBA's 10 percent minimum equity injection on a deal that size is roughly $540,439 of buyer cash, some of which a seller note on standby can sometimes cover.

Illustrative only: the median loan is not a purchase price, and every deal differs. Model your own in the deal analyzer or the DSCR calculator.

7(a) or 504 for a Holiday Inn Express?

Holiday Inn Express deals often include the real estate, which is why the median loan here is large and runs long. When the building is part of the purchase, the SBA 504 program is usually the better fit: a 50/40/10 stack, a bank first lien, a fixed-rate CDC debenture, and 10 percent down, with the real estate amortized up to 25 years. Model that structure in the 504 calculator.

When you are buying an existing Holiday Inn Express as a going concern without the real estate, a 7(a) loan is the usual route, typically over 10 years. Price it in the 7(a) calculator.

What it costs to open a Holiday Inn Express

These are Holiday Inn Express's own franchise terms, set by the franchisor and separate from the SBA loan. They matter to a buyer because the franchise fee and the build-out are part of the project the loan has to cover, and lenders weigh the net-worth and liquidity minimums when they size a deal.

Total initial investment
$12,847,351 to $19,461,100
Initial franchise fee
$75,000
Ongoing royalty
6% of gross sales

Lodging / hotel, figures from the 2024 FDD. Sources: Entrepreneur Franchise 500 - Holiday Inn Express, FranchiseOverview - Holiday Inn Express (2024 FDD), ResearchForSale - Holiday Inn Express 2025 FDD listing, FranchiseHelp - Holiday Inn / Holiday Inn Express. Franchise economics are drawn from each brand's public Franchise Disclosure Document (FDD Items 5 and 7) and reputable third-party franchise databases, compiled for independent editorial reference. The Closing Binder is not affiliated with, endorsed by, or sponsored by any franchisor listed. Franchise fee, investment, royalty, and net-worth figures are set by the franchisor and change with each FDD; confirm current terms in the brand's latest FDD before relying on them.

Lenders that actually write these

The banks below approved the most Holiday Inn Express acquisitions in the file. A lender that has funded this brand before is the fastest path through underwriting.

SBA conditions on this brand

From the SBA Franchise Directory

If Applicant also operates under a management agreement with a third party, Lender/CDC must review the management agreement in accordance with SOP 50 10 to determine if there is affiliation between the Applicant and the management company. The Applicant is not eligible if the management company is, or is affiliated with, the franchisor.

Every franchise the SBA will finance carries an entry in its directory, and some carry conditions like this one about how the real estate and the lease may be held. A lender has to clear these before funding, so they are worth reading before you make an offer.

Frequently asked questions

How much does it cost to buy a Holiday Inn Express franchise?

Opening a Holiday Inn Express takes a total initial investment of about $12,847,351 to $19,461,100, including a $75,000 initial franchise fee, per the brand's FDD. Buying an existing location is priced differently: the median SBA 7(a) acquisition loan for Holiday Inn Express was $4,863,950 in the federal loan file.

Can you buy a Holiday Inn Express with an SBA loan?

Yes. 36 Holiday Inn Express locations were acquired with SBA 7(a) financing since FY2020, and the brand is listed in the SBA Franchise Directory. The directory attaches a lender condition to this brand, so a lender clears that before funding.

How much do you need for a down payment on a Holiday Inn Express?

SBA requires a minimum 10 percent equity injection. On the median Holiday Inn Express loan of $4,863,950, that is roughly $540,439 of buyer cash, though a seller note kept on full standby can cover part of it. The rest is financed over about 25 years, around $37,541 a month at the median rate.

Which lenders finance Holiday Inn Express acquisitions?

GBank, First Western SBLC, LLC and Celtic Bank Corporation wrote the most Holiday Inn Express acquisition loans in the federal file. A lender that has funded the brand before knows its franchise agreement and tends to move faster. See the full lender detail above.

Other hotel brands buyers finance

Loan counts, median size, median rate, and lender ranking are computed from the SBA 7(a) FOIA file, change of ownership approvals, FY2025 to FY2026 Q3, as of June 30, 2026. Eligibility, the identifier code, and any conditions are from the SBA Franchise Directory, effective August 11, 2026. Franchise cost figures are from Holiday Inn Express's public FDD and third-party franchise databases. We are not affiliated with, endorsed by, or sponsored by Holiday Inn Express or its franchisor, and directory listing is not an endorsement of any individual deal. Methodology.