How to Finance a Signature Inn Franchise: Retro Motel Conversions
By Anthony Cornella
A Signature Inn franchise loan usually finances something specific: buying or refinancing a small, one- or two-story motel and converting it into a retro, mid-century style hotel in the upper economy segment. Because the brand was built around conversions, the loan often has to cover the property, a property improvement plan (PIP) and the working capital to carry the hotel through the changeover.
Below we cover the costs, the brand standards, the SBA Franchise Directory note on management agreements and the main financing structures.
US Professional Funding is not affiliated with, sponsored by or endorsed by Signature Inn; the name is used only to describe the business. Figures from the franchisor’s disclosure document and brand materials can change, loan programs and terms vary by lender and borrower, and every loan is subject to lender review and approval. Nothing here is legal, tax or investment advice, so review the current Franchise Disclosure Document (FDD) and franchise agreement with a qualified franchise attorney and accountant.
Signature Inn Franchise Loan at a Glance
- Segment: upper economy, which the franchisor also calls “affordable boutique.”
- Typical property: the franchisor has said prime targets are single- or two-story properties of 30 to 70 rooms in coastal and urban destinations in primary and secondary markets.
- Development path: described as ideally suited for conversion, with new-build locations also possible.
- Fee model: a flat franchise fee model; amounts are not published in the brand materials, so use Items 5 and 6 of the current FDD.
- System size: the company announced its 15th Signature Inn in the U.S. in June 2025.
- Loyalty: full participation in the franchisor’s loyalty program is required; the program reported 7.7 million members as of July 2025.
- SBA Franchise Directory: listed as “Signature Inn” under code S1571, with a note on management agreements.
What Is Signature Inn?
Signature Inn is a conversion-friendly hotel brand that leans into nostalgia. Its brand materials describe a retro-modern look inspired by the golden age of road travel, with mid-century motel paint schemes and retro signage. The brand now sits within a larger hotel company that franchises and manages several brands.
Company announcements have highlighted hotels in markets such as San Francisco, Berkeley, San Jose, Temecula, Indio, Eugene, Houston and Miami. Many are small; the company described Signature Inn Berkeley as a 29-room hotel when it opened in early 2025.
Who it is for. The franchisor has said the brand targets older roadside and urban motels, including properties built in the 1950s and 1960s, that can be refreshed with exterior updates, retro design and new guest room furniture and amenities. Owners can often keep existing furniture, fixtures and equipment (FF&E) that already meets brand standards.
How lenders see it. Lenders like a lower-cost conversion backed by a national reservation and loyalty platform. But many properties are small and older, and a conversion carries execution risk, so a lender’s comfort rests on the specific motel’s location, condition and track record, and on the operator’s experience.
Signature Inn Franchise Costs
The franchisor’s public materials do not publish an Item 7 investment range, so the categories below describe what a buyer should expect to fund. Take every number from the current FDD and contractor bids.
Initial franchise fee. Signature Inn uses a flat franchise fee model, and owners featured on the franchisor’s own website point to the fee structure as a reason they chose the brand. Item 5 states the amount and when it is due.
Real estate. For most deals the largest cost is the motel itself, whether you are buying it or already own it. Closing costs and deferred maintenance belong in the budget from the start.
PIP and conversion work. The franchisor stresses a low-cost PIP, but every conversion still has a scope: the mid-century exterior paint scheme, retro exterior signage, a brand-specified room number and wayfinding package, a retro-chic front desk, artwork, an accent wall, modern seating, upgraded bedding and bath items, and a 43-inch HDTV in each room.
Technology. Owners need a brand-approved property management system with a two-way interface and a brand-approved electronic lock system.
Opening costs and working capital. Plan for training, opening supplies, marketing, payroll during the changeover and reserves while the new flag ramps up.
The major cost categories to price for a conversion:
- Initial franchise fee (Item 5 of the FDD)
- Property purchase or refinance of the existing motel
- Exterior paint, retro signage and wayfinding package
- Guest room FF&E, bedding, televisions and bath upgrades
- Lobby and front desk refresh, communal table and game area
- Property management system and electronic locks
- Training, opening supplies and pre-opening marketing
- Working capital and reserves for the transition
Ongoing Fees and How They Affect Your Loan
The brand’s public materials do not list royalty, marketing, reservation or technology fees. Item 6 of the FDD lists each recurring fee, and lenders will build those numbers into their projections.
Royalty, marketing and distribution. Full loyalty participation and the brand’s revenue and distribution programs are required. On a small motel, every fixed or per-room charge takes a bigger share of revenue, so model each one line by line.
How lenders factor these costs in. Lenders start from the motel’s historical revenue, subtract the new franchise fees and conversion downtime, and test whether net operating income still covers debt service with a cushion.
Franchisor Requirements for New Owners
The franchisor does not publish a minimum net worth or liquidity requirement in its brand materials. Requirements center on the property: it should fit the target profile, complete the PIP and meet the defining and core brand standards.
The approval process. Owners contact the development team, submit property information, receive a PIP, review the FDD and sign the franchise agreement after approval. Avoid locking in a purchase price until the PIP scope and franchise approval are clear, because both shape how much a lender will advance.
Ways to Own a Signature Inn
Converting a motel you already own. Independent owners can refinance existing debt and fund the PIP in one package, using the hotel’s track record for underwriting.
Buying a motel and converting it. Buyers can purchase an independent or differently branded motel and reflag it. Lenders weigh the seller’s numbers and the conversion plan together. See our hotel and motel acquisition loans.
Buying an existing Signature Inn. A transfer requires franchisor approval and may trigger a new PIP, but the buyer gets operating history under the brand.
New construction. A ground-up project needs construction financing, more equity and a longer ramp. Our hotel start-up financing page is the right starting point.
Financing Options for a Signature Inn Franchise
SBA 7(a) loans. An SBA 7(a) loan can combine the property, PIP, FF&E, franchise fee and working capital for an owner-operated motel, subject to approval and the directory note below.
SBA 504 loans. For buyers focused on real estate and long-lived improvements, an SBA 504 loan pairs a bank loan with a certified development company loan. Working capital is generally funded separately.
Conventional term loans. Owners with strong equity and hotel experience may prefer a conventional business loan, which avoids SBA eligibility questions such as the management agreement rule.
PIP and renovation financing. When the property is already owned, the conversion scope can be financed on its own. Read about financing a hotel PIP.
Equipment and FF&E financing. Guest room furniture, televisions, electronic locks, lobby furniture and game tables can sometimes be financed or leased separately to preserve cash.
Working capital. Rooms go out of service during a conversion, and coastal and road-trip markets can be seasonal. A hotel working capital facility can bridge slower months and pre-opening expenses.
Seller financing on resales. A seller may agree to carry part of the price. Any seller note must be acceptable to the senior lender, is typically subordinate to it and may be restricted by SBA program rules.
SBA Loans for Signature Inn Franchisees
SBA lenders check the SBA Franchise Directory before lending to a franchisee. A listing means the brand’s franchise documents have been reviewed for SBA eligibility; it does not approve any borrower or project.
Directory listing. Signature Inn appears on the SBA Franchise Directory under code S1571.
The management agreement note. If the applicant also operates under a management agreement with a third party, the lender or certified development company must review it under SBA rules to decide whether the applicant and the manager are affiliated. The applicant is not eligible if the management company is, or is affiliated with, the franchisor. In plain terms, having the franchisor’s own management arm run the hotel rules out SBA financing, while an unrelated manager means a close contract review. Owner-operators avoid the issue.
Program size. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Read more about SBA loans for hotels.
How Lenders Evaluate a Signature Inn Deal
Personal credit and financial history. Lenders review credit, tax returns and personal financial statements for each guarantor, plus any other hotels they own.
Net worth and liquidity. You need cash for the equity injection plus reserves to carry the hotel while room revenue dips during the work.
Industry and management experience. Hotel or motel operating experience is a major strength; first-time owners should show a credible staffing and management plan.
Business plan and projections. Start from the motel’s actual occupancy and rates, show a realistic ramp after reflagging, and include every Item 6 fee and the rooms out of service during the PIP. Review the hotel loan requirements lenders apply.
The FDD and franchise agreement. Lenders look at the term, termination rights, transfer conditions and liquidated damages. Review Items 3 and 4 for litigation and bankruptcy history.
Property condition. Expect an appraisal, environmental review and property condition report. Older roadside buildings can hide roof, plumbing or electrical issues.
Conversion Deep Dive: Required and Optional Touchpoints
The brand standards separate required “Defining Brand Standards” from optional “Signature Moments,” which is useful when sizing a Signature Inn franchise loan.
Required. Exterior paint, front desk livery, artwork, modern seating and FF&E, top-of-bed linens, the television package, bath amenities, an open closet, an accent wall, a 24/7 coffee program and a complimentary breakfast.
Optional. A vintage media console, an outdoor pool and lounge area, outdoor games such as bocce and cornhole, a game table and a communal table.
Financing the scope. Lenders want a line-item budget separating required and optional items, plus a contingency. Phasing optional items after opening can shrink the upfront request. Our page on financing a franchise conversion explains how lenders size these budgets.
Multi-Unit Growth
The focus on smaller motels suits owners who want to build a portfolio one property at a time. Each hotel needs franchisor approval, its own PIP and its own financing. Once your first hotel has history under the brand, lenders can underwrite its cash flow alongside the next acquisition, and owners may later refinance several properties together. Expect lenders to ask for consolidated statements.
Real-World Scenarios
An owner converting a family motel. A family that has run an independent 1960s motel for years refinances the mortgage and funds the PIP through one SBA 7(a) loan, using the motel’s history as the base for projections.
A buyer acquiring a roadside motel. An experienced hotelier buys a two-story motel near a coastal highway and converts it. The lender reviews the seller’s financials and the PIP and requires a reserve for the conversion months.
An investor using outside management. A buyer who will not run the hotel hires an unrelated management company, and the SBA lender reviews the agreement for affiliation before approval.
Common Mistakes to Avoid
- Agreeing on a purchase price before the PIP scope and franchise approval are known
- Assuming a low-cost PIP means no hidden building repairs
- Planning to use the franchisor’s own management company with SBA financing
- Leaving loyalty, reservation and technology fees out of projections
- Underestimating lost revenue while rooms are out of service
For more pitfalls, read the hotel loan mistakes that slow down or sink deals.
Next Steps to Finance Your Signature Inn Franchise
Step 1: Evaluate the property. Confirm the motel fits the brand’s size, layout and location profile.
Step 2: Request a PIP and the FDD. Get the conversion scope and current disclosure document.
Step 3: Price the conversion. Collect contractor bids and add a contingency.
Step 4: Model the numbers. Build projections with every Item 6 fee. Our SBA loan calculator gives early payment estimates for planning only.
Step 5: Decide who will manage the hotel. Settle this early, because it affects SBA eligibility.
Step 6: Apply and close. Submit the purchase or ownership documents, PIP, FDD, financials and personal statements together, then fund reserves and schedule the work to limit downtime.
Signature Inn Franchise Loan FAQs
How much does a Signature Inn franchise cost?
The franchisor does not publish an investment range in its brand materials. Costs depend mostly on the motel’s price and the PIP scope, so check Item 7 of the current FDD and get contractor bids.
What is the Signature Inn franchise fee?
The brand uses a flat franchise fee model. Item 5 of the FDD gives the current amount.
What royalty does Signature Inn charge?
Royalty and other recurring fees are not published in the brand materials. Item 6 of the FDD lists them.
Can I get an SBA loan for a Signature Inn?
Yes, subject to approval. The brand is on the SBA Franchise Directory under code S1571, and the management company cannot be, or be affiliated with, the franchisor.
What kind of property qualifies?
The franchisor has said prime targets are single- or two-story properties of 30 to 70 rooms in coastal and urban destinations, though it also considers new builds.
Can a first-time hotel owner get a Signature Inn franchise loan?
It is possible, but lenders will look closely at the management plan and reserves. Hospitality experience or a strong operating partner helps.
Does the franchisor offer financing?
Item 10 of the FDD discloses any financing the franchisor offers. Most owners arrange their own loans.
How long is the franchise term?
Term and renewal conditions are in Item 17 of the FDD. Lenders prefer a remaining term that extends beyond the loan.
Does the FDD include financial performance information?
Check Item 19 to see whether it includes financial performance representations, and rely on the motel’s own records when buying.
Final Thoughts
A Signature Inn franchise loan works best when the property, the PIP and the management plan are settled before you apply. The conversion-first approach can keep costs down, but lenders still underwrite the building, the fees and the operator, so a complete package and a solid reserve make the difference.
US Professional Funding helps hotel owners and franchise buyers finance acquisitions, conversions, renovations and working capital. Learn more about our franchise financing programs and hotel and motel financing solutions.
