How to Finance a SilverStone Inns Franchise: Soft-Brand Basics
By Marc Cornella
A SilverStone Inns franchise loan is not quite like financing a hotel under a large national flag. SilverStone Inns describes itself as a soft brand for independent hotel owners: owners keep their local identity and full ownership, and the company says its affiliation carries no franchise fees, royalty percentages or long-term contracts, only a monthly membership fee.
That model can lower a hotel’s operating costs, but it also changes how lenders look at the deal. This article explains what SilverStone publishes about its affiliation, how lenders treat a soft-brand hotel, where SBA 7(a), SBA 504 and conventional loans fit, and what the brand’s SBA Franchise Directory note about management agreements means for borrowers.
US Professional Funding is not affiliated with, sponsored by or endorsed by SilverStone Inns; the name is used only to describe the business. Figures and terms from the franchisor’s website or any disclosure document 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, and owners should review the affiliation agreement and any Franchise Disclosure Document (FDD) with a qualified franchise attorney and accountant.
SilverStone Inns Franchise Loan at a Glance
- Brand type: a soft-brand affiliation for independent hotel owners, operated by SilverStone Hospitality LLC.
- Fees: the company says there are no franchise fees or royalty percentages; owners pay a monthly membership fee, which is not published.
- Contract terms: the company advertises no long-term contracts and flexible exit terms, with cancellation on minimal notice and no penalties.
- Total investment, net worth and liquidity requirements: not published.
- Locations listed: Spokane Valley and North Spokane, Washington, with Wichita, Kansas, shown as coming soon.
- SBA Franchise Directory: listed as Silverstone Inns (code S8916), with a note on third-party management agreements.
What Is SilverStone Inns?
SilverStone Inns is a small hotel brand built around independent owners. Rather than imposing a full brand standard and a long franchise agreement, the company offers a brand affiliation that it says lets owners keep their local identity and full ownership while gaining brand-level tools.
What the affiliation provides. According to the brand’s website, members get integrated revenue management, online travel agency optimization and direct booking strategies, along with operational guidance, training and performance reviews on request. The guest-facing site promotes a rewards program, special offers and amenities such as a business center, coffee bar and pool, with room types that include queen, double-queen, king suite and accessible rooms.
Footprint. The brand’s site lists hotels in Spokane Valley and North Spokane, Washington, and a Wichita, Kansas, property marked as coming soon. It is an early-stage system, not a large national network.
Why lenders view it the way they do. Lenders financing a branded hotel usually lean on the brand’s reservation system, loyalty program and a long franchise term that keeps the flag in place for the life of the loan. With a soft brand that can be cancelled on short notice, lenders tend to underwrite the hotel more like an independent property: its own location, operating history, management and cash flow carry most of the weight.
SilverStone Inns Franchise Costs
Affiliation fees. The company says there are no franchise fees or royalty percentages and that owners pay a low monthly membership fee. The fee amount is not published. Ask for it in writing, and request any disclosure document the company provides so you can confirm all fees.
The hotel itself. For most owners, the real cost is the property: buying an existing hotel, refinancing one you already own, or renovating to bring it up to a standard you and the brand agree on. These costs depend on the market, room count, condition and age of the building, not on the brand.
Conversion and renovation. An independent hotel joining SilverStone may need updated signage, guestroom refreshes, a refreshed lobby or breakfast area, and technology that works with the brand’s booking and revenue tools.
Working capital. Owners should plan for payroll, utilities, housekeeping supplies, insurance and property taxes, plus a cushion for slower seasons.
Because SilverStone does not publish an investment range, there is no brand-level Item 7 table to cite here. Lenders will build the budget from the purchase contract, renovation bids and the hotel’s own records.
Ongoing Fees and How They Affect Your Loan
A brand with no royalty or percentage-based marketing fee leaves more of each room-revenue dollar for operating costs and debt service, which can help a hotel’s coverage ratios. Lenders sizing a SilverStone Inns franchise loan will still include the monthly membership fee and any reservation, technology or distribution costs in projections.
The trade-off is that the hotel takes on more of its own sales and marketing burden. Lenders will look at how much of the hotel’s business comes from direct bookings, online travel agencies, corporate accounts and walk-ins, and whether the affiliation’s revenue management tools are likely to improve those numbers.
Franchisor Requirements for New Owners
SilverStone does not publish minimum net worth, liquidity or experience requirements. Its affiliation page invites owners to submit a contact form with their property name, which suggests the program is aimed at owners who already have, or are buying, a specific hotel.
Expect the company to review the property’s condition, location and fit with the brand before approving it. Lenders will separately review the owner’s finances and hotel experience.
Ways to Own a SilverStone Inns Hotel
Converting a hotel you already own. An independent owner can join the affiliation and use financing to renovate or refinance. Read about financing a conversion franchise.
Buying a hotel and joining. A buyer can acquire an independent hotel and affiliate it. Our page on hotel and motel acquisition financing explains how these purchases are structured.
Buying an existing SilverStone hotel. If a member hotel is sold, the buyer would need to arrange continued affiliation with the company. Because the affiliation can be cancelled, lenders will focus on the hotel’s own performance.
New construction. SilverStone does not describe a new-build program. A ground-up project would be underwritten largely as an independent hotel. See our hotel start-up financing page.
Financing Options for a SilverStone Inns Franchise
SBA 7(a) loans. An SBA 7(a) loan can finance the purchase of a hotel, including real estate, furniture and equipment, renovations and working capital, for an owner-operator.
SBA 504 loans. For owner-occupied hotel real estate and major renovations, an SBA 504 loan pairs a senior loan with a long-term fixed-rate component.
Conventional term loans. Experienced hoteliers with strong equity may use conventional business loans for an acquisition or refinance. Some conventional lenders are cautious about soft-brand or independent hotels, so a strong operating history matters.
Furniture, fixtures and equipment. Guestroom furniture, mattresses, laundry equipment, breakfast and coffee bar equipment, fitness and pool equipment, and property management technology can sometimes be financed separately.
Working capital and lines of credit. Hotels see seasonal swings in occupancy. A reserve or line of credit can cover payroll and operating costs in slower months and during a renovation. See our hotel and motel working capital options.
Seller financing on resales. When buying a hotel, a seller may carry part of the price. Seller notes are typically subordinate to the senior loan, and SBA rules may limit how they are structured.
SBA Loans for SilverStone Inns Franchisees
SBA-guaranteed loans are made by participating lenders. For a franchise or brand affiliation, the SBA Franchise Directory simplifies the lender’s eligibility review of the brand’s agreements. Our article on SBA loans for hotels covers the basics.
Directory listing. Silverstone Inns appears on the SBA Franchise Directory under code S8916. A listing means the brand’s agreements have been reviewed for eligibility. It is not an endorsement of the brand or an approval of any borrower.
What the directory note means. The note says that if the applicant also operates the hotel under a management agreement with a third party, the lender must review that agreement under SBA rules to decide whether the applicant and the management company are affiliated. If the management company is, or is affiliated with, the franchisor, the applicant is not eligible.
In plain English: you can hire an outside management company, but the lender will examine the contract. If SilverStone or a related company would manage your hotel, an SBA loan is off the table. Owners who plan to self-manage avoid this issue.
Program size and tips. The SBA 7(a) program maximum is currently $5 million, though program rules can change. Larger hotel projects often combine programs or use SBA 504. Our SBA loan calculator can help with early payment estimates, which are for planning only.
How Lenders Evaluate a SilverStone Inns Deal
Personal credit and financial history. Expect a review of credit, tax returns and a personal financial statement, plus a personal guarantee.
Net worth and liquidity. Hotels are real-estate-heavy, so lenders look for a meaningful equity injection and post-closing reserves.
Hotel experience. With a light-touch brand, the owner’s own hotel operating experience matters more. First-time owners should consider our guide for the first-time hotel buyer.
Projections. Lenders will want occupancy, average daily rate and revenue per available room assumptions grounded in the hotel’s history and local competition, plus the membership fee and distribution costs.
The affiliation agreement. Because the company advertises flexible exit terms, lenders will review what happens if the affiliation ends and may underwrite the hotel as if it were independent. If the company provides an FDD, review Items 3 and 4, Item 10 on financing and Item 17 on term and termination.
Real estate and condition. Expect an appraisal, environmental review and a property condition assessment.
Historical financials. For an acquisition, lenders review several years of profit and loss statements, tax returns and monthly occupancy reports.
Soft Brand vs. Traditional Flag: The Financing Trade-Off
A traditional hotel franchise typically brings a national reservation system and loyalty program, but also royalties, marketing fees, mandatory renovation plans and a long agreement. SilverStone’s model removes royalties and long commitments, which can improve cash flow and give owners flexibility.
For lenders, though, a long franchise term is a form of protection. Without it, the hotel’s independent performance and the owner’s management must stand on their own. Owners with a strong operating history and a well-located property are best placed to take advantage of the soft-brand model.
Multi-Property Growth
SilverStone is a young brand still building its network. For owners, adding a second property under the affiliation is financed much like any hotel acquisition, with the first hotel’s results supporting the request. Lenders will want consolidated financial statements as a portfolio grows.
Real-World Scenarios
An independent owner seeking lower brand costs. An owner of an older independent hotel joins SilverStone and refinances existing debt with an SBA 7(a) loan that also funds a guestroom refresh.
A buyer acquiring a roadside hotel. A first-time buyer with hospitality management experience purchases an independent property and affiliates it. The lender underwrites on the hotel’s history and requires a working capital reserve.
An owner using a management company. A buyer plans to hire a third-party manager. The lender reviews the management contract for affiliation under SBA rules and confirms the manager is not related to the franchisor.
Common Mistakes to Avoid
- Assuming the brand will carry the hotel’s revenue the way a large national flag might
- Not getting the monthly membership fee and all other charges in writing
- Overlooking the SBA directory note when planning to use a management company
- Skipping a property condition assessment before buying
- Building projections without the hotel’s own occupancy history
- Leaving too little working capital for seasonal slowdowns
For more pitfalls, read the hotel loan mistakes owners should avoid.
Next Steps to Finance Your SilverStone Inns Franchise
Step 1: Contact the brand. Request the affiliation agreement, the fee schedule and any disclosure document.
Step 2: Gather the hotel’s records. Collect profit and loss statements, tax returns and occupancy reports.
Step 3: Price the conversion. Get bids for signage, renovations and technology.
Step 4: Decide who will manage the hotel. Self-management or an outside manager affects SBA eligibility.
Step 5: Talk with a financing specialist. Compare SBA 7(a), SBA 504 and conventional options.
Step 6: Close and transition. Keep a working capital reserve and coordinate the brand launch with your lender’s timeline.
SilverStone Inns Franchise Loan FAQs
How much does a SilverStone Inns franchise cost?
SilverStone does not publish an investment range. The main cost is the hotel itself plus any conversion work. The company says it charges a monthly membership fee rather than franchise fees or royalties.
Does SilverStone Inns charge a royalty?
The company says its affiliation has no royalty percentages. Confirm all fees in the agreement before you sign.
Is SilverStone Inns eligible for SBA loans?
Yes, it is listed on the SBA Franchise Directory under code S8916, with a note on management agreements. Each loan still depends on the borrower, the hotel and lender approval.
Can I use a management company and still get an SBA loan?
Possibly. The lender must review the management agreement for affiliation. If the manager is the franchisor or affiliated with it, the applicant is not eligible.
Can I convert my independent hotel to SilverStone Inns?
The brand is designed for independent owners. Contact the company to see whether your property qualifies.
Can a first-time owner get a SilverStone Inns franchise loan?
Yes, if the lender approves. Hospitality experience, an experienced general manager and solid reserves strengthen the request.
How long is the SilverStone agreement?
The company advertises no long-term contracts and flexible exit terms. Review the agreement itself for exact terms.
Does SilverStone Inns offer financing?
The company does not advertise financing. If it provides an FDD, Item 10 discloses any financing offered.
What documents do I need to apply?
A personal financial statement, tax returns, hotel financials and occupancy reports, the purchase contract, renovation bids and the affiliation agreement.
Final Thoughts
A SilverStone Inns franchise loan is really a hotel loan with a light brand attached. Owners who bring a well-located property, solid operating history and a clear management plan can benefit from lower brand costs, as long as they plan for a lender that underwrites the hotel on its own merits.
US Professional Funding helps hotel owners and franchisees finance acquisitions, conversions, refinancing and working capital. Learn more about our franchise financing and hotel and motel financing programs.
