Palace Inn
The total investment to open a Palace Inn franchise ranges from $2.1M to $3.2M. The initial franchise fee is $15,000.
What is the Palace Inn franchise?
Palace Inn is a hotel and motel business that provides overnight stays to travelers. The estimated total initial investment is $2,107,000 to $3,168,000, and the initial franchise fee is $15,000.
Palace Inn is headquartered in Crosby, Texas, and was founded in 2017.
Loan Activity Score
56/100
SBA Default Rate
0.0%
Active Lenders
4
According to its Franchise Disclosure Document or public business records, Palace Inn has 5 locations, all owned by franchisees. Public SBA loan records show 4 lenders made 5 loans to franchisees of Palace Inn. PeerSense calculates Palace Inn's score as 56 out of 100, using public SBA loan performance and recent lending activity.
Franchising since 2017 · 5 locations
$2.1M to $3.2M
$15,000
5
5 franchised
Proprietary PeerSense metric
ModerateDistinct lenders in public SBA records for Palace Inn
5
Total SBA loans
$2.7M
Average loan size
Source: public SBA 7(a) and 504 loan records through December 31, 2025
Referral fee at closing
SBA Lending Activity for Palace Inn
Loan Activity Score Breakdown
Emerging (3 to 9 loans)
Are lenders increasingly or decreasingly funding this brand? Growing trends score highest.
Blended default rate (recent + all time) compared to NAICS sector peers.
Quality lenders actively backing this brand, with penalty for lender pullback.
FDD availability, Item 19 disclosure, and overall data completeness.
Geographic spread of SBA funded locations across states.
SBA Lending Performance
SBA Default Rate
0.0%
vs 10.3% peer avg
SBA Loans
5
Total Volume
$13.4M
Active Lenders
4
1 selective
States
1
vs. SBA Sector Average
SBA loan default rate vs. all franchises in the same NAICS sector, not limited to direct competitors
Key Highlights
Franchise Financing Resources
Data Insights
Key performance metrics for Palace Inn based on SBA lending data
SBA Default Rate
0.0%
10.3% below peer avg
SBA Loan Volume
5 loans
Across 4 lenders
Lender Diversity
4 lenders
Avg 1.3 loans per lender
Investment Tier
Premium investment
$2,107,000 to $3,168,000 total
Palace Inn: Deep SBA Data
Brand specific metrics derived directly from SBA 7(a) approval records: peak lending year, leading state, average loan size, and lender concentration. PeerSense computes these per brand so capital advisors and prospective franchisees can benchmark this opportunity against the rest of the franchise universe.
Peak SBA Year
2019
3 approvals. The best year on record for Palace Inn.
Top SBA State
Texas
5 SBA financed Palace Inn locations, the densest operator footprint.
Average Loan Size
$2.7M
Median $2.8M. Use as a sizing anchor when modeling your own Palace Inn unit.
Lender Concentration
80%
Concentrated
Share of Palace Inn approvals captured by the top 3 SBA lenders.
Palace Inn's SBA lending pipeline peaked in 2019 (3 approvals). The last five fiscal years account for 40% of cumulative volume ($6.3M approved). Operator density is highest in Texas with 5 SBA financed locations. Average funded ticket sits at $2.7M, with the median at $2.8M. Lender mix is concentrated: the top three SBA lenders account for 80% of approvals. Credit decisions concentrate with a small group of incumbents.
Payment Estimator
Estimated Monthly Payment
$21,811
Principal & Interest only
Indicative only, as of October 1, 2026. Not a quote, commitment or offer of credit. Final pricing, leverage and terms are determined by the lender at underwriting, after full transaction materials are reviewed. PeerSense sources the file. The lender sets pricing. What these terms mean.
Locations
Palace Inn, unit breakdown
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Reviewed by Edward L. Freeman, Founder and Managing Director, PeerSense
- PeerSense is a capital advisory firm that places commercial financing with direct capital sources; it does not lend, fund, or approve loans, and the capital source sets final terms.
- Edward L. Freeman founded PeerSense in January 2020.
- He is a Registered Franchise Consultant with Business Alliance, Inc., a credential issued in March 2022, and worked as a franchise consultant there from March 2022 to May 2023.
- His recorded experience includes a $22 million SBA construction loan, with about $16 million funded on the deal.
- In the 12 months through September 30, 2026, PeerSense tracked 912 publicly announced financings with a disclosed size of $361.32 billion. PeerSense Capital Data Report · Methodology page
Last reviewed LinkedIn profileAbout Edward Freeman