Microtel by Wyndham New-Build Financing in 2026: Moda Prototype Cost, Fees, Lenders and What They Need to See

A new Microtel by Wyndham on the Moda prototype costs about $7.5 million to $9.6 million before land. That figure comes from a third-party summary of the franchise disclosure document Wyndham filed March 31, 2026. The fees are a $40,000 initial fee, a 6% royalty and a 2% marketing fee, per the Lodging 2026 Guide to Franchising. Wyndham provides the FDD through its development team, so confirm the cost figure against it. Microtel is one of the few major-brand economy prototypes still being built new, with 280 U.S. hotels at year-end 2025. Because the total project usually lands at $8 million to $11 million, it is the rare new build where SBA 504 and USDA-guaranteed bank loans fit as well as a conventional construction loan.

That size is the financing story. On a 72-room Moda at $9.8 million all-in, an owner-operator can close with a $4.9 million bank first mortgage, a $3.43 million SBA 504 debenture at 6.97% fixed and $1.47 million of equity. An investor can close with a $5.7 million construction loan, a $1.2 million C-PACE assessment and $2.9 million of equity. This guide gives the cost and fee facts with their sourcing, the Moda prototype, the SBA and USDA positions, Wyndham's incentives, the lenders, the sizing and both stacks. Bridge is Wyndham's lending partner and lends directly on construction from $10 million; below that it structures the loan with the right bank, CDC or USDA lender and runs it through closing. The program is on its hotel financing page.

Key takeaways

• Build cost about $7.5M to $9.6M before land (third-party summary of the 2026 FDD); confirm with Wyndham.
• Fees: $40,000 initial, 6% royalty, 2% marketing (Lodging 2026 guide, as of March 31, 2026).
• Moda prototype: three- or four-story, about 30% smaller footprint than its predecessor, more than 70% rentable space.
• 280 U.S. Microtels; 109% RevPAR index among qualified franchisees in 2025; 85% central contribution.
• SBA eligible (code S1109); the project size fits SBA 504 at 15% equity and USDA B&I outside metro areas.

What does a Microtel Moda cost to build?

At 63 to 80 rooms the summarized range works out to roughly $95,000 to $150,000 per key before land. That sits under HVS's $170,000 to $197,000 median for limited-service hotels and in the same band as the economy extended-stay prototypes (WoodSpring at $72,400 to $119,400, ECHO at $92,800 to $139,200). Add land, contingency and an interest reserve, and most Microtels land at $110,000 to $165,000 per key all-in, $8 million to $11 million in total. The low number is the obvious draw, but it is the wrong number to budget from: the summary does not state the room count, so a 63-room and an 80-room Moda read as the same figure. Microtel has no food-and-beverage program beyond breakfast and a small lobby, which is where the 70%-plus rentable ratio comes from. That ratio helps the cost per key, yet it also caps the ADR, which is why the sizing below turns on RevPAR rather than cost.

Is Microtel SBA eligible?

Yes, and SBA fits Microtel better than almost any other new-build flag because of the project size. Microtel is on the SBA Franchise Directory as code S1109, since October 2017. The standard condition applies: any third-party manager must be unaffiliated with Wyndham. There is no extended-stay transient test.

A 504 on a hotel, which is special-purpose property, pairs a bank first mortgage at 50% with a debenture at 35%. The owner puts in 15% equity, or 20% if the business is also under two years old. The debenture is capped at $5.5 million, which covers 35% of any project up to $15.7 million, so every Microtel fits. The October 2026 debenture priced at a 6.97% effective fixed rate for 25 years. Since July 4, 2026 the 504 combines with a $5 million 7(a) for $10 million of SBA debt. Every owner must be a U.S. citizen or national under the March 1, 2026 rule. A 504 needs 1.15x historical coverage, which on a new build means the interim construction lender funds the build and the debenture takes it out at completion. The brand table and 2026 rules are in the SBA Franchise Directory check for hotel brands.

Does USDA fit a Microtel?

Often. A large share of Microtel's 280 hotels sit in towns under 50,000, which is the eligibility line for USDA's Business & Industry program. The program guarantees up to 80% of a qualifying loan, with real estate terms to 30 years and a $25 million borrower cap. The guarantee lets a community bank lend 80% of cost on a Microtel it would otherwise cap at 60%. The rate is negotiated, usually near prime plus 1 to 2 points; with prime at 7.00% that is 8% to 9%. Processing runs 90 to 150 days.

Does Wyndham help finance a Microtel?

Yes, through the same programs as its other brands. Wyndham offers development advance notes, forgivable if the hotel stays in compliance, of which it deployed $105 million in 2025 and expects about $110 million in 2026. The 10-K also describes mezzanine or subordinated financing and a loan-guarantee program on certain new-construction projects. Wyndham targets advances at higher-fee brands, so a Microtel advance is smaller and rarer than a La Quinta's. Lafayette Square's $100 million commitment for diverse Wyndham franchisees is the other pool. Wyndham owners get Bridge's 50-basis-point placement fee on $10 million-plus acquisitions and refinances; the owner-level menu is in Wyndham hotel owner financing options.

Who finances a Microtel build?

Bridge closed more than $500 million of hotel loans in 2025. The practical reading of the table: a Microtel is too small for most debt funds and most bank hotel desks, which is why the SBA and USDA rows carry the brand.

How do lenders size a Microtel construction loan?

Off the stabilized NOI. In the example, a 72-room Moda sits in a market where the economy and midscale set runs 65% occupancy and a $98 ADR, about $64 of RevPAR. The stack from there:

• Room revenue: 72 rooms at about $64 of RevPAR is about $1.67 million a year.
• Total revenue with breakfast and other income: about $1.72 million.
• Deductions: an 8% fee load, a 4% FF&E reserve and operating costs.
• NOI at a 38% margin: about $655,000.

The 504 reaches 85% leverage because the SBA's 1.15x test is run on historical cash flow at the takeout, not on the conventional lender's debt-yield test in the table above. At a blended 7% and 25-year amortization the constant is about 8.5%, so $8.33 million of debt costs about $705,000 a year. On $655,000 of NOI that is 0.93x in year one; 1.15x needs about $810,000 of NOI, which a $78 RevPAR delivers after ramp. The conventional loan binds on debt yield instead. The requirements and draw process are in hotel construction loans in 2026.

Worked example: a 72-room Microtel Moda, two ways

Building cost $8.6 million (mid-range of the summarized Item 7), land $1.2 million, $9.8 million all-in, $136,000 per key, in a market supporting $64 of RevPAR.

Both stacks are tight at the brand-average RevPAR, which is the honest reading of an economy new build in 2026. A Microtel pencils comfortably at $70 of RevPAR and above; at $64 the 504's long fixed amortization is what keeps it financeable. The USDA route, where the site qualifies, lands between the two at 80% leverage with a bank guarantee instead of a debenture. The economy-tier comparison with Red Roof, Motel 6, Super 8 and Econo Lodge is in Red Roof vs Motel 6 vs Super 8 vs Econo Lodge.

When is a Microtel build the wrong tool?

• Avoid it on a site under about $58 of RevPAR. Neither stack covers there without more equity.
• Avoid budgeting from the summarized Item 7. It does not state the room count; get the 2026 FDD and the Moda plans from Wyndham.
• Avoid a debt fund. Most have $5 million to $10 million minimums and price a $6 million loan as a favor.
• Avoid SBA if any owner is a lawful permanent resident or the hotel will be managed with full discretion by a third party.
• Avoid building where a WoodSpring, ECHO or Studio 6 Plus serves the same demand at a higher ADR. Microtel's transient economy rate is the ceiling.