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Hotel-Motel

Days Inn by Wyndham Montrose

1417 E Main St, Montrose, CO 81401

Listing Price: $6,825,000

Cap Rate
9.15%
Number of Rooms
70
RevPAR
$65
Price/Room
$97,500
RRM
4.10
Year Built
1970

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the 2-story, 70-room Days Inn hotel in Montrose, CO (‘Hotel’ or ‘Property’). The Hotel is offered at $6,825,000 and presents investors with the opportunity to acquire a hotel with strong in-place cash flow, operational upside, and minimal PIP at transfer. Since 2017, while under absentee ownership, Hotel RevPAR and ADR have grown at an average annual rate of 25.6 percent and 4.0 percent, respectively, due to the tremendous growth that the City of Montrose has experienced as its prominence as both a premier leisure destination and attractive investment market continues to increase. Montrose’s increasing population (4.3 percent increase since 2019), rising home values (22.3 percent year-over-year increase), the Montrose Regional Airport’s ongoing $40 million renovations, and new commercial investment spurred by Montrose’s Envision 2040 Comprehensive Plan (non-hotel commercial supply increased by 11.5 percent since 2019) are all positive indicators for the City’s long-term outlook. The Hotel is a limited-service, exterior corridor hotel with guest amenities such as laundry facilities, an outdoor pool with barbeque grills, a business center, and parking for buses, trucks, and RVs. The Hotel is well-located along Main Street (Highway 50) only 1.2 miles from Montrose Regional Airport (nine direct flights including Denver, Los Angeles, Dallas/Fort Worth, and Phoenix) and within an Opportunity Zone, which provides 1031 exchange investors tax incentives to defer, reduce and potentially eliminate their unrealized capital gains.

Investment Highlights

  • Absentee Ownership Provides Operational Upside for Hands-On Operators
  • Highly Visible and Easily Accessible from Highway 50 (Main Street) and 550 (San Juan Avenue)
  • Surrounded by Nationally Acclaimed Retailers, Restaurants, and Entertainment Amenities
  • Multitude of Business Headquarters Including Ross Reels, Abel Reels, Airflo USA, Scott Fly Rods, Avient-Gordon Composites, and Colorado Yurt Company
  • 2021 RevPAR Penetration Index of 117 Percent and Three-Year RPI Average of 116 Percent (2019-2021)

Exclusively Listed By

Financing By

Hotel-Motel

Days Inn by Wyndham Montrose

Listing Price: $6,825,000

Cap Rate
9.15%
Number of Rooms
70
RevPAR
$65
Price/Room
$97,500
RRM
4.10
Year Built
1970

Investment Highlights

  • Absentee Ownership Provides Operational Upside for Hands-On Operators
  • Highly Visible and Easily Accessible from Highway 50 (Main Street) and 550 (San Juan Avenue)
  • Surrounded by Nationally Acclaimed Retailers, Restaurants, and Entertainment Amenities
  • Multitude of Business Headquarters Including Ross Reels, Abel Reels, Airflo USA, Scott Fly Rods, Avient-Gordon Composites, and Colorado Yurt Company
  • 2021 RevPAR Penetration Index of 117 Percent and Three-Year RPI Average of 116 Percent (2019-2021)

Investment Overview

As the exclusive representative of the seller, Marcus & Millichap's National Hospitality Division is pleased to present for sale to qualified investors the 2-story, 70-room Days Inn hotel in Montrose, CO (‘Hotel’ or ‘Property’). The Hotel is offered at $6,825,000 and presents investors with the opportunity to acquire a hotel with strong in-place cash flow, operational upside, and minimal PIP at transfer. Since 2017, while under absentee ownership, Hotel RevPAR and ADR have grown at an average annual rate of 25.6 percent and 4.0 percent, respectively, due to the tremendous growth that the City of Montrose has experienced as its prominence as both a premier leisure destination and attractive investment market continues to increase. Montrose’s increasing population (4.3 percent increase since 2019), rising home values (22.3 percent year-over-year increase), the Montrose Regional Airport’s ongoing $40 million renovations, and new commercial investment spurred by Montrose’s Envision 2040 Comprehensive Plan (non-hotel commercial supply increased by 11.5 percent since 2019) are all positive indicators for the City’s long-term outlook. The Hotel is a limited-service, exterior corridor hotel with guest amenities such as laundry facilities, an outdoor pool with barbeque grills, a business center, and parking for buses, trucks, and RVs. The Hotel is well-located along Main Street (Highway 50) only 1.2 miles from Montrose Regional Airport (nine direct flights including Denver, Los Angeles, Dallas/Fort Worth, and Phoenix) and within an Opportunity Zone, which provides 1031 exchange investors tax incentives to defer, reduce and potentially eliminate their unrealized capital gains.

Exclusively Listed By

Financing By

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