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Hotel-Motel

Quality Inn & Suites Montrose

2751 Commercial Way, Montrose, CO 81401

Listing Price: Request For Offer

Number of Rooms
52
RevPAR
$95
Year Built
2003

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 Quality Inn & Suites Montrose (‘Hotel’ or ‘Property’) located in Montrose, Colorado. The Choice Hotels-branded Hotel is offered on a "call for offers" basis. Please reach out to the listing agent for more information. The Quality Inn & Suites Montrose is a 52-room, three-story Hotel stationed at 2751 Commercial Way in Montrose, Colorado, just off Highway 550. Various common area amenities at the Property include an indoor heated pool, breakfast area, fitness center, meeting space, laundry facility, and business center. Montrose is known for its scenic beauty, with a stunning backdrop of the San Juan Mountains and the Uncompahgre Plateau. The city is surrounded by vast stretches of national forests, rivers, and canyons, making it a popular destination for outdoor enthusiasts. Visitors can enjoy hiking, mountain biking, camping, hunting, fishing, and skiing in the nearby areas. Apart from its natural beauty, Montrose has a thriving cultural and arts scene. The Montrose Center for the Arts hosts various events and exhibits throughout the year, showcasing the work of local and regional artists. Montrose is home to the Montrose Regional Airport, which serves as a gateway to the nearby tourist destinations such as Telluride and Ouray. Montrose has a diverse employment base as Healthcare & Government Assistance, Retail Trade, Accommodation & Food Services, Construction and Manufacturing account for 59.4 percent of total employment; however, the City’s economy has historically relied on manufacturing, specifically outdoor products – the City’s top fly-fishing companies, Ross Reels, Abel, Airflo, and Scott Fly Rods, all have headquarters within the city limits. Due to the City of Montrose's increasing popularity as both a leisure destination and investment market, Hotel RevPAR has experienced notable growth since 2017, with an average annual increase of 25.6 percent. This growth is supported by positive indicators such as a 4.3 percent increase in population since 2019, a 22.3 percent year-over-year increase in home values, ongoing renovations to Montrose Regional Airport, and new commercial investment spurred by Montrose's Envision 2040 Comprehensive Plan. The Colorado Southwest Area hotel submarket has received more attention from investors in the past decade than ever before, as the twelve-month average RevPAR in Colorado has increased 15.5 percent market wide. This is a departure from the previous trend of inventory contraction due to demolition outpacing new construction over the past five years. In 2022, the limited-service Hotel recorded room revenues of nearly $1.8 million and a net operating income of nearly $799 thousand, or 44.2 percent as a percentage of total revenues, after a 4 percent capital replacement reserve. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR from better revenue management, not only benefiting from increased market share but also higher NOI flow-through.

Investment Highlights

  • Three-Story, 52-Room, Choice Hotels-Branded Hotel Situated 4 Miles from Montrose Regional Airport
  • Highly Visible and Easily Accessible from Highway 550
  • 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
  • 2022 RevPAR Penetration Index of 109 Percent and Four-Year RPI Average of 107 Percent (2019-2022)
  • 2022 Room Revenues Nearly Reached $1.8 Million While Maintaining an NOI of nearly $799 Thousand
  • Offered Fee-Simple, Unencumbered by Management Contracts or Existing Debt

Exclusively Listed By

Broker of Record

  • Adam Lewis

    First Vice President/Regional Manager

    (303) 328-2000

    License(s) CO: ER100091205

    Colorado

Financing By

Hotel-Motel

Quality Inn & Suites Montrose

Listing Price: Request For Offer

Number of Rooms
52
RevPAR
$95
Year Built
2003

Investment Highlights

  • Three-Story, 52-Room, Choice Hotels-Branded Hotel Situated 4 Miles from Montrose Regional Airport
  • Highly Visible and Easily Accessible from Highway 550
  • 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
  • 2022 RevPAR Penetration Index of 109 Percent and Four-Year RPI Average of 107 Percent (2019-2022)
  • 2022 Room Revenues Nearly Reached $1.8 Million While Maintaining an NOI of nearly $799 Thousand
  • Offered Fee-Simple, Unencumbered by Management Contracts or Existing Debt

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 Quality Inn & Suites Montrose (‘Hotel’ or ‘Property’) located in Montrose, Colorado. The Choice Hotels-branded Hotel is offered on a "call for offers" basis. Please reach out to the listing agent for more information. The Quality Inn & Suites Montrose is a 52-room, three-story Hotel stationed at 2751 Commercial Way in Montrose, Colorado, just off Highway 550. Various common area amenities at the Property include an indoor heated pool, breakfast area, fitness center, meeting space, laundry facility, and business center. Montrose is known for its scenic beauty, with a stunning backdrop of the San Juan Mountains and the Uncompahgre Plateau. The city is surrounded by vast stretches of national forests, rivers, and canyons, making it a popular destination for outdoor enthusiasts. Visitors can enjoy hiking, mountain biking, camping, hunting, fishing, and skiing in the nearby areas. Apart from its natural beauty, Montrose has a thriving cultural and arts scene. The Montrose Center for the Arts hosts various events and exhibits throughout the year, showcasing the work of local and regional artists. Montrose is home to the Montrose Regional Airport, which serves as a gateway to the nearby tourist destinations such as Telluride and Ouray. Montrose has a diverse employment base as Healthcare & Government Assistance, Retail Trade, Accommodation & Food Services, Construction and Manufacturing account for 59.4 percent of total employment; however, the City’s economy has historically relied on manufacturing, specifically outdoor products – the City’s top fly-fishing companies, Ross Reels, Abel, Airflo, and Scott Fly Rods, all have headquarters within the city limits. Due to the City of Montrose's increasing popularity as both a leisure destination and investment market, Hotel RevPAR has experienced notable growth since 2017, with an average annual increase of 25.6 percent. This growth is supported by positive indicators such as a 4.3 percent increase in population since 2019, a 22.3 percent year-over-year increase in home values, ongoing renovations to Montrose Regional Airport, and new commercial investment spurred by Montrose's Envision 2040 Comprehensive Plan. The Colorado Southwest Area hotel submarket has received more attention from investors in the past decade than ever before, as the twelve-month average RevPAR in Colorado has increased 15.5 percent market wide. This is a departure from the previous trend of inventory contraction due to demolition outpacing new construction over the past five years. In 2022, the limited-service Hotel recorded room revenues of nearly $1.8 million and a net operating income of nearly $799 thousand, or 44.2 percent as a percentage of total revenues, after a 4 percent capital replacement reserve. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR from better revenue management, not only benefiting from increased market share but also higher NOI flow-through.

Exclusively Listed By

Broker of Record

  • Adam Lewis

    First Vice President/Regional Manager

    (303) 328-2000

    License(s): CO: ER100091205

    Colorado

Financing By

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