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 Econo Lodge Cañon City (‘Hotel’ or ‘Property’) located in Cañon City, Colorado. The Choice Hotels-branded Hotel is offered at $3,700,000 or $74,000 per key. The Econo Lodge Cañon City is a 50-room, two-story Hotel stationed at 311 Royal Gorge Boulevard in Cañon City, Colorado, just off U.S. Highway 50. Various common area amenities at the Property include an indoor pool with a hot tub and a breakfast area. Cañon City is located in Colorado, you can experience the wildness of a mid-1800s gold rush town, mixed with notable artistic and cultural attractions for visitors of all ages. The most notable industries in Cañon City include tourism and health care. Of the wide variety of attractions that the city features, one of the more thrilling destinations near the city is the Royal Gorge Bridge, a suspension bridge that’s 956 feet above the Arkansas River. For an adventure closer to the ground, the Hotel is close to white water rafting outfitters that offer trips down the Arkansas River. The area also offers slower-paced activities such as the Royal Gorge Route Railroad for picturesque views of the Rockies and the Fremont Center for the Arts for cultural displays. History buffs will enjoy the nearby Dinosaur Depot and the Museum of Colorado Prisons, and business travelers will appreciate a location that is less than an hour from Colorado Springs. Cañon City is also home to several wineries and vineyards that offer tours and tastings, including the Holy Cross Abbey Winery, the Winery at Holy Cross Abbey, and the Vineyard at Canyon Wind Cellars. While tourism largely drives the city’s economy, another significant employer in Cañon City is the healthcare industry, which includes several hospitals, clinics, and medical practices in the area. Two of the largest employers in Cañon City’s health care industry, St. Thomas More Hospital and the Fremont County Public Health Agency are both located less than two miles from the Property. In the trailing twelve-month period ending in December 2022, the limited-service Hotel recorded room revenues of over $979 thousand and a net operating income just over $347 thousand, or 34.1 percent as a percentage of total revenues, after a four percent capital replacement reserve. As of February, twelve-month average RevPAR in the Colorado Southwest Area hotel submarket was climbing at an annual rate of three percent. A prospective buyer should be able to capitalize on the anticipated increase in RevPAR through better revenue management, not only benefiting from increased market share but also higher NOI flow-through.