Hotel-Motel

Rodeway Inn

3015 8th Ave, Evans, CO 80620

Listing Price: $5,200,000

Cap Rate
6.93%
Number of Rooms
91
RevPAR
$35
Gross SF
26,676
Price/Room
$57,143
RRM
4.19
Price/Gross SF
$194.93
Year Built
1981

Investment Overview

This 96 room Rodeway Inn is located at the junction of Highway 34 and 85 - great location!

Hotel has averaged an Occupancy of about 74% over the past 3 years.
Even in the COVID 19 pandemic, the Occupancy for the first four months of 2020 was over 65%!

Hotel has a very high Net Operating Margin of 47.6% over the past three years (2017, 2018, and 2019).
I have reduced the NOI margin in the Five Year Pro Forma down to under 40% for marketing purposes.
However, the current Owner tells me a new Owner can continue to operate at these higher NOI margins due to many weekly / Monthly guests.
This keeps costs down, since there is less check-in/check-out in the rooms.

The hotel has been run by a 3rd part Management Company.

Greeley MSA ranks No. 3 nationwide for one-year population growth rate.
Development follows population growth and this generates more demand drivers for businesses like hotels.

Investment Highlights

  • 96 Room Exterior Corridor Hotel
  • High Net Operating Income (NOI) due to many weekly / monthly guests
  • At junction of Highway 34 and 85
  • 63 new bed frames and mattresses
  • Air Conditioning system replaced for over $135,000
  • Boiler replaced for $30,000 and newer / faster WiFi system installed

Exclusively Listed By

Listing Price: $5,200,000

Cap Rate
6.93%
Number of Rooms
91
RevPAR
$35
Gross SF
26,676
Price/Room
$57,143
RRM
4.19
Price/Gross SF
$194.93
Year Built
1981

Investment Highlights

  • 96 Room Exterior Corridor Hotel
  • High Net Operating Income (NOI) due to many weekly / monthly guests
  • At junction of Highway 34 and 85
  • 63 new bed frames and mattresses
  • Air Conditioning system replaced for over $135,000
  • Boiler replaced for $30,000 and newer / faster WiFi system installed

Investment Overview

This 96 room Rodeway Inn is located at the junction of Highway 34 and 85 - great location!

Hotel has averaged an Occupancy of about 74% over the past 3 years.
Even in the COVID 19 pandemic, the Occupancy for the first four months of 2020 was over 65%!

Hotel has a very high Net Operating Margin of 47.6% over the past three years (2017, 2018, and 2019).
I have reduced the NOI margin in the Five Year Pro Forma down to under 40% for marketing purposes.
However, the current Owner tells me a new Owner can continue to operate at these higher NOI margins due to many weekly / Monthly guests.
This keeps costs down, since there is less check-in/check-out in the rooms.

The hotel has been run by a 3rd part Management Company.

Greeley MSA ranks No. 3 nationwide for one-year population growth rate.
Development follows population growth and this generates more demand drivers for businesses like hotels.

Exclusively Listed By

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