Hotel-Motel

Chaparral Motor Inn Burlington

405 S Lincoln Ave, Burlington, CO 80807

Listing Price: Request For Offer

Number of Rooms
39
RevPAR
$32
Gross SF
34,140
Year Built
1969

Investment Overview

Marcus & Millichap's National Hospitality Group (M&M), as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Chaparral Motor Inn Burlington; a 39-room, single-story independently-ran exterior corridor hotel constructed in 1969 and located along Highway 385 (the Property), seconds away from Exit 437 off of I-70 and 15-miles west of the Colorado-Kansas border. The Property is being marketed on a call for offers basis and offered fee simple, unencumbered by a management contract and debt.

Upon purchasing the Property in 2015, when the Property was in significant disrepair and generating less than $250,000 in revenue, the current owner implemented a multi-year capital expenditure and local marketing plan to re-establish the Property as a well-known and highly-respected business and brand within the Burlington, CO community. As of December 2019, Property room revenue increased to $465,954 (net of sales taxes and occupancy taxes), representing a 58.6 percent increase in 2017 room revenue and resulting in net operating income of $253,626 (54.4 percent gross operating profit margin, which includes a capital replacement reserve equal to four percent of total revenues). Furthermore, Property YTD Mar-2020 room revenues of $213,541 represent a 109.6% year-over-year increase (see table below).

A new owner may capture additional upside as follows:
Enhanced Distribution: Implement a diversified distribution strategy via leveraging a central reservation system (CRS), which the Property has not operated with under current ownership and securing a brand for the Property. Wyndham has expressed interest in placing a Travelodge soft brand on the Property, allowing a new owner to take advantage of both enhanced traffic via Wyndhams customer loyalty program and the Chaparral Motor Inn brands notoriety within Burlington, CO.

Economic Opportunity Zone: The Property is positioned in an Opportunity Zone, which allows a new owner in a 1031 exchange to either reduce or eliminate its deferred capital gains tax liability via a step-up in basis (deferred tax liability reduction based on both the Property holding period and amount of money reinvested into the Property).

Investment Highlights

  • 39-Room, Exterior Corridor, Independent Hotel
  • Well Positioned with Excellent Visibility from Highway 385
  • Strong In-Place Operations; Above 54 Percent Net Operating Income
  • Over 50 Percent RevPAR Growth Since 2017
  • Located Within an Opportunity Zone

Exclusively Listed By

Hotel-Motel

Chaparral Motor Inn Burlington

Listing Price: Request For Offer

Number of Rooms
39
RevPAR
$32
Gross SF
34,140
Year Built
1969

Investment Highlights

  • 39-Room, Exterior Corridor, Independent Hotel
  • Well Positioned with Excellent Visibility from Highway 385
  • Strong In-Place Operations; Above 54 Percent Net Operating Income
  • Over 50 Percent RevPAR Growth Since 2017
  • Located Within an Opportunity Zone

Investment Overview

Marcus & Millichap's National Hospitality Group (M&M), as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Chaparral Motor Inn Burlington; a 39-room, single-story independently-ran exterior corridor hotel constructed in 1969 and located along Highway 385 (the Property), seconds away from Exit 437 off of I-70 and 15-miles west of the Colorado-Kansas border. The Property is being marketed on a call for offers basis and offered fee simple, unencumbered by a management contract and debt.

Upon purchasing the Property in 2015, when the Property was in significant disrepair and generating less than $250,000 in revenue, the current owner implemented a multi-year capital expenditure and local marketing plan to re-establish the Property as a well-known and highly-respected business and brand within the Burlington, CO community. As of December 2019, Property room revenue increased to $465,954 (net of sales taxes and occupancy taxes), representing a 58.6 percent increase in 2017 room revenue and resulting in net operating income of $253,626 (54.4 percent gross operating profit margin, which includes a capital replacement reserve equal to four percent of total revenues). Furthermore, Property YTD Mar-2020 room revenues of $213,541 represent a 109.6% year-over-year increase (see table below).

A new owner may capture additional upside as follows:
Enhanced Distribution: Implement a diversified distribution strategy via leveraging a central reservation system (CRS), which the Property has not operated with under current ownership and securing a brand for the Property. Wyndham has expressed interest in placing a Travelodge soft brand on the Property, allowing a new owner to take advantage of both enhanced traffic via Wyndhams customer loyalty program and the Chaparral Motor Inn brands notoriety within Burlington, CO.

Economic Opportunity Zone: The Property is positioned in an Opportunity Zone, which allows a new owner in a 1031 exchange to either reduce or eliminate its deferred capital gains tax liability via a step-up in basis (deferred tax liability reduction based on both the Property holding period and amount of money reinvested into the Property).

Exclusively Listed By

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