- 80-Room, Interior Corridor, Upper Midscale Hotel Built in 2008
- Less than Six Miles from the Rifle Garfield County Airport
- Priced Significantly Below Replacement Cost at $57,500 Per Key
- Well Positioned with Excellent Visibility from Interstate-70
- Located in an Upward Trending Market
Investment Overview:
Marcus & Millichap’s National Hospitality Group, as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Holiday Inn Express & Suites Silt Rifle. The IHG-branded hotel is priced at $4,600,000 or $57,500 price per room; this represents a 3.03 multiple on year-end 2018 room revenues. An established property, constructed in 2008, is located at 1535 River Frontage Road near Interstate-70.
Priced at an attractive 10.75 percent capitalization rate, this three-story, 80-room hotel presents a new owner the opportunity to acquire a well-maintained hospitality asset at a price well below replacement cost. This opportunistic property has substantial upside through effective cost management and modest revenue growth. The hotel is well-equipped with an indoor pool, fitness & business center, and conference space. Operationally, this hotel achieved $1,518,410 in room revenue, resulting in a net operating income of approximately 30.9 percent of overall revenues; this equates to roughly $494,629 before debt service. The hotel has experienced large RevPAR growth upwards of 39 percent since 2015.
There are four years remaining on the current owner’s franchise agreement with IHG. Fifteen-year Holiday Inn Express license will be available to the new owner with completion of Formula Blue PIP. Potential conversion options include Quality Inn & Suites (Choice), Baymont Inn & Suites (Wyndham), and Fairfield Inn & Suites (Marriott).
The property is on a ground lease with the land owned by the City of Silt; terms available for review upon request. Current lease payments are $500/month ($6,000/year). The City maintains the riverfront section of land between the hotel and the Colorado River. Purchase and conveyance of the land along with the hotel is negotiable.
The expenses include provisions for a 3 percent management fee and 4 percent reserves for capital replacement. The hotel is offered fee simple, unencumbered by management and debt.
Property Overview:
The Holiday Inn Express & Suites Silt is an 80-room, three-story hotel built in 2008. Well-equipped with numerous common area and guest room amenities, this limited-service upper midscale hotel offers spacious guest rooms that come furnished with a microwave, refrigerator, work desk, lounge chair, and flat-screen television with premium channels. Additionally, some splendid common area amenities the hotel has to offer consist of an indoor pool, spa tub, fitness center, business center, dry cleaning services, and conference space.
Location Overview:
Silt, Colorado is a city located in Garfield County in the western region of the state, 60 miles east of Grand Junction and 175 miles west of Denver. The Holiday Inn Express & Suites Silt is superbly positioned off Interstate-70, near Highway 6 and 16th street. With the cities major employers and popular revenue generators in close proximity to the property, this sought after hotel benefits from many key industries of the city which include retail trade, healthcare & social assistance, and construction. Colorado Mountain College and Grand River Hospital & Medical Center, two of the cities largest employers located approximately seven miles from the hotel, are prime revenue drivers for the surrounding area. Other major employers that are responsible for a significant portion of the workforce include Alpine Bank (7.4 miles), Wal-Mart (7.9 miles), City Market (8.7 miles), and the Valley View Hospital (20.8 miles). Revenue generators in the area, like Island Park (0.3 miles) and Rifle Garfield County Airport (5.7 miles) help bring additional revenue to the hotel through an increase in transient business. Extra demand drivers for the city include Silt Historical Park (0.9 miles) and the Brenden Rifle 7 Theaters (7.9 miles).
Skyler Cooper
Broker of Record
License: CO FA.100080019
