- 69-Room, Interior Corridor, Midscale Hotel Built in 2008
- Located Within the Fort Collins MSA – Third Largest in Colorado
- Outperforming the Market with 113% RevPAR Index
- Ability for New Owner Decrease Departmental Expenses, Increasing EBITDA
- Eight Miles from UC Health Medical Center of the Rockies and the Outlets at Loveland
Marcus & Millichap's National Hospitality Group, as the exclusive representative of the seller, is pleased to present for sale to qualified investors the La Quinta Inn & Suites Loveland, a three-story, 69-room upper midscale hotel that was built in 2008 (the “Property”) and is located within the third largest MSA in Colorado, the Fort Collins MSA. The Property’s fee simple interest is being offered on a call-for-offers basis, unencumbered by a management contract or debt; however, the Property is currently encumbered by assumable debt, affording qualified buyers a financing option during a time when new hotel financing opportunities are limited.
This three-story, 69-room hotel presents a new investor the chance to acquire a well-maintained asset within a major MSA near a diverse set of transient, group and business demand drivers. The franchise’s change-of-ownership PIP is expected to be minimal as the current owner completed all PIP requirements per the existing franchise agreement in 2019. Property upside potential includes franchise conversion opportunities now or in the future given the quality of the asset, overperformance relative to its competitive set (RevPAR penetration of 106 percent for FYE 2019 and 113 percent for TTM Aug-2020) and favorable liquidated damages given current market conditions. Major franchise companies with licenses available in the market include Hilton (Tru, HomeWood Suites, Home2Suties, Hilton Garden Inn), Best Western, and IHG. Additional upside through increasing the EBITDA margin is also possible, as a deeper look into departmental expenses will show current inefficiencies in operations.
Popularly known as the Sweetheart City, Loveland emits an abundance of economic drivers that directly impact hospitality market. Home to the Benson Sculpture Garden, the largest sculpture gardens in the country, and the Budweiser Event Center, Loveland’s regional and national attractions draw a large number of tourists to the area. Business demand is generated by major employers in the area such as Anheuser Busch, Otter Products, and Colorado State University, with excellent shopping and restaurant options for visitors such as The Foundry at downtown Loveland, the Outlets at Loveland, and The Promenade Shops at Centerra just a short drive away.
The La Quinta Inn & Suites Loveland is a 69-room, three-story, interior corridor hotel built in 2008 and comprised of approximately 41,000 gross square feet. 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, and 47” flat-screen television. Common area amenities include an indoor pool, fitness center, 24-hour business center, meeting room, guest laundry, and dry-cleaning services, and the Bright Sight Marketplace.
The La Quinta by Wyndham contemporary-inspired upper-midscale brand has 928 hotels in the United States, Canada, and Latin America as of December 31, 2019, and has another 250 hotel in the pipeline. Located in 24 out of the 25 top markets, La Quinta’s has been strengthening its brand awareness since 1968 and established its global footprint with business and leisure travelers, alike.
Loveland, Colorado is a city located in Larimer County just 50 miles north of Denver and located within 20-miles to major Norther Colorado markets such as Longmont, Greeley and Fort Collins. The La Quinta Inn & Suites Loveland is superbly positioned at the corner of Cascade Avenue and Highway 34, which sees daily traffic counts of 16,000 vehicles per day. With unobstructed views of Rocky Mountain National Park, the Property has been a popular destination for weddings and other group events, even through COVID-19. Notably, the Property is the closest franchised hotel to Rocky Mountain National Park in the Loveland market and therefore best-positioned to capture this demand.
Loveland, Colorado has seen tremendous growth over the last decade, experiencing a 16.2 percent increase in population since 2010 that outpaces population growth for both Colorado (14.5 percent) and the United States (6.1 percent) over the same period. This expansion is expected to continue with the announcement of various new projects within the Property’s immediate area, including a 900-home master plan community just 5-miles north of the Property, a 35-home PUD adjacent to the Property, a 78,000 square foot senior assisted living facility in Centerra that can accommodate as many as 114 residents, the 22,000 square foot expansion of the Van Buren Elementary School, and the 61,000 square foot development of the Thompson Career Center and new Ferguson High School campus on the Van Buren Elementary School site.
While prospective buyers are strongly encouraged to visit the subject property prior to submitting an offer, all inquiries regarding property tours must be directed to the Marcus & Millichap listing agents. Under no circumstances should any prospective buyers contact either the subject property’s owner, owner’s affiliates or employees of either the owner or owner’s affiliates at any time for any reason without prior written consent from the Marcus & Millichap listing agents