Investment Highlights:
Building Attributes: The Choice Hotels International-branded Hotel is a four-story, 128-room extended-stay Hotel that was built in 2008 (poured concrete foundation, load-bearing brick & stucco foundation). and renovated 2020 (the Hotel or Property).
Prominent Market: Prime Location within the City of Westminster, which is part of the Denver-Aurora-Lakewood Metropolitan Statistical Area and equidistant from the exceptional intellectual capital available in Boulder and the growing millennial workforce in the Denver Metro Area. The city has announced its growth plan and roadmap plotting development through 2040 as the submarket continues upward expansion.
Excellent Location: The Hotel’s strategic position within the 80-acre Park Centre Business Park at the intersection of North Mariposa Street and West 120th Avenue (State Highway 128) features:
- High visibility and easy access from both Interstate 25, Colorado’s main north-south thoroughfare, and the Wagon Road Park-N-Ride, Colorado’s third-largest RTD facility.
- Location across the street from the 430,000 square foot Maxar Global Headquarters and the 535,000 square foot Park 12 Hundred Mixed-Use Redevelopment.
- Approximately 11 million square feet of commercial space within a two-mile radius serving a wide variety of industries such as Aerospace, Financial Services, Healthcare & Life Sciences, Technology & Information, Energy & Utilities, and Manufacturing.
- Good access to the Rocky Mountain Metropolitan Airport (6.3 miles) and the Denver International Airport (29.4 miles).
Recently Renovated: The property improvement plan (PIP) was completed in 2020 as part of the Suburban Extended Stay Hotel conversion, the change of ownership PIP is expected to be minimal.
Increased Barriers to Entry: The City of Westminster’s revised 2040 Comprehensive Plan will limit highway-orientated hotel uses to existing properties, severely restricting the opportunity for new competition to enter the market.
Upside Potential:
- Improve Hotel Operations: Currently managed by a national management company that does not operate any other hotels in Colorado, their low cost-high occupancy business model has resulted in an 83.1 percent RevPAR penetration index (trailing 12-months ending September 2021) and their limited local presence has resulted in exceptionally high operating costs. A new owner can increase net operating income by implementing a combination of enhanced revenue management practices, operating expense controls, and payroll management.
- Physical Enhancements: While the Hotel was recently renovated, a new owner will find opportunities to both garner real rate growth and increase room revenue through guest room and common area renovations.
- Favorable Tax Treatment: The Hotel recently received a reduction in real estate taxes due to the average length of stay of Hotel guests, and it is possible to attain additional reductions.
- Re-Branding Opportunities: Enhance brand recognition to increase Hotel penetration in its primary economy market segment and/or higher-rate group and business market segments. Please Contact Listing Agent for Additional Information.
Fee Simple Ownership: The Hotel is offered fee simple, unencumbered by management or debt.
