Discount to Replacement Cost

• Based on current pricing guidance, the asset can be acquired at an attractive discount to replacement cost, at less than $52,500 per key.

• To construct a similar asset with comparable amenities, the estimated all-in investment would be a minimum of $100,000 to $125,000 per key.

Revenue Performance

• The hotel’s year-to-date March 2023 revenue indicates an increase of 120%, compared to the same period in 2022; moreover, its March 2023 trailing-twelve-month (TTM) revenue amounted to $1,509,346.

• The property is priced at 3.48x March 2023 trailing-twelve-month (TTM) revenue.

Ideal Opportunity for Owner/Operator

• The 100-key count is an ideal size for an owner/operator, with the property containing onsite living quarters.

Underperforming Hotel Asset with Operational Upside Potential for a Robust Operator

• The hotel has rebounded from the onset of the COVID-19 pandemic, with its 2022 RevPAR performance increasing 26.9% from the level achieved in 2021. This positive trend is anticipated to continue.

• Based on the December 2022 Monthly STR Trend Report, the hotel registered a year-ending RevPAR penetration level of 64.1%, performing well below its competitors.

• In 2022, the hotel’s RevPAR was $36.47, while the competitive set’s RevPAR was $56.91, showing significant upside for growth. Should the hotel achieve parity in market RevPAR, this would yield a rooms revenue of approximately $2.1 million.

Strong Industrial Presence

• The subject market benefits from a variety of expanding industrial business generators in the area, including:

  • Cargill Meat Solutions: Cargill’s beef processing facility is the largest employer in Morgan County, employing approximately 2,100 people.

  • Western Sugar Cooperative: This team of beet sugar growers employs over 1,000 people with annual sales of approximately $350 million.

  • Xcel Energy: The energy company has proposed plans to expand the state’s electric grid by 550 to 610 miles of transmission lines, including across eastern Colorado, at a cost of $1.7 to $2.0 billion.