Colorado Real Estate Journal - December 2, 2015
A Colorado hotel owner-operator purchased two neighboring hotels in Loveland for $6.2 million, according to public records. The Rodeway Inn at 1639 E. Eisenhower Blvd. and Travelodge at 1655 E. Eisenhower sold to 8th Ave Lodging LLC. National Hospitality Services LLC will manage the hotels. The Rodeway is a 48-room hotel that records show sold for $3.4 million, or $70,833 per key. The hotel includes an indoor swimming pool and hot tub. The Travelodge, with 49 rooms, sold for $2.8 million, or $57,143 per key. Both hotels offer complimentary breakfasts to their guests. The hotels received “very good” investor interest from owner-operators and regional investors, according to Michael Dubé, vice president of HREC-Hospitality Real Estate Counselors. “They are the closest in Loveland to Rocky Mountain National Park, so they do great leisure business. They’re really the only two economy hotels in Loveland,” said Dubé, who represented seller Pioneer Hotel Investments with HREC Vice President Jeffrey Duni, and founder and CEO Mike Cahill. “Although it was a long process, everything was handled professionally and efficiently by HREC and we were pleased that the end result was a successful transaction for all involved,” said K.J. Grewal, a principal in Pioneer Hotel Investments. Pioneer is a locally based owner-operator of limited-service hotels in select Front Range markets. Dubé said he couldn’t discuss the sales prices, but said on a per key basis, they were “pretty high for these assets.” That dissuaded some investors who were unfamiliar with the market, but those who are familiar with it saw the value in the pricing, he said. “The Loveland market has experienced tremendous growth in the current economic cycle and is right behind Denver as the second-highest-performing Front Range submarket in terms of RevPAR,” he said. “With the continued increase in Rocky Mountain National Park visitors, these assets are well positioned as the closest economy lodging options outside of Estes Park and should continue their excellent performance with the new ownership group.” “We have been fortunate to work with 8th Ave Lodging LLC in the past and have found them to be excellent owners and partners,” said NHS President Norman Leslie. “We were very pleased to be selected by 8th Ave Lodging LLC to manage the Travelodge and Rodeway in Loveland. Both properties are uniquely positioned to serve travelers to the area with an excellent location off Interstate 25 and Highway 34. We are excited to work as a strategic partner to continue the properties’ success and bring both hotels to their peak performance.”