Home | Hotel/Motel Listings  | About the Company | Our Team | Recent Sales | Newsletter | Contact Us

Motels for Sale Colorado

Budget Host / America's #1 Selling Sandwich Franchise / Adora Inn
Rangely, CO Click for Rangely, Colorado Forecast

Motels for Sale Colorado

Broker: Erich Ehrenstrasser
Phone: (303) 989-2100

View Map | Download Brochure (Requires Adobe Reader) | Article from the Rio Blanco Herald Times

Own Two Motels
in Colorado’s busiest Oil & Gas Town


Asking Price: $4,950,000                                             Cap Rate 16.6%
Down Payment $495,000                       Cash-on-Cash Return 82.7%

PROPERTY REVENUES (net of sales and lodging taxes)
Year/Months
Current 12 Months
Previous 12 Months
2006
2005
2004
2003
Budget Host Revenue
$ 649,026
$ 533,185    
$ 583,662
$ 418,230
$ 288,195
$ 295,928
Sandwich Shop Revenue
$ 454,295
$ 336,892
$ 356,786
$ 288,010
$ 234,215
$ 205,371
Adora Inn
$ 500,024
$ 386,898
$ 423,083
$ 279,228
$ 270,809
$ 277,829
Combined Revenue
$ 1,603,345
$ 1,256,975
$ 1,363,531
$ 985,468
$ 793,219
$ 779,126

Current 12 Months and Previous 12 Months end on September 30th.

PROPERTY FINANCIAL INFORMATION

PROPERTY FINANCIAL INFORMATION
Budget Host Inn:
Continuing guestroom renovation, new construction of guest-laundry, and owners use during the construction of new living quarters, allowed only 32-rooms of 37 available for guests during 2006. On June 15th, 2007, the quoted Rack Rate was increased to $69.00 for a single, with additional people being $10.00 each. Ending September 30, 2007, the current 12-Month Revenue of $649,026.00 is $115,840.00 (21.7%) ahead over the same 12-month period ending September 30, 2006, with $533,185.00.

#1 Sandwich Franchise:
Ending September 30, 2007, the current 12-Month Revenue of $454,403.00 is $117,403.00 (34.8%) ahead over the same 12-month period ending September 30, 2006, with $336,892.00.

Adora Inn:
Renovation of guestrooms, manager living quarters, and new guest-laundry facilities, made only 29-rooms of 32 available for guests-rental during 2006. Quoted Rack Rates were increased sensibly since October 2004 from a low of $39.00. Since June 15th, 2007, the quoted Rack Rate of $69.00 (additional people $10.00 each), is equal to its sister motel, the Budget Host Inn. Ending September 30, 2007, the current 12-Month Revenue of $500,024.00 is $113,126.00 (29.2%) ahead over the same 12-month period ending September 30, 2006, with $386,898.00.

Combined Revenues:
Ending September 30, 2007, the combined 12-month Revenues were $1,603,345.00, $346,370.00 (27.5%) ahead over the same 12-month period ending September 30, 2006 ($1,256,975.00). This significant increase was accomplished with some guestrooms still undergoing renovation or otherwise used.


TERMS & CONDITIONS: IRS Tax Returns and Financial Statements are available to qualified Buyers after a pre-arranged showing. All stated Revenue Amounts are Net of Sales & Lodging Taxes. The three businesses offered in this Sales presentation are not available individually. An SBA-assisted 504-loan, requiring a Ten Percent (10%) down payment in verifiable Buyer-cash will be available to qualified Buyers and arranged through Anton Hospitality. Other possibilities include Conventional Financing with a down payment in verifiable Buyer-cash of 35% to 40%, or via Buyers own lending sources.

FINANCIAL UPSIDE: The Budget Host Inn and the Adora Inn are currently the only true motels in Rangely, Colorado, and within a radius of 60 miles. With consistent high occupancy rates in place, a savvy Buyer would raise room rates sensibly from a current $69.00 to $89.00 and net a revenue increase of approximately $450,000.00 without elevating expenses.

Contrary to some belief, low occupancies do NOT offer greater financial opportunities. Boosting occupancy rate is very expensive and usually - quite impossible! With high occupancy already in place it may not cost anything to carefully raise Room Rates and achieve greatly enhanced Profits.

With these two motels’ 2006 and year-to-date 2007 Occupancy Rates remaining steadily above 80%, even closer to 90%, their Room Rates are severely below what the lodging industry in general would charge. For when annual Occupancy Rates exceed 70%, it is standard procedure to increase rates, and as dramatic as an additional $20.00 rate hike may seem, since there are no other motel rooms available within a 60-mile radius (Vernal, UT, and Meeker, CO), it would be quite normal in the hotel business at large. Since June 15th the quoted rate is $69.00 (Rack Rate) for single occupancy, plus $10.00 for each additional person.

The Budget Host Inn also owns and operates one of America’s #1 sandwich franchises in a minimally attached building. A reliable staff member, with the shop since 1998, manages this highly profitable operation.

Ending August 31, 2007, the combined 12-month Revenues were $1,590,808, $376,811 ahead over the same 12-month period ending August 31, 2006 ($1,213,997). This significant increase was accomplished with some guestrooms still undergoing renovation or otherwise used.

Rangely does have one additional 6-room bed & breakfast-type property, which rents rooms only by the week or month. Furthermore, with the town being in the center of the Rocky Mountain States largest oil & gas production area, a new 51-room motel with rates to be above $100.00 per night, is to be completed in the spring of 2008. Considering the high occupancies of the subject motels, the high number of turned-down reservations and the equally high number of people seeking rooms sent away every day, the new motel is not considered a detriment regarding occupancy or room rates. It will make this busy town only busier.

By example, there are more than 400 workers staying temporarily in motor homes, cars, even tents in some cases, all in fields rented from local farmers or nearby public lands. All of these people make upwards of $65.00 per hour, and their employing oil & gas firms would pay for each to stay in motel rooms.

It should be known that the subject Adora Inn also has city-approved plans for eight to ten more guestrooms, with some of the foundation already in place.

LOCATION - Rangely, Colorado, is located at or near the center of Piceance Basin, which holds a verified world-record of 800-billion barrels of recoverable natural crude oil and an immense wealth of natural gas. The subject motels’ location within Rangely is absolute prime. Colorado Highway 64 is not only an attractive scenic road it is also the town’s main thoroughfare. The same operator owns both motels, just one block apart and across the street from each other. Both are in truly 1st Class condition. While this is not an emergency-sale at all, owners desire to sell is caused by a health issue.

PRIMARY CORPORATE GUESTS consist not only of Chevron, Exxon/Mobil, and Shell, but also their manifold well-heeled sub-contractors like Pioneer Natural Resources, Nautilus (Geology), Basic Energy, Elenburg Exploration, United Companies (Drilling), Pro-Technics, Colorado Division of Wildlife, Superior Well Service, the Rangely Regional Hospital, etc.

BUDGET HOST IMPROVEMENTS: 37-guestrooms in two 2-story buildings, with ten of the rooms newly opened in June 2004. The original 27-guestrooms, constructed in 1981, were upgraded to the new-room standards during 2005 and 2006. Heating and cooling is provided via individual HVAC units, and state-of-the-art telephone service, high-speed Internet, coffeemakers, refrigerators, microwaves ovens, flat-screen TV’s, and quality furnishings are installed. The motel features an attractive front lobby with reception desk, and a back office with kitchen and full bath. A profitable guest laundry, commercial motel laundry, and many other amenities are part of this truly successful lodging operation. Its concrete-paved parking lot is in superb condition.

AMERICA'S #1 SANDWICH FRANCHISE - This fast-food operation is very successful with motel guests and locals alike. Minimally attached to the Budget Host Inn’s back office, it is located on the prominent corner of Grand Street and Colorado Highway 64. Staffed by residents and students of the local Northwestern Community College, it serves a limited breakfast menu, as well as submarine sandwiches, salads and soups for lunch and supper.

BRAND NEW LUXURIOUS OWNER QUARTERS were completed in the late fall of 2006 and occupied in early 2007. Expertly designed, it features a fabulous, wide-open living room, dining room, a wonderful open kitchen with marble-flooring and state-of-the-art amenities, a large master bedroom with an exceptionally large walk-in closet, a magnificent master-bath with double Jacuzzi-tub, a separate, glass enclosed shower with multiple shower-heads, all marble-tiled; a second bathroom, and a private laundry room. A brand-new attached, oversized 2-car garage is in place.

All facilities are in superior condition and situated on approximately 1-acre (+/-) land. An adjacent acre (+/-) of land is available from a different owner for needed guestroom additions.

ADORA INN IMPROVEMENTS: 32-guestrooms in an L-shaped 2-story building constructed and opened in February of 1994. In 2006 the entire exterior and interior of the motel were repainted, and bathrooms and vanity areas were tiled in lieu of prior linoleum flooring. Heating and cooling is provided via individual HVAC units. State-of-the-art telephone service, new high-speed Internet, coffeemakers, refrigerators, and microwave ovens were installed in all rooms. A separate building contains the motel reception desk and newly remodeled 2-bedroom/2-bath managers living quarters with a large living room, nice kitchen, and private laundry room. All facilities are in great condition and city utilities are in place. Land area, consisting of approx. 1.81-acres (+/-), is landscaped with mature trees and shrubs. Concrete parking lot is in excellent condition; township-approved plans for the addition of eight to ten additional guestrooms have certain foundations already in place.

ATTRACTIONS: Rangely, a very nice and peaceful, yet highly active town is situated in beautiful northwestern Rio Blanco County (Population about 7,500). Shopping, restaurants, golf, abundant sightseeing, and a municipal airport with a renowned flight school are available. Dinosaur National Monument is located about 20-miles to the northwest, Vernal, UT, about 60-miles northwest, Grand Junction (pop. 35,000) approximately 90-miles to the south, Salt Lake City 225-miles west, and Denver, about 280-miles to the southeast. At an elevation of 5,297 feet, the area offers superb hunting, great fishing, rafting and boating on crystal-clear rivers and scenic lakes.

There are herds of pronghorn antelope, deer, elk, and wild horses, and miles of scenic adventure roads, bike paths, and hiking trails through high desert plateaus, canyons, and mountains. An Outdoor Museum chronicles area history, while a recreation center with indoor swimming pool, tennis courts, and racquetball courts stays busy.

COLORADO NORTHWESTERN COMMUNITY COLLEGE has an enrollment of approximately 600 students. Its curriculum includes a superior flight school that utilizes the municipal airport for flight training. Regular contingents of US Air Force Academy Cadets are amongst its students. The respected 2-year school offers a fine academic menu, a variety of summer camps and conferences, and a special climbing gym to learn basic and advanced mountain climbing skills.

WEBSITES OF INTEREST:

Rangely Chamber of Commerce
White River National Forest
Dinosaur National Monument
Colorado Northwestern Community College
Kenney Reservoir at Taylor Draw Dam
Rock Crawling
Canyon Pintado
Wild Horses of Rio Blanco

Information herein has been obtained from what are believed to be reliable sources, however, Anton Hospitality Brokers, Inc., cannot guarantee its accuracy. References and information contained herein are approximate only and are subject to changes and errors. Assumptions are based on professional management and marketing of the property and future operating results will vary depending on ownership. Buyers must conduct their own investigation and due diligence and consultation with a professional financial advisor is highly recommended. Price is subject to change without notice.




Home | Hotel/Motel Listings  | About the Company | Our Team | Recent Sales | Newsletter | Contact Us

Anton Hospitality Brokers, Inc., 2750 S. Wadsworth Blvd. #C-111, Denver, CO 80227
Phone (303) 989-2100     Toll Free (888) 437-2121     Fax (303) 914-8400     info@antonhospitality.com

Sitemap