/ America's #1 Selling Sandwich Franchise / Adora Inn
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the Rio Blanco Herald Times
Phone: (303) 989-2100
Own Two Motels
in Colorado’s busiest Oil & Gas Town
Cap Rate 16.6%
Down Payment $495,000
Cash-on-Cash Return 82.7%
REVENUES (net of sales and lodging taxes)
Current 12 Months
Previous 12 Months
|Budget Host Revenue
|Sandwich Shop Revenue
12 Months and Previous 12 Months end on September 30th.
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
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
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,
Combined Revenues: Ending September 30, 2007, the
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.
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.
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.
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
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
The Budget Host Inn also owns and operates one of America’s
sandwich franchises in a minimally attached building. A reliable staff
member, with the shop since 1998, manages this highly profitable
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
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,
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.
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.
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
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.
SANDWICH FRANCHISE - This
fast-food operation is very successful with motel guests and locals
alike. Minimally attached to the Budget Host Inn’s back
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
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.
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
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.
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.
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.
Chamber of Commerce
River National Forest
Northwestern Community College
Reservoir at Taylor Draw Dam
Horses of Rio Blanco
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.