FINANCIAL UPSIDE: With 9-guestrooms and seven (7) brand-new, fully equipped cottages, ‘The Guest’, cottage motel is located at the east-entrance to Rangely, the center of Colorado’s Oil and Natural Gas exploration and production region.

At this time Rangely’s lodging inventory consists of 86-rooms/cottages in three lodging properties: the Budget Host Inn with 37-rooms, the Adora Inn with 32-rooms, the Subject Property’s 16-units, plus 27 operational guestrooms in the Blue Mountain Inn, which has another 23 rooms that are apparently mired in permit issues, and other derogatory matters. The completion and operational use on these rooms has been suspended for time being.

A savvy Buyer of the Subject Property would keep precise track of the local motel room rates, and adjust its own weekly rates accordingly, yet sensibly, along with the competition. The two motels in town currently (August 2008) quote $109.00 per room-night for two people, plus sales & lodging tax of 8.419% ($9.18). Quite factually, many, if not most, lodging residents are employees and executives of Exxon, Chevron, Shell, etc., and their sub-contractors, return week after week. The Subject Property’s equivalent to a daily rate equals approximately $46.43 for a guestroom or new cottage of equal or better quality. The Blue Mountain Inn is asking $150.00 plus tax per night.

Considering the nearly 100% occupancy in place, any rent increase at the Subject Property won’t cause an expense elevation whatsoever, and there are no other competitive lodging facilities within a radius of 60-miles (Vernal, UT, and Meeker, CO).

While some potential Buyers, new to the industry, may be in the belief that low occupancies offer greater financial opportunities, it is indeed the very Opposite. While with a high occupancy already in place, it may not cost anything to sensibly raise Room Rates and achieve greatly enhanced Profits, boosting occupancy rate is usually very expensive and almost always - quite impossible!

As in any active town, much residential construction is taking place in Rangely, and of the 113-guestroom total, even if the additional 23-rooms at the Blue mountain Inn open anytime soon, it is highly unlikely to cause any occupancy reduction for the original lodging facilities whatsoever. Considering the high occupancies of the subject motels, the high number of reservations they still turn down, and the potential guests being sent away every night, 23-rooms more or less will be no detriment at all - it will make the busy town only busier.

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 contained in shale rock, this region also holds an immense wealth of natural gas and crude oil in liquid form. While Chevron has been active in town since 1931, and most other oil and gas conglomerates having been around for more than twenty-years too, in the last few years each has brought more and more staff and executives to town.

The Subject Property’s location within Rangely is absolute prime. Colorado Highway 64 is not only an attractive, designated ‘scenic’ road, it is also the town’s main thoroughfare. With the fully equipped cabins being new, the property is in truly 1st Class condition. With the selling family’s ownership in place since 1962, this is not an emergency-sale at all. The planned sale is caused by a desire to retire.

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.

TERMS & CONDITIONS: Cash; commercial financing; or SBA-guaranteed 7a-loan, requiring a Twenty Five Percent (25%) down payment in verifiable Buyer-cash, will be available to qualified Buyers.

PROPERTY IMPROVEMENTS: 9-guestrooms in a fully upgraded 2-story building (1962), plus seven (7) new Cottages, fully equipped with full baths, refrigerators and microwaves opened in late 2006. One cottage, larger than the others, also features the property’s office and laundry facility. Heating and cooling is provided via individual HVAC units, and state-of-the-art telephone service, high-speed Internet, coffeemakers, refrigerators, microwaves ovens, TV’s, and quality furnishings are in place. A profitable guest laundry is also part of this successful lodging operation.

The facilities are in great condition and are situated on approximately 34,280 square feet (+/-) of land, and its mature trees provide shaded parking to residents. Adjacent land may be available for expansion.

FINANCIAL INFORMATION: IRS Tax Returns and Year-End Financial Statements will be available to qualified Buyers after a pre-arranged showing by appointment. Current Rental Rates are attached.

CURRENT ANNUALIZED REVENUES:
Approximately $277,000.00

2007 EXPENSES: Advertising $2,218; Car/Truck Expenses $3,474; Hazard & Liability Insurance $3,431;Contract Labor (Housekeeping) $8,660; Office Expense $2,806; Repair & Maintenance $12,219; Supplies $8,241; Property Taxes $3,979; Utilities $18,058; Other Expenses (including personal) $10,095; Cleaning & Laundry $2,271; and Towels & Sheets $6,435.

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
http://en.wikipedia.org/wiki/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.