405 S Lincoln St
Burlington, CO 80807
Chaparral Motor Inn Burlington · Hospitality Property For Sale · 34,140 SF

Marcus & Millichap's National Hospitality Group (“M&M”), as an exclusive representative of the seller, is pleased to present for sale to qualified investors the Chaparral Motor Inn Burlington, a 39-room, single-story independently-ran exterior corridor hotel (the “Property”). The Property was constructed in 1969 and is located along Highway 385 (i.e. Lincoln Avenue), seconds away from Exit 437 off of I-70 and 15-miles west of the Colorado-Kansas border. The Property is listed at $1,450,000 ($37,179 per room) and offered fee simple, unencumbered by a management contract and debt. The current owner purchased the Property in 2015, when it was in significant disrepair and generating less than $250,000 in revenue. Since then, the current owner has successfully implemented a multi-year capital expenditure and local marketing plan to grow the Property’s brand and establish the Property as a well-known and highly-respected business within the Burlington, CO community. As of October 2020, the Property reported room revenue (net of sales taxes and occupancy taxes) of $495,401 (58.6 percent increase from calendar year 2017 and 6.3 percent increase from calendar year 2019) and net operating income of $283,858 (57.3 percent gross operating profit margin, including a four percent capital replacement reserve). A new owner may capture additional upside as follows: Enhanced Distribution: Implement a diversified distribution strategy via leveraging a central reservation system (“CRS”), which current ownership does not utilize, and partnering with a franchise. Wyndham has expressed interest in placing a Travelodge soft brand on the Property, allowing a new owner to take advantage of both enhanced traffic via Wyndham’s customer loyalty program and the Chaparral Motor Inn brand’s notoriety within Burlington, CO. Economic Opportunity Zone: The Property is positioned in an Opportunity Zone, which allows a new owner in a 1031 exchange to either reduce or eliminate its deferred capital gains tax liability via a step-up in basis (the amount of deferred tax liability reduction is based on both the Prop Property Overview: The Chaparral Motor Inn Burlington is a single-story, exterior corridor hotel built in 1969 that consists of 39-rooms plus a two (2) bedroom apartment that can be used as either a new owner’s living quarters or general manager office space and hot breakfast prep room. Guest rooms are well-equipped with a microwave, refrigerator, work desk, flat-screen television with premium channels, and individual PTAC units. The hotel has received excellent reviews from various travel websites, boasting ratings of 8.8/10 for Hotels.com and 4.0/5 for Trip Advisor. The Property façade is comprised of load-bearing brick, and all gest room and Property plumbing is located within the interior of the Property. Common areas are comprised of the front desk and lobby area as well as the free breakfast area. The Property includes a washer and dryer room with two (2) commercial washing machines, two (2) commercial dryers, and ample shelf space. Additional storage space includes a separate food and beverage storage room that is connected to the lobby as well as storage lockers towards the rear of the free breakfast area. The owner invested over $189,000 in capital expenditures through 2019 that included refurbishing the breakfast area and lobby, replace guest room FF&E, and install a property-wide security system. Through 2020, the owner has continued to improve the Property by replacing guest room FF&E as well as installing a new Property water heater and heating system. Location Overview: Burlington, Colorado is a city located in Kit Carson County in the eastern region of the state, 170 miles east of Denver. The Chaparral Motor Inn Burlington is superbly positioned on S Lincoln Street, between Highway 24 and Interstate 70. With the city’s major employers and popular revenue generators near the property, this sought-after hotel benefits from many key industries of the city which include health care, retail trade, and construction. Safeway (0.5 miles) and Kit Carson County Memorial Hospital (0.9 miles), two of the city’s largest employers, are prime revenue drivers for the surrounding area. Revenue generators in the area, like Burlington Community Center (0.7 miles), Old Town Museum (0.8 miles) and Kit Carson County Carousel (1.3 miles) help bring additional revenue to the hotel through an increase in transient business. The Property is located within an Opportunity Zone, a new community development program established by Congress to encourage long-term investments in low-income urban and rural communities nationwide. The Opportunity Zones program provides a tax incentive for investors to reinvest their unrealized capital gains into Opportunity Funds that are dedicated to investing in Opportunity Zones, designated by the chief executives of every U.S. state and territory. Primary demand for the Property is generated by (a) interstate trucking business, (b) out of town maintenance and service personnel that service local businesses and projects, and (c) visitors of both the local VA hospital and senior care facility. The current owner greatly benefits from the Property’s excellent brand recognition and reputation within Burlington, CO market, as the Property procures a significant amount referrals from various local businesses. Significant local demand drivers and recent investments that directly impact the hotel industry include the following: Kit Carson County Carousel & Fairgrounds – The sixth of 74 carousels manufactured by the Philadelphia Toboggan Company (PTC) between 1904 and 1933, is the only antique carousel in America still having original paint on both the scenery panels and on the animals. It is also the location of the Kit Carson County Fairgrounds, which hosts the annual Kit Carson County Fair and professional rodeo in July. Old Town Museum – The Old Town Museum is a historic site highlighting the local agriculture, history, and heritage of life on the eastern plains. 21 fully restored buildings paint the picture of what life was like with numerous artifacts dating back to the turn of the century. Memorial Day through Labor Day, visitors can witness a reenactment of a western gunfight at high noon. The museum also doubles as a popular wedding venue for the surrounding towns. Xcel Energy and Mortenson 500-MW Wind Power Project – Xcel Energy in Colorado has selected long-time partner Mortenson to construct the Cheyenne Ridge Wind Project, located in Cheyenne and Kit Carson counties, Colorado. Slated for completion in December 2020, the 500-MW wind project will be the second-largest single-phase wind project in the state. Once completed, the hotel market will benefit from both temporary maintenance and service personnel required to monitor and maintain the windmills, new businesses ancillary to the windmill project, and the creation of high-paying professional positions.