|We spoke with Hospitality Industry Brokerage's Paul Cascio, who says he was “surprised” by the cost-per-room on the pending sale. Earlier this month, Red Lion announced that it was under contract to sell its 478-key hotel for $13M, a little more than $27k/room. Given the healthy Denver hospitality market “that’s extremely low,” Paul says. And it’s probably an indicator that whoever is buying the Red Lion plans to pump a lot of capital into
renovations, especially since the hotel still has a ton of potential
(if only it had applied itself more in continental breakfast school).
Red Lion states it's selling the hotel because it's a non-core asset,
and Paul says the "Red Lion brand has been weak in this area with many changes over the years." We’ll keep you posted.|