WHO'S BUYING THE LION?
|The mystery has yet to be solved: Who’s buying the Red Lion Hotel in Aurora? We’d certainly love to know. But whoever it is, they’re getting a heck of a deal, says one noted local hotel broker. (Our best guess: Col. Mustard buying the hotel, in the bank, with a briefcase full of cash.)|
|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.|