Texas Investor Scores Value-Add
Some people search for Bigfoot (yes, there really is an org called Sasquatch Investigations of the Rockies), while others seek real estate opportunities in the mountains. Dallas-based Gault Co partner Roger Gault tells us that he's found a value-add near Denver, and believes the market is strong enough to offer other such possibilities.
Recently, the Dallas-based Gault Co and RTG Capital acquired the 64-room Pinnacle Lodge Hotel in Winter Park for an undisclosed price. The new owners will do about $2M in upgrades and rebrand it a Holiday Inn Express. Denver-based Mars Hospitality, which is also a partner in the project, will manage the property. The rehab, Roger says, will essentially transform the asset into a new hotel. Gault's foray into Colorado represents an expansion for the company; most of its deals have been developments in Texas and Hawaii. (Roger’s snapped near some mountains, but in this case, it was during a recent trip to Morocco.)
It was an opportunistic buy, Roger says, and the timing was right, because the travel market is on the up. The turnaround makes value-adds in the Colorado hospitality a profitable possibility. “We’ve seen values improve in the mountain market and Denver, just in the last six to 12 months," he says. "If we see other opportunities like this, we’ll pursue them.” He adds that having a branded hotel in Winter Park is boon, too.