Denver Leads the Hotel Boom
The Denver boom includes hotels too. "The entire Denver metropolitan area is a bright spot on the radar for hotel investors throughout North America," HREC Investment Advisors CEO Mike Cahill tells us.
That's because equity loves the sound fundamentals of the growing and diversified local economy, and the related solid hotel fundamentals, Mike adds. STR reports that compared with March 2014, RevPAR for Denver hotels is up this month a whopping 31.1% to $89.29, the largest annual increase in the country for that important hospitality metric (only Chicago and Atlanta came close, with increases in the low 20s). Occupancies in greater Denver stand at a healthy 78.5%.
Mike says the boom is being fueled in all hotel sectors by business travelers, meetings and conventions, and leisure guests, all of which are showing positive growth trends. "Overall, the next 12 to 24 months will be bright for Denver lodging,” he predicts. Recently, Mike brokered the sale of the 122-room Hampton Inn at the Denver International Airport, along with colleague Jaimin Patel in Tampa, to an undisclosed investor.
In a separate deal, Oliver Cos acquired the 118-room Hampton Inn & Suites Denver/Highlands Ranch in Littleton for over $16M. “Highlands Ranch is a strong emerging market that made this young hotel an attractive investment,” says Hunter Hotel Advisors VP Brian Embree. Based in Hunter’s L.A. office, Brian brokered the deal. Developed only four years ago, the six-story hotel attracts both leisure and business travelers, he says.