| Red Lion Hotel has sold off its Aurora property to Pandey Hotel Corp, a division of New Zealand based CP Group, for $13M. The sale was brokered by CBRE’s Chris Burdett. The much-watched Red Lion was just the latest in a very heated hotel investment market in Denver, says JLL’s Greg Hartmann. In the past 18 months, investors have flooded the Denver and Colorado markets for hotel product, driving caps to a 7% to 8% cap range. And this is under the umbrella of improving RevPAR, even though Greg predicts that will soften next year due to less conventions and accelerate again in 2014. “Definitely there’s more things to sell,” he says. | |
| In the meantime, JLL has been tasked to sell Loews Hotel Denver (above), Greg says. It’s part of an effort to capitalize on investors chasing yield in Denver and similar markets—outside gateway cities that are economically healthy. Greg says Denver had been largely ignored by the capital markets investing in hotels until the past year. “That’s why we’re seeing the transactions now,” he says. |
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