Lakewood, CO – CBRE Hotels, on behalf of a joint venture between Sage Hospitality and Whitman Peterson, arranged the sale of the Residence Inn & Courtyard Denver/Southwest Lakewood, Colorado. The two hotels were sold to a northeast-based private equity firm along with Louisville, Kentucky-based Schulte Hospitality Group for an undisclosed price. Schulte Hospitality Group will operate the hotels going forward.
Mr. Kaplan commented, “The Denver economy is among the strongest in the nation, and the local hotel market continues to benefit from solid lodging demand growth. Throughout the last several years, we have seen strong investor demand for hotel product in the Denver metropolitan area.”
Kaplan and Darrington said this sale, along with another recently closed transaction in Colorado Springs, kick-off 2017 much the way 2016 ended. The duo points to a healthy, active hotel investment market that’s being driven by strong fundamentals.
“The Denver metro area hotel Revenue Per Available Room (RevPAR) reached nearly $94 in 2016 and is at an all time high, up nearly 3.5% for the year,” said Kaplan. “Additionally, the market reached over 12 million occupied rooms in the metro area during 2016 – also an all time record.”
He also points to a projected 7,300 new hotel rooms that are expected to be added to the market between 2017 and 2018, illustrating investors positive sentiment of the overall Colorado hotel market.
Images courtesy of CBRE Hotels; Main image – Courtyard Denver/Southwest; Inset image – Residence Inn