January 17, 2021
Announcing the Sale of the EconoLodge in Burlington, CO. for $4,300,000
Denver, CO – January 31, 2021 – Madison Commercial Properties is pleased to announce the sale of an EconoLodge hotel, located at 577 S. Lincoln Street, in Burlington, Colorado. The mid-scale Choice Hotels franchise was constructed in 2017 and has 89 units. The property sold on January 10, 2022, for $4,300,000, which equates to $48,314 per unit and a 10.30% Cap Rate. The Gross Income Multiplier was approximately 4.0, based on 2021 revenue. SBA financing was provided by Golden Bank in Dallas, Texas.
Alex Kovacs, CCIM, Commercial Broker & Advisor with Madison Commercial Properties, acted as Transaction Broker in the transaction.
“This property is probably one of the finest EconoLodges in Colorado, as it was a former Woodsprings Suites. The hotel includes 100% extended stay units with kitchens and laminate flooring, even though it is operated as a traditional hotel. The property has been well maintained and requires almost zero PIP. The buyer is an out of State hotelier who was attracted to the value of this asset, which sold at a favorable price per unit for a former extended-stay hotel. Additionally, the consistent cash flow, even during the difficult 2020 COVID impacted year, made it an attractive deal. The hotel has tremendous upside as it has not stabilized since its conversion from Woodsprings Suites,” stated Alex Kovacs, CCIM, Commercial Broker & Advisor with Madison Commercial Properties.