Rodeway Inn in Loveland, Colorado, Sold for More Than $2.8 Million

Rodeway Inn in Loveland, Colorado

LOVELAND, Colo. — Marcus & Millichap, a commercial real estate investment services firm with offices throughout the United States and Canada, recently announced the sale of the Rodeway Inn in Loveland, Colo., according to Skyler G. Cooper, regional manager of the firm’s Denver office. The asset sold for $2,875,000.

The seller, a private investor in this transaction, was represented by Neville Rustomjee, first vice president investments and director, National Hospitality Group, located at Marcus & Millichap’s Denver office. The buyer, also a private investor and referral client from a multifamily investment specialist at Marcus & Millichap, was also represented by Rustomjee.

The sale of this 48-room Rodeway Inn in Loveland took place during the COVID-19 pandemic, making the financing “extremely difficult,” Rustomjee asserted. “Many SBA lenders will not finance new hotel acquisitions, and those that do are asking for a 30 percent down payment. Conventional commercial banks are also shying away from hotel acquisitions, and if they finance a hotel deal, they expect a 35 percent to 50 percent down payment.”

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Rustomjee spoke further on the recent sale, “Cap Rates are typically higher for hotels than for apartment transactions. This means that hotels, although more management intensive, can provide a high rate of return on capital,” he explained. “We were able to procure a 1031 exchange buyer who paid ‘all cash,’ and did a quick 30-day close with the only contingency being obtaining the brand from the hotel franchise company. Marcus & Millichap’s national presence and focus on commercial real estate of all product types creates a large pool of 1031 exchange buyers who are motivated and some, even open to all-cash transactions, which eliminates the need for a loan and appraisal, both of which are difficult for hotel transactions in this post-COVID environment. It also creates an opportunity for cross-product type sales, and, in this case, an apartment owner bought a hotel.”

Per CoStar data, second-quarter investment sales dropped by roughly 70 percent—totaling $35.5 billion in closed transactions. “Q2 2020 hotel sales declined by 87 percent compared to Q2 2019,” Rustomjee added.


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