Budget Host / Subway / Adora Inn Rangely, CO  
Broker: Erich
Ehrenstrasser COLORADO'S BUSIEST OIL & GAS REGION ASKING PRICE: $4,500,000 LOCATION: These two beautiful motel properties offer superb locations on Colorado Highway 64, a very attractive scenic road and Rangely, Colorado’s, main thoroughfare. The town has been the center of oil and natural gas exploration and production since 1949, with the last five to ten years bringing continuous, ever increasing activities. Not considering the activities of Chevron, Exxon/Mobil, and their manifold subcontractors in the area, by the spring of 2007 Shell Oil alone is said to bring some 700 additional people into town. There are only two mentionable Motels in town, the subject Budget Host Inn with 37-guestrooms, and the Adora Inn with 32-guestrooms, just one block east and across the street. The same operator owns both of these fine motels, and both are in 1st class condition for a sale to the right people. Current owners purchased the Budget Host in 2004 and the Adora Inn in 2005 and while this is not an emergency-sale at all, owners desire to sell is strictly caused by a personal health matter. Primary corporate guests consist of Chevron, Shell, Exxon/Mobil, and their main sub-contractors like Pioneer Natural Resources, Nautilus (Geology), Basic Energy, Elenburg Exploration, United Companies (Drilling), Pro-Technics, Colorado Division of Wildlife, Superior Well Service, Rangely Regional Hospital, etc. While Chevron has been active in the town and area, most everyone else has been around for more than twenty-years as well, and each of them has been bringing more staff and executives to town. BUDGET HOST IMPROVEMENTS: The motel features 37-guestrooms in two 2-story buildings, with ten of the rooms only open since beginning of June 2003. The original 27-guestrooms, constructed in 1981, were upgraded to the same high-quality standards as the new rooms. Heating and cooling is provided via individual HVAC units. State-of-the-art telephone service, high-speed Internet in all rooms, coffeemakers, refrigerators, microwaves ovens, flat-screen TV’s, and attractive furnishings & soft goods are installed. The motel features an attractive front office with lobby, and a back office with a full bathroom and potential to be the manager quarters. A profitable guest laundry, a fine commercial motel laundry, a concrete-paved parking lot, and virtually all other amenities are present for a truly successful lodging operation. SUBWAY SANDWICH SHOP occupies a separate building. First opened in 1998, the franchised fast-food operation is profitable and successful with guests of both motels and locals alike. Minimally attached to the motel’s back office, it is located on the prominent street-corner of Grand Street and Colorado Highway 64. Managed by a long-term employee and primarily staffed by students of the local Northwestern Community College. It serves a limited breakfast menu and submarine sandwiches, salads, soups and other items for lunch and supper. BRAND NEW, FABULOUS & PRIVATE OWNER QUARTERS were constructed brand-new in the fall of 2006. Expertly designed, it features a fabulous, wide-open living room, formal dining room, an absolutely wonderful open kitchen with marble-flooring and all state-of-the-art amenities, a giant Master bedroom with an exceptional, large walk-in closet, a magnificent Master bathroom with double Jacuzzi-tub, a separate, glass enclosed shower with multiple shower-heads, all marble-tiled; plus a second bathroom and a private laundry room. An attached giant, oversized 2-car garage rounds out the extraordinarily beautiful Owners quarters. All facilities are in superior condition situated on approximately 1-acre (+/-) land. An adjacent acre (+/- strictly approximately) may be available from another owner for needed guestroom additions. FINANCIAL INFORMATION – BUDGET HOST & SUBWAY: IRS Tax Returns, including the 2006 Returns as soon as possible in January 2007, and Financial Statements on the three businesses will be available to qualified Buyers. All Revenue Amounts are Net of Sales & Lodging Taxes. 2006 Year-round Rack Rates are $59.00 & Tax for 1 Person, $69.00 & Tax for 2 People; additional people are $10.00 each. Children under 12 are free. Terms are via Conventional financing or an SBA-assisted 504-loan, usually requiring a down payment in verifiable Buyer-cash of Ten Percent (10%).
Note: a) Current ownership purchased this property on April 15, 2004. BUDGET HOST ANNUAL 2006 EXPENSES: Accounting $3,226.36; Advertising $7,356.90; Utilities (Electric/Water/Sewer/Gas/Waste Disposal and Cable TV) approximately $42,220; Hazard & Liability Insurance approx. $5,850; Repair, Maintenance & Maint. Supplies (including certain renovation expenses) $32,281.17; Labor, including Payroll Taxes & Workmen’s Compensation Insurance, approx. $129,380; 2005 property taxes approx. $5,361. Telephone approx $7,418; and Supplies (including Office Supplies & new Soft Goods) were approximately $22,910. SUBWAY ANNUAL 2006 EXPENSES: Accounting $2,719.10; Advertising (through Franchisor) $22,690; Utilities (Electric/Water/Sewer/Gas and Waste Disposal) approximately $10,745; Liability & Franchise Insurance $741 (Hazard & Liability Insurance included in Franchise Fees); Repair & Maintenance $1,093.10; Labor, including Payroll Taxes & Workmen’s Compensation Insurance, approx. $88,564; 2005 property taxes approx. $3,013; Telephone approx $888; and Supplies (including Office Supplies) were approximately $2,741.36. ADORA INN IMPROVEMENTS: 32-great guestrooms in one very nice L-shaped 2-story building constructed and opened in February of 1994. In 2006 the entire operation has been completely repainted inside and out, and all bathrooms and vanity areas have been retiled. Heating and cooling is provided via individual HVAC units. State-of-the-art telephone service, high-speed Internet, coffeemakers, refrigerators and microwaves are available in all rooms. A separate building contains the motel reception desk and nice 2-bedroom/2-bath managers living quarters with a large living room, nice kitchen, and private laundry room. The living quarters also feature a nice, fenced backyard. All facilities are in great condition and city utilities are in place. Land area, consisting of approx. 1.81-acres (+/-), is landscaped with mature trees and shrubs. Concrete parking lot is in excellent condition; surplus land allows for construction of additional guestrooms. FINANCIAL INFORMATION – ADORA INN: IRS Tax Returns, including the 2006 Returns as soon as possible in January 2007, and Financial Statements on the three businesses will be available to qualified Buyers. All Revenue Amounts are Net of Sales & Lodging Taxes. 2006 Year-round Rack Rates are $39.00 & Tax for 1 Person, $49.00 & Tax for 2 People; additional people are $10.00 each. Children under 12 are free.
NOTE: a) Current ownership purchased this property on October 25, 2005. ADORA INN - ANNUAL 2006 EXPENSES: Accounting $2,839; Advertising $3,848; Utilities (Electric/Water/Sewer/Gas/Waste Disposal and Cable TV) approximately $33,460; Hazard & Liability Insurance approx. $6,651; Repair, Maintenance & Maint. Supplies (including certain renovation expenses) $24,378; Labor, including Payroll Taxes & Workmen’s Compensation Insurance, approx. $61,250; 2005 property taxes approx. $5,471; and Supplies (including new Soft Goods) were approximately $22,232; Telephone approx $7,755 AREA ATTRACTIONS: There are herds of pronghorn antelope, deer, elk, and wild horses, and miles of scenic adventure roads, bike paths, and hiking trails through high desert plateaus, canyons, and mountains. Dinosaur National Monument is close by, and while the White River is great for boating and canoeing, Kenney Reservoir, located five miles east of town, offers fabulous motor boating, water-skiing, sailing, swimming, and world-class fishing. An Outdoor Museum chronicles the area history, while a recreation center with indoor swimming pool, tennis courts, and racquetball courts stays busy. An ever-growing variety of restaurants, stores and other services are available as well. COLORADO NORTHWESTERN COMMUNITY COLLEGE - has an enrollment of approximately 600 students, and its curriculum includes a superior flight school, with US Air Force Academy Cadets amongst its students, using the municipal airport for flight training. The respected 2-year school offers a fine academic menu, a variety of summer camps and conferences, and a special climbing gym to learn basic and advanced mountain climbing skills. ROCK CRAWLING: This year (2006) the town of Rangely, along with its Rock Crawling Club, organized and approved a large public terrain with its entrance located about 3-miles southwest of downtown. The reason for mentioning this action lies in the fact that if and when the Rangely site is properly marketed and becomes popular amongst its enthusiasts, the sport is known to excel local tourism businesses such as motels, restaurants and shops, by causing weekend commerce to grow almost instantly, with most of the existing U. S. locations serving as prime examples. Rock crawling is a more extreme form of off-road driving using motorized carts, cars and trucks anywhere from All-Terrain vehicles readily available from your local motorcycle, outdoor or snowmobile dealer, to highly modified All-Wheel-Drive and 4-Wheel Drive SUV’s and trucks custom hand-made specifically for off road terrain. The goal is to enjoy the outdoors by overcoming obstacles of various forms and degrees of difficulty. Depending on a driver’s ability and the type of vehicle engaged the essential goal is to overcome the relatively largest, most difficult obstacles on a designated track and/or area. These obstacles can be anything from a collection of boulders to steep cliff faces. While relatively unknown amongst the population in general, worldwide this sport is becoming extremely popular within specialized areas designated amongst its enthusiasts. The American Rock Crawling Association (ARCA) and the United Rockcrawling & Off-Road Challenge (UROC) hold a series of competitions at different sites throughout the nation. With Moab, Utah, just being one, many of the popular most popular recreational rock-crawling areas in the U. S. and the rest of the world, all the way to Australia and beyond, can be found on the Internet at Wikipedia WEBSITES OF INTEREST: Rangely Chamber of CommerceWhite River National Forest Dinosaur National Monument Colorado Northwestern Community College Kenney Reservoir at Taylor Draw Dam Rock Crawling Canyon Pintado Wild Horses of Rio Blanco Information herein has been obtained from what are believed to be reliable sources, however, Anton Hospitality Brokers, Inc., cannot guarantee its accuracy. References and information contained herein are approximate only and are subject to changes and errors. Assumptions are based on professional management and marketing of the property and future operating results will vary depending on ownership. Buyers must conduct their own investigation and due diligence and consultation with a professional financial advisor is highly recommended. Price is subject to change without notice. |