OM 2210 Hwy6&50

RED ROOF INN

2210 HIGHWAY 6 & 50

GRAND JUNCTION, CO 81505

PRESENTED BY KATIE DAVIS & BRIAN BRAY

Retired in July 2021 as COO at Automation-X Corporation, Katie oversaw $60+ million in annual revenue, 100 employees and 12 locations. She has extensive experience in negotiating multi million dollar contracts both internationally and domestically. Katie understands accounting and finance, sales strategy and growth, banking relationships, contracts, leveraging, and overall business operations.

KATIE DAVIS

Broker Associate

970.778.5083

katie@brayandco.com

katie.brayandco.com

Katie started as a Commercial Real Estate and Business Broker in August 2021, she has been honored with multiple top listing agent awards as well as top leasing agent awards.

BRIAN BRAY

Managing Broker

970.986.0446

brian@brayandco.com

brian.brayandco.com

Katie has the experience of not only understanding real estate but also businesses.

Born and raised in Western Colorado, Brian is a fourth-generation Bray working in his family’s real estate brokerage, which was founded by his great-grandfather, Sherman Bray, in 1946.

Previous to working in the family business, Brian owned and managed his own businesses and worked in the construction industry. He is educated in construction management and graduated from Mesa State College with a Bachelor of Science in Business Administration.

Brian resides in Grand Junction with his wife and five children. When he is not working, he enjoys recreating in the high country of the Rocky Mountains, Brian won’t miss an opportunity to be hunting the vast expanse of the Rocky Mountain country.

EXECUTIVE

S U M M A R Y

TERMS OF SALE

No assumable loan or seller financing

PROPERTY TOURS

Prospective buyers are welcome to visit the site upon signed NDA and $1M proof of funds. Site visits must be scheduled with Bray Commercial Real Estate and Bray Business Brokerage listing broker. Contact with staff, management, and tenants is prohibited without prior approval.

INVESTMENT HIGHLIGHTS

2021 Revenue - $1.7 Million

2022 Projected Revenue - $2 Million

Cap Rate of 11%

NOI $790,000

Average Occupancy Rate 90%

PROPERTY DETAILS

2210 HWY 6&50

Grand Junction, CO 81505

$6.8 Milllion - Motel Only

51,202 Square Feet

Lot Size: 2.535 Acres

ADR - $70-$80

RRM - 3.25

Growth Rate 18%

Projected 2022 Price Per Key: $20,000

Price Per Key: $68,000

Year Renovated 2018 & 2019

100 Rooms

Built in 1982

Zoning C2

Parcel Number: 2701-313-05-013

OFFERING

Katie Davis and Brian Bray with Bray Commercial Real Estate and Bray Business Brokerage are pleased to offer this strategically located, profitable, and established Motel off Highway 6&50 and I-70. The subject site is nestled between the City of Grand Junction and Fruita. The Red Roof Inn offers lodging and dining within a 5 mile radius of Fruita and a 2 mile radius of Grand Junction. Directly east of the property is the Travel Center of America, which is a positive attribute for both business and transient guests. The subject site is less than 3 miles from Mesa Mall, 5 miles from downtown, and 7 miles from the Grand Junction Regional Airport.

The Grand Junction Regional Airport (GJT) is the largest airport on the Western Slope and the third largest in Colorado. In 2021, GJT serviced 518,171 passengers through Allegiant, American Airlines, and United Airlines. In 2021, GJT was awarded CDOT’s Colorado Airport of the Year.

Mesa Mall is the Western Slope’s largest indoor shopping center, serving Western Colorado and Eastern Utah and the largest retail shopping center between Salt Lake City and Denver. Cabela’s, Dillards, Target, Dick’s Sporting Goods, and HomeGoods are just a few stores in this 836,721 square foot retail space.

Downtown Grand Junction offers a variety of restaurants, music venues, art galleries, clothing stores, jewelry stores, and year-round festivals, anchored by Two Rivers Convention Center, the city’s main venue for conventions and special events.

Grand Junction is the largest city on the Western Slope, and is the main transportation thoroughfare from east to west right through the heart of Colorado, thousands travel I-70 every day.

PROPERTY

V E R V I E W

ROOM AMENITIES

Refrigerator

Microwave

Coffee Maker

Blackout Drapes

Iron/Ironing Board

Heating & AC Controls

Hair Dryer

Work Desk with Lamp

Flat Screen TV

High-Speed Internet

Remodeled in 2018/2019

*Fully Equipped Kitchen

*4 Kitchen Suites

HOTEL AMENITIES

ONSITE - AUTHENTIC MEXICAN RESTAURANT

COMPLIMENTARY COFFEE/TEA SERVICE

VENDING & ICE MACHINE

GUEST LOUNGE

BANQUET - SEATS 75

GUEST PAID LAUNDRY

OUTDOOR GRILL AREA

DOG PARK

PETS STAY FREE

DAILY HOUSEKEEPING

COMPLIMENTARY PARKING

FINANCIAL A N A Y L S I S

SPACE El Mescal Family Mexican Restaurant

UNIT TYPE Restaurant

AREA SQFT

3,840

LEASE TERM

5 Years

RENT ANNUAL $43,056 RENT MONTHLY $3,588 RENT $/SF $11.21

LEASE TYPE

Triple Net Lease | 8.5% of Utility Usage

2.5% Escalation

SPACE Office Space | 3 Offices Rented

UNIT TYPE Office AREA SQFT 225 (typical)

LEASE TERM Varies RENT ANNUAL $3,000 RENT MONTHLY $250

RENT $/SF

$13.34

LEASE TYPE Gross

U P S I D E FUTURE

Owner Operator Allows 5% Savings in Management Fees

Active Management Will Lower Payroll Costs

Materials Owned To Complete Five Additional Kitchenette Rooms

NOI Improvement of 5% With Expense Control

Available Office Spaces Generate $24,000/Annually

Long Term Kitchenette Rental Run Independently And Save 9% In Franchise Fees

COMPETITIVE A N A Y

L S I S

MARKET COMPETITIVENESS

Red Roof Inn is not only located on the corner of I-70 and HWY 6&50 but is also the only motel located between City of Grand Junction and Fruita. Added to the market competitiveness this site is located approximately 15 miles away from the primary cluster of economy motels along Horizon Drive near the airport.

Ranked Number one in Occupancy both locally and statewide for economy class.

Ranked Number one in RevPar both locally and statewide for economy class.

RANKED #1 IN OCCUPANCY

Both locally and statewide for economy class

RANKED #1 IN REVPAR

Both locally and statewide for economy class

FRANCHISE & PIP

H I G H L I G H T S

FRANCHISE FEE – 8% NET

Seller willing to give unencumbered Red Roof Franchise

TRANSFER APPLICATION FEE - $2,500

ACTUAL TRANSFER FEE - $7,500

20 Year Term Agreement Signed April 2021, Option to exit every 5 years without penalties.

Option to pay $50,000 franchise termination

One time $25,000 transfer to qualified buyer

Option to negotiate 1-2% franchise discount for new buyer due to location and performance.

NO PIP DUES

PIP Completed July 8, 2021, 120 days validity

OTHER OTHER BREAKFAST AREA GUESTOOMS GUESTROOMS

Repair all damaged paved areas throughout the property

Re-stripe and seal coat the parking lot

If breakfast is to be served, it must meet Red Roof Inn standards

Install brand approved bed skirts, white quilted filled blankets, and brand approved coverlets on all beds

Install standard bedding package to include 200 thread count long top sheet, mattress pad, pillow protectors and pillows

GUESTROOMS GUESTROOMS

LOBBY LOBBY OTHER OTHER OTHER OTHER

TV Programming must meet RRI Brand Standard, must have a minimum of 24 HD channels and must have a minimum of 2 HBO channels

Verify all heating and cooling systems are in good working order

Install Red Roof Inn standard coffee service

Verify phone system auto attendant is within Brand Guidelines

Verify Wi-Fi- with Brand guidelines. This includes dedicated line with separate static IP addresses for front desk computers

Comply with all RRI safety & brand collateral standards in guest rooms, baths, lobby and public areas

Replace all damaged, discolored and mis-matched acoustical ceiling tile and grid systems

All FF&E and finishes to be consistent in color and style in accordance with current brand standards and specifications. The brand reserved the right to request replacement of any FF&E that fails to function as engineered.

M A R K E T O V E R V I E W

GRAND JUNCTION OVERVIEW

Grand Junction is the largest city on the Western Slope and serves as a hub between Denver and Salt Lake City.

Known for fertile soil, Grand Junction remains one of Colorado's largest food producers for peaches, pears, cherries and corn. Grapevines were introduced in the late early 80s, now home to more than 20 wineries it is known as Colorado's Wine Country.

So what makes Grand Junction such a great place to visit?

Awe-inspiring natural beauty and the dramatic red rock landscape of the Colorado National Monument, makes Grand Junction a place to explore. Exhilarating outdoor adventures including hiking, camping or skiing on the Grand Mesa, are just a few opportunities adventurers can find. Hundreds of miles of world-class mountain biking trails such as the Kokopelli Trail. Incredible whitewater rafting on the Colorado River. Stunning golf courses whose green fairways are juxtaposed against the craggy Redland desert. The scenery and its people are what make this high-desert town the place to be.

D E M O G R A P H I C S

POPULATION

Grand Junction = 66,964 (2021) 65,560 (2020), 58,566 (2010)

Fruita = 13,406

Palisade = 2,714

Unincorporated = 71,607

Mesa County = 155,703 (2020)

Grand Junction MSA =156,260

Females = 77,670 (50.5%)

Males = 78,602 (49.5%)

PROJECTED BY AGE GOUP

0-19 yrs 38,792 (25.5%)

20-34 yrs 28,935 (20.2%)

35-54 yrs 336,802 (23.7%)

55-64 yrs 20,392 (13.7%)

65 yrs + 31,339 (16.8%)

MEDIAN AGE: 39.2 Years (2020)

Annual Growth Rate (2015 to 2016 ) 1.2%

Poverty Rate: 13.5% (2020)

Median Household Income: $59,201 (2020)

City Lodging Tax Collected $1,987,219 - Jan – May 2022

City Lodging Tax Collected - $1,335,579 - Jan - May 2021

*Source:USCensus,AmericanCommunitySurvey,2016

*Source:ColoradoStateDemographyOffice,2016

DEMOGRAPHICS

Education (over 25 yrs)

College Graduate & Above ……….34.7%

Some College/Technical School ..25.9%

High School Graduate ……………..29.3%

No Diploma …………………………….10.1%

MARITAL STATUS

Males/Females

Single (never married) 32.1%/23.3%

Married 51.9%/49.9%

Separated 1.6%/1.8%

Divorced 11.7%/15.6%

Widowed 2.8%/9.4%

Race/Ethnicity

Caucasian/White (any race)…..82.0%

Hispanic or Latino (any race)…14.0%

American Indian ………………….. 0.5%

African American/Black ……….. 0.6%

Asian ……………………………………0.6%

Other ………………………………….. 2.3%

The sum of the six individual race categories may add to more than the total populations because of individuals who reported more than one race are tallied in each category

CRIME STATISTICS

2017/2016/% Change

Total Violent Crime 286/275/4%

Total Property Crime 3,604/3,755/-4%

Total Other Crime 8,425/7,810/8%

Total Traffic Accidents 2,215/2,595/-5%

G R A N D J U N C T I O N T O U R I S M

ECONOMIC IMPACT OF TOURISM IN MESA COUNTY:

Approximately 1 million visitors to local lodging properties annually

Over 3,000 jobs supported by tourism

$269 million in direct travel spend annually

$8 million in local taxes annually

Tourism = Jobs + Tax Revenue

OTHER GRAND JUNCTION TOURISM FACTS:

Top domestic visitors come to Grand Junction from around Colorado (52%), Texas, Arizona, and California

Top international visitors come from the United Kingdom, Canada, Germany, China, Australia, and the Netherlands

96% of visitors rate their experience in Grand Junction as either Excellent or Very Good!

Top 3 reasons why people visit Grand Junction

Vacation/Pleasure

Winery tours

Outdoor activities

What are the top attractions in Grand Junction?

Downtown, wineries, breweries/distilleries

Colorado National Monument / Grand Mesa

Parks and Public lands

Travel has a positive effect on Grand Junction, Colorado and it also impacts business productivity, economic development, and each individual traveler's well being.

International travel to the United States is the nation's No. 1 services export. The Grand Junction Visitor & Convention Bureau works with 226 international tour companies annually to bring guests from around the world to Grand Junction

Over 15,000 visitors use the Grand Junction Visitor Center annually, representing over 50 foreign countries and the U.S.

Over 500,000 people gain valuable travel inspiration by going to visitgrandjunction.com annually

Visit Grand Junction has been marketing the area for over 25 years

Supporting hundreds of local events, restaurants and tourism attractions, including 22 wineries

Over 40 lodging properties

Hosting over 150 conventions, events, and groups each year

Travel is one of the top three industries in the state of Colorado and is a driving force of economic growth to Grand Junction and surrounding communities

* Figures taken from the 2014 Dean Runyan Colorado Travel Impacts Study * wwwvisitgrandjunctioncom/gj-tourism-matters

C O N F I D E N T I A L I T Y & D I S C L A I M E R

NON-DISCLOSURE NOTICE

The information contained in the following marketing package is proprietary and strictly confidential. It is intended to be reviewed by only the party receiving it from Bray Commercial Real Estate and Bray Business Brokerage and should not be made available to any other person or entity without the written consent of Bray Commercial Real Estate and Bray Business Brokerage This marketing package has been prepared to provide summary, unverified information to prospective purchasers, and to establish only a preliminary level of interest in the subject property The information contained herein is not a substitute for a thorough due diligence investigation Bray Commercial Real Estate and Bray Business Brokerage has not made any investigation, and makes no warranty or representation, with respect to the income or expenses for the subject property, the future projected financial performance of the property, the size and square footage of the property and improvements, the presence or absence of contaminating substances, PCB’s or asbestos, the compliance with State and Federal regulations, the physical condition of the improvements thereon, or the financial condition or business prospects of any client, or any client’s plans or intentions to continue its occupancy of the subject property The information contained in this marketing package has been obtained from sources we believe to be reliable; however, Bray Commercial Real Estate and Bray Business Brokerage has not verified, and will not verify, any of the information contained herein, nor has Bray Commercial Real Estate and Bray Business Brokerage conducted any investigation regarding these matters and makes no warranty or representation whatsoever regarding the accuracy or completeness of the information provided All potential buyers must take appropriate measures to verify all of the information set forth herein

NON-ENDORSEMENT NOTICE

Bray Commercial Real Estate and Bray Business Brokerage is not affiliated with, sponsored by, or endorsed by any commercial tenant and/or client identified in this marketing package. The presence of any corporation’s logo or name is not intended to indicate or imply affiliation with, or sponsorship or endorsement by, said corporation of Bray Commercial Real Estate and Bray Business Brokerage, its affiliates or subsidiaries, or any agent, product, service, or commercial listing of Bray Commercial Real Estate and Bray Business Brokerage, and is solely included for the purpose of providing sales information about this listing to prospective customers

DO NOT CONTACT CLIENT, TENANT, OR EMPLOYEES

All property showings are by appointment with the listing broker or landlord only Under no circumstances, should any prospective purchaser or related entity contact the clients, tenants or any of the employees at this facility Recipients of this marketing package acknowledge that such contact may damage the business operation which would impair the financial results Owner reserves the right to seek legal redress for any damage that may occur from such interference with owner’s relationship with employees, tenants, and/or clients

SPECIAL COVID-19 NOTICE

All potential buyers are strongly advised to take advantage of their opportunities and obligations to conduct thorough due diligence and seek expert opinions as they may deem necessary, especially given the unpredictable changes resulting from the continuing COVID-19 pandemic Bray Commercial Real Estate and Bray Business Brokerage has not been retained to perform, and cannot conduct, due diligence on behalf of any prospective purchaser Bray Commercial Real Estate and Bray Business Brokerage principal expertise is in marketing investment properties and acting as intermediaries between buyers and sellers Bray Commercial Real Estate and Bray Business Brokerage and its professionals cannot and will not act as lawyers, accountants, contractors, or engineers All potential buyers are admonished and advised to engage other professionals on legal issues, tax, regulatory, financial, and accounting matters, and for questions involving the property’s physical condition or financial outlook. Projections and pro forma financial statements are not guarantees and, given the potential volatility created by COVID-19, all potential buyers should be comfortable with and rely solely on their own projections, analyses, and decision-making.)

BUSINESS DISCLAIMER

Bray Commercial Real Estate and Bray Business Brokerage hereby advises all prospective purchasers of Motel property as follows: The information contained in this marketing package has been obtained from sources we believe to be reliable. However, Bray Commercial Real Estate and Bray Business Brokerage has not and will not verify any of this information, nor has Bray Commercial Real Estate and Bray Business Brokerage conducted any investigation regarding these matters.Bray Commercial Real Estate and Bray Business Brokerage makes no guarantee, warranty, or representation whatsoever about the accuracy or completeness of any information provided

As the Buyer of a Motel property, it is the Buyer’s responsibility to independently confirm the accuracy and completeness of all material information before completing any purchase This marketing package is not a substitute for your thorough due diligence investigation of this investment opportunity Bray Commercial Real Estate and Bray Business Brokerage expressly denies any obligation to conduct a due diligence examination of this Property for Buyer

Any projections, opinions, assumptions, or estimates used in this marketing package are for example only and do not represent the current or future performance of this property. The value of a Motel property to you depends on factors that should be evaluated by you and your tax, financial, and legal advisors. Buyer and Buyer’s tax, financial, legal, and construction advisors should conduct a careful, independent investigation of any Motel property to determine to your satisfaction with the suitability of the property for your needs

Like all real estate investments, this investment carries significant risks Buyer and Buyer’s legal and financial advisors must request and carefully review all legal and financial documents related to the property and business While the business past performance at this or other locations is an important consideration, it is not a guarantee for future success Cash flow may be interrupted in part or in whole due to market, economic, environmental, or other conditions. Regardless of performance history, Buyer is responsible for conducting his/her own investigation of all matters affecting the intrinsic value of the property and business.

By accepting this marketing package, you agree to release Bray Commercial Real Estate and Bray Business Brokerage and hold it harmless from any kind of claim, cost, expense, or liability arising out of your investigation and/or purchase of this Motel property