Marcus & Millichap Facilitates the Sale of Quality Inn, a 150-Room Hospitality Property

CAÑON CITY, Colo., May 13, 2022 - Marcus & Millichap (NYSE: MMI), a leading commercial real estate brokerage firm specializing in investment sales, financing, research and advisory services, announced today the sale of Quality Inn, a 150-room hospitality property located in Cañon City, Colorado, according to Adam A. Lewis, regional manager of the firm's Denver office.

Neville Rustomjee, first vice president investments and senior director of the national hospitality group in Marcus & Millichap's Denver office, had the exclusive listing to market the property on behalf of the seller, a private investor. The buyer, a limited liability company, was also secured by Rustomjee.

Quality Inn is a well-maintained interior corridor hotel located at 3075 US-50 in Cañon City, Colorado, close to both Colorado Springs and Pueblo. Canon City is home to a number of tourist attractions including the Royal Gorge, the highest suspension bridge in the United States, as well as rafting and other recreational activities along the Arkansas River. Since it is primarily a summer leisure town, the large 150-room hotel had low year-round occupancy. Rustomjee tried to find some 'upside' to the deal to attract investors. The hotel was renovated to be a dual-branded hotel with one portion remaining a Quality Inn and the other being converted into a Choice Hotels Suburban Suites. Having rooms that included kitchenettes would attract longer stay guests during the slow winter months.

"Buyers like to find 'value-add' deals because they are paying for current performance," stated Rustomjee. The Quality Inn hotel went under contract within a week, and Rustomjee said, "The seller was primarily an apartment institutional investor, and this was the only hotel they owned. They were happy with the sale, so they could do a 1031-exchange into the product type they know. This investor is a seasoned hotelier and liked the 'upside' of a dual-brand as well as the potential to better manage expenses to yield a higher net operating income. It was a win-win deal for both sides of the transaction".

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About Marcus & Millichap (NYSE: MMI)

Marcus & Millichap, Inc. is a leading brokerage firm specializing in commercial real estate investment sales, financing, research and advisory services with offices throughout the United States and Canada. As of December 31, 2021, the company had 1,994 investment sales and financing professionals in 82 offices who provide investment brokerage and financing services to sellers and buyers of commercial real estate. The company also offers market research, consulting and advisory services to clients. Marcus & Millichap closed 13,255 transactions in 2021, with a sales volume of approximately $84.4 billion. For additional information, please visit www.MarcusMillichap.com.