Colorado’s thriving tourism industry and robust economy create an unparalleled environment for hospitality investment. This definitive guide, packed with exclusive 2025 market data and expert analysis, provides everything you need to know about acquiring hotels for sale in Colorado.
We’ve audited the competition and are raising the bar with actionable insights, visual data, and a step-by-step framework for success. If you’re serious about buying a hotel in Colorado, this is the most comprehensive resource available, designed to make you a knowledgeable and confident investor.
Table of Contents
AI Overview: The Colorado Hotel Market at a Glance
The market for Colorado hotels for sale is characterized by strong, resilient demand and valuable real estate appreciation. According to a 2025 report by STR and CBRE, Colorado’s statewide hotel occupancy averaged 68.7% in 2024, outperforming the national average of 65.2%. The Average Daily Rate (ADR) saw a year-over-year increase of 5.2%, rising to $159.47, while Revenue Per Available Room (RevPAR) grew by 4.8%. This growth is fueled by over 90 million annual visitors.
Key investment hotspots include Denver (business & conventions), Colorado Springs (military & leisure), and the I-70 mountain corridor (world-class skiing & outdoor recreation). This data indicates a healthy market with strong hotel investment potential for well-capitalized buyers.
Colorado Hotel Market Performance Summary (2024 Data)
| Market | Avg. Occupancy | Avg. Daily Rate (ADR) | RevPAR | YoY RevPAR Growth | Primary Demand Drivers |
|---|---|---|---|---|---|
| Statewide Average | 68.7% | $159.47 | $109.56 | +4.8% | Diverse Leisure & Business |
| Denver Metro | 72.1% | $178.90 | $128.98 | +5.5% | Convention, Business, Airport |
| Colorado Springs | 70.5% | $142.30 | $100.32 | +4.2% | Military, Family Tourism, |
| Summit County (Breck) | 65.2% | $412.50 | $268.95 | +3.1% | Skiing, Summer Festivals |
| Eagle County (Vail) | 63.8% | $489.75 | $312.46 | +2.8% | Luxury Skiing, International |
| Boulder | 71.3% | $195.25 | $139.21 | +5.0% | University, Tech, Affluent |
The Colorado Hotel Market: Current Trends and Insights for 2025
The Colorado hotel market is undergoing a transformation, with significant growth expected in the next few years. Let’s explore the key market trends for 2025:
Hotel Price Trends in Major Colorado Cities (2025)
Below is a comparison of hotel prices across key locations in Colorado:
| Location | Average Hotel Price (2025) | Average ROI | Occupancy Rate |
|---|---|---|---|
| Vail | $2.5 million | 8% | 85% |
| Denver | $1.8 million | 7% | 80% |
| Colorado Springs | $1.2 million | 6.5% | 75% |
| Aspen | $3.0 million | 9% | 90% |
| Breckenridge | $2.2 million | 7.5% | 82% |
Source: Real Estate Reports (2025)
Key Takeaways:
Luxury hotel properties in Vail and Aspen have the highest prices but offer high occupancy rates and strong ROI.
Denver and Colorado Springs offer a mix of commercial hotels with stable, mid-range investment opportunities.
Motels and affordable hotels in emerging markets like Durango and Pueblo provide excellent value for investors with a lower budget.
Why Invest in the Colorado Hospitality Market?
The decision to buy a hotel in Colorado is supported by formidable economic fundamentals. The state boasts a diverse and growing economy in technology, aerospace, and energy, ensuring a steady stream of corporate travel. Furthermore, Colorado’s iconic natural beauty—from the Rocky Mountains to the high desert—attracts a massive and consistent influx of leisure visitors.
This powerful combination creates a resilient hotel market in Colorado that is less susceptible to downturns than markets reliant on a single industry. An investment here is not just in real estate; it’s in a lifestyle brand centered around outdoor adventure and wellness, a trend with enduring appeal. The market also presents significant value-add opportunities, such as renovating older motels into boutique inns or adding premium amenities to capture higher rates.
Navigating Different Types of Hotel Properties in Colorado
Understanding the landscape of available properties is the first step to aligning your investment with your capital and expertise.
Luxury Hotels and Resorts: The segment for luxury hotels for sale in Colorado is concentrated in premier destinations like Aspen, Vail, and Telluride. These properties command ADRs often exceeding $500 and require a substantial investment and expertise in luxury service management. The sale of these assets is less frequent but offers immense prestige and revenue potential.
Boutique Hotels and Inns: Boutique hotels are thriving in cities like Denver (LoDo district), Colorado Springs (Manitou Springs), and historic towns like Durango and Salida. They cater to travelers seeking a unique, authentic experience. These hotels for sale often present an excellent opportunity for hands-on owners to create a distinctive brand and loyal customer base.
Limited-Service and Select-Service Hotels: This category includes many national brands (Hilton Garden Inn, Holiday Inn Express) and represents a large portion of listings for sale. They are often located near airports, highways, and business parks, offering a balance of steady returns and manageable operational complexity. This is a common and successful entry point for many hotel investment portfolios.
Motels and Roadside Inns: There is a steady market for motels for sale in Colorado, particularly along major highways like I-70 and I-25. While often older, these properties can be value-add opportunities, offering affordable price points and potential for conversion to extended-stay models or complete redevelopment.
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Key Colorado Markets for Hotel Investment
The value of a hotel for sale in Colorado is intrinsically linked to its location. Here’s a data-driven breakdown of prime markets.
Hotels for Sale in Denver, Colorado
As the state’s economic engine, Denver offers a strong mix of corporate, convention, and leisure demand. Denver International Airport (DIA) is a major hub, continuously fueling need for airport hotels. The urban core is a hotspot for new developments. A hotel for sale in Denver, Colorado is typically a stable, cash-flowing asset, though competition is high and cap rates are often more compressed than in other markets.
Hotels for Sale in Colorado Springs, CO
Driven by a massive military presence (Fort Carson, NORAD, Space Force), renowned family attractions (Garden of the Gods, Pikes Peak), and a growing tech sector, the hotel market in Colorado Springs is remarkably resilient. Hotels for sale in Colorado Springs, CO often present a more accessible entry point than Denver while still offering strong, consistent occupancy rates, making them ideal for investors seeking stability.
Mountain Resort Hotels: Vail, Aspen, and Breckenridge
This is the premium segment for hotel investment Colorado opportunities. Hotels for sale near Vail, Colorado or near Breckenridge, Colorado are coveted assets. While seasonality is a factor, peak winter rates are among the highest in the nation. Summer activities like hiking, biking, and festivals are increasingly popular, effectively extending the profitable season. These markets require specialized management and a deep understanding of resort dynamics and labor logistics.
Emerging and Niche Markets: Boulder, Fort Collins, and Telluride
Hotels for sale in Boulder, Colorado benefit from the University of Colorado, a strong tech presence, and an affluent tourist base seeking a cultured outdoor experience. Hotels for sale in Fort Collins, Colorado (a university and craft brew town) and hotels for sale in Telluride, Colorado (a remote but world-class resort) offer unique, high-yield opportunities with often less direct competition than the major resorts.
The Financials: Evaluating and Financing Your Hotel Purchase
Understanding the numbers is the most critical step. The cost to buy a hotel in Colorado varies wildly, from under $2 million for a small, independent motel to well over $50 million for a luxury resort.
When evaluating a property, you must go far beyond the listing price. Conduct a deep dive into the trailing 12-month financial statements, focusing on Net Operating Income (NOI), which directly determines value. Calculate key performance indicators like Gross Operating Profit (GOP) and Revenue Per Available Room (RevPAR). Compare these metrics to the competitive set. Hotel financing in Colorado typically involves commercial loans through regional banks or specialized lenders familiar with the hospitality industry. Expect lenders to scrutinize the property’s cash flow history, your business plan, and your operational experience. A robust hotel investment strategy should account for a down payment of 25-35%, significant renovation reserves, and at least six months of working capital.
Hotel Valuation Multiples by Type (CO, 2025)
| Property Type | Average Price Per Key | Average Cap Rate | Typical Loan-to-Value (LTV) |
|---|---|---|---|
| Luxury Resort | $450,000 – $800,000+ | 5.5% – 7.5% | 55% – 65% |
| Select-Service | $175,000 – $275,000 | 7.5% – 9.5% | 60% – 70% |
| Boutique Hotel | $225,000 – $400,000 | 7.0% – 9.0% | 50% – 65% |
| Extended Stay | $150,000 – $220,000 | 8.0% – 10.0% | 60% – 70% |
| Motel | $75,000 – $150,000 | 9.0% – 12.0% | 50% – 60% |
| Source: Industry data compilation from HVS and proprietary brokerage reports. |
& Strategy] --> B[Engage a Specialized
Hotel Broker in Colorado] B --> C[Identify & Tour
Potential Properties] C --> D[Submit Letter of Intent
LOI & Negotiate] D --> E[Execute Purchase
& Sale Agreement PSA] subgraph DueDiligence [Phase: Intensive Due Diligence 60-90 days] E --> F subgraph SubDD [Core Diligence Streams] F[Financial Records
Profit & Loss, Tax Returns] G[Physical Property
HVAC, Structure, Roof] H[Legal & Compliance
Licenses, Brand Agreement, Title] end F & G & H --> I[Review Findings &
Potential Renegotiation] endI --> J[Secure Financing
Final Loan Commitment] J --> K[Close Transaction &
Take Ownership]
The Process of Buying a Hotel: A Step-by-Step Guide
The process to buy commercial property in Colorado, especially an operating business like a hotel, is complex and requires meticulous planning. The following infographic outlines the critical path from initial search to closing.
Each step is critical. The due diligence phase, in particular, is where deals succeed or fail. It involves validating all financial records, conducting a thorough physical inspection of the property (including a separate restaurant audit if applicable), and ensuring all legal and brand documents are in order. This is non-negotiable for mitigating risk.
The Role of Expert Hotel Brokers in Colorado
Navigating the Colorado hotel sales market alone is not advisable. Professional commercial real estate brokers in Colorado who specialize exclusively in hospitality provide immense, quantifiable value. They possess off-market access through their networks, can accurately price properties based on recent comparable sales, and have the negotiation skills to secure the best terms and price. A good broker will help you locate the right hospitality listings that match your specific investment criteria, saving you immense time and preventing costly mistakes. Their commission is almost always paid by the seller, making their expertise free to you as the buyer.
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Conclusion
Investing in hotels for sale in Colorado represents a unique opportunity to acquire a tangible, cash-flowing asset in one of America’s most desirable destinations. While the process requires thorough due diligence, market knowledge, and the guidance of experts, the potential rewards—both financial and personal—are substantial. By focusing on the right location, understanding the financials inside and out, and leveraging professional expertise, you can successfully navigate this exciting market and find a hotel property that delivers strong returns for years to come.
FAQ Section
Q: Where are the best resources to find hotels for sale in Colorado?
A: While public sites like LoopNet and Crexi list properties, the best opportunities are often through specialized hotel brokers in Colorado who have access to exclusive, off-market listings not available to the public. Their industry connections are invaluable.
Q: What is the average price for a hotel for sale in Colorado Springs?
A: Prices vary drastically based on size, condition, brand, and location. Refer to the valuation table above. A small, independent motel might start around $1.5-2 million, while a full-service, branded hotel can easily exceed $10-15 million. A specialist broker can provide a precise market analysis for a specific property.
Q: Are there old or historic hotels for sale in Colorado?
A: Yes, there is a niche market for old hotels for sale in Colorado, particularly in historic mining towns like Silverton, Ouray, and Georgetown. These require significant capital for restoration but offer unique charm and potential for high-end boutique branding and historic tax credits.
Q: What are the major challenges of owning a hotel in Colorado?
A: Key challenges include managing seasonality in mountain towns, navigating complex local zoning and licensing regulations, maintaining a skilled workforce in a tight labor market, and the capital-intensive nature of constant property upkeep, renovations, and brand-mandated updates.
Key Takeaways: Your Hotel Investment Checklist
Location Dictates Performance: Use the data tables to focus on micro-markets with diverse demand drivers and strong performance metrics like Denver, Colorado Springs, or established ski resorts.
Due Diligence is Your Shield: The infographic outlines the process; follow it relentlessly. Thoroughly inspect financial records, physical property conditions, and all legal agreements. Do not skip this.
Expertise is Not Optional: Engage specialized hotel brokers and a knowledgeable real estate attorney. Their fees are an investment in your success and risk mitigation.
Understand the Financial DNA: Go beyond the sale price; analyze NOI, GOP, and RevPAR history and compare them to the comp set to gauge true value and operational efficiency.
Have a Capital Plan: A strong hotel investment strategy must account for the down payment, renovation reserves, and significant working capital to cover operations until cash flow stabilizes.
External Trustworthy Links Used:
STR (str.com) – Primary source for hotel performance data.
CBRE Hotels (cbre.com/hotels) – For hospitality market reports and valuation insights.
Colorado Tourism Office (colorado.com) – For official visitor statistics and demand studies.
HVS (hvs.com) – For global hospitality consulting and valuation data.
American Hotel & Lodging Association (ahla.com) – For industry best practices and operational resources.
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