Real estate experts believe the interest in Denver hotels will not be slowing down in 2019. According to a recent article in the Colorado Real Estate Journal, Denver hotel rooms are being built at a “rate that succeeds the national average.”
The end of 2018 saw some of the largest hotel transactions in Denver all year. In the last few weeks of the year, a downtown Denver hotel was purchased for over $90 million. Additionally, the last two months of the year saw five hotels acquired between $10 and $25 million with an average key price of a hotel room between $110,000 and $165,000.
Real estate experts believe the mixture of business and leisure travel makes Denver a prime location for hotel development, according to a recent article. Additionally, Denver’s economy and hospitality market have remained strong, despite national trends over the past year.
In Denver, many hotel investors are looking into the downtown market. However, RiNo, or River North, is quickly becoming one of the hottest real estate markets in Denver, especially for the hospitality industry. According to a recent report, one prominent Denver real estate investor believes the industrial part of town could be the future of the city.
Overall, the hotel and hospitality industries remain strong, despite a 10 percent drop in sales during the government shutdown last month. However, commercial real estate transactions can still be complex, especially as an out of state investor. If you are considering investing in a Denver hotel project, it can be beneficial to speak with an experienced Colorado real estate attorney to ensure a smooth transaction.