Hodges Ward Elliott (“HWE”) is pleased to offer the opportunity to acquire the Fairfield Inn & Suites Colorado Springs North/Air Force Academy (“Property” or “Hotel”). The 85-room Property features a strong, infill location optimally positioned off I-25, and within minutes of the United States Air Force Academy’s (USAFA) North Gate and Visitor’s Entrance, as well as TrueNorth Commons, a transformative 525,000-square-foot mixed-use development spanning 36 acres and serving as the “new front door” to USAFA. The location also offers seamless access to the University of Colorado Colorado Springs, the iconic Garden of the Gods, and Downtown Colorado Springs. This competitive positioning, dominant Marriott branding and recent capital improvements – ±$12,000 per key completed from 2016-2019 – make the Hotel one of the most desirable assets in the area. The offering is further enhanced by accelerating in-place cash flow, highly accretive, assumable financing (well inside of market for new acquisition financing today) and being unencumbered of management, providing complete flexibility to a new owner in the operation of the Hotel.
Property Snapshot
| Address | |
| SITE AREA | ±1.93 acres |
| OPEN DATE / RENOVATION | 2009 / 2019 |
| ROOMS | 85 |
| Meeting Space | 475 SF |
| Food & Beverage | Complimentary breakfast |
| Amenities |
|
| Management | Unecumbered |
Investment Highlights
MINUTES FROM USAFA’S NORTH ENTRANCE & TRUENORTH COMMONS
Superbly positioned off I-25 in Colorado Springs’ north corridor, the Fairfield Inn & Suites is within minutes from the United States Air Force Academy’s North Gate and Visitor’s Entrance, boasting a vibrant location near TrueNorth Commons, a 525,000-square-foot mixed-use development anchored by the new USAFA Gateway Visitor Center, set to open in Summer 2025 and projected to attract over one million annual visitors once finished. The Property also benefits from seamless access to the University of Colorado Colorado Springs, Garden of the Gods, Downtown Colorado Springs, and strong corporate demand from major employers including Compassion Int’l, Boeing, FedEx, Lockheed Martin, Oracle, and Progressive.
INSTITUTIONALLY MAINTAINED
ASSET WITH NOTABLE UPSIDE
The next owner of the Property will benefit from notable capital investment completed in recent years, with nearly $12,000/ key injected from 2016-2019, in conjunction with a refresh of the guest rooms, public space, lobby, fitness center and breakfast area, in addition to exterior improvements. With that said, a new owner will have the accretive opportunity to further elevate the guest room product, public space and amenity offerings via targeted renovation. Calculated capital improvements in conjunction with efficient operation and effective asset management will allow the next owner to build on accelerating in-place cash flow and drive supplementary returns as the Covid-era lodging recovery continues to gain momentum.
COLORADO SPRINGS, CO - MOUNTAINSIDE METROPOLIS
The Hotel is positioned in north Colorado Springs along I-25, just a couple minutes from the USAFA’s North Gate and Visitor’s Entrance. Often regarded as one of the most desirable places to live and best places to visit in the United States, the city has proved its durability and staying power throughout the pandemic, consistently ranked among the top five markets in the country. Colorado Springs boasts a highly diversified economy rooted in Aerospace & Defense, IT & Cybersecurity, Manufacturing and Healthcare & MedTech, perfectly buoyed by its positioning as a leading drive-to leisure destination, highlighted by some of the most awe-inspiring outdoor attractions in the country, including the #1 U.S. Park as ranked by Trip Advisor (Garden of the Gods).
Furthermore, the expansion of air services remains evident, demonstrated by the Colorado Springs Airport's year-end 2023 total air traffic exceeding 2022 levels by nearly 10%, setting a new record for total passengers. This upward trajectory has accelerated in 2024, with a 7.7% increase in passenger traffic from October YTD 2023 to October YTD 2024, positioning the airport to achieve another record by year-end. Concurrently, the airport is undergoing a $36 million multi-year renovation aimed at enhancing efficiency and accessibility. Spanning eight phases, the first phase was completed in May 2024 and includes upgrades such as advanced lighting controls, raised ceilings, and energy-efficient electrochromic windows that optimize energy conservation and air conditioning. Further bolstering the airport’s appeal, the introduction of Southwest Airlines in March 2021 has solidified Colorado Springs’ status as a premier travel destination.
Garden of the Gods
United States Air Force Cadet Chapel
Colorado Springs Downtown
POWERFUL MARRIOTT DISTRIBUTION PLATFORM
The Fairfield Inn & Suites brand is backed by Marriott International, arguably the strongest brand in the lodging industry, providing a highly rated reservation system and access to over 160 million Marriott Bonvoy members. Marriott is known to have a tremendously loyal customer following and appeals to a variety of consumer segments that provide strong room night demand every day of the week.
VERY ATTRACTIVE INVESTMENT BASIS
At the expected transaction price, a new buyer’s all-in basis will be materially below replacement cost for comparable hotel product (recent development costs for comparable product in Colorado Springs and similar markets averaging in excess of $200,000/key) and a substantial discount to recent hotel trades in the market. This will afford the next owner a highly attractive opportunity to exit the investment at conservative pricing while generating above-market returns.
OPTIMAL OFFERING - FEE SIMPLE, UNENCUMBERED OF MANAGEMENT
The fee-simple Property is offered free and clear of the existing management contract and operated with non-union labor.