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Message Bringing a unique blend of historic charm and modern comforts, making it a special place for visitors. As the only remaining chalet-style hotel from the opening year of the Crested Butte Ski Area (1963), it has been beautifully renovated to retain its classic appeal. The inn offers a cozy, welcoming atmosphere with a roaring fireplace in the lobby, a hot tub, and ski room, all while being conveniently located near the base of the ski area.NORDIC INNMT CRESTED BUTTE
CONTENTSIntroduction Page 3Highlights Page 4Photos Page 5 – 10Maps Page 11 – 18Value of the Nordic Inn Page 19 - 23
INTRODUCTIONThe owners of The Nordic Inn and Land are pleased to provide qualified buyers the opportunity to acquire the 28 Room Historic Nordic Inn Bed & Breakfast and the 3.37 Acres (146,797 s.q. f.t.) land. The boutique hotel is well run, with upside opportunity. The Nordic Inn is now recognized asthe premier Bed & Breakfast by TripAdvisor ranking as #1 in Crested Butte. The Average DailyRaite (ADR) has doubled over the past 4 years, and with the addition of the $27M Biery-WittCenter (performing arts and event center) the demand for year-round reservations willincrease. The land consist of six parcels: The last large parcel of land not controlled by CBMR available for development in the base area. Two parcels are currently zoned for high density multiple family. Three parcels are zoned for low density multiple family, and one parcel is zoned for single family. All six parcels could be merged as a new PUD high density multi-family development as hotel, condo, or apartment use (the town of Mt. Crested Butte is progressive and developer friendly). A total of approximately 78,000 sq. ft. can be developed by right.This multi-acre site is rare at the base of a major ski area resort located in Mt. Crested Butte, Colorado. The Crested Butte area is a popular year-round recreation area located southwest of Denver, Colorado. This location provides residents with easy access to Crested Butte Mountain Resort (only a 500 yard walk or electric cart valet during ski season). Crested Butte Mountain Resort provides over 1,100 acres of skiing during the winter months and numerous recreational activities in the summertime. Additionally, the property is located just minutes from numerous shopping, dining, and limitless recreational opportunities. Location: 16 Treasury Rd, Mt. Crested Butte, CO 81225MLS # 719069Offered at $4,250,000February 2017 $4.25M Asking Price, Cap Rate = 5.29%Assuming Valuation of Land at $1M then Cap Rate for Hotel = 6.92%** Financials available for review with signed Non-Disclosure Agreement.
HIGHLIGHTS• Ski Shuttle – the CBMR ski shuttle that provides convenient motorized transport for guests from their vehicles to the base area – also picks up Nordic Inn guests and shuttles them to and from the lifts. • Convenient Bus Service - Convenient bus service is available with a bus stop located adjacent to the property. The Crested Butte Mountain Express (MX) provides free public ground transportation services for residents of and visitors to Mt. Crested Butte, Crested Butte, and the surrounding north valley communities. In addition the RTA Bus provides free public ground transportation to Gunnison. The Mt. CB Base Area Transit Center is approximately 2,000 feet from the Nordic Inn at the heart of the base area.• Biery-Witt Center - With the pending construction of the $27 Million 500 seat Mt. Crested Butte Biery-Witt Center (just steps from the Nordic Inn) this facility will bring quality performing arts, conferences and events to Crested Butte. The benefit of the proximity to the Nordic Inn is an obvious increased future revenue.• The Airport - The Gunnison-Crested Butte Regional Airport (GUC) is located in the city of Gunnison, just 28 miles from the town of Crested Butte and 31 miles from the town of Mt. Crested Butte. The year-round airline partner is United Airlines and during the winter months, residents and visitors can fly on American Airlines non-stop from Dallas/Ft. Worth and on United non-stop from Houston in Summer and Winter. Additionally, non-stop flights are offered year-round from Denver International Airport (DIA). • The Chalet – The adjacent Chalet is “the 28throom” that accommodates up to 8 guests, but is actually a separate structure that could easily become an Owner/Operator’s home.
PHOTOSThe Chalet is the 28throom and offers 1,800 square feet of living space. This separate structure sleeps up to 8 people and could become the Owner/Operator’s home. The Chalet
In 2013 there was a Total Renovation of all of the Guest Rooms, Registration, Lobby, Exterior and the recent addition of Guest Bar Lounge
In 2013 there was a Total Renovation of all of the Guest Rooms, Registration, Lobby, Exterior and the recent addition of Guest Bar Lounge
In 2013 there was a Total Renovation of all of the Guest Rooms, Registration, Lobby, Exterior and the recent addition of Guest Bar Lounge
SUBJECT PROPERTYLOCATION MAPThe Chalet
Subject Property3.37 Acres146,797 sq. ft.Nordic Inn + Chalet28 Rooms Total of 12,779 sq. ft.
Mt. Crested ButteCrested ButteGunnison Airport31 MilesSilver Queen Chair LiftRed Lady Chair Lift3D AERIAL IMAGELocated at the base of Mt. Crested Butte, within a short walking distance to the lifts; it is three miles from the town of Crested Butte. Gunnison Airport is approximately 30 miles to Mt. Crested Butte. Grand Junction is 126 miles away and Denver is 200 miles away from Mt. Crested Butte.
Future Site of500 SeatBiery-Witt CenterCrested ButteSki ResortBase AreaRed Lady Chair LiftSilver Queen Chair Lift
The ChaletThe Nordic Inn
In 2016 the Nordic Inn not only went through a major overhaul of the interior and exterior of the facilities, but also the Guest experience. This is evident in the Trip Advisor Certificate of Excellence, and #1 ranking in Crested Butte.There has also been a major shift in the target guest demographicVALUE & HISTORY
Assuming the average nightly rate at the Nordic Inn in Mt. Crested Butte, Colorado, varies based on the season, day of the week, and room type. Recent data indicates:• Weeknight Average (Sun–Thu): Estimate Approximately $224 per night.• Weekend Average (Fri–Sat): Estimate Approximately $245 per night.• Typical Rate Range: Between Estimate $166 and $327, depending on room selection and booking platform.• Assumption: Average Daily Rate (ADR): $235 (blended from $224 – $245)
VALUE OF NORDIC INN#1 Using the Income Approach, based on estimated data and industry norms -Nordic Inn – Key AssumptionsRoom Count: 28 rooms Average Daily Rate (ADR): $235 (blended from $224 – $245)Occupancy Rate: 60%, Operating Days: 3651. Estimated Gross Revenue: 28 rooms * 365 * 60% * $235 per night = $1,440,0002. Estimated Operating Expenses (Operating expenses typically range from 60% to 75% of revenue for small independent hotels) Assume Operating Expense Ratio: 68%Expenses = 68% * $1,443,930 = $981,8723. Net Operating Income (NOI) NOI = Gross Revenue – Expenses, $1,443,930 - $981,872 = $462,0584. Valuation Using Capitalization RateValuation = NOI / Cap Rate. Assuming Cap Rate of 6% = $7.7M, 7% = $6.6M, 8% = $5.7M, 9% = 5.1M#2 Hotel Comparable: The Old Town Inn in downtown Crested Butte, 33 Rooms, Avg. Rate ~$140 per night- Sold 7/31/2024 for $6,750,000 or $205,000 per key. Nordic Inn Avg. room rate $235, a 65% increase = $300,000 per key x 28 = $8.4M___________________________________________________________VALUE OF THE LAND#3 Hotel Comparable + PUD Entitlements – back into Land Value:Assuming new hotel = 132 new hotel rooms @ $350,000 per key = $46,200,000 and assuming value of the entitled land @ 15% of total value = $6.93M value for the land or $52,500 per key.
Scenario #4: Residential Medium Density Multi-Family ComparableUsing the 2 “recently” SOLD parcels below (one a 3.3 Acre parcel and the other a 10 Acre Parcel the value of the land would be approx. $1.7M. The location and quality of the Nordic Inn is superior – Assume a 2-3x increase in value = $3.4M - $5.1MScenario #5: Residential Single FamilyAssuming the town of Mt. CB and the vocal neighbors would like the land to be single family residential instead of a hotel “village” and the pool and parking lot were removed and an acceptable road to be developed, what would the value of the land be. Assumption: 15 Single Family Home Parcels of approximately .17 Acres. Estimated value per parcel $500,000 x 15 = $7.5MVALUE OF THE LAND CONTINUED
#1Est. Cap Rate ~7%$6.6MNORDIC INN1. Assuming Cap Rate of 6% = $7.7M, 7% = $6.6M, 8% = $5.7M, 9% = 5.1M2. Hotel Comparable: The Old Town Inn in downtown Crested Butte = $8.4MEstimate Range for Nordic Inn: $5.1M - $8.4MLAND1. Hotel Comparable + PUD Entitlements – back into Land Value = $6.93M2. Residential Medium Density Multi-Family: $3.4M - $5.1M3. Residential Single Family: $7.5MEstimate Range for Nordic Inn: $3.4M - $7.5MNORDIC INN + LANDTotal Estimated Value Range: $8.5M - $15.9M#2Hotel Comp. $8.4M#2Residential Multi-Fam$3.4 - $5.1M#3Residential Single Fam$9MNORDIC INN VALUELAND VALUESUMMARY#1Hotel Comp + PUD Entitlements $6.93M