Land and Improvements:
The land component consists of 2.5 acres where the lodge, motel, rental office/shop, rental storage, bunkhouse, house, cabins, and storage barn are located. The land is improved with a waste water treatment plant, public water system and parking lot. Adjoining are two homes on home lots known as the Aspen and Rose houses.
A brief description of the improvements is as follows:
Lodge: 4,007 square foot wood framed lodge which houses the restaurant, event room, bar, convenience store, office and large deck and grassy backyard. The restaurant and bar having capacity for 132 people.
Motel: 3,120 square foot two story wood frame structure with 9 rooms plus one laundry unit, $85 per night for two persons plus $15 per night each additional person
Suites: two rooms with a queen bed, a twin bed, hide-a-bed, bathroom, and coffee pot. Sleeps up to 5 $130/night
Cabin: one bedroom with a queen bed, bathroom and kitchenette/living room with a hide-a-bed. Sleeps 1 to 4. Pets allowed. $145/ night
Brown House: two stories with two bedrooms with queen beds, a loft with 4 twin beds, and two hide-a-beds in the great room. The house has a kitchen, dining room, great room and two bathrooms. $275/night
Rose House: three bedrooms with two queen sized beds, two twin beds, and a hide-a-bed in the living room. This house has a kitchen, dinning room, and two bathrooms. $195/night
Aspen House: three bedrooms with one queen, one full, one twin, and one hide-a-bed in the living room. It has one bathroom, kitchen, living room, and dining room. $175/night
In addition, Albany Lodge manages several other properties (Trapper and Rancher cabins and Aspen Hollow, Hide Out and Box Car homes) under which they can utilize the housing for up to 30 people and then pay a portion of the revenue to that owner.
Rental Office/Shop – 1,825 sf.
Rental Storage – brand new 1,300 sf
Storage Barn – 960 sf.
The property and facility has a “pillow count” of 90 sleeping spaces, plus managed “pillow count” of 30 pillows which allow a sleeping capacity of 120 spaces. The restaurant is full service and the liquor license is a full license allowing bar, package, and outdoor service.
Operations:
The property was purchased by the current owner in 2002. The current owner built the new lodge, motel, replaced the septic system, remodeled the rental unit building as well as up graded many of the lodging units. The operation is fully staffed including a general manager cost which is reflected in salary costs. The operation works for either an owner/operator or absentee investor owner. The financials are detailed and available to qualified buyer prospects.
A brief synopsis of the financial statements is as follows:
Revenue has grown each year from $700,000 in 2004 to $1,499,000 in 2011. (14.2% growth/year over last seven years)
Income during 2011 was generated from the following major service sectors and expressed as a percent of Total Income (% of Total Income):
Rental Operation (snowmobiles, ATVs, jeeps, cycles) - (24.0%),
Lodging - (22.2%),
Food Sales - (18.8%),
Bar - (12.3%),
Gas - (11.7%),
Convenience Store - (3.9%),
Part Sales & Permits - (7.1%).
Cost of Goods Sold (2011) was 38.6% of Revenue
Operating Expense (2011) was 43.2% of Revenue
Net Income (2011) was 18.2% of Revenue
Net Income for the 9 month ending Sept. 30 2010 compared to the same period in 2011 increased by 17.6%.
The ongoing increase in revenue and net income are a testament to the quality and success of this business.
Tanginble and Intangible Features
The “not so obvious” assets of Albany Lodge are many including:
• Physical plant systems including water, electrical, waste water, fuel, shop services and others are in top condition and add value to the property
• The lodge has a great reputation, locally and spreading over several states, resulting in a lot of return customers, referrals, and future reservations.
• The lodge is the only commercial zoned business within 15 miles.
• The fire department is directly across the road from Albany Lodge.
• The lodge has a great staff of hardworking, efficient, and friendly group of people
• The Management team is totally capable of running the day to day operation.
• The restaurant is equipped with mostly newer equipment including walk in cooler, backbar, compressors, keg cooler, refrigerators, freezers, steam table, salad bar and buffet table and a new state of the art stove-hood system.
• On-going business concern with exceptional location and top notch facilities which over time has become a destination recreation resort.
• Albany Lodge is the only full service recreation facility and one of only a few facilities offering fuel and food service for the Snowy Range recreation user.
Summary:
Albany Lodge, a destination resort, offers a tremendous on-going mountain recreation business, easily operated, of known reputation, quality improvements, and excellent location right in the heart of the Rocky Mountains. Albany Lodge has a significant number of repeat customers as well as new customers each year. The operation is appropriately staffed for success and succession. The quality of the property, people and mountain esthetics is seen throughout. Whether you are an owner operator or an investor, this business is simple to manage and operate and the investment is backed up by the value of the assets. Not often does an asset backed business opportunity come to the open market that is throwing off 18% Net Income and priced at about a 9% cap rate. We look forward to showing you this great business income property.