Status quo at Hotel Colorado after sale fails
It’s back to business as it was before at the historic Hotel Colorado in Glenwood Springs, after a deal fell through this week for the neighboring Hot Springs Pool to acquire the 123-year-old hotel property.
“The hotel is not on the market, and it is being retained by the same ownership and operator that has owned and managed it for 27 years,” David Storm, president and CEO of Denver-based Providence Hospitality Partners, said on Tuesday.
Storm said he has been in contact with Clay Bastian, representative for the family partnership out of Kansas that owns the Hotel Colorado, since the decision by the Hot Springs Pool not to go forward with its planned purchase. The acquisition would have reunited two historic properties developed in the late 1800s by renowned architect Walter Devereux.
The Hot Springs announced Monday that it will not proceed with a scheduled Jan. 31 closing on the purchase, citing “substantial increases” in the costs to do an extensive renovation that would have closed the hotel for several months.
“We are excited about moving forward,” Storm said, adding the hotel has a lot of work to do to get back up to full staff after some of the approximately 50 employees had already lined up new jobs.
As recently as last Friday, the hotel management had a luncheon honoring some of the longtime employees and bidding them farewell. Some of those employees have now decided to stay, he said.
Groups that normally schedule events at the hotel will be notified to see if they want to consider booking, if they haven’t already found another venue, and tenants that have operated separate businesses in the hotel are being asked if they would like new leases, he said.
In addition, wedding parties that had pre-booked the hotel before it went under contract last fall and those who have inquired in the meantime will also be contacted, Storm said.
“We’ve heard from a lot of people who are happy that we are staying open,” he said. “Guests who have been coming back for many years have a real emotional attachment, and there is some relief for our guests and staff about all this.”
At the same time, Storm said the owners and management recognize that capital improvements are needed. Among them are plans to add air conditioning to the building that will need to be reviewed and a time line will need to be set for that work to be done, he said.
“We have an ongoing preventative maintenance program for the property,” Storm added. “It’s not a distressed property, but it does need attention that will be received.”
In recent years, boilers at the hotel have been replaced and other major mechanical issues addressed, he said.
“The property still performs quite well and remains competitive, even though it is not a branded property,” said Storm, whose management company operates various chain and independently owned properties around the state.
The Hotel Colorado is the only hotel property in Glenwood Springs that is included on the National Historic Register, having been added in 1977.
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