The Hotel Lenado was listed for sale today at $15.5 million, and it is being marketed for conversion into a corporate or family retreat for rent.
The deal includes plans the current owners had drawn up for remodeling the 19-room, 30-year-old lodge into nine luxury suites with ample entertaining areas. According to listing broker Craig Morris, with Aspen Snowmass Sotheby’s International Realty, the property as envisioned by the remodel would be geared for a family or group of families that also want to generate rental income.
When the Hotel Lenado opened in 1984, it offered what were then the most expensive rooms in the Aspen market at around $175 a night, according to co-owner Daniel Delano.
Now, nearly 30 years later, Delano said the lodge is in need of an upgrade and has fallen behind the times in the world of ski-town amenities. Rooms in the hotel, which go for between $300 and $500 a night, average less than 275 square feet, Delano said.
“That’s very small by current standards,” he said, adding that new windows and fixtures also are needed.
The Hotel Lenado, located at the corner of Aspen Street and Hopkins Avenue in between two parks, is a “classic piece of architecture,” Delano said, adding that the remodel plans do not include significant exterior changes or an expansion.
“After 30 years, it’s getting to be time,” Delano said, adding that he is nearing retirement age. “... It’s the end of an era, but time moves along.
“... I’ve enjoyed very much owning the Hotel Lenado over all these years, so in that regard it is bittersweet,” Delano said.
He estimated that the remodel plans would cost $3 to $4 million to complete.
“It depends on the tastes and finishes” of the buyer, he said.
The deal is similar to one Delano and business partner Frank Peters did on the Sardy House, formerly a bed and breakfast, which they renovated and then sold for $16.25 million in 2006 to a Florida family.
Like the Sardy House, the Hotel Lenado carries a stipulation per city of Aspen zoning that it be made available for rent during high-season periods. For the Hotel Lenado, it must be made available between Dec. 20 and March 20, Morris said.
The Lenado is the second small Aspen lodge in recent months that could see a change in use under new ownership. The Mountain House, a 26-room bed and breakfast on the 900 block of East Hopkins Avenue, is in foreclosure and scheduled for a public trustee’s auction on the courthouse steps on March 27. A new owner would be under no obligation to keep the property as a mid-priced lodge.