The Hotel Melrose · the detail
HOTEL MELROSE
Every term, in plain English.
The Hotel Melrose, LLC is a Colorado limited liability company that owns The Hotel Melrose, a fully operational 16-key boutique hotel at 337 Colorado Avenue in Grand Junction. This offering sells Class A Units in that company under Rule 506(c).
This page is the long version: the hotel, who runs it, the money, the fees, the terms and what can go wrong. The short version is on the main page.
Request the Memorandum The short version
Available only to verified accredited investors.
The Hotel Melrose, LLC · 734 Main St., Grand Junction, CO 81501 · managed by Fort + Home Capital, LLC
The hotel
Open and taking guests.
The building
One of the Grand Junction area’s twelve original buildings, at 337 Colorado Avenue, extensively renovated in 2023 while preserving its historic character.
Operating today
A fully operational 16-key boutique hotel, open as a hotel for over two years, with convenient access to downtown dining, entertainment and outdoor recreation.
The twelve months to October 7, 2026**
About $625,000 in revenue and about 50% blended occupancy, with peak-season occupancy in the low 70% range. Revenue grew about 36% year over year in the second quarter of 2026.
**These operating results are historical, as stated in the Memorandum, and do not guarantee future performance.
Who runs it
One group: the Manager and the operator.
The Manager
Fort + Home Capital, LLC, a Colorado limited liability company, manages the Company and holds its Class B Units. Its President, Jeff Zimmerman, is a licensed contractor in Colorado and Montana and has managed real estate portfolios and construction projects for the past 16 years.
The operator
Fort Asset Management, LLC, an affiliate of the Manager, runs hotel operations under a hotel management agreement.
Your say
The Manager makes the Company’s decisions. It can be removed only for Cause, by Members holding at least 85% of the outstanding Units, excluding Units held by the Manager or its affiliates.
Your reporting
Quarterly reports by the 15th of the month after each quarter, and Schedule K-1s the Company endeavors to send by March 1.
Because the same group manages the Company and runs the hotel, and is paid by it, each of those arrangements is a conflict of interest. None was negotiated at arm’s length; the Memorandum describes them.
Where the money goes
The first $3.4 million.
$2,361,788.78
retires the Fort Lending Debt Fund note, shown in the Memorandum as a 12% subordinated note: $2,173,321.28 of principal and $188,467.50 of accrued interest as of September 30, 2026. Repayment is conditioned on the note being documented with The Hotel Melrose, LLC as obligor and the amount due being confirmed.
Up to $750,000
for capital improvements and amenity development.
Up to $180,000
for an operating reserve and working capital.
$108,211.22
for offering costs.
The Memorandum presents these uses for the first $3,400,000 of new Class A equity and applies proceeds in this order: offering costs, the operating reserve, the note, then improvements. The Manager may reallocate among these categories.
Room to grow
16 keys today. About 28 next.
Today
16 keys at 337 Colorado Avenue.
A second story
The Company intends to add a second story, taking the hotel to about 28 keys.
A later phase
If feasible, about 56 keys using an adjacent parcel owned separately by an affiliate.
The liquidity option
The Operating Agreement (Section 6.8) gives the Class A Members it describes a one-time, conditional redemption option if the Company pursues a material expansion onto the adjacent parking lots. Read Section 6.8 for who qualifies.
The adjacent parcel and parking lots are not owned by the Company and are not part of this offering. Each phase would need separate financing, governmental approvals and further authorization. No financing has been committed, and no representation is made that either phase will be completed.
What you are taking on
The risks, stated plainly.
You can lose money
The Units are unsecured, and there is significant risk, including loss of principal.
More financing is needed
The Memorandum states that additional financing is necessary to operate the property and before any distributions are made, and that there is no assurance the Company can continue as a going concern.
One hotel, one market
The Company’s business will not be diversified. Hotel revenue depends on travel, tourism and the local economy, and can fall sharply in a downturn or a weak season.
Conflicts of interest
The operator and the Manager are affiliates paid fees and a share of distributions under arrangements that were not negotiated at arm’s length.
You cannot easily sell
The Units are restricted securities with no market. Transfers are restricted and subject to the Company’s and other Members’ right of first refusal.
The price is not a valuation
The $15,000 Unit price was set by the Company and bears no relationship to its assets, book value or any other recognized measure of value.
This is a summary, not the risk factors. Read the Risk Factors section of the Memorandum in full before investing.
Terms
The offering, in full
These terms summarize the governing Private Placement Memorandum, which controls.
The Private Placement Memorandum, its Addendum, the Operating Agreement and the Subscription Agreement control if anything here differs from them.
The Hotel Melrose, LLC · Rule 506(c)
- What you buy
- Class A Units, membership interests in The Hotel Melrose, LLC, a Colorado limited liability company. Equity, not a loan; unsecured
- Price per Unit
- $15,000
- Least you can invest
- 3 Units ($45,000). The Manager may waive or reduce the minimum
- Most this offering can raise
- 433 Units ($6,495,000). There is no minimum offering amount; subscriptions are accepted in rolling closings
- Preferred return
- 7% a year on unreturned capital contributions, non-compounding, calculated quarterly and accruing from the day your funds are wired. Amounts accrued but not paid carry forward as a Preferred Return Balance. It is paid only if the Company has the cash*
- From operations
- After the preferred return, 80% to Class A Members and 20% to the Class B Member (the Manager)*
- From a sale or refinance
- First any Preferred Return Balance, then each Class A Member’s capital, then 80/20*
- Distributions
- Quarterly, at the Manager’s discretion, within 30 days of quarter end, and only from cash available after the Company’s other obligations
- Fees to the Manager’s affiliate
- Fort Asset Management, LLC: property management, 6% of guest booking revenue; asset management, 2% of guest booking revenue; both paid monthly, regardless of profitability. The Manager or an affiliate is reimbursed for expenses (amount not determinable)
- Expected hold
- About five years, then a refinance or sale; it may be shorter or longer
- Liquidity
- No market; transfers restricted and subject to a right of first refusal; no capital withdrawal; no redemption right beyond the conditional option in Operating Agreement Section 6.8
- Who can invest
- Accredited investors who are U.S. persons, verified through VerifyInvestor or another permitted method. Self-certification alone is not accepted. Qualified Plans and IRAs together may not own 25% or more of the Units
- Subscription funds
- Wired to a dedicated U.S. Bank account in the Company’s name, using instructions the Company provides; rejected subscriptions are returned without interest or deduction
- Tax reporting
- Schedule K-1, which the Company endeavors to send by March 1
*Not guaranteed.
How to invest
Four steps, in order.
01 · Read the Memorandum
Request it below. It arrives with the Subscription Agreement and the Operating Agreement.
02 · Talk to us
A conversation with our team about the hotel, the terms and the five-year hold.
03 · Verify your status
Accredited status is verified through VerifyInvestor or another permitted method before any subscription is accepted. Under Rule 506(c) this is required, and self-certification alone is not enough.
04 · Subscribe
Sign the Subscription Agreement, which includes a joinder to the Operating Agreement, electronically, then wire your subscription to the Company’s U.S. Bank Subscription Account. The Manager decides whether to accept each subscription.
Requesting information does not create an investment or reserve an allocation. Request the Memorandum →
Get started
Request the Memorandum
We will send The Hotel Melrose Private Placement Memorandum and follow up within one business day. Requesting it does not create an investment or reserve an allocation.
- An operating 16-key boutique hotel in downtown Grand Junction
- 7% preferred return, ahead of the Manager’s 20% share*
- 80/20 profit split after the preferred return*
- $45,000 minimum, in $15,000 Units
- About a five-year expected hold*
Questions
The longer answers.
What is The Hotel Melrose, LLC?
A Colorado limited liability company that owns The Hotel Melrose, a 16-key boutique hotel at 337 Colorado Avenue in Grand Junction. It is managed by Fort + Home Capital, LLC, and the hotel is run by Fort Asset Management, LLC, an affiliate of the Manager. Investors buy Class A Units, an ownership share of the company.
Are there existing investors?
Yes. As of September 30, 2026, Class A Members had contributed $2,204,324.84, including a $362,774.27 capital-account step-up, and the Class B Member had contributed $158,000. New investors buy the same Class A Units at $15,000 per Unit.
Does the 7% compound, and does it carry forward?
It does not compound: an unpaid amount does not itself earn 7%. Amounts accrued but not distributed carry forward as a Preferred Return Balance, which is paid ahead of the Manager’s 20% share if the Company has the cash. If it never does, it is never paid.
Why does so much of the money repay a note?
The Memorandum applies proceeds, after offering costs and an operating reserve, to repaying the Fort Lending Debt Fund note, $2,361,788.78 as of September 30, 2026, before improvements. Repayment is conditioned on the note being documented with The Hotel Melrose, LLC as obligor and the amount due being confirmed. The Manager may reallocate among the categories.
Is the expansion part of this offering?
No. The adjacent parcel and parking lots are not owned by the Company and are not part of this offering. A second story and a later phase on the affiliate’s parcel are possible future plans; no financing has been committed and neither is promised.
Can I get my money out early?
Not on demand. There is no market for the Units, no capital withdrawal right, and transfers are restricted and subject to a right of first refusal. The only redemption right is the conditional option in Section 6.8 of the Operating Agreement, for the Members it describes. Plan to hold for about five years.
This page provides information about The Hotel Melrose, LLC under Regulation D, Rule 506(c). It is not an offer to sell or a solicitation of an offer to buy any security. Securities are offered only through the Private Placement Memorandum and related documents, which must be read in full, including the risk factors, and which govern if anything here differs from them.
Class A Units are available only to accredited investors who are U.S. persons. Before accepting a subscription, the Company verifies accredited status through VerifyInvestor or another permitted method. Self-certification alone is not accepted.
*Not guaranteed. This is equity, not a loan: the Units are unsecured, with no fixed return and no maturity date. The 7% preferred return and the 80/20 split set the order in which cash is shared between investors and the Manager; they are not a promise that cash will be available. The Memorandum states that additional financing of the Company is necessary to operate the property and before any distributions are made, and that there is no assurance the Company can continue as a going concern.
Fort Asset Management, LLC, an affiliate of the Manager, operates the hotel and is paid fees based on guest booking revenue regardless of profitability, and the Manager receives 20% of distributions after the preferred return. These arrangements were not negotiated at arm’s length and are conflicts of interest described in the Memorandum.
**Operating figures are historical, as stated in the Memorandum, and do not guarantee future performance. The hold period is the Manager’s current expectation and may be shorter or longer. The expansion phases are possible future plans; no financing has been committed and no representation is made that either will be completed.
An investor may lose some or all of the capital invested. There is no public market for the Units, transfers are restricted, and the investment should be considered illiquid. Photos show The Hotel Melrose.