Now Accepting Equity Commitments

The Hotel Melrose

Historic | Upscale | Boutique · Est. 1908

A stabilized, 16-key boutique hotel in downtown Grand Junction, CO. Enter after renovation risk — before full deleveraging and cash distributions.

20%

Target IRR

2.07x

Target Equity Multiple

Cumulative Preferred Return

Indicate Interest Schedule a Call

Offering Snapshot

StructureDirect Equity (LLC)

Total Equity Raise$5.0M

Equity Raised to Date~$1.8M

Remaining$3.2M

Minimum Investment$15,000

Hold Period5 Years

Profit Split (LP / GP)80 / 20

Offering TypeRule 506(b)

Capital Structure (Post-Raise)

SBA Loan$1.70M

Total Equity$5.00M

Loan-to-Value~28%

DSCR (Pro Forma)2.48x

Investment Thesis

Late-Stage Entry into a
De-Leveraging Asset

Investors enter precisely where renovation risk is gone, revenue is accelerating, and leverage is at its lowest point since acquisition.

Renovation Risk Eliminated

The 1908 historic building renovation was completed in 2023. Stabilization is underway with 16 boutique suites featuring premium finishes, kitchenettes, keyless entry, and digital concierge technology.

Revenue Acceleration Validated

2025 total revenue reached $575,871 — a 40% increase over full-year 2024 — surpassing the prior year total by the end of Q3. RevPAR climbed 33% year-over-year to $101.

De-Risked Capital Structure

Remaining $3.2M equity retires short-term debt and reduces leverage to a conservative ~28% LTV. SBA refinance completed July 2025 stabilizes long-term debt cost.

Tax-Advantaged Returns

Investors received $1.72M in bonus depreciation via 2024 K-1s — in many cases exceeding original investment amounts. Additional 2025 allocations anticipated from current cost segregation studies.

Three-Parcel Assemblage Optionality

Full site control of the Hotel, Lot 303, and Lot 329 secures the footprint for a potential 48-key flagship expansion. Investors may exit or participate in Phase II at their election.

Why This Investment

Asset TypeBoutique Hotel (16 keys)

LocationDowntown Grand Junction, CO

Year Built / Renovated1908 / 2023

Target IRR20%

Equity Multiple2.07x

Preferred Return7% Cumulative

Distribution FrequencyQuarterly

Tax TreatmentK-1 Pass-Through Depreciation

Risk ProfileModerate

Construction RiskNone

Performance Dashboard

Accelerating Revenue.
Strengthening Margins.

Q4 2025 delivered $117,549 in revenue — a 21% YoY increase — despite natural winter seasonality on the Western Slope.

Q4 2025 vs Q4 2024 +21% Revenue

Metric	Q4 2025	Q4 2024	YoY
Rooms Sold	604	589	+3%
Occupancy	42%	44%	-2%
ADR	$204	$165	+24%
Room Revenue	$117,549	$96,959	+21%

H2 2025 vs H2 2024 +34% Revenue

Metric	H2 2025	H2 2024	YoY
Rooms Sold	1,512	1,191	+27%
Occupancy	52%	45%	+7%
ADR	$212	$197	+8%
Room Revenue	$315,100	$235,362	+34%

Full Year 2025 Summary Stabilized

$575K

Total Revenue

+40% vs 2024

50%

Annual Occupancy

$203

Average Daily Rate

$101

RevPAR

+33% YoY

Revenue by Booking Channel 60.7% Direct

Channel	Share
Website / Booking Engine	58.0%
Booking.com	16.7%
Expedia	16.3%
Walk-in	6.6%
Other (Phone, Email, Airbnb)	2.4%

Exit Scenarios

Three Paths. One Core Investment.

Fort + Home has structured multiple exit paths, allowing investors to optimize for income, liquidity, or full-cycle value creation.

Scenario 1

Stabilize & Harvest

Maintain 16-key operations with focus on maximized cash distributions. No construction risk.

Exit Valuation$7.65M

Projected IRR14.0%

Equity Multiple1.45x – 1.55x

Avg Cash-on-Cash6 – 8%

Hold Period5 Years

Scenario 2

Entitled Disposition

Exit with "shovel-ready" expansion rights. Shorter-duration, entitlement-driven return profile.

Exit Valuation$8.69M

Projected IRR~15.3%

Equity Multiple1.50x – 1.60x

Total Profit$900K – $1M

Hold Period12 – 18 Months

Scenario 3

Flagship Expansion

48-key flagship with rooftop heated pool, gym, NNN-leased restaurant, and activated ground floor.

Exit Valuation$19.9M

Projected IRR23.1%

Equity Multiple1.90x – 2.10x

Stabilized NOI~$1.40M

Dev. Cost$15.07M

Scenario 3 expansion would require a separate capital event and is not funded by the current raise. All projections are estimates and not guarantees.

Return Projections

Model Your Investment
Across Exit Scenarios

Adjust the investment amount to see projected cumulative returns. Both scenarios deliver 7% annual preferred distributions during the hold period, with the majority of equity appreciation realized at sale. Scenario 3 diverges after the 2-year expansion build, accelerating sharply as the 48-key flagship stabilizes and exits at 2.00x.

Investment Amount

Scenario 1 — Stabilize & Harvest (14% IRR, 1.50x)

Scenario 3 — Flagship Expansion (23.1% IRR, 2.00x)

All projections are illustrative estimates based on stated target returns. Actual results may vary materially. Past performance is not indicative of future results. This is not an offer to sell securities.

Operations & Efficiency

A Lean, Tech-Forward
Operating Model

High-tech, low-overhead staffing eliminates the traditional front-desk cost center while maintaining an elite guest experience.

🔑

Virtual Concierge & Keyless Entry

24/7 virtual guest support and smartphone entry reduce onsite labor while improving responsiveness. No traditional front desk overhead.

📊

AI-Powered Revenue Management

Cloudbeds-NetSuite API integration with AI-driven dynamic pricing enables real-time yield optimization during high-demand tourism cycles.

🧹

50% Housekeeping Efficiency Gain

Lean process re-engineering moved throughput from 4 to 6 room turns daily — a primary driver of enhanced NOI margins.

🎯

60.7% Direct Booking Ratio

Oasi partnership drives data-driven strategy integrating metasearch and targeted social campaigns, reducing OTA commission leakage.

👔

In-House Laundry & Cost Control

On-premises laundry delivers monthly savings on linens while improving quality control — critical for maintaining the 4.8-star rating.

🍷

High-Margin Ancillary Revenue

Minibars, curated dining partnerships, experience kits, wedding buyouts, and planned courtyard activations maximize yield per square foot.

The Property

A Historic Landmark.
Reimagined for Modern Travelers.

Originally built in 1908, The Hotel Melrose is the sole survivor among twelve original buildings that once lined downtown Grand Junction — fully renovated into a tech-forward boutique hotel with no front desk and a 4.8-star guest rating.

The Hotel Melrose — downtown Grand Junction exterior

Hotel Melrose renovation and restoration

Hotel Melrose rooftop and outdoor spaces

From Forgotten Landmark to Boutique Icon

Fort + Home acquired the neglected 1908 boarding house and executed a full-scale renovation — restoring the original lobby tin ceiling and mosaic tile floors while adding custom millwork, design-forward furnishings, and kitchenettes in every room.

The addition of Melrose Spirit Co. — a bar inspired by turn-of-the-century saloons — and a contactless concierge model using smart technology completed the transformation into Grand Junction's only true boutique hospitality experience.

Guest Rating

4.8 ★

Year Built

1908

Renovated

2023

Room Keys

Total Parcels

Direct Bookings

60.7%

Market Outlook

Boutique Positioning in a
Bifurcating Market

National U.S. hotel RevPAR declined 0.3% in 2025 — the first non-recessionary decline ever recorded. But performance is bifurcating sharply: luxury and upper-upscale RevPAR grew 7× faster than economy chains. Boutique and experiential hotels continue to command premium ADR, and Grand Junction's outdoor recreation economy outpaces state averages.

95.4M

Colorado visitors in 2024
(record year — $28.5B economic impact)

$484M

Mesa County outdoor recreation GDP
(7.2% of total GDP — vs. 3.1% statewide)

$91.3M

GJEP economic impact in 2024
(record — 299 new jobs, 131 active prospects)

Boutique Advantage

Boutique hotels represent just 3.2% of U.S. rooms but capture 5.6% of total room revenues — reflecting structurally higher ADR. Millennials and Gen Z continue to drive demand for distinctive, experience-rich accommodations over commodity lodging.

Grand Junction Momentum

Outdoor recreation drives 11% of Mesa County jobs and 4.8% of GDP — well above the Colorado state average. Morgan Mining's 900-job expansion, Amazon's new facility, and 76% public land access continue to fuel year-round demand growth.

2026 Outlook

CoStar/STR project U.S. RevPAR +0.6% in 2026 with growth concentrated in upper-tier segments. Consumer bifurcation favors properties with pricing power — exactly the positioning The Hotel Melrose occupies as Grand Junction's only historic boutique hotel.

Sources: STR/Tourism Economics Feb 2026 Forecast, Colorado Tourism Office (Longwoods International), CMU Outdoor Recreation Economic Impact Study, GJEP 2024 Annual Report. Boutique hotel revenue share data from industry analysis of STR historical data.

Indicate Interest

Invest in The Hotel Melrose

Submit a soft commitment to receive offering materials, or schedule a one-on-one to discuss this opportunity in detail.

Submit Your Soft Commitment

Complete the form to indicate your interest. This is non-binding and confidential. Available to accredited and sophisticated investors with a pre-existing relationship only.

Non-binding indication of interest only. You will receive offering materials and a follow-up from our Investor Relations team.

Prefer a Conversation?

Speak directly with Jeff Zimmerman, President of Fort + Home Capital, to discuss The Hotel Melrose and how it fits your portfolio.

Schedule a Call

Investor Relations

(720) 507-5583

investors@fortandhome.com

3199 D Rd #D100, Grand Junction, CO 81504

Monday – Friday, 9 AM – 5 PM (MT)

This form is intended solely to gauge interest under Regulation D, Rule 506(b) and does not constitute an offer to sell securities. All soft commitments are non-binding and subject to completion of offering documents and verification of investor status. This opportunity is available only to accredited investors and sophisticated investors with a pre-existing substantive relationship with the Sponsor.

CONFIDENTIAL — Rule 506(b) Private Placement. Not for Public Distribution. This page is for informational purposes only and does not constitute an offer to sell or a solicitation to buy securities. Any offer or sale of securities will be made only pursuant to definitive offering documents. All investments involve risk, including the possible loss of capital. Target returns, IRR projections, and equity multiples are forward-looking estimates based on management's current assumptions and are not guarantees of future performance. Actual results may vary materially. Past performance is not indicative of future results. Investors should review the applicable Private Placement Memorandum, Operating Agreement, and Subscription Agreement for complete details. This offering is available only to accredited investors and sophisticated investors with a pre-existing substantive relationship with the Sponsor under Rule 506(b) of Regulation D. Fort + Home Capital LLC. © 2025 Fort + Home, LLC. All rights reserved.