Hospitality investing in Colorado Springs targets outdoor tourism at Pikes Peak, Garden of the Gods, the Cheyenne Mountain Zoo, and Broadmoor resort demand, along with military-related business travel. The Broadmoor defines the luxury segment, while limited-service hotels near I-25 and the airport serve steady commercial and leisure traffic.

Hospitality Market Overview: Colorado Springs 2026

The Colorado Springs hospitality market in 2026 reflects the metro's broader economic momentum, driven by U.S. Air Force Academy, Fort Carson, Peterson Space Force Base, Schriever Space Force Base, NORAD, Lockheed Martin, Northrop Grumman, Boeing, L3Harris, Raytheon, UCHealth, Centura Health, National Cybersecurity Center. Key metrics for hospitality investors:

  • Hospitality Vacancy: 28.5%
  • Hospitality Cap Rates: 7.75%-9.25%
  • Metro Rent Growth: 3.2% year-over-year
  • Job Growth: 2.3%
  • Population Growth: 1.3%
  • Median Asking Rent: $1,685

Hospitality Subtypes in Colorado Springs

The Colorado Springs hospitality market encompasses a range of property subtypes, each with distinct risk-return profiles and financing requirements:

  • Full-Service Hotels
  • Limited-Service / Select-Service
  • Boutique & Independent Hotels
  • Extended Stay
  • Resorts & Spas
  • Entertainment Venues
  • Conference & Event Centers
  • Specialty Hospitality (Aquariums, TopGolf, etc.)

Each subtype has different lender appetite, underwriting criteria, and optimal financing structures. Understanding which subtypes perform best in Colorado Springs's specific market conditions is critical for investment success.

Key Investment Metrics

Hospitality investors evaluating Colorado Springs should focus on these key performance indicators:

  • Cap Rate Spread: Colorado Springs hospitality cap rates at 7.75%-9.25% compare favorably to national averages, reflecting attractive yields for investors seeking current cash flow
  • Rent Growth Trajectory: 3.2% annual rent growth supports both value-add and core investment strategies
  • Supply Pipeline: New hospitality construction activity should be evaluated relative to the market's absorption capacity
  • Tenant Quality: The Colorado Springs metro's major employment sectors — U.S. Air Force Academy, Fort Carson, Peterson Space Force Base, Schriever Space Force Base, NORAD, Lockheed Martin, Northrop Grumman, Boeing, L3Harris, Raytheon, UCHealth, Centura Health, National Cybersecurity Center — drive hospitality tenant demand and creditworthiness

Financing Options for Hospitality in Colorado Springs

Hospitality properties in Colorado Springs can be financed through multiple capital sources, each with distinct advantages:

  • Bank Permanent Loans
  • CMBS
  • SBA 504 / 7(a)
  • Bridge Loans
  • Construction & Renovation
  • Mezzanine & Preferred Equity

The optimal financing structure depends on your business plan (core hold, value-add, or development), the property's current condition and occupancy, and your desired leverage and hold period. In the Colorado Springs market, lenders are most competitive for well-located assets with strong fundamentals and experienced sponsors.

Top Submarkets for Hospitality Investment

The Colorado Springs metro features several distinct submarkets for hospitality investment, each with unique characteristics:

  • Downtown Colorado Springs — offering distinct opportunities within the broader Colorado Springs hospitality market
  • Old Colorado City — offering distinct opportunities within the broader Colorado Springs hospitality market
  • Manitou Springs — offering distinct opportunities within the broader Colorado Springs hospitality market
  • Broadmoor — offering distinct opportunities within the broader Colorado Springs hospitality market
  • Briargate — offering distinct opportunities within the broader Colorado Springs hospitality market
  • Northgate — offering distinct opportunities within the broader Colorado Springs hospitality market
  • Powers Corridor — offering distinct opportunities within the broader Colorado Springs hospitality market
  • Interquest — offering distinct opportunities within the broader Colorado Springs hospitality market
  • InterPark — offering distinct opportunities within the broader Colorado Springs hospitality market
  • Southeast Colorado Springs — offering distinct opportunities within the broader Colorado Springs hospitality market
  • Monument — offering distinct opportunities within the broader Colorado Springs hospitality market
  • Fountain — offering distinct opportunities within the broader Colorado Springs hospitality market
  • Security-Widefield — offering distinct opportunities within the broader Colorado Springs hospitality market
  • Black Forest — offering distinct opportunities within the broader Colorado Springs hospitality market
  • Cascade — offering distinct opportunities within the broader Colorado Springs hospitality market
  • Woodland Park — offering distinct opportunities within the broader Colorado Springs hospitality market

The most active investment corridors for hospitality in Colorado Springs include Downtown Colorado Springs, Northgate and InterPark Class A office, Briargate retail and multifamily, Powers Corridor industrial, Monument. Submarket selection significantly impacts both returns and financing terms, as lenders evaluate location-specific metrics in their underwriting.

Investment Thesis: Hospitality in Colorado Springs

The investment case for hospitality in Colorado Springs rests on several structural factors:

  • Economic Fundamentals: 2.3% job growth and 1.3% population growth create durable demand
  • Market Pricing: Cap rates at 7.75%-9.25% offer attractive entry points relative to coastal gateway markets
  • Financing Environment: The Colorado Springs market's depth and lender familiarity support competitive borrowing costs
  • Growth Potential: 3.2% rent growth supports improving cash flows over the hold period

Colorado Springs is the second-largest city in Colorado and the nation's leading defense and aerospace cluster outside of Washington, DC, anchored by the U.S. Air Force Academy, Fort Carson, Peterson Space Force Base, Schriever Space Force Base, Cheyenne Mountain Space Force Station, and NORAD. Defense-adjacent contractors including Lockheed Martin, Northrop Grumman, L3Harris, and Raytheon occupy substantial Class A office and R&D space, while the metro has quietly become a cybersecurity hub with the National Cybersecurity Center and multiple federal cyber programs. Population growth driven by military in-migration, a lower cost of living than Denver, and a booming outdoor tourism economy (Pikes Peak, Garden of the Gods) supports consistent multifamily and retail absorption.

CLS CRE — Hospitality Financing in Colorado Springs

CLS CRE specializes in hospitality financing throughout the Colorado Springs metropolitan area. With access to 1,000+ lenders, we match your specific hospitality investment with the right capital source at the most competitive terms available.

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