236 US-89 - Specialty FOR SALE


Kanab, UT 84741
$4,900,000 USD
435-229-2522
236 US-89, Kanab, UT for Sale
$4,900,000 USD
Specialty - FOR SALE
1/24
null | Request Cap Rate

236 US-89
Kanab, UT 84741


OVERVIEW

The Canyons Collection represents a rare opportunity to acquire an established, design-forward hospitality portfolio in Southern Utah’s fastest-rising boutique market. Situated in downtown Kanab along Highway 89, this 1.24-acre property combines two award-winning hotels—Canyons Hotel and Canyons Lodge—with an employee residence, all within walking distance of Kanab’s galleries, restaurants, and trailheads. Canyons Hotel totals 14,976 sq ft across three stories and features 28 guestrooms and suites, anchored by the renowned Sego Restaurant, a culinary institution under Chef Shon Foster. Modern interiors blend rustic desert charm with high-end finishes, positioning the asset for effortless conversion into a Hilton Outset Collection property. Hilton has issued a Property Improvement Plan, confirming a low-lift path to brand integration and future revenue expansion. Canyons Lodge complements the hotel with 16 western-modern rooms inspired by cabin architecture. Spanning two levels and 6,233 sq ft, it includes a manager’s apartment, finished basement, and shared operational systems with the main hotel. Together, the properties deliver 44 guestrooms plus an owner’s suite, creating a seamless multi-asset operation optimized for efficiency and guest satisfaction. The employee residence, a 1,782 sq ft modular home with a 495 sq ft laundry shop, supports staff housing or can serve as an owner’s home or long-term rental unit. This additional structure enhances flexibility and year-round operational stability. Kanab’s market fundamentals are exceptionally strong. With over 20 million annual visitors traveling to nearby Zion, Bryce Canyon, and the Grand Canyon, Kanab is evolving from a pass-through town into a high-end resort destination emphasizing art, dining, and boutique accommodations. Limited land availability and zoning constraints create high barriers to new competition, providing an advantageous acquisition basis relative to replacement cost. Priced at $4,900,000 million, the Canyons Collection offers immediate cash flow from two stabilized assets, brand-conversion upside through Hilton partnership, and appreciation potential in a rapidly expanding tourism hub. For investors seeking a flagship hospitality property with strong operational history and scalable growth, this portfolio stands as one of Southern Utah’s most compelling offerings. Highlights Include: - Turnkey Boutique Portfolio: Two fully operational hotels—Canyons Hotel (28 rooms, 14,976 sq ft, includes Sego Restaurant) and Canyons Lodge (16 rooms, 6,233 sq ft)—plus an employee residence (1,782 sq ft home + 495 sq ft shop). - Hilton Conversion Potential: Identified and pre-approved by Hilton for conversion to its Outset Collection brand; Property Improvement Plan already issued and considered a low-cost, high-ROI conversion. - Prime Location: Located on Highway 89 in downtown Kanab—walkable to restaurants, galleries, and attractions; central to Zion, Bryce Canyon, Grand Canyon, and Lake Powell. - Culinary Anchor: Home to Sego Restaurant, one of Utah’s highest-rated dining destinations led by Chef Shon Foster, which enhances guest retention and brand visibility. - High-Barrier Market: Kanab offers limited upscale lodging inventory, ensuring strong pricing power and future value appreciation. - Scalable Platform: Operational efficiencies between both hotels and residence; ideal flagship asset for regional hospitality growth. - Strong Tourism Growth: Kanab attracts over 20 million annual visitors to nearby national parks, now positioning itself as a boutique resort hub with an art- and design-driven tourism base.

FOR SALE DETAILS

PRICE

$4,900,000 USD

PRICE/SF

$209 USD /SF

CAP RATE

Request Cap Rate

% LEASED

-

TENANCY

-

SALE TYPE

Investment

BUILDING DETAILS

PROPERTY NAME

The Canyons Collection

PROPERTY TYPE

Specialty

TOTAL BUILDING SIZE

-

STORIES

3

BUILDING CLASS

-

YEAR BUILT

1985

SPRINKLERS

-

PARKING SPACES

-

LAND DETAILS

LAND ACRES

-

LAND SF

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ZONING

-

APN/PARCEL ID

0014822

ASK ABOUT THIS PROPERTY

Shellee HainesWhite Crow Real EstateMore Info
435-229-2522

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Shellee HainesWhite Crow Real EstateMore Info
435-229-2522

By clicking the button, you agree to Showcase's Terms of Use and Privacy Notice.