$9 million Denver motel meant to shelter the unhoused remains vacant two years after city's purchase

DENVER — The City of Denver purchased the former Stay Inn along Peoria Street in 2023 for $9 million with hopes of creating a homeless shelter. Two years later, it sits vacant, and the city is waiting for a potential buyer.

Advocates told Denver7 they're frustrated with the lack of progress, and those living on the streets have waited far too long for this transformation.

"To have one more location where people could stay would be really valuable to our community," said Amy Beck with Together Denver.

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In May 2021, former Denver Mayor Michael Hancock stood in front of the Stay Inn and announced the city's plan to purchase the hotel and convert it into a shelter for the unhoused.

"This building here behind us represents hope," he said at the time.

The city purchased the 96-unit motel in 2023. Eighteen months later, the city decided to put the property up for sale.

Denver

Former motel purchased by the City of Denver back on the market for $10

Claire Lavezzorio

Since February, the motel has been on the market for $10. That low price, however, comes with a catch.

The new owner would be responsible for transforming the building into “supportive housing” for those experiencing homelessness. Necessary changes will cost around $5 million, according to the city.

"They built all these tiny homes right next to it to house people when they could be housing a lot of them in here," said Jeremy Lamping, as he pointed to the former motel surrounded by chain-link fencing.

Lamping said he's been living on the streets for several years and was hopeful the former motel would be an option for him.

"I think it's a lot of wasted money," he said.

Denver7 visited the property on Tuesday. Paint can be seen peeling off the building, which has become a home to several wasp nests.

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Beck called the lack of progress on the project "shameful."

"There's no transparency. It's just standard answers that say, 'Well, we're working on it,'" Beck said. "Well, we're ready for them to actually complete it and to finish it and to move people inside."

Beck said at this point, she's not even sure what's in store for its future.

"I have a lot of concerns about what the city is going to do next with this building and whether they're going to use it for its intended purpose," she said.

Denver7 reached out to Denver's Department of Housing Stability (HOST) for a comment on the building. A spokesperson said in part, "Negotiations and due diligence efforts are underway with a potential development partner..."

• Read the full statement from HOST below:

For now, many invested in the building's future say they're losing hope.

"I mean, at this point, we don't even know what the new owner is going to do with it, right?" said Beck.

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