The Rathbone Hotel in downtown Montrose has earned a statewide award for revitalization, transforming a fire-damaged historic building into a thriving boutique hotel and community hub that is helping drive new energy, business growth, and foot traffic downtown.
A long-vacant, fire-damaged building in downtown Montrose has been transformed into one of the state’s most celebrated revitalization projects. The Rathbone Hotel and Parlor Bar was recently recognized with a top honor at the Colorado Downtown Excellence Awards, highlighting its role in reshaping the city’s historic core.
The boutique hotel received the “Best Project Small Community” award during the April 2 ceremony hosted by Downtown Colorado, Inc., which recognizes standout efforts to strengthen downtown districts across the state.
Originally built in 1909 as the KP Building by the Knights of Pythias, the structure sat vacant for more than a decade following a 2012 fire. Its future remained uncertain for years, as deterioration and structural challenges made redevelopment difficult.
Today, the building has been fully reimagined as a 17-room boutique hotel and community gathering space, bringing new energy to a prominent corner of downtown Montrose.
Downtown Colorado, Inc. described the project as “a resilient historic preservation project that transforms a long-vacant building into a vibrant destination, boosting local energy and economic vitality.”
The transformation of the Rathbone was far from straightforward. Engineers discovered major structural issues, including foundation failures and underground water movement beneath Cascade Avenue.
Stabilizing the building required the installation of 160-foot-deep micropiles, along with extensive reconstruction work. The project also faced post-pandemic supply chain disruptions and rising construction costs, adding to the complexity and timeline.
Despite those hurdles, developers moved forward with a vision of preserving the building’s historic character while adapting it for modern use.
The finished project balances historic preservation with contemporary design. Original architectural features such as tall arched windows and high ceilings were retained, while the interior was redesigned to accommodate both short-term visitors and families.
The Rathbone officially opened in July 2024, drawing hundreds of attendees to its grand opening and signaling strong community interest in the project.
Today, the first-floor Parlor Bar has become a popular destination in its own right, known for its coffee program and craft cocktails.
Developers say the Rathbone has played a role in sparking broader revitalization across downtown Montrose.
“I think there has been a spark for independently owned and operated businesses in downtown,” said co-owner and developer Clay Bales. “Someone had to prove the concept, and I am glad we are being recognized, and I am glad more people are doing similar things throughout downtown.”
Bales added that increased foot traffic and new business openings have contributed to a stronger sense of community in the area.
“I see more people walking around and coming to downtown these days,” he said. “We are seeing better vibes and a better sense of community as well.”
Beyond aesthetics, the project has delivered measurable economic benefits. It has increased downtown foot traffic, supported nearby businesses, and created both construction and long-term hospitality jobs.
The effort required years of coordination between developers, city officials, and community stakeholders. Early collaboration with city leadership helped shape the vision, while public boards and local organizations contributed input throughout the process.
Montrose City Manager Bill Bell emphasized the importance of that collaboration.
“The success of this project shows how impactful public-private partnerships can be in rural Colorado,” Bell said.
For project leaders, the Rathbone represents more than a single redevelopment. It reflects a broader opportunity for communities to invest in their identity and future.
“History is the soul of a community,” said co-owner and developer Jason Raible. “We didn’t just restore an old building. We restored a sense of possibility for downtown Montrose.”
With a total investment of approximately $6.65 million, supported by both public and private funding, the Rathbone now stands as a model for how historic preservation can drive economic development in smaller communities.
As towns across Colorado search for ways to revitalize their downtowns, the Rathbone project offers a clear example of what is possible when vision, persistence, and partnership align.
In Montrose, that transformation is already visible in the form of increased activity, new businesses, and renewed confidence in the future of downtown.
