News Release | City of Montrose
The once vacant and fire-damaged Rathbone Hotel and Parlor Bar building, located in the heart of downtown Montrose, has been transformed into an award-winning destination, earning top honors at the Colorado Downtown Excellence Awards.
The boutique hotel was recognized with the “Best Project Small Community” award during the April 2 ceremony hosted by Downtown Colorado, Inc., DCI, which celebrated standout revitalization efforts across the state. The annual awards highlight projects and individuals demonstrating creativity, resilience, and a commitment to strengthening Colorado’s downtown districts.
Originally built in 1909 as the KP Building by the Knights of Pythias organization, the structure sat vacant for more than a decade following a 2012 fire. Today, it has been reimagined as a 17-room boutique hotel and lively gathering space, breathing new life into a prominent downtown corner. The KP Building is still recognized as one of the oldest buildings in Montrose.
DCI described the Rathbone as “a resilient historic preservation project that transforms a long-vacant building into a vibrant destination, boosting local energy and economic vitality.”
“I love it. I think there has been a spark for independently owned and operated businesses in downtown, given the work we did at the state and federal level to get the Rathbone developed. I think this is part of the reason we were recognized,” Rathbone co-owner and developer Clay Bales said. “And this has led to a spark in the revitalization of the older, historic buildings in downtown. 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.”
The transformation did not come easily. Engineers uncovered significant structural challenges, including foundation failures and underground water flow beneath Cascade Avenue. Stabilizing the building required the installation of 160-foot-deep micropiles drilled into the ground; just one of many hurdles faced during the multi-year effort.
Despite challenges, the project pressed forward through post-pandemic supply chain disruptions, rising construction costs, and the complexities of restoring a historic structure. The result is a carefully preserved space that maintains its original architectural charm, including tall arched windows and soaring ceilings, while offering modern accommodations.
The Rathbone officially opened in July 2024, drawing hundreds to its grand opening ceremony, which was symbolic to the project’s strong community support. Inside, the hotel features guest rooms and suites designed for both short-term visitors and families, along with a first-floor parlor bar that has quickly become a local favorite.
Beyond its aesthetic appeal, the project has had a measurable economic impact, boosting foot traffic, supporting nearby businesses, and creating both construction and long-term hospitality jobs.
The effort was years in the making, involving close collaboration between developers, city officials, and community stakeholders. Early discussions between Montrose city leadership and project developers helped shape the vision of bringing a boutique hotel to the long-neglected site. From there, the project underwent extensive review and input from public boards, local organizations, and residents.
“History is the soul of a community. When you live in Western Colorado, heritage matters. The Rathbone project strengthened the character of the downtown district and reinforced Montrose’s identity as a Western Slope community that values heritage and innovation,” Rathbone owner and developer Jason Raible said. “It demonstrates what can happen when a community invests in its own story. We didn’t just restore an old building — we restored a sense of possibility for downtown Montrose. It proves that a single project, done with intention and respect, can shift the trajectory of an entire downtown.”
With a total investment of approximately $6.65 million, supported by a mix of public and private funding, the Rathbone now stands as a model for how historic preservation can drive economic development in small communities.
“We were very excited to partner on the Rathbone adaptive reuse project in the heart of our downtown. The success of this project shows how impactful public-private partnerships can be in rural Colorado, as long as city staff, City Council, and private developers work together to keep the character of a community front and center every step of the way,” Montrose City Manager Bill Bell said.
“Today, its Parlor Bar is one of downtown Montrose’s most popular social spots, known for its coffee offerings and craft cocktails, including the award-winning “Inescapable Espresso.”
Bales said downtown Montrose has seen many new restaurants open over the past year – many located within newly renovated historic buildings. This cascade effect of investment in historic downtown Montrose has led to renewed vibrancy in downtown, with more foot traffic from locals and visitors alike.
“I see more people walking around and coming to downtown these days, and that has been exciting and great to see,” Bales said. “We are seeing better vibes and a better sense of community as well.”
As communities across Colorado continue to look for ways to reinvigorate their downtowns, the Rathbone project offers a clear example of what’s possible when vision, persistence, and partnership come together.
For more information, visit: downtowncoloradoinc.org/dtexcellenceawards
