First some background on the Aspen Shelter. The Aspen shelter now houses roughly 300 to 350 people, many of whom were moved from encampments cleared under the city’s House1000 initiative, along with others referred from street outreach teams and hotel shelters that have since closed or downsized. Denver purchased the former DoubleTree Hotel for about $9 million in 2023, making it one of three large non-congregate hotel shelters the city now operates. The Aspen is the largest of these sites, and its population reflects the complex mix of needs; addiction, trauma, and long-term instability, that the city is trying to address through this model
A group of us recently visited the Aspen Shelter, formerly the DoubleTree Hotel at 4040 Quebec Street, which is now operated by Urban Alchemy. Denver chose not to renew The Salvation Army’s contract after years of high emergency-call volumes, safety incidents, and instability at the site, opting instead for a new performance-based model that Urban Alchemy agreed to implement. During our visit, we found an organization that is strong on values and appears to have built positive relationships with the residents they refer to as “guests.” Staff morale, based on our interactions, seemed optimistic and engaged. Each floor has Urban Alchemy team members who maintain regular contact with guests, identify their needs, and coordinate specialized services aimed at helping them address addictions, build stability, and ultimately live independently. Staff told us that roughly 80 percent of guests arrive with substance-use challenges and that the average stay is expected to be about nine months.
As we spoke with staff, several questions emerged. Chief among them was whether employees have sufficient training for the responsibilities they carry. The processes for helping guests progress toward independence appeared loosely defined. In one example, a staff member could not describe the specific improvements a guest would need to demonstrate before being considered ready to transition out of the shelter. Clear goals, behavioral benchmarks, and a structured evaluation process were difficult to identify. Urban Alchemy has recently hired a training manager, which may help strengthen these systems, but at present the assessment framework appears weak to non-existent.
Urban Alchemy’s presence in Denver is part of a broader shift in the city’s approach to homelessness services. The nonprofit, founded in San Francisco in 2018, has grown rapidly across the country by hiring people with lived experience; particularly those who have been incarcerated or unhoused; to staff shelters, ambassador programs, and public-space engagement teams. The organization believes that people who have survived the system are uniquely equipped to help others navigate it, and that philosophy is now visible in Denver’s largest non-congregate shelter. More than 90 percent of the Aspen shelter’s staff have experienced homelessness or incarceration themselves, and many guests say this makes staff more relatable and better able to de-escalate tense situations.
Early signs at the Aspen shelter suggest that the approach is having an impact. Under previous management, the facility generated nearly one hundred emergency calls per month—overdoses, assaults, trespassing, and even homicides. Since Urban Alchemy took over, emergency call volume has dropped noticeably. Staff and city officials attribute the decline to a combination of trauma-informed engagement, consistent presence, and a workforce that understands the lived realities of shelter guests. Denver’s contract with Urban Alchemy is also structured differently from past agreements. Instead of a flat-fee model, the city now uses performance-based metrics that determine how much of the contract Urban Alchemy earns. This gives Denver more leverage and clearer oversight tools than it has used in previous shelter partnerships.
Still, the organization’s rapid rise has not come without controversy. Reporting from Denver outlets and national sources has documented a complicated legal history, including more than twenty lawsuits since 2020 alleging harassment, discrimination, or staff misconduct. In Austin, Urban Alchemy self-reported misrepresented shelter data, and the city later ended its contract. In San Francisco, federal lawsuits have accused staff of misconduct at homeless encampments. These cases do not define the entire organization, but they underscore the need for strong, consistent oversight, especially as Urban Alchemy expands into new cities.
Denver City Council members raised these concerns during contract deliberations. Several questioned whether Urban Alchemy was the right fit for a shelter with a history of violence and instability. Others criticized the speed of the approval process and the lack of early scrutiny. The contract ultimately passed, but not without dissent. Additional questions emerged when it became public that Denver’s deputy director of shelter and stability had previously served as Urban Alchemy’s chief growth officer, prompting concerns about the selection process. City officials maintain that the procurement followed required procedures.
Nationally, Urban Alchemy has become a symbol of both innovation and controversy in homelessness services. A recent Bloomberg feature described the organization as a “disruptor” – a group cities often turn to when traditional providers struggle or when public pressure demands rapid change. Its model is unconventional, fast-moving, and built around lived experience rather than formal credentials. Cities that have contracted with Urban Alchemy report a mix of visible improvements and operational challenges, along with ongoing debates about training, oversight, and long-term outcomes. Denver’s approach, anchored in a performance-based contract, may offer a more structured accountability framework than Urban Alchemy has operated under elsewhere.
For UpDoNA residents, the performance of the Aspen shelter matters even from a distance. A safer, more stable shelter system reduces strain on neighborhoods across the city, including ours. It also shapes Denver’s broader strategy for addressing homelessness; an issue that affects public safety, economic vitality, and community well-being citywide. As Urban Alchemy settles into its role, the key questions for residents and neighborhood organizations are straightforward: Is Denver holding the organization accountable to measurable outcomes? Are early improvements sustained over time? And is the city learning from the successes and failures seen in other cities?
Urban Alchemy brings a bold, lived-experience-driven model that has already produced early improvements at one of Denver’s most challenging shelters. At the same time, its legal history, rapid expansion, and mixed results elsewhere make strong oversight essential. The coming year will reveal whether the organization can deliver the consistent, accountable progress Denver needs, and whether it’s unconventional model can succeed where others have struggled.
Ultimately, Urban Alchemy’s work at the Aspen shelter represents both a fresh start and an ongoing test. The organization has brought early signs of stability to a site long marked by crisis, yet its success will depend on whether it can build the training, structure, processes, and accountability needed to support guests on a clear path toward independence. As Denver continues to refine its homelessness strategy, the coming year will show whether this new model can deliver the consistent, measurable progress that residents, neighborhoods, and—most importantly—the guests themselves deserve.
Thumbnail attribution: Rob Squire
