WICHITA, Kan., Aug. 10, 2006 (PRIMEZONE) -- Value Place, a new brand from extended stay pioneer Jack DeBoer, today announced the signing of more than 500 franchise commitments in 35 states -- a milestone reached in less than two years.
"This swift growth makes Value Place one of the nation's fastest growing hotel brands -- and we're not stopping here," says DeBoer, who founded the company.
"This product, this team and the franchisees we have on board are the best combination I have seen across all of the national brands we have founded," he says. "Collectively, they have committed more than $2 billion to the development of this brand."
Most of the extended stay properties will be open or under development within three years. There are already 23 Value Place hotels open now, in 11 states, with 17 more under construction. Construction-starts for about 40 more are planned within 90 days.
Value Place is a "short-term residential" lodging and economy extended stay hotel option (www.valueplace.com) that offers cleaner, safer, simpler lodging at affordable rates for weekly or longer stays. Weekly rates start at just $159, depending on location.
"We've grown so quickly because the Value Place product works," says Value Place chief executive officer Greg Kossover. "We have invested time in making the concept so simple that it appeals to a wide range of investors -- those who come from finance, self-storage and real estate industries as well as small business owners." Kossover and partner DeBoer are the largest franchisees of open Value Place properties.
What Appeals to Investors
Gina-Lynne Scharoun, president of Value Place Franchise Services, and a franchisee herself says, "It is a logical investment because we are providing an unmet need in our country.
"Whether you are the 'millionaire next door' or a pre-school teacher, most people love the idea of saving money," Scharoun says. "Value Place makes it possible to marry the ideas of 'cleaner and simpler' with lower cost -- allowing residents to pocket incredible savings and franchisees to share in the success."
Scharoun also credits the extended stay brand's growth to these factors:
-- Franchisees trust the expertise of founder Jack DeBoer.
-- DeBoer founded Residence Inn and is credited with inventing
the extended stay hotel concept. He also founded Summerfield
Suites and Candlewood Suites.
-- DeBoer's own franchise group plans to build nearly 200 Value
Place extended stay properties.
-- Value Place is a new option for travelers and our guest profile
is easy to serve.
-- 74 percent of Value Place residents have attended college
compared to only 64 percent of all Americans.
-- Our guests respect hard work and are frugal with their
discretionary income.
-- Many Value Place residents' careers require that they live
in a transient atmosphere; they appreciate the emphasis on
making this a safer option than traditional economy lodging.
-- A simple operations model and fast property ramp-ups make Value
Place an obvious investment from an economic standpoint.
-- Each extended stay property requires a staff of as few as four
to four-and-a-half full-time equivalent positions.
-- Value Place offers a unique support program, developed with input
from its first franchisees. And Value Place experts -- in addition
to outside vendors -- provide a wide range of optional services.
-- Franchisees can choose support from Value Place companies in
such areas as real estate, entitlement, construction advisory
services and property management.
"Many of our early franchisees came to us with either operations or development experience," says Scharoun. "They asked us to fill in areas of expertise, such as site selection or property management.
"Now, our menu of optional fee-based services helps our franchisees be better business owners and helps them grow their Value Place portfolios more rapidly," she says.
For example, CC Development Group, Columbia, S.C., asked Value Place to manage its properties. CC Development's first Value Place extended stay property opens this summer in Columbia. The company is planning more for South Carolina as well as Georgia, Tennessee and Virginia.
"By having Value Place handle the local marketing and management responsibilities, we've had more time to pursue additional Value Place developments," says John Cattano, managing partner. "We may turn to Value Place again, for construction advisory support, for example. The flexibility of adding services when and where we need it is very important as we grow."
A lower cost, cleaner, safer option for travelers
Value Place residents include business owners, contractors and others who need short-term housing. Each extended stay property has:
-- Safety features that include electronic locks; interior, locked
corridors; and security cameras.
-- Choice of studio, studio sleeper or studio double.
-- Full-size kitchens with residential refrigerator, stovetop and
microwave.
Amenities include cable or satellite TV and biweekly housekeeping. Residents can purchase extras, such as additional linen service, dishes, cookware and high-speed Internet.
Company background
Company headquarters are in Wichita, Kan. In all, 23 Value Place extended stay properties are now open in Alabama, Arkansas, Florida, Kansas, Louisiana, Missouri, Nebraska, North Carolina, Oklahoma, South Carolina and Texas. By year-end, Value Place expects that nearly 50 hotels will be open. About 40 more of the extended stay properties are expected to be under construction within 90 days.