Extended-stay hotelier Value Place said Wednesday it plans a major expansion into the Denver area and several other major cities.
The Wichita-based company said it plans to build nine company-owned Value Place hotels in and around Denver, which it estimates will be a $63million project.
Value Place has hired Steve Markey of Denver-based David, Hicks & Lampert in the land identification and acquisition process. Value Place plans to spend about $13million acquiring land there.
The company said it plans to start construction in the Denver area in the first quarter of 2014. David Redfern, Value Place’s president of real estate development, said construction could even begin as early as this December because “we do have sites that are under contract and that we are in the due diligence and entitlement phase of.”
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He said the company is bullish on adding new, company-owned properties because Value Place performed well during the recession and has access to new capital that will provide for its expansion plans. In January, Value Place announced that New York-based private equity firm Lindsay Goldberg LLC had invested $100million into the company. “Their goal is for us to have growth,” Redfern said.
Redfern added that the company is also encouraging its franchisees to consider building additional Value Place properties.
Value Place currently operates 184 hotels in 32 states, including four in Colorado. Of those 184 hotels, 50 are company owned.
Over the next three years, Value Place also plans to build company-owned properties in Atlanta, Boston, Cleveland, Miami and southeast Florida.
Value Place typically looks to place its hotels along highways, freeways or intersections that have daily traffic of more than 50,000. It also aims to locate in areas with a diverse group of non-retail employers that have more than 150 employees in the area. Those locations must also be within a one-mile population of 5,000 people and a five-mile area with at least 100,000 people.
Value Place’s first extended-stay hotel was built near K-96 and Oliver in 2003, shortly after it was founded. It is one of three Value Places in Wichita.
Wichitan Jack DeBoer, considered a pioneer in the extended-stay hotel concept, is Value Place’s founder.