LAKE CHARLES, LA-Construction has been launched on Value Place's sixth Louisiana building. The four-story, 124-room building is anticipated to be completed by October 2013.
The property at 3202 N. Power Center Pkwy. is being developed by a franchisee which, according to Value Place CEO Dan Weber, is developing several such properties throughout the state. "From a broader real estate standpoint, we're looking all over the country at various markets with a supply-demand balance to grow Value Place," he tells GlobeSt.com. "We've tied up certain markets for corporate development and certain markets for franchisees."
From a pure demand perspective, he goes on to say, Lake Charles has a lot of decent demand drives, not the least is a liquefied natural gas plant nearby. Furthermore, the franchisee is also building a casino nearby. "This represented the perfect fit for us when we look at first, the need for an economic extended stay product and second, the perfect concept for temporary lodging," Weber comments. He points out that the other five Louisiana Value Place properties are in energy-related areas, with some taking advantage of demand for extended-stay product.
Weber also notes that the company bases its decisions on where to build based on more than single-demand generators. "We need to be sure we have a broad mix of supply generators to feed the properties," he explains, adding that the company is looking at other potential locations in Louisiana, including outside New Orleans and near Baton Rouge.
The company recently hired a company that provided a geo-analytics study. From that study, the Wichita, KS-based company was able to examine supply and demand in each market. That led to a development plan in locations including southeast Florida, the Atlanta, GA area, the Denver metro area, the Cleveland metro area and Tucson. Meanwhile, on the franchise side, Value Place is targeting Chicago, Tampa, Philadelphia and Pittsburgh. Weber says he's also eyeing the west coast for additional development. The company already has an operating hotel in Sacramento.
"We know that the whole west coast market is an incredible growth opportunity for us, and we're working on strategies as to how we can develop there," Weber notes.
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