Value Place Buys 22 Hotels for $115M

WICHITA, KS—Value Place, the nation’s largest affordable extended-stay hotel operator, has just bought 22 of its franchise outlets for $115 million, another move in its on-going efforts to further expand and reposition its national portfolio. In September, GlobeSt.com reported that company officials were using a $100 million capital investment from the privately-held, New York-based investment firm Lindsay Goldberg LLC. to jump start the construction of 50 new company-directed projects.

These 22 properties were owned by its largest franchisee, a partnership comprised of Angelo, Gordon & Co. and other investors. Value Place now owns 74 of its 185 franchise locations. However, company officials say they still seek franchisees to further fuel its growth strategy, and want to double the number of its franchised properties. The newly acquired hotels are in Austin, Columbus, Phoenix, Salt Lake City, Denver, Indianapolis, Washington, DC, Florida and elsewhere.