WICHITA, KS—A recovering economy and greater availability of capital means the stars have aligned for Value Place. The nation's largest affordable extended-stay hotel chain has put plans in place for a major expansion of corporate- and franchise-developed hotels, and has hired a team of veterans to help manage the growth.
Ronald Burgett has just joined the company as executive vice president of franchise development. Prior to joining Value Place, Burgett was executive vice president, lodging and brand development at Red Lion Hotels Corp. where he led the creation of the new Leo Hotel Collection brand.
“The next phase for our brand is to increase corporate and franchise development,” says Kyle Rogg, president and COO. "The hiring of a hospitality veteran like Burgett is an important step in our growth plan.”
In October, GlobeSt.com reported that Value Place had just bought 22 of its franchise outlets for $115 million, part of the on-going effort to expand and reposition its national portfolio. The company now owns 74 of its more than 180 locations. And in January, GlobeSt.com also reported that Value Place had in late December 2012 secured a $100 million capital investment from the privately-held, New York-based investment firm Lindsay Goldberg LLC. The equity will jump start the construction of dozens of new company-directed projects in metro areas such as Atlanta, Cleveland, Denver, and southeast Florida, among others.
The typical Value Place location has 124 rooms in a four-floor, 45,000-square-foot building on two acres that provides guests with a bedroom, a desk with an internet connection and a full kitchen.
The company hired other key executives and managers in the past few years as the expansion plans took shape. Rogg himself was brought on in 2011, having previously served as an executive with CLC Lodging. And Randy Fox, executive vice president of Value Place Property Management, was hired in December 2012, most recently having served as senior vice president, operations for Red Roof Inn. Company officials say they will hire other top hotel executives in the coming year.
Starting in 2009, the number of affordable extended-stay rooms under construction each year fluctuated between 124 and 324, according to The Highland Group's 2013 Report on the Extended-Stay Lodging Market. “However, very large equity investments made in 2012 could signal the onset of a new wave of economy-priced extended-stay room construction. All extended-stay segments reported faster rate growth than the overall hotel industry in 2012.”
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Brian J. Rogal
Brian J. Rogal is a Chicago-based freelance writer with years of experience as an investigative reporter and editor, most notably at The Chicago Reporter, where he concentrated on housing issues. He also has written extensively on alternative energy and the payments card industry for national trade publications.
