WICHITA, KS—Extended-stay hotels have become more popular with travelers throughout the country in the past few years, but as reported in GlobeSt.com, officials connected to Value Place, the largest brand in the industry, say the market has another niche that, until now, no one has filled.
“There's a void in the marketplace for someone who needs to stay in another city for two to three months,” David Redfern, the former president of Wichita-based Value Place, tells GlobeSt.com. Much of the demand comes from the increasingly common practice among US companies to send specialists to work on out-of-town assignments for several months, especially for things like IT projects, and many feel that is too long to live in an extended-stay hotel, but not long enough to justify all the troubles associated with securing an apartment lease.
Although he retains a relationship with Value Place, since July Redfern has been president of WaterWalk Apartments, also in Wichita, and will oversee its plans to build dozens of two-building, 116,000-square-foot, $11.5 million developments that combine apartments with hotel services. WaterWalk guests can choose fully-furnished one-, two-, and three-bedroom that also offer hotel-like amenities and services. These can include gym membership, concierge services, free in-room breakfast, housekeeping, and no-cost parking, among other services.
The new venture was founded by Jack DeBoer, its chairman and chief executive officer, who has already founded several well-known hospitality brands, including Residence Inn, Summerfield Suites, Candlewood Hotel Group, and Value Place. Redfern has worked with DeBoer at each of these ventures.
And Redfern is confident that the new business will attract investors since it's easier to get loans for apartment developments than hotels. “Banks look at this as a less risky investment simply because of the length of stay,” he says.
They have already opened a site in Wichita, and plan to start building an additional seven in 2015. Five of these developments, in Charlotte, Houston, Atlanta, St. Louis and Louisville, will be franchise operations and WaterWalk will run the other two in San Antonio and Denver. By 2016, however, the company wants to have 30 to 40 additional properties underway. “We are going to grow slowly in the next couple of years as we get going,” Redfern says.
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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.
