Value Place Secures $100M Investment; Eyes Chicago Market

WICHITA – Value Place secured a $100 million capital investment from the investment firm of Lindsay Goldberg LLC, the company announced .

The transaction, along with follow-up investments, will give the firm enough capital to let it add 50 new company-owned locations and expand its franchise base. The company will next be focusing on the Chicago and Nashville markets.     The Value Place executive team finalized the transaction on Dec. 27, 2012. Plans also include immediate upgrades at company-owned locations and at franchises over the next 12 to 15 months. The upgrades will focus on customer needs – good beds, TV, and internet.    Value Place CEO  Dan Weber tells  GlobeSt.com that finding the right partner was the most important aspect to its business goals.     “Our relationship with Lindsay Goldberg is an important part of our growth strategy,” Weber says. “Their endorsement of Value Place sends a strong message about the potential for short-term residential property development and is further validation of the company’s highly efficient operating model, brand and value proposition.”     He adds that Value Place wants “corporate development to feed into franchise development.”    The existing senior management team led by Weber and Kyle Rogg, President and COO, will remain intact, while founder Jack DeBoer will continue to serve as chairman.    Value Place has just opened its 181st franchise, a property in Odessa, TX, and new locations are planned to open later this year in College Station, TX, Dickinson, ND, and Manassas, VA.    As 2013 gets under way, the company will continue its expansion efforts, focusing primarily on Chicago and Nashville. Currently, Value Place is looking at sections of the Chicago metro area where it plans to develop at least a dozen properties.     The locations were chosen based on their concentration of corporate headquarters, business mix, consumer demographics, lack of existing competition, real estate price, and proximity to major transportation routes.     The company is seeking strategic partners familiar with the Chicago market who can champion the chain’s entry and growth there. Value Place Vice President  Andy Anderson is the point person in the Chicago expansion push.    Value Place properties have enjoyed high occupancy rates, even during the recent economic downturn. In 2011, the firm saw an occupancy rate of 84%, exceeding the U.S. national extended stay average of 72.9%.     Founded in 2002 and based in Wichita, Value Place is an economy extended-stay lodging brand that currently has 181 locations in 32 states.     Lindsay Goldberg is a New York-based investment firm which manages $10 billion of equity capital and focuses on investments that build long-term value in in well-managed businesses.