WICHITA, KS—Value Place, the nation’s largest affordable extended-stay hotel operator, has just gotten a new, $34 million five-year term loan from US Bank to refinance ten of its corporate-owned hotels, another sign that the company can attract financing to support its business model. The properties are located in Wichita; Oklahoma City; Del City, OK; Fayetteville, NC; Lubbock, TX; Brownsville, TX and Pensacola, FL.
As reported in GlobeSt.com, the Wichita-based company has recently made several moves in an on-going effort to expand and reposition its national portfolio. Last year, for example, company officials got a $100 million capital investment from the New York-based investment firm Lindsay Goldberg LLC to jumpstart the construction of dozens of new projects in metro areas such as Philadelphia, Miami, Atlanta, Boston, and Denver, among others. And last October, Value Place bought 22 of its franchise outlets for $115 million.
“Our growing relationship with US Bank dates to November of 2010, and since then they’ve also financed the 22 operating properties we acquired from Angelo, Gordon & Co.,” says Kyle Rogg, chief operating officer. “With our rapidly growing portfolio of owned properties, it’s important to have a strong partner on which we can depend, and we are pleased that US Bank continues to show confidence in Value Place’s strategy, performance, and management.”
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 currently has nearly 190 properties in 32 states, both corporate- and franchise-owned. And it plans to grow its national footprint by increasing the numbers of both types.