DALLAS-Quanah Hospitality Partners LP has secured a $100-million first-round funding for 15 Value Place hotels in four states. The two-year-old company is processing papers for second tranche, $350 million, which is predicted to get stamped within 60 days.

Quanah CEO Gary L. Webb says the plan is to build 100 Value Place hotels in 48 months. After the first two funding rounds, he tells GlobeSt.com that "we'll be getting tranches of $100 million to $300 million after that."

NorthStar Realty Finance Corp., headquartered in New York City, provided the first round of funding. Webb says two Value Place hotels have opened, three will open at month's end and the first in Jacksonville, FL will come on line in October for the 15-hotel project list. The $350-million in-process funding will cover site and construction costs for another 50 hotels, he says.

Quanah has development rights for Tarrant, Dallas and Rockwall counties in North Texas; San Bernadino, San Diego, Riverside, Santa Barbara and Ventura counties in Southern California; the four-county Jacksonville, FL metro; and Albuquerque and Santa Fe in New Mexico. Quanah is one of the chain's largest franchisees, with Dallas/Fort Worth's projected 24 to be the developer's largest market for the current plan. Southern California is projected to be Quanah's second-largest market.

Quanah's Value Place at 3501 NE Loop 820 in Fort Worth is posting occupancies in the high 80% range. Its Albuquerque hotel is running at 85% occupancy. The hotel concept has only weekly rentals and no nightly stays, with $199 as Value Place's average rate.

The Value Place concept was the brainchild of noted hotelier Jack DeBoer. "It's been as good as we anticipated," Webb says. "It's done very well." And, he adds, Quanah is "on track" for its 100 hotels based "on what we have coming out of the ground and in the pipeline."