MINNEAPOLIS—Value Place, the extended-stay hotel chain, has spent all of 2014 expanding its brand throughout the US, opening both corporate-owned and franchise outlets. And it has now just entered into an agreement with Sauk Rapids, MN-based United Development Solutions for the immediate development of three new hotels in the Minneapolis metro area.
The firm will develop the properties in suburban Fridley, Burnsville, and Mendota Heights. Furthermore, UDS and Value Place also agreed to explore the possibility of building six or seven additional properties in the market within the next 36 months.
A typical Value Place location has about 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.
“United Development Solutions is a great franchise partner for Value Place as we continue to expand our national footprint in the North Central region of the United States,” says Ron Burgett, executive vice president of franchise development at Value Place. “Working with developers who understand the return on investment potential of our simplified operations model is vital to our mutual success.”
UDS focuses on commercial real estate development and has developed numerous hotel and mixed-use projects in a five-state area surrounding Minnesota.
“Value Place has a proven track record of opening hotels, as well as the experience and expertise to help us meet our aggressive development goals for metro Minneapolis,” says Troy Hoekstra, a partner at UDS. “Adding an extended-stay lodging concept to our portfolio was the perfect complement to our current assets, while at the same time maintaining our targeted return on investment for our partners.”
“We are excited about the progress we have seen with our strategy to increase brand awareness and grow in major markets,” says Bruce Haase, chief executive officer of Value Place. “We have entered two major metro markets in two weeks and we are experiencing some very positive momentum.”
Value Place now has nearly 200 hotels open in 32 states. The company owns 81 of the properties and provides management services for both company- and franchise-owned locations.
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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.
