WICHITA, KS-Value Place, a locally based hybrid hospitality-residential chain that opened its first outpost here in fall 2003, has ambitious expansion plans for 2007. The company, which currently has about 30 Value Place extended-stay hotels in 23 states, plans to have 150 new properties under construction next year, says Charles Bruce, Value Place’s senior vice president of brand strategy.

The portfolio expansion will be fueled in part by $25-million equity revolver financing, which was recently secured on behalf of Value Place by New York City-based AFC Realty Capital. The facility, which was placed with an institutional private equity fund, gives the developer the ability to drive at least $250 million in construction loans, says Paul Fried, an AFC principal.

Fried adds that the equity revolver facility could fund up to 75 properties over the next several years. It also offers Value Place the flexibility to simultaneously build and operate many projects across many markets. “The challenge was to find an institutional partner that would provide capital for construction, acquisition, development and working capital funding for relatively small properties costing under $5 million each in mostly secondary locations across a number of different states, ” he says.

Bruce says that the “young and growing” company, which was founded by Jack DeBoer, has the commitment of its investors to build 550 Value Place extended-stay hotels at a cost of about $2 billion over the next several years. DeBoer, who is credited with creating the extended-stay concept, previously launched Residence Inn, Summerfield Suites and Candlewood Suites. Value Place offers occupancies as short as a week at rates below most extended-stay hotels. The studio rooms offer apartment-like features, such as full kitchenette.

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