Value Place, the nation’s largest economy extended-stay lodging owner, operator, manager and franchisor, has announced today that it has acquired 22 operating properties owned by its largest franchisee, a partnership comprised of Angelo, Gordon & Co. and other prominent real estate investors. The $115 million purchase price includes the assumption of existing debt. The acquired properties, in Austin, Columbus, Phoenix, Salt Lake City, Denver, Indianapolis, Washington, DC, Florida and elsewhere, strategically enhance the brand and improve operating efficiencies in attractive growth markets.
The $115 million sales price represents an approximately 9 percent capitalization rate on the trailing 12-month EBITDA, after reserve, collectively generated by the properties.
“This acquisition continues the growth of the Value Place brand, and is part of our larger plan to develop and acquire properties corporately, upgrade our properties to maintain high quality standards, and accelerate the growth of our franchise network,” said Dan Weber, Chief Executive Officer of Value Place. “These twenty-two high quality properties are in many of the same major markets as our existing portfolio, which allows us to leverage marketing and management resources.”
Value Place now owns 74 of the 185 franchise locations and develops, franchises, and manages Value Place properties throughout the U.S.
Value Place’s growth strategy was recently endorsed by virtue of a $100 million capital investment from Lindsay Goldberg LLC, a New York-based private equity firm with $10 billion of total capital under management.
“We are pleased to add these twenty-two properties to Value Place’s growing portfolio of owned and managed properties,” said Kyle Rogg, Chief Operating Officer and President of Value Place. “We have the utmost respect for the quality and performance of the prior ownership and management organization. We are also excited that this transaction accelerates our franchise growth efforts through a development agreement to build new franchised Value Place properties in Tampa and Charlotte, two growing markets with a great need for our brand.”
The seller is a partnership between Angelo, Gordon & Co., a New York-based, privately-held registered investment advisor currently managing approximately $24 billion in assets, and Belvedere Capital Real Estate Partners, a private investment firm that, along with various institutional and private partners, has invested in more than 10 million square feet of office, industrial, and retail properties.
The properties included with this purchase are located in:
- Alabama (1): Montgomery
- Arizona (2): Phoenix
- Colorado (1): Denver
- Florida (10) : Fort Myers, Fort Walton Beach, Lakeland, Ocala, (3) Orlando (3), Panama City, (2) Tallahassee (2)
- Indiana (2): Indianapolis
- Ohio (1): Columbus
- Texas (2): Austin
- Utah (2): Salt Lake City, Ogden
- Virginia (1): Gainesville (Washington, D.C.)
Value Place is focused on strategic expansion across the U.S., and recently committed to invest $60 million to develop new properties in the Boston, Mass. market. Over the next three years, expansion plans include the acquisition of land to build corporate-owned hotels in additional metropolitan markets, including Atlanta, Cleveland, Denver, and southeast Florida. Interested landowners in these areas may contact Value Place Development firstname.lastname@example.org
Value Place seeks franchisees to further fuels its growth strategy, with a desire to double the number of its franchised properties. For more information about franchisee opportunities visit ValuePlace.com/Franchise.
About Value Place
Founded in 2002, Value Place is the largest economy extended-stay lodging brand in the U.S. Featuring remarkably affordable weekly rates, rigorous cleanliness standards and secure temporary lodging, the brand delivers an unparalleled commitment to the comfort, privacy, and peace of mind of each guest. Value Place currently has 185 locations open in 32 states, providing extended-stay accommodations that are clean, safe, simple, and affordable. For more information, contact Value Place at (316) 631-1370 or visit ValuePlace.com.