This article identifies fifty of the top markets for development of a Value Place. It includes a regional breakdown of top markets for new development in addition to feasibility mathematics based on average development costs and performance metrics.
Value Place Introduction
Value Place is an economy chain scale extended-stay brand founded in 2003. There are 184 locations in the United States currently. All existing and planned Value Place hotels are new constructions. As Value Place embarks on an aggressive expansion strategy, HVS evaluated over 500 potential markets with respect to development potential for this brand. Among the variables considered in this analysis are the following:
– Business concentrations
– Demand generators
– Energy (e.g. Oil and Gas) exploration and development trends
– Extended-stay hotel inventory and performance
– Land costs
– Regional development costs
– RevPAR of existing competitive supply
– Transportation routes
– U.S. Army’s Base Realignment And Closure (BRAC) trends
Value Place Feasibility Overview
A hotel development is feasible if the “when complete” market value of the property is greater than or equal to the project’s total development cost, including land and entrepreneurial incentive. The feasibility for a new Value Place hotel development can be determined by conducting a feasibility study for a specific project size and design in a specific location. But data provided to us by brand representatives provide some insight into the feasibility of the Value Place hotel concept generally.
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