11.5% RevPAW Increase and Nine New License Agreements Executed
- Brand-wide revenue per available week (RevPAW) rises 11.5 percent in second quarter to $191.91
- Brand-wide average weekly rates (AWR) increases to $235.20, an 11.6 percent increase over the second quarter of 2013
- 11 hotels under construction
- 10 hotels under development
- Average brand-wide occupancy rose to 81.6 percent
August 04, 2014 09:00 AM Eastern Daylight Time WICHITA, Kan.--Value Place today released its second quarter results, which illustrate the continued strength of the nation's largest and fastest-growing economy extended-stay hotel brand*. The privately-held company announced a strong 11.5 percent same-property RevPAW increase during the second quarter of 2014. Additionally, system-wide revenue increased 10.6 percent from the same year prior to $55 million.
At the close of the second quarter, the Value Place network comprised 185 hotels, consisting of 107 franchised- and 78 corporate-owned properties, totaling 22,108 rooms. The number of hotels under construction rose to 11, with 10 hotels under development (2,604 total rooms). In this period, Value Place opened a new hotel in Watford City, North Dakota, and signed nine new license agreements that will bring newly constructed hotels to Chattanooga, Tampa, Austin, Nashville, Columbus, and other markets.
"The Value Place brand already has hotels open in 32 states, and we are accelerating our national expansion by focusing on development in major metropolitan markets including Pittsburgh, Philadelphia, Miami, Atlanta, Minneapolis, and Denver," said Kyle Rogg, COO of Value Place. "In addition to the development of our national corporate hotel portfolio, our network of franchisees, investors, and developers span the country, giving us a high degree of confidence in our growth plans."
Value Place is the leader in the economy extended-stay segment, offering a clean, safe, and affordable hotel experience to guests while providing attractive returns to hotel owners and operators. Notably in the second quarter, Value Place strengthened its management team by appointing industry veteran Bruce Haase as CEO following a 12-year tenure at Choice Hotels International, one of the world's largest lodging companies.
In the second quarter, Value Place was also named among Forbes' Best Franchises in America, receiving the highest marks of any hotel brand in the $500,001 and over initial investment category. The latest Forbes ranking built on Value Place's recognition as one of 2014's Top 500 Franchises by Entrepreneur Magazine, as well as one of Franchise Business Review's Top 50 Franchises for four consecutive years.
"Value Place franchisees are attracted to the stability of the brand, the consistency of the product across the portfolio, and the proven financial model that keeps costs low for both guests and franchisees," said Bruce Haase, CEO of Value Place. "In addition, Value Place has identified in excess of 20 markets across the country where we believe a new economy extended-stay hotel could be successful, providing the company with ample growth opportunities into the future. Value Place is poised for aggressive expansion for the remainder of 2014 and we are only getting started. We have high aspirations for the company as we take what was once an entrepreneurial brand and continue to transform Value Place into a respected and recognized national brand."
For more information on Value Place franchise opportunities, contact Value Place at 866-645-FRAN, [email protected], or visit ValuePlace.com/Franchise.
* Derived from The Highland Group 2014 and the Global Serviced Apartments Report 2013-2014