Father of Extended Stay Brings Hybrid Here
Apr 30, 2010
Friday, April 30, 2010
‘Father of extended stay’ brings hybrid here
Atlanta Business Chronicle - by Lisa R. Schoolcraft
The man who developed the concept of extended-stay hotels is bringing his latest version of the product to metro Atlanta.
Jack DeBoer, who created and developed Residence Inn, Summerfield Suites and Candlewood Suites, is introducing his hotel/apartment hybrid, Value Place, to the metro area.
Value Place is building a 124-room property at 860 McFarland Parkway in Alpharetta, with plans to open 25 in the area over the next 10 years.
The company has six license agreements signed for Atlanta.
“We’ve identified 25 locations in the metro area, but then the money went away two years ago,” said DeBoer, known as the father of extended-stay lodging. “We’d like to start one or two [more in metro Atlanta] this year, but I’m not sure because of the availability of capital.”
Value Place, which rents its rooms only by the week, is more than just for business clientele, he said.
Customers are also residents and families who are moving from one residence to the next, but need temporary housing, he said, or residents who have had a home disaster and are displaced. Other clients include construction workers traveling to jobs.
“We’re at 85 percent occupancy, when most of the hotel business is at 50 percent occupancy,” DeBoer said.
Value Place keeps its rates down because it is a no-frills operation, DeBoer said, with no hotel swimming pool, no fitness center.
DeBoer began the Value Place brand in 2003, opening the first property in Wichita, Kan. Value Place now has 170 locations nationwide, he said.
In Georgia, Value Place has sites in Augusta, Columbus, Macon and Savannah