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Newly Popular Value Place Attracts $100M Investor


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Private equity firm Lindsay Goldberg is the latest to take note of Value Place, the franchisor of economy extended-stay properties that is also proving popular in North Dakota. 

The New York firm invested $100 million of its $10 billion under management in the company, and pledged follow-on investments.

Value Place, of Wichita, Kansas, will use the money to add at least 50 new locations, and to roll out the “Value Place 2.0” upgrades across its company-owned locations. CEO Dan Weber called the relationship with its new investor “an important part of our growth strategy.”

Value Place most recently attracted our notice when Florida developer Art Cahoon snapped up the rights to open two franchises in North Dakota, with up to 10 more to follow there and in adjoining states.

A former oilman himself, Cahoon is chasing the natural gas boom in the Bakken Shale, where people are flocking to work but finding no place to live. In Williams County in North Dakota, “there are 6,000 guys in man camps,” he told Franchise Times last November. “Man camps are like a glorified jail cell. There’s no whiskey and no women” allowed, yet a spot goes for $120 a night.

Cahoon’s Value Place rooms start at $700 a week, three times the rate at Value Place hotels in less in-demand locales.

 

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The latest news, opinions and commentary on what's happening in the franchise arena that could affect your business.

Tom KaiserTom Kaiser is associate editor of Franchise Times. He can be reached at 612.767.3209, or send story ideas to tkaiser@franchisetimes.com.
 
Beth EwenBeth Ewen is editor-in-chief of Franchise Times. She can be reached at 612.767.3212, or send story ideas to bewen@franchisetimes.com.
 
Nicholas UptonNicholas Upton is staff writer at Franchise Times. He can be reached at 612.767.3226, or send story ideas to nupton@franchisetimes.com.
 
Mary Jo LarsonLaura Michaels is managing editor of Franchise Times. She can be reached at 612.767.3210, or send story ideas to lmichaels@franchisetimes.com.
 
Mary Jo LarsonMary Jo Larson is the publisher of Franchise Times Magazine and the Restaurant Finance Monitor.  You can find her on Twitter at
 twitter.com/mlarson1011.
 
Nancy WeingartnerNancy Weingartner is editor-at-large of Franchise Times magazine and the editor of the Food On Demand media project. You can reach her at 612-767-3200 or at nancyw@franchisetimes.com.
Follow her on Twitter at http://twitter.com/nanweingartner.
 

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