Newly Popular Value Place Attracts $100M Investor
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.