Value Place plans six company-owned hotels in Greater Cleveland market
CLEVELAND, Ohio — Value Place, an extended-stay hotel chain, expects to add six hotels in the Cleveland area during the next two years.
The company, based in Wichita, Kan., recently lined up a site off Emerald Parkway, just north of Cleveland Hopkins International Airport.?1, which presented designs to the Cleveland City Planning Commission last week, hopes to start construction in January and open the 124-room hotel by August 2014.
The hotel chain has a purchase contract on land at?1, at Interstate 480 and Grayton Road, but has not closed on the acquisition.
A real estate broker representing the company said Value Place is scouring the Cleveland area for additional locations.
“We have other sites identified, but we do not have them under contract just yet,” said Jason Jarchow of?1, a real estate brokerage based in Woodmere.
“Our marching orders were that we needed to find two-acre sites zoned for hotel with great highway visibility and good highway access,” he added.
With a typical stay of more than a week, Value Place doesn’t compete with traditional nightly hotels. The rooms are large, with full kitchens. Guests often are small-business owners paying for their own travel. Rates are weekly, even if customers stay for only a few nights.
David Redfern, president of Value Place Development LLC, wouldn’t provide room rates for the planned Cleveland-area properties. Rates at the company’s existing local hotels, in Avon, Green and Mentor, start between $199 and $260 per week.
“Cleveland is diverse in its prices,” Redfern said. “We might see a different one depending on the competition and the time of year. We’re always on the affordable range, but it could vary a lot.”
With 185 hotels nationwide and aspirations to double in size within four years, Value Place is growing through corporate expansions and franchises. The company’s Northeast Ohio properties are — and will be — company-owned.
Redfern said Cleveland ranked well among 64 mid-size markets that Value Place recently studied. He pointed to job growth, limited competition and business spending on real estate and equipment as factors that made the Cleveland-Elyria-Mentor area attractive to the company.
Value Place’s chief competitor,?1, has a handful of hotels scattered across Northeast Ohio.