Value Place, Pure Strike to Develop 124-Key Hotel in San Angelo, Texas
- Mar 28, 2014
Leading economy extended-stay hotel brand Value Place continues its rapid expansion across the U.S. with the development of a new property in Central Texas, in partnership with Pure Strike Development L.P. Value Place is more than a little keen on the Lone Star State; the new 124-room hotel, which will sprout up in the City of San Angelo, will mark the company’s 38th location in Texas.
Value Place isn’t talking price tag for the project, but per the company’s development pattern, the cost will be relatively modest.
“Low construction costs are part of our value proposition for owners and guests alike,” Kyle Rogg, COO of Value Place, told Commercial Property Executive. “In addition to designing a building and labor model for operating efficiency, our construction costs tend to be much lower than the industry.”
Of course, the prices vary from market to market. Last year, Value Place announced it would invest $131 million to develop 15 properties in the greater Miami region, and $65 million to open 10 locations in the Atlanta area.
Value Place has good reason for developing its latest project in San Angelo, which is located approximately 180 miles from San Antonio, the nearest city with a population of more than 1 million. As Luke Kozelichki, an associate with HVS, noted on the hospitality consulting and services firm’s website in January, “The San Angelo hotel market is currently in a state of growth and expansion due to heightened demand brought about by the recent discovery of the Cline Shale.”
San Angelo is just one of many destinations on Value Place’s development radar. Over the next three years, the company plans to build corporate-owned hotels in Fort Lauderdale, Boston, Los Angeles and Dayton, Ohio. It appears no region of the country is off limits.
“An improving business environment increases the number of construction projects, hiring and training, job relocations, budget conscious vacation travel, and new household formation–all of which drive demand for our product,” Rogg added.
Value Place San Angelo will make its debut roughly seven months after the commencement of construction.