Air races fan looks to Reno for early franchise of hotel
Yet another economic impact of the Reno National Championship Air Races: Jack DeBoer, the fellow who created Residence Inn and once was the secondlargest apartment developer in the country, comes to the air races every year.He likes Reno.
And so Reno will be among the first markets to see one of DeBoer’s new franchised operations, a hotel-apartment hybrid known as Value Place.
The Reno project will be developed by Whitt Properties, a company based in Fort Smith,Ark.
An employee at Whitt said last week that no information would be immediately available about the location or timing of the Renoarea project.
The company’s franchise agreement, however, calls for development of the Reno location within three years.
Value Place locations typically are either 104 units located on about 1.3 acres or 120 units located on 1.6 acres, said Gina-Lynne Scharoun, president of Value Place Franchise Services of Wichita, Kan.
The company encourages franchisees to seek high-traffic sites, often in outlying areas somewhat ahead of the development pattern.
The properties, a hybrid of an apartment and a hotel, are targeted toward business people who need temporary lodging for business assignments as well as individuals who need short-term housing.
The average length of stay, Scharoun said last week, is about 70 days.
While prices for the Reno franchise haven’t been set, Scharoun estimated units would rent for less than $200 a week.Value Price seeks to be a low-cost provider of shortterm housing in its markets with a price that’s generally 30 percent below that of Motel 6.
Units which include studios at 264 square feet and studio sleeper and studio doubles at 319 square feet are rented only by the week.
Value Place estimates construction costs at about $30,000 per unit and says construction typically takes about six months.
The completed Value Place locations employ four people.
DeBoer, who also founded Summerfield Suites and Candlewood Suites, opened the first company-owned Value Place location in Wichita about a year ago.
About 20 franchise deals cross the country have been signed since Value Place Franchise Services was created in May.
Along with Reno,Whitt Properties will develop Value Place locations in Bentonville and Little Rock,Ark.; Memphis, Tenn.; and Addison Texas.
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