Value Place franchisees are hoping to get a piece of the growing market of Tennessee. They already have nine properties in the state and in Clarksville, Lebanon, and Murfreesbor, which were all constructed in 2008 to 2009.
According to Dan Weber, chief executive officer of Value Place, all their sites in the area are making money and they’re seeing a rise in occupancy even as the area goes through an economic hardship. They are looking to expand their brand to the middle of Tennessee and Nashville. They see these places as great spots for their extended-stay hotel chain.
Currently, they are looking at around four to six locations in Nashville. They saw the growth and the potential of the area and believe that they are a great match for this kind of growth. The Value Place corporate team was in Nashville earlier to meet with a potential franchisee and they found the place and the market very welcoming. Weber said that they their company have a solid construction trade in Nashville compared with other cities.
Jack DeBoer, Residence Inn founder and industry guru, started operating these low-cost, short-term housing in 2003. The target areas were regions that have steady economic growth, with a lot of construction going on. Frequent occupants of these extended-stay hotels are transient construction workers.
Midstate was the focus for this expansion project due to a number of factors. Value Plus looks at the employment statistics, workforce education levels, economic growth, cost of living and other essential factors of the location. All of these are scrutinized to see if the area will be a good match for business.
One of the factors most appealing about Nashville is the cost of living in the area, which is only 88% of the national average. But the per capita income was an interesting 109% of the national average. The business environment of the area attracted one franchisee, Evan Carzis from New York. His other line of business is the DC Hospitality and other warehouses spread out in the Tri-Cities and Knoxville.
The Ashton Real Estate Group of RE/MAX Advantage
The #1 Real Estate Team in Tennessee and #2 RE/MAX team in the World!