Value Place Reports Fourth Quarter and Full-Year 2014 Results
Full-year Company revenue increases by 50.9 percent & fourth quarter system-wide same-store RevPAR increases by 14.3 percent
WICHITA, Kan. - January 23, 2015 - (BUSINESS WIRE) - Value Place, the nation's fastest growing extended-stay hotel brand, today released its fourth quarter and full-year 2014 results.
Fourth Quarter 2014 Highlights:
- The Company's revenue increased by 23.9 percent to $28.4 million as compared to the fourth quarter of 2013
- Royalty revenue increased by 17.5 percent as compared to fourth quarter in 2013
- System-wide hotel room revenue was $56.9 million, an increase of 17.6 percent over fourth quarter of 2013
- Same-store system-wide hotel room revenue per available room (RevPAR) rose 14.3 percent as compared to fourth quarter of 2013; the result of a 10.7 percent average daily rate increase and a 3.2 percent increase in occupancy
- Corporate hotels (82 properties) generated EBITDA margins of 41.1 percent
- The company executed on 22 hotel license agreements during the quarter
- System-wide there were 11 hotels were under construction; including six company-owned hotels
- System-wide, five hotels were opened during fourth quarter 2014, of which three hotels were company owned
Full Year 2014 Highlights:
- Revenue increased by 50.9 percent to $108.8 million when compared to full-year 2013
- Royalty revenue increased by 14.4 percent as compared to full year in 2013
- System-wide hotel room revenue was $222.9 million, an increase of 14.6 percent over full year 2013
- Same-store system-wide hotel revenue per available room (RevPAR) rose 10.9 percent as compared to full- year 2013; the result of a 10.0 percent average daily rate increase and a 0.8 percent increase in occupancy
- Corporate hotels (82 properties) generated EBITDA margins of 44.6 percent
- System-wide, eight hotels were open during 2014, of which four hotels were company owned
- The company executed on 36 hotel license agreements during 2014, compared to eight license agreements in 2013 and the highest level since 2008
"We saw significant consumer and developer demand for our brand in 2014," noted Bruce Haase, Chief Executive Officer. "We believe we are well positioned for sustained growth into 2015. Value Place delivered impressive growth on three fronts last year – above industry RevPAR growth at our company-owned and -franchised properties, the addition of new corporate properties, and the rapid expansion of our franchise network. We see multiple opportunities in 2015 to expand the footprint of our brand through both company-owned and -franchised properties while continuing to grow RevPAR."
During 2014, the company, system-wide, opened eight hotels and currently has 11 hotels under construction.
|System-Wide Hotel Activity|
|Watford City, ND||Franchisee||5/30/2014|
|Grand Junction, CO||Franchisee||9/26/2014|
|Kansas City, MO||Corporate||10/17/2014|
|Colorado Springs, CO||Corporate|
|Ft Lauderdale, FL||Corporate|
|Oklahoma City, OK||Corporate|
As of December 31, 2014, the Value Place network comprised of 190 hotels, consisting of 108 franchised and 82 corporate-owned properties, totaling 22,278 rooms. The number of hotels currently under construction is 11 with 42 additional hotels, including six corporate hotels, under development.
"Our investment in the Value Place 'growth engine' is paying off," said Kyle Rogg, Chief Operating Officer of Value Place. "The quality of our people, processes, and tools continue to improve, and 2015 will see significant growth in franchise development, corporate development, same-store RevPAR, and human and financial capital."
For more information on Value Place franchise opportunities, contact Value Place at 866-645-FRAN, email@example.com, or visit ValuePlace.com/Franchise.
About Value Place
Value Place is the nation's largest economy extended-stay hotel brand with 191 hotels located in 32 states. The company owns 82 of the properties and provides management services for both company- and franchise-owned locations. Featuring remarkably affordable weekly rates, rigorous cleanliness standards and secure short-term lodging, the brand delivers an unparalleled commitment to the comfort, privacy, and peace of mind of each guest. For more information, contact Value Place at (316) 631-1370 or visit ValuePlace.com.
SOURCE Value Place
Vice President Franchise Development Marketing
Associate Vice President