South Florida boasts its share of boutique hotels, luxury resorts and well-known chains. But a Kansas company with a tiny footprint in the area believes the region needs more of something else: extended-stay lodging.
Value Place, which has 185 hotels in 32 states, is planning to spend $131 million to buy land and build 15 new hotels throughout Miami-Dade, Broward and Palm Beach counties over the next two years.
Miami-Dade has only one Value Place, in Homestead, but it is owned by a franchisee. Prices there start at about $330 a week. The new properties will be owned by the hotel company, which already operates 19 hotels in the state.
David Redfern, president of Value Place Development, said Tuesday that construction on the first new hotel is expected to begin in January; two sites are already under contract. While he wouldn’t name specific locations, Redfern said the company is looking at areas near major highways, large businesses and residential neighborhoods.
Value Place, which only offers weekly rates, is targeting South Florida for several reasons, Redfern said: growth in international and domestic businesses; a resurging residential market and robust tourism numbers.
While the company has expansion plans in other markets as well, South Florida is getting the biggest push.
Redfern said he believes there is demand for the product, which offers competitive prices but few frills. The hotels don’t offer breakfast, a bar or workout facilities, among other amenities.
“We’re not competing for the nightly hotel business,” Redfern said. “I don’t know if there needs to be another nightly hotel, but we think there needs to be a hotel that focuses on people who are staying a week.”
Extended Stay America, which has locations throughout Miami-Dade and Broward, is the company’s closest competitor, Redfern said. A search of one of the Doral locations shows a price tag of $630 for a week’s stay.
Each of the new Value Place hotels will have 124 rooms with full kitchens. Rates will depend on other hotels in the area, but will likely be higher than other Value Place locations. The hotels emphasize safety, with entrances through interior corridors rather than room doors that open to a parking lot.
Miami hotel consultant Scott Brush said there is a need for quality budget-friendly options.
“It tries to provide a reasonable guest experience at a low cost,” he said. “They aren’t giving away a breakfast; they’re limited as to what they do.”
But Brush said many travelers don’t want or can’t afford to spend money on fancy hotel options.
“It really is a product that has its market,” he said.