WICHITA, KS—Value Place acquired 22 hotels owned by its largest franchisee, a partnership comprised of Angelo, Gordon & Co. and Belvedere Capital Real Estate Partners, for $115 million, including the assumption of existing debt.
The hotels are in such cities as Austin, Columbus, Phoenix, Salt Lake City, Denver, Indianapolis and Washington, D.C.
The sales price represents an approximately 9% capitalization rate on the trailing 12-month EBITDA, after reserve, collectively generated by the properties, according to the company.
“This acquisition continues the growth of the Value Place brand, and is part of our larger plan to develop and acquire properties corporately, upgrade our properties to maintain high quality standards and accelerate the growth of our franchise network,” stated Dan Weber, CEO of Value Place.
Value Place now owns 74 of the 185 franchise locations and develops, franchises, and manages Value Place properties throughout the United States.