The Nation s Fastest Growing Value Segment Extended Stay Hotel Brand Value Place Poised For Expansive Growth
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- Tamsin Norris
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1 Writing The Next Chapter Of Our Story The Nation s Fastest Growing Value Segment Extended Stay Hotel Brand Value Place Poised For Expansive Growth Introducing:
2 An Extraordinary Opportunity To Join A Brand Like No Other Value Place has a decade-long track record and key accomplishments in 2014: Unprecedented demand and record growth for the brand from both consumers and development partners 50.9% increase in revenue 14.6% increase in system-wide hotel room revenue Extensive company-owned and franchised system size growth including major metropolitan markets Reap The Rewards Of A Development Partnership An industry-leading operating model designed to drive strong performance $638K average NOI, or 48.3% % occupancy exceeds the U.S. average for this category 1 $5.0M to $6.4M initial investment for Wood Spring Suites SM 2 $5.6M to $7.0M initial investment for Wood Spring Suites Signature SM 2 Plus, impressive third-party accolades: Forbes Magazine s 2014 Top Hospitality Franchisor 7-10 months construction time 2 Rapid stabilization Extended stay lodging demand increased 5.0% in Entrepreneur Magazine s 2014 Top 500 Franchises Franchise Business Reviews Top 50 Franchises for the last four years 1 The average net operating income is based on the results of 37 stabilized, company-owned properties during Of the properties included, 41% or 15 properties attained or surpassed the stated results. In 2014 the brand was operated under the Value Place name. These properties are in the process of converting from Value Place to WoodSpring Suites Value Place FDD US Extended Stay Hotel Year-End Results, The Highland Group
3 A Significant Investment In The Value Place Growth Engine An Evolved Brand Hospitality entrepreneur Jack DeBoer founded Residence Inn in 1975, creating extended stay properties to capitalize on an underserved need in the marketplace. Consumers responded with enthusiasm and a category was born. Jack and his team went on to create Summerfield Suites and Candlewood Suites, later selling them to some of the largest franchisors in the world. Ever the entrepreneur, Jack realized a particular niche was still underserved and created Value Place to serve a large segment of the market that demanded affordable extended stay accommodations without sacrificing quality. Our Brand Evolution: A decade later, we are poised to accelerate Value Place s growth trajectory by transitioning Value Place to WoodSpring Suites ṢM Robust consumer research demonstrated that the Value Place name was holding us back. Consumers and developers love the Value Place offering, but there is a disconnect between people s perceptions of who we are and the reality of our product and experience, based solely on the name and the logo. The new brand better aligns with our position as the leading value extended stay company, better communicates the quality of our product, and allows us to more easily capture higher value customer segments and penetrate high barrier to entry markets. Robust consumer research shows that this new branding will allow us to increase rate while maintaining our efficient operating model. Additionally, we have created a brand extension, WoodSpring Suites Signature ȘM with an enhanced guest experience. This allows allow us to attract a more valuable guest segment that travels frequently and is willing to pay more to drive even greater performance gains. This will foster our ability to double our system size within five years, build a widely distributed consumer brand, and achieve RevPAW premiums in three short years.
4 How Is Our New Brand Positioned? SM Significant consumer research led us to position WoodSpring Suites for down-to-earth people with practical needs. We have three brand attributes that will guide everything we say and everything we do as a brand for our guests AND for our franchise partners. Our focus is simple: We keep it Reasonable. We will offer a great value, and the basics done really well, in an unpretentious environment. We keep it Simple. We will make the experience straightforward and hassle-free. We keep it Real. We will be welcoming, responsive and respectful Average Annual Occupancy Exceeds The Industry Standard Mid-Price % Upscale % Economy % WoodSpring Suites % US Extended Stay Hotel Year-End Results, The Highland Group 2 The occupancy rate is based on the results of 37 stabilized, company-owned properties during Of the properties included, 41% or 15 properties, attained or surpassed the stated results. A new licensee s performance may differ from the results stated. In 2014 the brand was operated under the Value Place name. These properties are in the process of converting from Value Place to WoodSpring Suites. Additionally: We offer highly competitive rates designed for stays of a week or longer. We have flat weekly rates with amenities available for purchase so guests only pay for what they need. We offer a rigorous cleaning process every two weeks with additional housekeeping available for purchase. We have security cameras throughout public areas to ensure a safe environment.
5 Deep Consumer Research For Decisions Made With Confidence The Power Of The Value Place Operating Model Our guests are good people with practical needs, down-to-earth attitudes and a comfortable style. People who appreciate the value of life s necessities done really well. Through our rigorous research, we have captured deep insights so we understand precisely what s important to them, what they re willing to pay for, how they shop for an extended stay hotel, and why they ultimately decide where to stay. We are working with one of the world s preeminent design firms to bring our new brand positioning to life for both the new WoodSpring Suites prototype and our new WoodSpring Suites Signature prototype. SITE PLAN We have created WoodSpring Suites SM and WoodSpring Suites Signature SM features and amenities based on each element s ability to drive preference. And our extensive marketing strategies leverage these insights to attract the highest value guests. A low cost development and operating model and the expanding power of our low cost direct distribution channels combine to produce some of the best operating margins in the industry for our partners. WoodSpring 45,432 SF For real people with real needs it s refreshingly different than anything else out there in extended stay hotels today. It s Simple. Done Better. SM EXTERIOR ELEVATIONS Properties are designed to maximize operating efficiencies and optimize the guest experience. All new construction All interior corridor Rooms designed to maximize energy savings, reduce staff hours and lower maintenance costs Orienting the property parallel to the largest adjacent traffic source is optimal 125 parking stalls, including ADA-compliant spaces near the entrances, allow for one spot for each guest room A 5 -wide concrete sidewalk surrounds the entire building Concrete curbing, 6 tall, is coordinated with the drainage and grading plan Security lighting, consistent with the USDOE L Z2 requirements or better, are mandated All properties can be modified to accommodate local requirements. All include safety lighting, secure American Disabilities Act (ADA) regulation compliant entrances and exits, and priority parking spaces on both the front and rear of the buildings.
6 Follow The Leader In Extended Stay Learn more about the brand s exciting future: FRAN 8621 E. 21st Street N., Suite 250 Wichita, KS woodspring.com franchise@woodspring.com WoodSpring Suites Franchise Services does not guarantee or promise success, profitability or any particular level of return for a WoodSpring Suites SM property. Many additional factors impact site selection and the success and profitability of a property, including local economic conditions, your business acumen, management skill and experience. This brochure describes in general terms an overview of statistics and features of a WoodSpring property. It does not constitute an offer to become a WoodSpring Suites franchisee or to sign a franchise agreement with WoodSpring Suites. Becoming a franchisee is subject to the execution by you and WoodSpring Suites of a franchisee agreement and certain other collateral agreements and the payment of certain initial fees. Providing you with this brochure and your acceptance does not obligate either party into a WoodSpring Suites license agreement. WoodSpring Suites only offers franchises in states where it is registered to do so, or where registration is not required. Minnesota registration number F-4823.
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