WICHITA, KS—While things have been looking dim for quite some time, many in the hospitality industry are trying to do whatever they can to stay positive and boost the morale, although that seems to becoming more difficult by the day. However, a grim attitude is nowhere to be found at economy extended-stay brand Value Place’s headquarters here. In fact, things are downright hopeful as it plans to continue on the path to its goal of building 600 hotels over the next 10 years. According to Gina-Lynne Scharoun, president of franchise services for Value Place, the brand is coming off a successful 2008. “We finished last year with 125 hotels open, and for a brand that is all new construction to accomplish that is very challenging,” she said. “We now have 131 hotels open and should reach 150 hotels by early June. I would expect by early fall 2009 we will have no less than 176 properties open.” And when questioned about how the economic downturn might hinder Value Place’s expansion plans, Scharoun reported it is not slowing them down—it actually may be working in the company’s favor. “We’ve spent the last several years preparing for what is going on right now [in the market],” she said. “The last part of 2008 was a little bit scary, but we are confident we will be able to continue to grow at a fast rate. This is our time. It’s the right time for an economy extended-stay product. We’re very enthusiastic because we feel like our product is finally very relevant.” The Value Place product is one that is centered on simplicity, both for its guests and its franchisees, and Scharoun explained that each year the brand focuses on refining and improving its core values. “Since the first property in 2004 we have had four main goals: to be the lowest in cost, to be safe, clean and simple. Each year we define each one more. Sometimes the things that seem the simplest are the hardest to do,” she said. “But four-and-a-half years into franchising we continue to have a broad appeal to customers.” The brand’s most recent achievement is the calibration of its quality assurance program. “A few years ago we tried to implement a hotel-like quality assurance program, but because we try not to operate like a hotel it didn’t work. We completely redesigned it and raised our standards to be extremely stringent. You have to be that strict at this price point because there are no frills,” Scharoun said. According to the new program, when evaluated each Value Place property must score at least an 80% in order to pass inspection. However, in addition to the quality measures, Scharoun stressed the success of Value Place largely hinges on its loyal franchisees. “We are lucky to have a very firm foundation of franchisees in place. Currently, we have 46 franchise groups. Many of them do one hotel and then bring in partners and do a couple more,” she said, adding the makeup of the brand’s franchisees has kept it safe from the financing many are facing. “Very few of our franchisees are hoteliers. They come from all different industries. They have strong relationships with local banks. And from a lending perspective we’re not a traditional hotel by banking standards. We’re sort of an apartment/hotel hybrid and that makes sense to them.”