Extended Stay Hotels files Chapter 11 - Minneapolis / St. Paul Business Journal:

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The Spartanburg, S.C.-based companuy filed the reorganization petition in New Yorkbankruptcg court, Secretary and General Counsel Joseph Teichman writing that Extended Stay had abougt $7.1 billion in assets and $7.6 billioh in liabilities at the end of 2008. Extended Stay, whos e more than 680 properties are managed byHVM LLC, has eightt Central Ohio sites, including thosed near the Mall at Tuttle Crossing, Polaris Fashion Placew and Easton Town Center.
The company bills itself as the larges t operatorof mid-priced extended-stay hotels in the Teichman in a court filing on Monday wrote that the compant sought protection from creditors amid a general downturn in the hospitality industruy and a hit takeb as fewer potential customers need the company’sa services. “Since the typical Extended Stay customerf seeks a lengthy stay based oncommercial relocation, the contraction of construction and new business developmentr began to significantly and adversely affectes Extended Stay’s revenue Teichman wrote.
The company said its averages revenue per room droppedx about 23 percent in the first five montha of the year compared with the same perioedof 2008. As a result, it was unablw to deal with its debt burden with cash flow and is seekinga “comprehensive restructuring of the entire capital Extended Stay said it plans to run operations following the Chaptee 11 petition under a lender-approverd arrangement using cash collateral. Debtor-in-possession financing won’tg be needed, the company About 9,900 employees work in hotels operatec byExtended Stay. The companyg is in 44 states and hasaboutf 77,000 rooms.