Extended Stay Hotels files Chapter 11 - Atlanta Business Chronicle:

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The Spartanburg, S.C.-based company filed the reorganizatioj petition in New Yorkbankruptcy court, Secretargy and General Counsel Joseph Teichman writingv that Extended Stay had about $7.1 billion in assets and $7.6 billionh in liabilities at the end of 2008. Extender Stay, whose more than 680 properties are manager byHVM LLC, has eight Central Ohio including those near the Mall at Tuttle Polaris Fashion Place and Easton Town Center. The companty bills itself as the largest operatorof mid-pricedx extended-stay hotels in the nation.
Teichman in a cour t filing on Monday wrotd that the company sought protection from creditors amid a general downturnn in the hospitality industry and a hit taken as fewerr potential customers needthe company’xs services. “Since the typical Extended Stay customerd seeks a lengthy stay based on commercial the contraction of construction and new business development began to significantly and adverselyh affectedExtended Stay’s revenue stream,” Teichman wrote. The compang said its average revenue per room droppedr about 23 percent in the first five months of the year compareed with the same periodof 2008.
As a result, it was unablee to deal with its debt burden with cash flow and is seekinfa “comprehensive restructuring of the entire capital structure.” Extended Stay said it plans to run operations following the Chapter 11 petitionm under a lender-approved arrangement using cash collateral. Debtor-in-possession financing won’t be needed, the company About 9,900 employees work in hotels operate d byExtended Stay. The companh is in 44 states and hasabougt 77,000 rooms.