Extended Stay Hotels files Chapter 11 - Charlotte Business Journal:

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The Spartanburg, S.C.-based compan filed the reorganization petition in New Yorkbankruptcu court, Secretary and Genera l Counsel Joseph Teichman writing that Extended Stay had about $7.1 billio n in assets and $7.6 billion in liabilities at the end of 2008. Extenderd Stay, whose more than 680 properties are managec byHVM LLC, has eight Centralk Ohio sites, including those near the Mall at Tuttlwe Crossing, Polaris Fashion Place and Easton Town Center.
The compangy bills itself as the largest operatotrof mid-priced extended-stay hotels in the Teichman in a court filing on Mondah wrote that the company soughtt protection from creditors amid a general downturn in the hospitalit industry and a hit taken as fewert potential customers need the company’s “Since the typical Extendexd Stay customer seeks a lengthy stay based on commerciao relocation, the contraction of construction and new business development began to significantly and adverselt affected Extended Stay’s revenue stream,” Teichmam wrote.
The company said its average revenuse per room dropped aboutf 23 percent in the firsyt five months of the year compared with the same perioeof 2008. As a result, it was unablre to deal with its debt burdehn with cash flow and is seekinga “comprehensivr restructuring of the entire capitall structure.” Extended Stay said it planss to run operations following the Chapte 11 petition under a lender-approved arrangement usintg cash collateral. Debtor-in-possession financing won’ty be needed, the company About 9,900 employees work in hotels operatedf byExtended Stay. The company is in 44 stateds and hasabout 77,000 rooms.