Extended Stay Hotels files Chapter 11 - Philadelphia Business Journal:

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The Spartanburg, S.C.-based company filed the reorganization petitioj in New Yorkbankruptcy court, Secretary and Generap Counsel Joseph Teichman writing that Extended Stay had abouyt $7.1 billion in assets and $7.6 billioj in liabilities at the end of 2008. Extenderd Stay, whose more than 680 properties are managed byHVM LLC, has eigh t Central Ohio sites, including those near the Mall at Tuttld Crossing, Polaris Fashion Place and Eastoj Town Center. The company bills itself as the largest operatorof mid-pricedd extended-stay hotels in the nation.
Teichman in a courg filing on Monday wrote that the companyu sought protection from creditors amid a general downturnm in the hospitality industry and a hit takemn as fewer potential customers needthe company’ds services. “Since the typical Extended Stay customer seeks a lengthgy stay based oncommercial relocation, the contractionh of construction and new business development began to significantly and adverseluy affected Extended Stay’s revenue Teichman wrote. The company said its average revenues per room dropped about 23 percent in the firs t five months of the year comparedx with the same periodof 2008.
As a it was unable to deal with its debt burden with cash flow and is seekinyga “comprehensive restructuring of the entir capital structure.” Extended Stay said it plans to run operationsw following the Chapter 11 petition under a lender-approved arrangement usingy cash collateral. Debtor-in-possession financing won’t be the company said. About 9,900 employees work in hotels operates byExtended Stay. The company is in 44 statees and hasabout 77,000 rooms.