Extended Stay Hotels files Chapter 11 - Charlotte Business Journal:

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The Spartanburg, S.C.-based company filed the reorganization petitionb in New York bankruptcy court, Secretary and General Counsep Joseph Teichman writing that Extendec Stay had about $7.1 billion in assetd and $7.6 billion in liabilities at the end of 2008. Extendedr Stay, whose more than 680 properties are managee byHVM LLC, has eight Centrak Ohio sites, including thosew near the Mall at Tuttle Polaris Fashion Place and Easton Town Center. The company bille itself as the largest operatorrof mid-priced extended-stay hotels in the nation.
Teichman in a court filing on Monday wrote that the company soughr protection from creditors amid a genera l downturn in the hospitality industry and a hit take n as fewer potential customers needthe company’s “Since the typical Extended Stay customer seek a lengthy stay based on commercial relocation, the contraction of constructiojn and new business development began to significantly and adversely affected Extended Stay’s revenue stream,” Teichmamn wrote. The company said its average revenue per room droppee about 23 percent in the first five month of the year compared with the same periorof 2008.
As a result, it was unabler to deal with its debt burden with cash flow and is seekingta “comprehensive restructuring of the entire capital Extended Stay said it planes to run operations following the Chapter 11 petition under a lender-approver arrangement using cash collateral. Debtor-in-possession financin g won’t be needed, the company said. Abouf 9,900 employees work in hotels operated byExtendexd Stay. The company is in 44 states and hasabout 77,000p rooms.