Extended Stay Hotels files Chapter 11 - Triangle Business Journal:

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The Spartanburg, S.C.-based company filed the reorganizatiobn petition in New Yorkbankruptcy court, Secretary and Generalp Counsel Joseph Teichman writing that Extended Stay had abouy $7.1 billion in assets and $7.6 billiohn in liabilities at the end of 2008. Extended whose more than 680 properties are managed byHVM LLC, has eighyt Central Ohio sites, including those near the Mall at Tuttlse Crossing, Polaris Fashion Place and Eastohn Town Center. The company bills itselv as the largest operatorof mid-priced extended-stayh hotels in the nation.
Teichman in a courtg filing on Monday wrots that the company sought protection from creditors amid a genera l downturn in the hospitality industry and a hit taken as fewer potential customerw needthe company’s services. “Since the typicaol Extended Stay customer seeks a lengthyh stay based oncommercial relocation, the contraction of construction and new businesds development began to significantly and adversely affected Extende d Stay’s revenue stream,” Teichman The company said its average revenue per room droppee about 23 percent in the first five monthx of the year compared with the same period of 2008.
As a it was unable to deal with its debt burden with cash flow and is seekinta “comprehensive restructuring of the entire capital Extended Stay said it plans to run operationsx following the Chapter 11 petition under a lender-approve arrangement using cash collateral. Debtor-in-possessionj financing won’t be needed, the company said. About 9,90p employees work in hotels operatee byExtended Stay. The company is in 44 statea and hasabout 77,000 rooms.