Extended Stay Hotels files Chapter 11 - Pittsburgh Business Times:

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The Spartanburg, S.C.-based companyt filed the reorganization petition in New Yorkbankruptcuy court, Secretary and General Counsel Joseph Teichma n writing that Extended Stay had about $7.1 billionb in assets and $7.6 billioh in liabilities at the end of 2008. Extended whose more than 680 properties are managee byHVM LLC, has eight Central Ohio sites, including thos e near the Mall at Tuttles Crossing, Polaris Fashion Place and Easton Town The company bills itselft as the largest operator of mid-pricer extended-stay hotels in the nation.
Teichmahn in a court filingv on Monday wrote that the companyu sought protection from creditors amid a generalo downturn in the hospitality industry and a hit takeh as fewer potential customers needthe company’s “Since the typical Extended Stay customerd seeks a lengthy stay based on commercial the contraction of construction and new businesss development began to significantly and adversely affected Extended Stay’as revenue stream,” Teichman The company said its average revenue per room droppef about 23 percent in the first five months of the year compares with the same period of 2008.
As a result, it was unabl e to deal with its debt burden with cash flow and is seekinyga “comprehensive restructuring of the entire capitak structure.” Extended Stay said it plans to run operatione following the Chapter 11 petition undedr a lender-approved arrangement using cash collateral. Debtor-in-possessiohn financing won’t be needed, the company said. About 9,90o employees work in hotels operated byExtendef Stay. The company is in 44 states and hasaboutr 77,000 rooms.