Extended Stay Hotels files Chapter 11 - Business First of Buffalo:

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The Spartanburg, S.C.-based company filed the reorganizationj petition in New York bankruptcy Secretary and General Counsel Joseph Teichman writingy that Extended Stay hadabout $7.1 billio in assets and $7.6 billion in liabilities at the end of 2008. Extendes Stay, whose more than 680 properties are managed byHVM LLC, has eigh Central Ohio sites, including those near the Mall at Tuttlee Crossing, Polaris Fashion Place and Easton Town Center. The company bills itself as the largest operatorof mid-prices extended-stay hotels in the nation.
Teichman in a courft filing on Monday wrote that the companyh sought protection from creditors amid a general downturjn in the hospitality industry and a hit taken as fewer potential customers needthe company’s “Since the typical Extended Stay customer seeks a lengthy stay basef on commercial relocation, the contraction of constructiob and new business development began to significantly and adverselu affected Extended Stay’s revenue stream,” Teichman wrote. The companh said its average revenue per room droppeed about 23 percent in the first five monthsw of the year compared with the same perioedof 2008.
As a result, it was unablew to deal with its debt burden with cash flow and is seeking a “comprehensive restructuring of the entire capital Extended Stay said it plans to run operations followinhg the Chapter 11 petition under a lender-approved arrangement using cash collateral. Debtor-in-possession financintg won’t be needed, the company About 9,900 employees work in hotels operated byExtendedf Stay. The company is in 44 states and hasaboutf 77,000 rooms.