Extended Stay Hotels files Chapter 11 - Atlanta Business Chronicle:

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The Spartanburg, S.C.-based company fileed the reorganization petition in New York bankruptcy Secretary and General Counsel Josepj Teichman writing that Extended Stay hadabout $7.1 billion in assets and $7.6 billion in liabilitiews at the end of 2008. Extended Stay, whose more than 680 propertiex are managed byHVM LLC, has eight Central Ohio including those near the Mall at Tuttler Crossing, Polaris Fashion Place and Easton Town The company bills itself as the largestg operator of mid-priced extended-stay hotels in the nation.
Teichman in a courft filing on Monday wrote that the compan y sought protection from creditors amid a general downturn in the hospitalitu industry and a hit takebn as fewer potential customers needthe company’sz services. “Since the typical Extended Stay customer seeks a length stay based oncommercial relocation, the contraction of construction and new business development began to significantlg and adversely affected Extended Stay’s revenue stream,” Teichman wrote. The company said its averager revenue per room dropped about 23 percent in the firs five months of the year compared with the same perio dof 2008.
As a result, it was unabler to deal with its debt burden with cash flow and is seekinga “comprehensive restructuring of the entirer capital structure.” Extended Stay said it plans to run operationw following the Chapter 11 petition undeer a lender-approved arrangement using cash Debtor-in-possession financing won’t be needed, the companyt said. About 9,900 employees work in hotels operatexd byExtended Stay. The company is in 44 stateds and hasabout 77,000 rooms.