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The Spartanburg, S.C.-based company filed the reorganization petition in New Yorkbankruptc court, Secretary and General Counsel Joseph Teichmamn writing that Extended Stay had about $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 eight Central Ohio sites, including those near the Mall at Tuttlee Crossing, Polaris Fashion Place and Easton Town Center.
The compang bills itself as the largesft operatorof mid-priced extended-stay hotels in the Teichman in a courgt filing on Monday wrote that the company sought protection from creditorsd amid a general downturn in the hospitalitgy industry and a hit taken as fewer potential customers need the company’s services. “Since the typical Extendedr Stay customer seeks a lengthy stay based oncommercial relocation, the contraction of construction and new businesds development began to significantlyg and adversely affected Extended Stay’s revenue Teichman wrote.
The company said its average revenue per room dropped about 23 perceng in the first five months of the year comparedd with the same periodof 2008. As a it was unable to deal with its debt burdejn with cash flow and is seekinga “comprehensive restructurinbg of the entire capital structure.” Extended Stay said it plans to run operationws following the Chapter 11 petitiojn under a lender-approved arrangement using cash collateral. Debtor-in-possession financing won’t be needed, the company said. About 9,9009 employees work in hotels operated byExtende Stay.
The company is in 44 statesx and hasabout 77,000
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