ibitasony.wordpress.com
The Spartanburg, S.C.-based company filed the reorganizationm petition in New Yorkbankruptcy court, Secretaruy and General Counsel Joseph Teichman writin that Extended Stay had about $7.1 billion in assets and $7.6 billioj in liabilities at the end of 2008. Extendedr Stay, whose more than 680 propertiez are managed byHVM LLC, has 21 locations in Greateer Baltimore. The company bills itself as the largest operatorof mid-price extended-stay hotels in the Teichman in a court filing on Monday wrots that the company sought protection from creditors amid a general downturmn in the hospitality industry and a hit taken as fewere potential customers need the company’s “Since the typical Extended Stay customer seeks a lengthhy stay based on commercial relocation, the contraction of construction and new business development began to significantly and adverselhy affected Extended Stay’s revenue stream,” Teichmam wrote.
The company said its averagwe revenue per room dropped about 23 percent in the firsgt five months of the year compared with the same periodsof 2008. As a result, it was unable to deal with its debt burden with cash flow and is seekinhga “comprehensive restructuring of the entire capital structure.” Extended Stay said it plans to run operatione following the Chapter 11 petition under a lender-approvefd arrangement using cash collateral. Debtor-in-possession financingb won’t be needed, the company About 9,900 employees work in hotelsx operated byExtended Stay. The company is in 44 statex and hasabout 77,000 rooms.
No comments:
Post a Comment