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The Spartanburg, S.C.-based compang filed the reorganization petition in New York bankruptcy Secretary and General Counsel Joseph Teichmab writing that Extended Stay hadabout $7.1 billioh in assets and $7.6 billion in liabilities at the end of 2008. Extendee Stay, whose more than 680 properties are managef byHVM LLC, has eighrt Central Ohio sites, including thosd near the Mall at Tuttl Crossing, Polaris Fashion Place and Eastomn Town Center.
The company bills itselft as the largest operatorof mid-priced extended-stay hotels in the Teichman in a court filing on Monday wrotw that the company sought protection from creditors amid a generakl downturn in the hospitality industry and a hit taken as fewer potential customers need the company’s services. “Since the typical Extended Stay customerd seeks a lengthy stay based oncommerciaol relocation, the contraction of constructiomn and new business development begam to significantly and adversely affected Extended Stay’s revenue stream,” Teichman The company said its average revenue per room dropped about 23 percent in the first five monthss of the year compared with the same periof of 2008.
As a result, it was unabls to deal with its debt burdenm with cash flow and is seekinvga “comprehensive restructuring of the entire capital structure.” Extended Stay said it planss to run operations following the Chapter 11 petitiomn under a lender-approved arrangement using cash collateral. Debtor-in-possession financing won’t be needed, the company said. Abouty 9,900 employees work in hotels operater byExtended Stay. The company is in 44 stateas and hasabout 77,000 rooms.
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