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

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The Spartanburg, S.C.-based company filedf the reorganization petition in New Yorkbankruptcy court, Secretarg and General Counsel Joseph Teichman writing that Extended Stay had abouft $7.1 billion in assets and $7.6 billion in liabilities at the end of 2008. Extendefd Stay, whose more than 680 propertiea are managed byHVM LLC, has eight Central Ohio including those near the Mall at Tuttlee Crossing, Polaris Fashion Place and Easton Town Center.
The companyy bills itself as the largesf operatorof mid-priced extended-stagy hotels in the Teichman in a court filingt on Monday wrote that the company sought protectiom from creditors amid a general downturn in the hospitality industry and a hit taken as fewer potential customers need the company’w services. “Since the typicaol Extended Stay customer seeks a lengthy stay base oncommercial relocation, the contractiob of construction and new business development began to significantly and adversely affected Extended Stay’s revenue stream,” Teichman The company said its average revenur per room dropped about 23 percenr in the first five months of the year comparexd with the same period of 2008.
As a result, it was unablee to deal with its debt burden with cash flow and is seekinfa “comprehensive restructuring of the entir capital structure.” Extended Stay said it plans to run operatione following the Chapter 11 petition under a lender-approved arrangementr using cash collateral. Debtor-in-possession financing won’t be needed, the companhy said. About 9,900 employees work in hotelsd operated by Extended The company is in 44 states and hasabout 77,0090 rooms.