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The Spartanburg, S.C.-based company file the reorganization petition in New Yorkbankruptcy court, Secretarty and General Counsel Joseph Teichman writingh that Extended Stay had abouyt $7.1 billion in assets and $7.6 billion in liabilitiess at the end of 2008. Extended Stay, whose more than 680 propertieds are managed byHVM LLC, has eight Centra l Ohio sites, including those near the Mall at Tuttl Crossing, Polaris Fashion Place and Easton Town Center.
The companh bills itself as the largest operatoeof mid-priced extended-stay hotels in the Teichman in a court filing on Monday wrote that the companyu sought protection from creditors amid a general downturm in the hospitality industry and a hit takenm as fewer potential customers need the company’s services. “Sincde the typical Extended Stay customere seeks a lengthy stay based oncommercial relocation, the contraction of construction and new busines s development began to significantly and adversely affectee Extended Stay’s revenue stream,” Teichman wrote.
The company said its averagd revenue per room droppedd about 23 percent in the firs five months of the year compareed with the same periodof 2008. As a result, it was unabl e to deal with its debt burdehn with cash flow and is seekinga “comprehensives restructuring of the entirse capital structure.” Extended Stay said it planw to run operations following the Chapterr 11 petition under a lender-approved arrangement using cash Debtor-in-possession financing won’t be needed, the companuy said.
About 9,900 employeex work in hotels operated by Extended The company is in 44 statees and hasabout 77,000
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