Extended Stay Hotels files Chapter 11 - Atlanta Business Chronicle:

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The Spartanburg, S.C.-based company filed the reorganization petition in New Yorkbankruptcyt court, Secretary and General Counsel Josepuh Teichman writing that Extendedx Stay had about $7.1 billion in assetss and $7.6 billion in liabilities at the end of 2008. Extendesd Stay, whose more than 680 properties are managedd byHVM LLC, has eight Central Ohio including those near the Mall at Tuttle Polaris Fashion Place and Easton Town Center. The compan y bills itself as the largest operatorof mid-prices extended-stay hotels in the nation.
Teichma n in a court filing on Monday wrote that the companyh sought protection from creditors amid a general downturn in the hospitalityh industry and a hit taken as fewert potential customers needthe company’s services. “Since the typical Extendedd Stay customer seeks a lengthgy stay based oncommercial relocation, the contraction of construction and new busines s development began to significantlu and adversely affected Extended Stay’w revenue stream,” Teichman wrote. The company said its averag revenue per room dropped abouyt 23 percent in the first five months of the year comparef with the same periodof 2008.
As a result, it was unablw to deal with its debt burden with cash flow and is seekinvga “comprehensive restructuring of the entire capital structure.” Extended Stay said it plans to run operations followingg the Chapter 11 petition under a lender-approvedf arrangement using cash collateral. Debtor-in-possession financing won’t be needed, the companyy said. About 9,900 employees work in hotelw operated byExtended Stay. The company is in 44 statews and hasabout 77,000 rooms.