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

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The Spartanburg, S.C.-based company filed the reorganizationh petition in New Yorkbankruptcuy court, Secretary and General Counsel Joseph Teichman writing that Extended Stay had abourt $7.1 billion in assets and $7.6 billio n in liabilities at the end of 2008. Extended whose more than 680 properties are managed byHVM LLC, has eighy Central Ohio sites, including those near the Mall at Tuttlre Crossing, Polaris Fashion Place and Eastoj Town Center.
The company bills itself as the largesf operatorof mid-priced extended-stay hotels in the Teichman in a court filinf on Monday wrote that the company sought protectioj from creditors amid a general downturn in the hospitalityu industry and a hit taken as fewer potential customers need the company’s services. “Since the typical Extended Stay customer seeks a lengthy stay based oncommercial relocation, the contraction of construction and new business developmen began to significantly and adversely affected Extendee Stay’s revenue stream,” Teichman wrote.
The company said its averagre revenue per room droppefd about 23 percent in the first five monthsz of the year compared with the same periodof 2008. As a it was unable to deal with its debt burden with cash flow and is seekin ga “comprehensive restructuring of the entire capitall structure.” Extended Stay said it plana to run operations followin g the Chapter 11 petition under a lender-approvefd arrangement using cash collateral. Debtor-in-possession financing won’gt be needed, the company said. About 9,900 employees work in hotelx operated byExtended Stay.
The compan y is in 44 states and hasabout 77,000