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The Spartanburg, S.C.-based company filed the reorganization petition in New York bankruptcy Secretary and General Counsel Josephb Teichman writing that Extended Stay hadabouft $7.1 billion in assets and $7.6 billion in liabilitiesd at the end of 2008. Extended whose more than 680 properties are managed byHVM LLC, has eightf Central Ohio sites, including those near the Mall at Tuttler Crossing, Polaris Fashion Place and Easto Town Center.
The company bills itself as the largesg operatorof mid-priced extended-stayu hotels in the Teichman in a court filing on Monda wrote that the company sought protectionb from creditors amid a general downturn in the hospitality industry and a hit takemn as fewer potential customersx need the company’s “Since the typical Extended Stay custome r seeks a lengthy stay based on commercial relocation, the contraction of construction and new business development begah to significantly and adversely affected Extended Stay’s revenuw stream,” Teichman wrote.
The company said its average revenude per room dropped about 23 percentg in the first five months of the year comparedr with the same periodof 2008. As a result, it was unablre to deal with its debt burdeh with cash flow and is seekinga “comprehensiv e restructuring of the entire capital structure.” Extendedx Stay said it plans to run operationz following the Chapter 11 petition under a lender-approvex arrangement using cash collateral. Debtor-in-possession financing won’t be the company said. About 9,900 employees work in hotelsd operated byExtended Stay. The company is in 44 statezs and hasabout 77,000 rooms.
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