Extended Stay Hotels files Chapter 11 - New Mexico Business Weekly:

fixyruw.wordpress.com
The Spartanburg, S.C.-based company filed the reorganization petitionh in New Yorkbankruptcy court, Secretaru and General Counsel Joseph Teichman writing that Extendecd Stay had about $7.1 billion in asseta and $7.6 billion in liabilitiezs at the end of 2008. Extended whose more than 680 properties are managed byHVM LLC, has four locations in the Albuquerque/Rio Rancho The company bills itself as the largesr operator of mid-priced extended-stay hotels in the Teichman in a court filing on Monday wrote that the company sought protection from creditors amid a generaol downturn in the hospitality industry and a hit taken as fewe r potential customers need the company’sa services.
“Since the typical Extendefd Stay customer seeks a lengthy stay basee oncommercial relocation, the contraction of construction and new businessd development began to significantly and adversely affectes Extended Stay’s revenue stream,” Teichman wrote. The company said its average revenue per room dropped about 23 percentr in the first five months of the year comparef with the same perio dof 2008. As a it was unable to deal with its debt burdeb with cash flow and is seekinga “comprehensivre restructuring of the entire capital Extended Stay said it planw to run operations following the Chapter 11 petitiohn under a lender-approved arrangement using cash collateral.
Debtor-in-possession financinhg won’t be needed, the company said. Abouty 9,900 employees work in hotels operated byExtended Stay. The company is in 44 statesx and hasabout 77,000 There are four Extended Stay Hotels in