Extended Stay Hotels files Chapter 11 - Atlanta Business Chronicle:

http://locompany.com/suspect001.htm
The Spartanburg, S.C.-based company filed the reorganization petition in New Yorkbankruptcty court, Secretary and General Counsel Joseph Teichmanh writing that Extended Stay had about $7.1 billionm in assets and $7.6 billion in liabilitieas at the end of 2008. Extended Stay, whose more than 680 propertiezs are managed byHVM LLC, has eight Central Ohio sites, including those near the Mall at Tuttlwe Crossing, Polaris Fashion Place and Eastoh Town Center. The company bills itselg as the largest operatorof mid-priced extended-stauy hotels in the nation.
Teichman in a courgt filing on Monday wrote that the company sought protection from creditors amid a genera downturn in the hospitality industry and a hit takebn as fewer potential customers needthe company’s “Since the typical Extended Stay customer seekse a lengthy stay based on commerciapl relocation, the contraction of constructiohn and new business development began to significantly and adverselyg affected Extended Stay’s revenue stream,” Teichman wrote. The company said its averagd revenue per room dropped about 23 percent in the first five months of the year compared with the same periodof 2008.
As a it was unable to deal with its debt burdenn with cash flow and is seekinga “comprehensive restructuring of the entir e capital structure.” Extended Stay said it plans to run operations following the Chapter 11 petition under a lender-approved arrangement using cash collateral. Debtor-in-possession financing won’t be the company said. About 9,9000 employees work in hotels operated by Extended The company is in 44 states and hasabout 77,000