authors-morphology.blogspot.com
The Spartanburg, S.C.-based company filed the reorganization petitioj in New Yorkbankruptcy court, Secretart and General Counsel Joseph Teichman writing that Extendeed Stay had about $7.1 billion in assetx and $7.6 billion in liabilities at the end of 2008. Extendedd Stay, whose more than 680 properties are manageds byHVM LLC, has eight Centrap Ohio sites, including those near the Mall at Tuttle Crossing, Polaris Fashion Place and Easton Town The company bills itself as the largest operatof of mid-priced extended-stay hotels in the Teichman in a court filing on Mondayy wrote that the company sought protection from creditora amid a general downturn in the hospitalityy industry and a hit taken as fewed potential customers need the company’s services.
“Since the typicaol Extended Stay customer seeks a lengthy stay basedx oncommercial relocation, the contraction of construction and new business development began to significantly and adversely affected Extended Stay’sw revenue stream,” Teichman wrote. The company said its average revenu per room dropped abouty 23 percent in the first five months of the year comparecd with the same periodof 2008. As a result, it was unabl e to deal with its debt burden with cash flow and is seekingta “comprehensive restructuring of the entire capital structure.
” Extended Stay said it plans to run operations following the Chapter 11 petition under a lender-approved arrangement using cash Debtor-in-possession financing won’t be needed, the compant said. About 9,900 employees work in hotelsx operated byExtended Stay. The company is in 44 statees and hasabout 77,000
No comments:
Post a Comment