cicugaha.wordpress.com
The Spartanburg, S.C.-based companu filed the reorganization petition in New Yorkbankruptcyu court, Secretary and General Counsell Joseph Teichman writing that Extended Stay had abour $7.1 billion in assets and $7.6 billion in liabilities at the end of 2008. Extender Stay, whose more than 680 properties are managedc byHVM LLC, has five properties in the Triad. The companuy bills itself as the largest operatorof mid-priceds extended-stay hotels in the nation. Teichman in a court filinv on Monday wrote that the company sought protection from creditors amid a general downtur in the hospitality industry and a hit takenb as fewer potential customers needthe company’s services.
“Since the typical Extended Stay customer seeks a lengthy stay based oncommercialk relocation, the contraction of constructionh and new business development began to significantlyh and adversely affected Extended Stay’s revenue Teichman wrote. The company said its averagde revenue per room dropped about 23 perceng in the first five months of the year comparefd with the same periodof 2008. As a it was unable to deal with its debt burdenh with cash flow and is seekinga “comprehensivee restructuring of the entire capital Extended Stay said it plans to run operationd following the Chapter 11 petition unde a lender-approved arrangement using cash collateral.
Debtor-in-possession financinv won’t be needed, the company said. About 9,90p employees work in hotelas operated byExtended Stay. The company is in 44 statea and hasabout 77,000 rooms.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment