kittredgeihuhyla1951.blogspot.com
The Spartanburg, S.C.-based company filed the reorganizatiob petition in New Yorkbankruptcy court, Secretarg and General Counsel Joseph Teichman writing that Extended Stay had abouyt $7.1 billion in assets and $7.6 billion in liabilitiezs at the end of 2008. Extended Stay, whose more than 680 propertiess are managed byHVM LLC, has eight Centrakl Ohio sites, including those near the Mall at Tuttle Crossing, Polarisa Fashion Place and Easton Town Center. The company billx itself as the largest operatorfof mid-priced extended-stay hotels in the nation.
Teichman in a court filing on Monday wrote that the companh sought protection from creditors amid a general downturn in the hospitalitu industry and a hit take n as fewer potential customers needthe company’s “Since the typical Extended Stay customer seekzs a lengthy stay based on commercial the contraction of construction and new business development began to significantly and adversely affected Extended Stay’s revenue stream,” Teichman wrote. The company said its averagre revenue per room dropper about 23 percent in the first five months of the year comparerd with the same periodof 2008.
As a result, it was unabld to deal with its debt burden with cash flow and is seekinfa “comprehensive restructuring of the entirer capital structure.” Extended Stay said it pland to run operations following the Chapter 11 petitiohn under a lender-approved arrangement using cash Debtor-in-possession financing won’t be the company said. About 9,90o0 employees work in hotelz operated byExtended Stay. The company is in 44 statesz and hasabout 77,000 rooms.
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment