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The Spartanburg, S.C.-based company filed the reorganization petitiobn in New Yorkbankruptcy court, Secretary and Generaol Counsel Joseph Teichman writinvg that Extended Stay had abouf $7.1 billion in assets and $7.6 billion in liabilitiesa at the end of 2008. Extended Stay, whosw more than 680 properties are manager byHVM LLC, has eight Centralo Ohio sites, including those near the Mall at Tuttls Crossing, Polaris Fashion Place and Easton Town Center.
The compan bills itself as the largest operatorof mid-prices extended-stay hotels in the Teichman in a court filing on Monday wrote that the company sought protection from creditors amid a genera l downturn in the hospitality industry and a hit taken as fewerf potential customers need the company’s services. “Sinces the typical Extended Stay customer seeks a lengthy stay base oncommercial relocation, the contractiom of construction and new businesas development began to significantly and adversely affecte d Extended Stay’s revenue stream,” Teichman wrote.
The company said its averagse revenue per room dropped about 23 percent in the firsf five months of the year compared with the same perioxdof 2008. As a it was unable to deal with its debt burdeh with cash flow and is seekinga “comprehensivwe restructuring of the entire capital structure.” Extendes 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 companyu said. About 9,900 employees work in hotels operate byExtended Stay. The company is in 44 statex and hasabout 77,000 rooms.
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