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The Spartanburg, S.C.-based company filed the reorganization petition in New Yorkbankruptcy court, Secretary and General Counsel Joseph Teichman writinhg that Extended Stay had about $7.1 billio in assets and $7.6 billion in liabilities at the end of 2008. In Extended Stay's seven hotels are in Eugene and Salem. The company bills itself as the largesg operatorof mid-priced extended-sta hotels in the Teichman in a coury filing on Monday wroted that the company sought protectioh from creditors amid a generapl downturn in the hospitalityy industry and a hit taken as fewer potentiap customers need the company’s services.
“Sincw the typical Extended Stay customer seeksz a lengthy stay based oncommercial relocation, the contraction of construction and new businessa development began to significantlt and adversely affected Extended Stay’s revenuw stream,” Teichman wrote. The company said its average revenuse per room dropped about 23 perceng in the first five month s of the year compared with the same periofof 2008. As a result, it was unablw to deal with its debt burden with cash flow and is seekingha “comprehensive restructuring of the entirwe capital structure.
” Extended Stay said it plan to run operations followingy the Chapter 11 petition under a lender-approves arrangement using cash Debtor-in-possession financing won’t be needed, the companhy said. About 9,900 employees work in hotelas operated byExtended Stay. The company is in 44 statesa and hasabout 77,000
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