Time to check out of the Extended Stay America chain of hotels....permanently?

[marmar]

Extended Stay Hotels Chain Files for Bankruptcy (Update1)
By Bob Van Voris


June 15 (Bloomberg) -- Extended Stay Hotels, which operates a chain of mid-priced extended stay hotels in 44 U.S. states and two Canadian provinces, filed for bankruptcy protection in New York today citing decreased revenue and high debt costs.

The chain, with more than 680 properties, said it had $7.1 billion in assets and $7.6 billion in debts at the end of last year. The company employs approximately 10,000, it said in papers filed in U.S. Bankruptcy Court.

“Extended Stay is significantly over-leveraged and the projected cash flows cannot continue to service over $7 billion in debt,” Joseph Teichman, Extended Stay’s secretary and general counsel, said in a declaration filed in the case.

Teichman said Extended Stay has seen a drop in revenue resulting from decreased business spending on travel. Extended Stay was acquired in June 2007 by Lightstone Group LLC, a New Jersey-based real-estate owner, $7.4 billion of which was finance.

Extended Stay rents rooms for government and business travelers, workers on temporary assignment and training and people who are relocating and looking for permanent homes, Teichman said.


http://www.bloomberg.com/apps/news?pid=20601087&sid=akEd85FxmlBE

[liberal N proud]

1. That might explain the partially completed building in our city

There was one being built here, they had the sign on the side of the building facing the freeway, windows in but the walls have openings where the hvac for each room would be installed and no landscaping or paving completed.

This has been sitting there since last fall in that state.

[madaboutharry]

2. They have also become complete dives.

It is obvious that there is no money there to even maintain the properties.

[DCKit]

3. Now find out who financed the debt at over 100% and arrest them along with the principals.

This reeks of fraud.

[givemebackmycountry]

4. I stayed in a Extended Stay "Deluxe" Hotel in North Orlando for 4 weeks last year...

I relocated to Orlando in May of 2008. About $65.00 bucks a night and 5 minutes away from my new office.
It was clean, comfortable, safe, and I was pleased with the accommodations.
On one weekend I was pissed because the shriners rolled in en masse and brought their Harley's with them.
Rumble, rumble in the parking lot from Friday morning until Sunday night.

Other than that it was fine, but I was a happy boy when I checked out and moved into my own place.

[Bankhead_ATL]

5. I used to love those hotels in North Attlanta...it was like a little get away ;)

Well on to hotwire .com