Extended Stay Hotels LLC Files For Chapter 11

Guests at Extended Stay's hotels lodge an average of 18 to 20 nights, compared with two to three nights at other hotels, HMV said in a statement released Monday.

Extended Stay's revenue totaled about $1 billion in 2008. Revenue per available room, or revpar, at its hotels tumbled 23.2 percent last year. Revpar is a key gauge of a hotelier's performance because it measures both occupancy and room rates.

According to the bankruptcy documents, Extended Stay's assets totaled about $7.1 billion at the end of 2008, while it had roughly $7.6 billion in debt.

The bankruptcy filing allows Extended Stay's hotels to continue operating while the company attempts to reorganize its finances under court supervision.

HVM President and CEO Gary DeLapp said, according to the HMV statement, that guests should not notice any changes in the company's services because of the bankruptcy filing.

"All hotels are open and welcoming guests as usual," he said.

DeLapp said Extended Stay doesn't plan to close or sell any hotels, and he expects employees and corporate staff to continue receiving their usual pay and benefits. Extended Stay, through HVM, employs about 10,000 employees in its hotels and facilities.