Extended Stay Hotels LLC Files For Chapter 11

KRISTEN A. LEE

NEW YORK (AP) — Extended Stay Hotels LLC filed for Chapter 11 bankruptcy protection on Monday, citing massive debt stemming from its 2007 acquisition by the Lightstone Group and a sharp drop in business travel due to the recession.

The Spartanburg, S.C.-based company's brands include Extended Stay Deluxe, Extended Stay America Efficiency Studios, Homestead Studio Suites, StudioPLUS Deluxe Studios and Crossland Economy Studios. The privately held company owns more than 680 hotels in the U.S. and Canada catering to long-term business travelers. The hotels are managed by HVM LLC, a separate company.

In June 2007, just as the hotel market peaked, the Lightstone Group, one of the country's largest private real estate investors, bought Extended Stay from private equity firm Blackstone Group LP. Lightstone financed the purchase with about $7.4 billion in loans. ...