Woes for a Hotelier
There's not much comfy about the hotel business these days. The downturn has brought a bust in corporate travel and the rise of the dreaded "staycation" as folks stick close to home. The latest victim: Extended Stay Hotels, a chain with 680-plus properties where the average stay runs 18 to 20 nights. The chain filed for Chapter 11 on June 15. Besides the recession's ravages, Extended Stay suffered from $7.4 billion in debt taken on during a top-of-the-market buyout in 2007 led by David Lichtenstein's Lightstone Group. Gary DeLapp, head of the company that manages Extended Stay, said it will not close or sell any hotels or cut employee pay or benefits.