Extended Stay Hotels Files for Bankruptcy

Extended Stay Hotels, an operator of midprice, extended-stay hotels in the United States and Canada, today filed for bankruptcy protection.

The South Carolina-based firm, which holds more than 680 properties, said in its filing with the U.S. Bankruptcy Court in New York that it had $7.6 billion in debt, compared to $7.1 billion in assets at the end of 2008.

The filing comes after Extended Stay failed to restructure $3.3 billion in debt to Bank of America and Wachovia Bank when a group of minority lenders sued to block the deal.