Extended Stay Hotels announced today that they have emerged from Chapter 11 protection, and say they are leaner and stronger than ever before. Their previous debt burden has been cut by almost $5 billion in the process.
An investment group purchased 100 percent of the company for $3.925 billion. This, in connection with the Plan of Reorganization, was confirmed by the Bankruptcy Court back in July. The investment group is comprised of: LP Paulson & Co Inc, Centerbridge Partners and Blackstone Real Estate Partners VI LP.
Mr Gary DeLapp,Â the CEO and president of HVM, LLC, said he was grateful that all the hotels remained open and operational during the restructuring process.
HVM is a separately-owned company that manages the hotels throughout Canada and the United States. ItÂ will still manage the 685 properties even though there has been a change in ownership.
Doug Geoga becomes non-executive chairman of the Board. Mr.Geoga previously served as president of Global Hyatt Corporation. The board will also include Will Kussell. He is a former chief brand officer and president of Dunkin’ Donuts.
Extended Stay is in Spartanburg, South Carolina. It is the biggest operated and company owned chain of long-stay hotels in North America. Approximately 9,000 employees work at the various hotel properties and the headquarters.