Hotel Chain with 5 RIC locations in trouble

The Wall Street Journal reported this morning that Extended Stay Hotels, Inc. is in early talks that could result in turning the hotel chain over to lenders. The hotels are geared towards business travelers who need rooms for longer than a night or two. Four of the hotels are around Innsbrook, and the bankruptcies of LandAmerica and Circuit City might lead to a decreased demand for business travelers in Innsbrook.
“Extended Stay’s cash flow is crashing, as business activity across the country contracts,” reports the WSJ.

The company owns locations at:

Extended StayAmerica 6811 Paragon Pl.

Homestead Studio Suites, 10961 W. Broad St.

Extended Stay Deluxe Richmond, 6807 Paragon Pl.

StudioPLUS Deluxe Studios, 10060 W. Broad St.

Homestead Studio Suites, 241 Arboretum Pl.

The Extended Stays company is owned by private equity group Lighstone Group, which bought the company from private equity group Blackstone in April of 2007 for $8 billion, the WSJ reports.

Subscribe
Notify of
guest
0 Comments
Inline Feedbacks
View all comments