Extended Stay Hotels Seek Chapter 11

MANHATTAN (CN) - Extended Stay Inc., which operates more than 600 hotels in 44 states, filed for bankruptcy, listing $7.1 billion in assets and $7.6 billion in debts. Lightstone Group bought the hotel chain from the Blackstone Group for $8 billion in April 2007 - just in time for the real estate crash and recession. The Federal Reserve owns nearly $900 million of the debt, having acquired it with Bear Stearns, industry watchers say.

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