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Travel Roundup: Extended Stay's Bankruptcy, Boeing's First Order in Paris, Carnival's Overboard Passengers and More

By Barbara E. Hernandez | Jun 17, 2009

Extended Stay files bankruptcyExtended Stay Hotels, the Spartanburg, S.C. chain with 680 properties in 44 states, filed bankruptcy Monday. New Jersey-based Lightstone Group LLC purchased the company from Blackstone Group LP two years ago with $7.4 billion in financing – it had only $7.1 billion in assets and was $7.6 billion in debt by the end of 2008. Lightstone, a newcomer to the hotel industry, bought while real estate and deal-making was high. [Source: Bloomberg]

Boeing gets first order at Paris Air ShowBoeing Co. received its first jet order Wednesday at the Paris Air Show from MC Aviation Partners, a division of Mitsubishi Corp., for two of its updated 737-800 aircraft, worth about $153 million. Despite the order, Boeing is still trailing behind its rival, the Airbus A320, which has taken numerous orders. So far, Airbus has made more than $6.2 billion in sales at the show. [Source: Associated Press]

Carnival addresses spate of passengers falling overboard — In the last three weeks, Carnival Cruise Lines reported passengers falling overboard twice into the Gulf of Mexico. The cruise company said it was still a rare occurrence, with only a handful of its 3.8 million passengers tumbling into the water. A spokesman said that ship railings are 44 inches high and the ships have uniformed security that patrol the vessels. Nevertheless, one passenger fell off a cruise ship this week, 47-year-old Larry Miller of Seminole, Fla. who leaned over the railing and fell into Tampa Bay. Miller was hit by a passing boat but managed to swim to a buoy and was rescued. [Source: Tampa Tribune]

Two girls put on wrong Continental flightsContinental Airlines said miscommunication was the culprit after two unaccompanied girls were placed on wrong Continental Express flights over the weekend. A College Station, Texas girl, age 8, was sent to Fayetteville, Ark. instead of Charlotte, N.C., and a 10-year-old Massachusetts girl was sent to Newark, N.J. instead of Cleveland, on planes operated by Expressjet, a Continental contractor. A Continental spokeswoman said that in both cases flights to different destinations were being boarded at the same time from the same doorway, and there was “miscommunication” among employees. Both girls were rerouted to their correct destination, she said. [Source: Associated Press]

Bay Area resident and award-winning business journalist Barbara E. Hernandez has covered tourism, real estate and personal finance. Her clients include the New York Times, Los Angeles Times, San Francisco Chronicle and Washington Post.

BNET User Analysis

Web Buzz:
  • Declining Divorce Rate Is Wrecking Havoc on Extended Stay Hotels

    Seeking Alpha - 161 days 17 hours 39 minutes ago

    Tyler Durden submits: Privately held group Extended Stay Hotels, which was acquired in June 2007 by NJ-based Lightstone Group LLC for an ungodly amount of money of which $7.4 billion was funded through debt and the bulk of it was apparently securitized, has thrown in the towel and under

  • Declining Divorce Rate Is Wreaking Havoc on Extended Stay Hotels

    Seeking Alpha - 161 days 17 hours 39 minutes ago

    Tyler Durden submits: Privately held group Extended Stay Hotels, which was acquired in June 2007 by NJ-based Lightstone Group LLC for an ungodly amount of money of which $7.4 billion was funded through debt and the bulk of it was apparently securitized, has thrown in the towel and under

  • Extended Stay: One Real-Estate Deal of the Apocolypse?

    The Wall Street Journal - 160 days 8 hours ago

    What is striking about the bankruptcy filing of Extended Stay isnÂ?t the filing itself, but how predictable it all seemed. And it isnÂ?t just the many early warning signals, either

  • Debt-strapped Extended Stay files for bankruptcy

    Reuters - 161 days 12 hours 30 minutes ago

    By Santosh Nadgir BANGALORE (Reuters) - Debt-strapped hotel chain Extended Stay Inc filed for bankruptcy protection on Monday, becoming the latest leveraged buyout deal to crater as the U.S. recession culled travel to its chain of 680 hotels. Extended Stay struggled with a faltering economy and large debt load, following companies such as media...

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    In 2006, a group of private equity investors paid $1.3 billion to take over retailer Linens 'N Things. But in late 2008, the houseware retail-chain closed its doors. On Tuesday two liquidation firms, Hilco Consumer Capital and Gordon Brothers Brands, will announce they have acquired the Linens 'N Things name. The price: $1 million. Like a...

 

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