Travel Roundup: Extended Stay Faces Foreclosure, Shareholders Sue Las Vegas Sands, Austin Hotel Shelved and More

(MoneyWatch)  Extended Stay could turn over company to lenders -- Debt-burdened Extended Stay Hotels could end up handing over the hotel chain to its lenders. The company was highly-leveraged when it was sold to Lightstone Group, which bought the $8 billion hotel group with $7 billion in financing. With economic and credit conditions providing few options to the beleaguered company, Extended Stay went into discussions with its lenders, which may end up with the company handing over the keys in as little as a month. The hotel chain recently hired Lazard Ltd. as a financial adviser and a law firm to serve as bankruptcy counsel. [Source: Reuters]

Two shareholders sue Las Vegas Sands Corp. -- Two shareholders are suing the Las Vegas Sands Corp. board of directors for gross mismanagement because of plummeting share prices. So far, the company's shares have lost about 95 percent of their value in the last 14 months. The lawsuit, filed Nov. 26, also accuses the board of wasting corporate assets and breaching its fiduciary responsibilities. A lawyer representing the two shareholders called the company "the butt of jokes" and "woefully mismanaged." A Las Vegas Sands spokesman had no comment on the lawsuit. [Source: Las Vegas Revew-Journal]

Developer says Austin hotel shelved because of economy -- A 1,000-room hotel in Austin is shelved and the developer blames "the unparalleled severity of the economic downturn." No new start date was given for the 26-story, $275 million complex. Deno Yiankes, president and CEO of White Lodging Development Corp. said the delay was caused by the global credit crisis and the difficulty in finding financing. Originally the hotel was suppose to break ground this year but was moved to 2009. If built, the hotel would be the largest in Austin. [Source: Austin American-Statesman]

Indochina Airlines debuts in Vietnam -- Indochina Airlines, a privately-owned company, debuted recently with four daily flights between Ho Chi Minh City and Hanoi. The airlines also offers two flights daily between Ho Chi Minh City and coastal Danang. Indochina is the third airline in Vietnam to provide domestic flights, its competition being state-run Vietnam Airlines and Jetstar Pacific, a partnership between the state and Qantas. So far, Indochina is leasing two Boeing 737s. [Source: Associated Press]

Courtesy of Extended Stay Hotels