Extended Stay Hotels has filed for Chapter 11 bankruptcy protection in the Southern District of New York as its revenues declined to the point that it couldn’t handle its debt load, the South Florida Business Journal reported. According to its Web site, Extended Stay has two hotels in Greater Des Moines: Extended StayAmerica in Urbandale and StudioPLUS Deluxe Studios in West Des Moines. In its court filing, the company said it had about $7.1 billion in assets and $7.6 billion in liabilities at the end of last year. Lightstone Group bought Extended Stay from Blackstone Group for $8 billion in 2007. According to The Wall Street Journal, it owes money on loans used to finance the buyout to banks, including Bank of America Corp. and Wachovia Corp., which is now owned by Wells Fargo & Co. Extended Stay plans to continue to operate under a lender-approved arrangement.

Construction of new homes and apartments rose 17.2 percent to a seasonally adjusted annual rate of 532,000 units in May, after construction fell to a record low of 454,000 units in April, the Associated Press reported. However, activity is still down 45.2 percent from the year-ago period. Building permits, a sign of future activity, rose 4 percent last month to 518,000 units, according to the Commerce Department. In the Midwest, activity was up 11.1 percent.

The Producer Price Index rose a seasonally adjusted 0.2 percent in May from April, the Labor Department said today, but wholesale prices are still down 5 percent for the past 12 months. The Associated Press also reported that the core Producer Price Index, which excludes food and energy prices, was down 0.1 percent. Energy prices rose 2.9 percent, including a 13.9 percent increase in the cost of gasoline, while food prices fell 1.6 percent.

Ellen Nystrom has been named associate state director of the Iowa Small Business Development Centers, effective June 2. Nystrom has been with the organization since 1999 and replaces Lars Peterson, who left March 31, 2008, to pursue other business opportunities. Nystrom will be responsible for the allocation and supervision of financial resources and state center personal, programmatic compliance, oversight of the business succession and other programs and identifying grant opportunities. She also will assist the state director in developing network strategy and educating state and national legislators about the program’s impact. The Iowa Small Business Development Centers are an outreach unit of Iowa State University’s College of Business and are partially funded by the U.S. Small Business Administration.

American Equity Investment Life Holding Co. President and CEO Wendy Carlson and John Matovina, chief financial officer and vice chairman, will present at the Fox-Pitt Kelton Small & Midcap Bank and Insurance Conference in New York on Thursday at 2 p.m. Iowa time. To access a webcast of this presentation, to go www.american-equity.com.