A privately owned, Missouri-based hotel company founded by John Q. Hammons filed for bankruptcy protection Sunday, just weeks before the start of a trial to determine if the company must sell its hotels, Dow Jones Newswires reported on Friday. More than 70 affiliates owned by the John Q. Hammons trust filed for protection in U.S. Bankruptcy Court in Kansas City, Kan. Based in Springfield, Mo., the company owns and manages 35 hotels for companies like Marriott, Sheraton and Hilton's Embassy Suites. The companies listed assets and debts each of more than $1 billion, according to court papers. The bankruptcy filing involves a group of hotels that Hammons retained ownership of after the 2005 buyout of his hotel business by Jonathan Eilian, the former managing director of private-equity giant Starwood Capital Group. The 2005 buyout involved some 43 hotels owned by John Q. Hammons Hotels. Hammons himself received an equity interest in the acquiring company — a partnership with Eilian — as well as preferred stock valued at $328 million and some $300 million in loans.
