Candlewood Hotel Company, Inc. completes IPO of 3.85 million shares; lists common shares on Nasdaq National Market.

WICHITA, Kans.--(BUSINESS WIRE)--Nov. 8, 1996--Candlewood Hotel Company, Inc. (Nasdaq NM: CNDL) of Wichita, Kansas today closed on its initial public offering of 3.85 million shares of common stock at a price of $10 per share, according to Jack DeBoer, Candlewood chairman and chief executive officer. The offering was managed by Montgomery Securities and Schroder Wertheim.

Net proceeds of the offering will be used to fund the national expansion of the company through the development of Candlewood hotels.

Candlewood Hotel Company develops, operates and franchises a value-oriented, business extended-stay hotel brand offering business travelers a studio hotel room at prices of $45 to $65 per night. In the future, Candlewood also will offer guests a 525-square-foot, two-room "king" suite at a slightly higher rate at most locations. As of October 15, the company had one hotel open, five under construction, including one under construction by a franchisee, and 22 sites under contract.

In addition to company-owned and developed hotels, Candlewood has a national franchising program which provides franchising opportunities for either individual or multiple hotels. Candlewood has signed its first master development agreement for franchising with Studio West Hotel Development Company which entitles Studio West to construct and operate up to 22 Candlewood hotels in the Northwest by 1999, the first of which is under construction in Portland, Oregon.

Copies of the final prospectus relating to the offering may be obtained from Montgomery Securities, 600 Montgomery Street, San Francisco, California 94111, [phone] and Schroder Wertheim & Co., 10877 Wilshire Blvd., Los Angeles, California 90024-4342, [phone].

CONTACT: Candlewood Hotel Company, Inc., Wichita

Warren Fix, [phone];

Jerry Daly, media [phone]