Candlewood Hotel Company, Inc.
Ticker: CNDL 9342 East Central
Exchange: NASDAQ-National Market Wichita, Kansas 67206
Industry: Service (316) 631-1300

Type of Shares:Common Shares Filing Date:9/13/96
U.S. Shares:3,850,000 Offer Date:11/5/96
Non-U.S. Shares:0 Filing Range:$12.00 - $14.00
Primary Shares:3,850,000 Offer Price:$10.00
Secondary Shares:0 Gross Spread:$0.70
Offering Amount: $50,050,000 Selling:$0.40
Expenses:$600,000 Reallowance:$0.10
Shares Out After:9,025,000

ManagerTierPhone
Montgomery SecuritiesLead Manager (415) 627-2220
Schroder Wertheim & Company, IncorporatedCo-manager (212) 492-6900

Auditor: KPMG Peat Marwick
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
6/30/96 6/30/96
Revenue:$0.12Assets:$7.03
Net Income:-$0.77Liabilities:$0.46
EPS:-$0.15Equity:$6.57

Note: Dollar amounts are in U.S. millions; Audited figures expressed as full year,
unaudited figures are partial year

Business Description
The company is in the business of developing, owning, operating and franchising Candlewood extended-stay hotels. The company and their amenities are designed to appeal particularly to business travelers seeking extended-stay accommodations by combining the convenience of a hotel with many of the comforts of an apartment and providing well appointed, high quality lodging at affordable prices. Through the rapid development and franchising of Candlewood hotels, the company's goal is to capitalize on an underserved demand for mid-priced extended-stay hotels and to develop a leading national brand within that segment of the extended-stay market, which the company believes is characterized by average daily rates of approximately $40 to $60. The company believes that the experience of its senior management team will be instrumental in executing its growth strategy.

Use of Proceeds
The proceeds from the proposed offering will be used to fund the national expansion of Candlewood hotels and for working capital and other general corporate purposes.

Last updated: 12/1/96

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