Signature Inns, Inc.
Proposed Ticker: SGNS 250 East 96th Street, Suite 450
Exchange: NASDAQ-National Market Indianapolis, Indiana 46240
Industry: Service (317) 581-1111

All share information is proposed
Type of Shares:Common Shares Filing Date:9/26/96
U.S. Shares Filed:3,300,000 Filing Range:$11.00 - $13.00
Non-U.S. Shares Filed:0 Offering Amount: $39,600,000
Primary Shares:3,300,000 Expenses: -
Secondary Shares:0 Shs Out After:5,403,754

ManagerTierPhone
McDonald & Company Securities, Inc.Lead Manager (216) 443-2300

Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
12/31/95 6/30/96 6/30/95 6/30/96
Revenue:$3.47$2.53$1.66Assets:$17.45
Net Income:$1.62$0.93$0.36Liabilities:$11.52
EPS:$0.77$0.44$0.16Equity:$5.93

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

Business Description
The company is a leader in the mid-price, limited service segment of the lodging industry, having developed its "Signature" concept to meet the specific needs of the business traveler. The company became a pioneer in the mid-price, limited service segment with the opening of its first Signature Inn hotel in March 1981. During the last five years, the company consistently have been ranked as one of the premier mid-price, limited service chains of hotels in terms of overall guest satisfaction, considering price, value, service and physical facilities. The company ranked higher in overall customer satisfaction than every other mid-price hotel chain in the "moderately priced" group surveyed by Consumer Reports for its July 1994 issue, ahead of nationally recognized chains such as Hampton Inn, Comfort Inn and Courtyard by Marriott. The company has operated primarily as a management company and has derived a substantial portion of its revenues from management and other fees paid by a group of 21 entities which own a total of 23 Signature Inn hotels having a total of 2,747 guest rooms.

Use of Proceeds
The proceeds from the proposed offering will be used to i) pay the cash portion of the purchase price of the asset and limited partnership interest acquisitions ii) pay second mortgage indebtedness on certain initial hotels iii) pay the company's line of credit iv) provide funds for the acquisition, development and renovation of, working capital for, additional Signature Inn hotels in accordance with the company's growth plans.

Last updated: 12/1/96

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