Homegate Hospitality, Inc.
Ticker: HMGT 2001 Bryan Street, Suite 2300
Exchange: NASDAQ-National Market Dallas, Texas 75201
Industry: Service (214) 863-1777

Type of Shares:Common Shares Filing Date:8/30/96
U.S. Shares:4,325,000 Offer Date:10/24/96
Non-U.S. Shares:0 Filing Range:$11.00 - $13.00
Primary Shares:4,325,000 Offer Price:$11.50
Secondary Shares:0 Gross Spread:$0.81
Offering Amount: $51,900,000 Selling:$0.48
Expenses:$650,000 Reallowance:$0.10
Shares Out After:10,725,000

ManagerTierPhone
Bear, Stearns & Co. Inc.Lead Manager (212) 272-2000
Montgomery SecuritiesCo-manager (415) 627-2220

Auditor: Ernst & Young
Audited
Income
Latest
Unaudited
Income
Prior
Unaudited
Income
Balance
Sheet
6/30/96 6/30/96
Revenue:$0.03Assets:$9.73
Net Income:-$0.24Liabilities:$3.57
EPS:Equity:$6.16

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

Business Description
The company's goals is to become a national provider of high quality extended-stay hotels in strategically selected markets located throughout the United States. The company plans to rapidly develop a changing midprice extended-stay hotels under the Homegate Studios & Suites brand name to capitalize on what management believes is a large and underserved market of guests who desire extended-stay accommodations. This market includes business travelers, professionals on temporary work assignments, persons between domestic situations, and persons relocating or purchasing a home, who often desire accommodations for an extended durations. As of the time of the Offering, the company expects to own six hotels, to have seven hotels under development, and to have agreements, letters of intent, contracts or other arrangements to purchase 10 additional development sites. Of the seven hotels under development, three are currently under construction and four are expected to be under construction by December 31, 1996. The company's objective is to have approximately 65 extended-stay hotels open or under construction by December 31, 1998.

Use of Proceeds
The proceeds from the proposed offering will be used to finance the development of additional extended stay hotels and other general corporate purposes.

Last updated: 11/24/96

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