IPO Company Profile
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Cavanaughs Hospitality Corporation
201 W. North River Drive, Suite 100, Spokane, WA 99201 * (509) 459-6100

The company is a hotel operating company that owns, operates, acquires, develops, renovates and repositions full service hotels throughout the Northwest under its proprietary brand name, "Cavanaughs".

Primary Underwriting Group
ManagerTierPhone
CIBC Oppenheimer & CompanyLead Manager (212) 667-7400
Nationsbanc Montgomery Securities, Inc.Co-manager (415) 627-2100

Offering Information
NYSE:CVH Service: SIC 7011
Type of Shares:Common Shares Filing Date:1/20/98
U.S. Shares:5,175,000 Offer Date:4/2/98
Non-U.S. Shares:0 Filing Range:$12.00 - $14.00
Primary Shares:5,175,000 Offer Price:$15.00
Secondary Shares:0 Gross Spread:$1.05
Offering Amount: $67,275,000 Selling:$0.64
Expenses:$0 Reallowance:$0.10
Post-IPO Shares:12,270,251
Employees:1900

Legal Counsel, Auditor and Registrar
Issuer's Law Firm: Kaye, Scholer, Fierman, Hays & Handler
Bank's Law Firm: Rogers & Wells
Registrar/Transfer Agent: American Stock Transfer & Trust Co
Auditor: Coopers & Lybrand

Selected Financial Data

Dollar amounts in U.S. millions except for per share data
Full Year
Audited
Income
Latest
Unaudited
Income
Prior
Audited
Income
Balance
Sheet
10/31/97 10/31/97
Revenue:$52.04Assets:$124.45
Net Income:$1.81Curr Assets:$10.81
EPS:$0.26Liabilities:$115.02
Prior EPS:Curr Liab:$13.58
Cash Flow/Oper:$6.61Equity:$9.42
Cash Flow/Fin:-$1.10Cash:$6.44
Cash Flow/Inv:-$6.27Working Cap:-$2.77

Business Plan
The Company is presently seeking growth opportunities in markets located throughout the Northwest. The Company will consider the following factors in evaluating acquisitions, conversions and redevelopments, construction of new hotels and expansion of existing hotels: (i) the location of the property, (ii) the construction quality, condition and design of the property, (iii) the current and projected REVPAR, ADR and occupancy of the property and the anticipated ability of the Company to increase REVPAR, ADR and occupancy through management of the property by the Company and (iv) the potential for economic growth in the communities in which the hotels are located.

Use of Proceeds
The proceeds from the proposed offering will be used to repay certain indebtedness, including indebtedness incurred with respect to certain acquisitions, and for general corporate purposes.

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