 |
 |
|
|
|
|
|
|
Sale-Leaseback Transaction with Hospitality Properties Trust |
| WICHITA, Kan., July 21, 2003 - Candlewood Hotel
Company, Inc. (OTC Bulletin Board: CNDL), a leading owner, manager, and
franchisor of high-quality, value-oriented, business-travel hotels, today
announced that it has completed a sale-leaseback transaction with Hospitality
Properties Trust (NYSE: HPT), on behalf of a joint venture the Company
has with Boston Capital and Mass Mutual.
The $65 million transaction represents seven Candlewood Suites with a total of 888 suites. The seven hotels have been added to an existing lease pool of 57 hotels, creating one lease for 64 hotels, for a total of 7,775 suites. The seven hotels are geographically diversified in six states, two of which are in California, with an average age of 2.8 years. The proceeds of the transaction will be used to repay all of the mortgage debt and mezzanine debt of the joint venture the Company formed with Boston Capital and Mass Mutual in 1999, and to provide working capital for the Company. Candlewood Hotel Company, headquartered in Wichita, Kansas, owns, operates and franchises Candlewood Suites and Cambridge Suites -- hotel properties that offer high-quality accommodations for all guests, while catering to mid-market and upscale business and personal travelers seeking multiple night stays. Jack DeBoer, Chairman and CEO and founder of Residence Inn, started Candlewood Hotel Company in late 1995. The matters in this press release include "forward looking statements" within the meaning of the safe harbor provisions of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934 and are qualified by cautionary statements contained herein and in Candlewood Hotel Corporation filings with the Securities and Exchange Commission.
|
|
Candlewood Hotel Company, Inc. http://www.candlewoodsuites.com |