Candlewood Suites Approves Two Locations in Canada, Plans New Bedding Package / May 2006

Hotel Online Special Report

Candlewood Suites Approves Two Locations
in Canada, Plans New Bedding Package

WICHITA, Kan., May 1, 2006 - At its 10-year milestone, Candlewood Suites today announces it has approved two locations for the first Candlewood Suites properties outside the U.S., in Canada. With nearly 90 properties in the pipeline that will nearly double the brand's current portfolio, the brand is also pursuing development in several large metropolitan markets, including New York City. Executives from InterContinental Hotels Group (IHG), parent company of the Candlewood Suites brand, made the announcement at a press conference from the Candlewood Suites Wichita-Northeast in Wichita, Kan., where the brand was established ten years ago today.

InterContinental Hotels Group acquired the Candlewood Suites brand on January 1, 2004, and executed more Candlewood license agreements in the first six months with IHG than in the three years prior. The brand management team has worked hard over the past two years to improve the already strong hotel product, and development is not the only success measure IHG has brought to the Candlewood Suites brand. In 2005, Candlewood Suites outpaced the extended-stay segment in RevPAR growth by more than 27 percent, and so far this year, the brand continues to lead the segment in unit growth and will be segment leaders in distribution by the end of the year.

"Our record-setting growth and performance is a tribute to the strength of the IHG enterprise," said Gina LaBarre, vice president, brand management, Candlewood Suites. "Within four months of acquiring the brand, IHG reversed 24 months of RevPAR decline to what is now a 23-month streak of positive gains, with double-digit growth over each of the past 15 months," she added. "That performance is also a true testament to the strength of the Candlewood Suites culture. We have an amazing brand with passionate people at all levels of our organization, and when you add the InterContinental Hotels Group enterprise values to our unique brand culture, you have a powerful combination that will carry us well beyond the next decade of Candlewood Suites success."

New Bedding and Decor Packages

Candlewood Suites today also announced a new bedding package that will be added to the new standardized room and common area decor update. Candlewood Suites will test the new bedding this summer for one month, and will begin rolling it out across the system later this year. The new bedding will bring a more residential style to the suites at Candlewood, in keeping with the brand's "consider us home" mantra. The bedding package includes fluffy duvets with poly-cotton covers, upgraded sheet sets, a selection of two different pillows, contemporary cotton blankets and a decorative "Consider Us Home" pillow.

Candlewood Suites Joins Forces with Habitat for Humanity

To commemorate its 10th anniversary, Candlewood Suites is joining forces with Habitat for Humanity International to create additional homeownership opportunities with low-income families, announcing a commitment to build 10 houses over the next three years in the United States, Latin America and India.

"We wanted to celebrate this milestone by giving back to the communities in which we operate, and do it in a way that reflected the passion, culture, and care that are the hallmark of Candlewood Suites," said LaBarre. "We want our Candlewood Suites guests to consider us their temporary home, and by joining with Habitat for Humanity we have found a way to help ten families build and buy a permanent home of their own."

Construction on the first of the ten houses began today in Wichita during a ceremonial wall raising event. Guests at the press conference including executives from InterContinental Hotels Group and Habitat for Humanity and employees from the Candlewood Suites Wichita-Northeast joined together with Wichita Habitat for Humanity's partner family to construct exterior walls of the house.

In addition to the financial sponsorship of the ten homes, Candlewood Suites and InterContinental Hotels Group employees and friends will contribute their time to the construction of each home. Guests of Candlewood Suites properties near one of the Habitat builds also will have the opportunity to participate, giving them a chance to do the volunteer work they normally leave behind while they're on the road.

About Candlewood Suites

Candlewood Suites is focused on comfort, space and value. With more than 112 properties located throughout North America, guests will find spacious studio and one-bedroom suites each with their own fully equipped kitchen, large workspace, overstuffed recliner, VCR and CD player, complimentary high- speed internet access and telephones with voice mail. The complimentary fitness center and guest laundry are open 24 hours a day. The Candlewood Cupboard(R) is also open 24 hours for snacks, refreshments and entrees.

Contact:

InterContinental Hotels Group
http://www.candlewoodsuites.com

Also See:	InterContinental Hotels Group Appoints Gina LaBarre Vice President, Brand Management, Candlewood Suites / February 2004
	Candlewood Hotel Company, Inc. Proceeding Towards Complete Liquidation and Dissolution; Best Alternative for the Stockholders / October 2003

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