The Candlewood Suites hotels in Milpitas, CA; Pleasanton, CA; Sacramento, CA; Hillsboro, OR; and Bellevue, WA will join the six current Larkspur Landing hotels located in areas of Northern California and the Pacific Northwest.

"This is a very exciting event in our company's history," said Karl Hoagland, chairman, president, and CEO of Larkspur Hospitality.  "Making the decision to convert our Candlewood Suites hotels to Larkspur Landing hotels is a natural strategic step that will allow us to bring our own hotel concept to more of our guests by almost doubling the number of Larkspur Landing hotels, from six to 11.  This is great news for travelers, as Larkspur Landing hotels are known, above all else, for extraordinary guest service and satisfaction."

"We greatly value our relationship with InterContinental Hotels Group and we appreciate their understanding, assistance and cooperation in making this transition as smooth as possible," continued Hoagland.  "They have done a fantastic job of acquiring and integrating the Candlewood Suites hotel system over this year.  We have seen improvements in the Candlewood Suites system from our friends at IHG, but this decision is driven by our overall business strategy and passionate commitment to the guests of our Larkspur Landing hotels."

Larkspur Landing hotels are Arts-and-Crafts inspired upscale all-suite hotels, providing fully-equipped kitchens, the Larkspur signature FeatherBorne Bed(SM), in-room DVD players, complimentary laundry facilities, spa, exercise room and the new Healthy Start breakfast.  Specializing in genuine, personalized service, Larkspur Landing hotels also offer Your Home Office @ Larkspur, featuring complimentary in-room high-speed Internet access, extra large work space in every room and complimentary state-of-the-art business centers complete with T-1 connected computers, color printers, fax machines and color copiers.  Larkspur Landings are known for repeatedly achieving some of the very highest guest satisfaction scores in the hotel industry, as measured by Market Metrix.

About Larkspur Hospitality
Established in 1996, Larkspur Hospitality and affiliates, is a rapidly growing hotel company based in Corte Madera, California.  Larkspur and its affiliates own and operate 19 hotels comprising three brands (Larkspur Landing, Candlewood Suites and Hilton Garden Inn) in suburban areas of Northern California and the Pacific Northwest.  The company acquired the four- star RiverPlace Hotel in Portland, Oregon, in July 2003, the Toll House Hotel in Los Gatos, California in December 2003 and the Tiburon Lodge in Tiburon, California in May 2004.  The company also manages the Pruneyard Inn in Campbell, California, owned by Equity Office Properties.