Candlewood Hotel Company Plans Listing on OTC Bulletin Board

JUNE 17, 2002 WICHITA, Kan., June 17, 2002 - Candlewood Hotel Company, Inc. (Nasdaq: CNDL) announced today that it intends to apply to list its common stock on the Over the Counter Bulletin Board.
The decision was made following receipt of a notice from The Nasdaq SmallCap Market that it no longer satisfies the net tangible assets continued listing requirements of The Nasdaq SmallCap Market. The Companies securities are anticipated to be delisted from The Nasdaq SmallCap Market on the close of business June 19, 2002.
The Company will continue to provide information through filings with the Securities and Exchange Commission. These filings can be found at About Candlewood 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 SEC. Factors which may affect our results include: the inability to maintain a public market for our common stock and, the timing of the delisting of the Company’s stock from the NASDAQ Small Cap Market. Actual results may differ materially from management’s expectations. The forward-looking statements made in this release reflect the opinion of management as of the date of the release. Please be advised that subsequent developments are likely to cause these statements to become outdated with the passage of time. We do not intend, however, to update this press release or any statement made herein prior to our next quarterly earnings release.