Candlewood Plans Liquidation

Candlewood Hotel Co., Wichita, Kan., has announced that it will cease operations after completing two asset sale agreements that will result in the sale of substantially all its operating assets to Hospitality Properties Trust and InterContinental Hotels Group.Candlewood said it will sell 12 Candlewood Suites hotels to HPT for $90 million. In a separate transaction, the company said it will sell the rights to the Candlewood Suites brand and certain other trademarks, and assign the licensing rights for all franchise agreements, to IHG's subsidiary Six Continents Hotels for $15 million. Candlewood will simultaneously terminate its lease and management agreements with HPT, a real estate investment trust based in Newton, Mass. After the transactions, Candlewood "will retain limited operating assets and anticipates ceasing business operations in a statutory dissolution," the company said. Meanwhile, HPT said it has entered a new management agreement with IHG for the operation of all the Candlewood hotels owned by HPT, which will total 76 after it acquires the 12 being sold by Candlewood. The companies can be found online at http://www.candlewoodsuites.com, http://www.hptreit.com, and http://www.ichotelsgroup.com.