Larkspur Hotels and Restaurants to Convert 5 Candlewood Suites Hotels to Its Proprietary Larkspur Landing Brand

CORTE MADERA, Calif. (November 1, 2004) - Larkspur Hotels and Restaurants has announced that it will convert five Candlewood Suites hotels to it's flagship brand, Larkspur Landing, Home Suite Hotel^TM, effective December 30, 2004. Larkspur Hotels and Restaurants will invest over $5 million into the conversion process. 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.

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 and copy machines. Larkspur Landings are known for repeatedly achieving some of the very highest guest satisfaction scores in the hotel industry, as measured by Market Metrix.

"This is a very exciting event in our company's history," said Karl Hoagland, chairman, president, and CEO of Larkspur Hotels and Restaurants. "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."

About Larkspur Hotels and Restaurants
Established in 1996, Larkspur Hotels and Restaurants is a rapidly growing hotel company based in Corte Madera, California. Larkspur owns and operates 20 hotels comprising three brands (Larkspur Landing, Hilton Garden Inn and its collection of three and four star independent hotels known as the Larkspur Collection) 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 Lodge at Tiburon in Tiburon, California in May 2004. In December 2004, Larkspur converted five existing hotels to its flagship Larkspur Landing brand, bringing the total number of Larkspur Landings to 11. The company also manages the Pruneyard Inn in Campbell, California. For additional information on Larkspur Hotels and Restaurants and its affiliates, visit www.larkspurhospitality.com.

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For more information please contact:
Jeff Rubenstein
Larkspur Hotels and Restaurants
415 945-5037