<ARTICLE> 5
<LEGEND>
THIS SCHEDULE CONTAINS SUMMARY FINANCIAL INFORMATION EXTRACTED FROM CONSOLIDATED
FINANCIAL STATEMENTS OF CANDLEWOOD HOTEL COMPANY, INC. AND SUBSIDIARIES.
</LEGEND>
       
                             
<PERIOD-TYPE>                   YEAR
<FISCAL-YEAR-END>                          DEC-31-1996
<PERIOD-START>                             JAN-01-1996
<PERIOD-END>                               DEC-31-1996
<CASH>                                      33,497,118
<SECURITIES>                                         0
<RECEIVABLES>                                  142,584
<ALLOWANCES>                                         0
<INVENTORY>                                          0
<CURRENT-ASSETS>                            33,910,981
<PP&E>                                       4,104,477
<DEPRECIATION>                                 142,490
<TOTAL-ASSETS>                              51,673,943
<CURRENT-LIABILITIES>                        2,832,152
<BONDS>                                     15,435,819
<PREFERRED-MANDATORY>                                0
<PREFERRED>                                          0
<COMMON>                                        90,250
<OTHER-SE>                                  33,315,722
<TOTAL-LIABILITY-AND-EQUITY>                51,673,943
<SALES>                                              0
<TOTAL-REVENUES>                               685,697
<CGS>                                                0
<TOTAL-COSTS>                                  365,692
<OTHER-EXPENSES>                             1,920,100
<LOSS-PROVISION>                                     0
<INTEREST-EXPENSE>                              80,926
<INCOME-PRETAX>                            (1,352,974)
<INCOME-TAX>                                         0
<INCOME-CONTINUING>                        (1,352,974)
<DISCONTINUED>                                       0
<EXTRAORDINARY>                                      0
<CHANGES>                                            0
<NET-INCOME>                               (1,352,974)
<EPS-PRIMARY>                                    (.23)
<EPS-DILUTED>                                    (.23)