<PAGE>   1

                                                                    EXHIBIT 12.1


                 CANDLEWOOD HOTEL COMPANY, INC. AND SUBSIDIARIES

              STATEMENTS REGARDING COMPUTATION OF RATIO OF EARNINGS
            TO COMBINED FIXED CHARGES AND PREFERRED STOCK DIVIDENDS
                          (IN THOUSANDS, EXCEPT RATIOS)

<TABLE>
<CAPTION>
                                                                                                               Period from
                                                                                                                October 1,
                                                                                                                   1995
                                                Year Ended      Year Ended       Year Ended      Year Ended   (Inception) to
                                               December 31,    December 31,     December 31,    December 31,   December 31,
                                                  1999             1998             1997           1996            1995
                                               ------------    ------------     ------------    ------------   ------------
<S>                                            <C>             <C>              <C>             <C>            <C>
EARNINGS
Income (loss) before preferred stock
 dividends                                      $ (2,791)        $ (6,287)        $  (817)        $(1,353)        $(209)
Interest incurred                                 15,290            7,964           3,271             175            --
Amortization of deferred financing costs           1,701              473             112              --            --
Rent expense on leased hotels                     24,821           12,365              79              --            --
                                                --------         --------         -------         -------         -----
     Total earnings                             $ 39,021         $ 14,515         $ 2,645         $(1,178)        $(209)
                                                ========         ========         =======         =======         =====

FIXED CHARGES
                                                                                                                  -----
Interest incurred                               $ 15,290         $  7,964         $ 3,271         $   175         $  --
Amortization of deferred financing costs           1,701              473             112              --            --
Rent expense on leased hotels                     24,821           12,365              79              --            --
Preferred stock dividends                          8,025            6,338           1,248              --            --
                                                --------         --------         -------         -------         -----
     Total fixed charges                        $ 49,837         $ 27,140         $ 4,710         $   175         $  --
                                                ========         ========         =======         =======         =====

Ratio of earnings to combined fixed
  charges and preferred stock dividends               --               --              --              --            --
                                                ========         ========         =======         =======         =====

Excess (deficit) of earnings to combined
  fixed charges and preferred stock
  dividends                                     $(10,816)        $(12,625)        $(2,065)        $(1,353)        $(209)
                                                ========         ========         =======         =======         =====
</TABLE>