<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>
                                                 Ended Year     Ended Year       Ended Year      Ended Year       Ended Year
                                                December 31,   December 31,     December 31,    December 31,     December 31,
                                                    2000            1999             1998           1997            19996
                                                ------------   ------------     ------------    ------------     ------------
<S>                                             <C>             <C>             <C>             <C>             <C>
EARNINGS
Income (loss) before preferred stock
     dividends                                    $  5,687        $ (2,791)       $ (6,287)       $   (817)       $ (1,353)
Interest incurred                                   21,602          15,290           7,964           3,271             175
Amortization of deferred                             2,085           1,701             473             112              --
   financing costs
Rent expense on leased hotels                       25,056          24,821          12,365              79              --
                                                  --------        --------        --------        --------        --------
     Total earnings                               $ 54,430        $ 39,021        $ 14,515        $  2,645        $ (1,178)
                                                  ========        ========        ========        ========        ========

FIXED CHARGES
Interest incurred                                 $ 21,602        $ 15,290        $  7,964        $  3,271        $    175
Amortization of deferred                             2,085           1,701             473             112              --
   financing costs
Rent expense on leased hotels                       25,056          24,821          12,365              79              --
Preferred stock dividends                            8,025           8,025           6,338           1,248              --
                                                  --------        --------        --------        --------        --------
     Total fixed charges                          $ 56,768        $ 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       $ (2,338)       $(10,816)       $(12,625)       $ (2,065)       $ (1,353)
                                                  ========        ========        ========        ========        ========
</TABLE>