Corporate Offices to Parsippany, N.J.
|PARSIPPANY, N.J. (Oct. 12, 2005) -- Cendant Corporation (NYSE: CD)
today announced it has completed the acquisition of the management and
franchise business of the Dallas-based Wyndham® hotel chain from an
affiliate of The Blackstone Group for $101 million in cash. The acquisition
includes 82 franchise agreements, 27 management contracts and the worldwide
rights to the Wyndham brand for hotel and timeshare development.
As previously announced, Cendant is not acquiring any properties as part of this transaction, which is expected to be modestly accretive to Cendant’s earnings per share and free cash flow in 2005.
The newly renamed Wyndham Worldwide will operate as a distinct entity within Cendant Hotel Group under a dedicated management team that will be focused on three key areas: the brand, its managed hotels and franchise development. Aside from retaining certain functions in Dallas, Wyndham Worldwide’s corporate offices will be based in Parsippany, N.J.
Steven A. Rudnitsky, Cendant Hotel Group chairman and chief executive officer, said the acquisition of the company’s first upscale hotel brand allows Cendant to pursue “unprecedented cross-selling opportunities and marketing synergies with our timeshare and other travel businesses.”
Accelerated expansion and enhanced performance will be keystones of the Wyndham strategic plan, he said. “We will work with our operators to optimize the return on their assets. Concurrently we will seek to aggressively expand Wyndham distribution, both domestically and internationally.”
Franz Hanning, president and chief executive officer of Cendant Timeshare Resort Group, the world’s largest owner and operator of vacation ownership companies, noted the importance of acquiring Wyndham timeshare development rights along with the hotel business. “The Wyndham timeshare rights represent a significant element in the future of our timeshare business,” he said.
New York City-based Cendant Corporation (NYSE:CD) provides travel and residential real estate services to businesses and consumers in more than 100 countries. Cendant Hotel Group, based in Parsippany, N.J., is the world’s largest lodging franchisor with 6,460 hotels on five continents under the Wyndham®, Super 8®, Days Inn®, Ramada®, Travelodge®, Howard Johnson®, Knights Inn®, Wingate Inn® and AmeriHost Inn® brands. Cendant’s franchised hotels sell nearly one out of every five economy and midpriced room-nights in the United States, and Cendant franchises 10.3 percent of the entire U.S. hotel room supply, according to Smith Travel Research and Cendant financial data. All hotels are individually owned and operated under franchise agreements with Cendant subsidiaries.
Statements about future results made in this release constitute forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995.
|Also See:||Cendant Corporation Acquiring the Wyndham Hotel Brand and Franchise System for $100 million in Cash; Includes 82 Franchise Agreements and 29 Hotel Management Contracts / September 2005|
|Fred Kleisner's Desk is Looking Spare, As the Chairman CEO of Wyndham International Inc. Passes the Reins Over to New Owner, Blackstone Group / September 2005|