Will be Rebranded as Ramada Plaza and Wyndham Hotels
PARSIPPANY, N.J. (Aug. 10, 2006) – Wyndham Hotel Group and the Corinthia Group of Companies today signed an agreement in principle to jointly manage hotels under the Wyndham® and Ramada® brands in the EMEA region: Europe, the Middle East and Africa.
The agreement was signed today at the Corinthia Group’s headquarters in Malta by Steven A. Rudnitsky, Wyndham Hotel Group president and chief executive officer, and Alfred Pisani, Corinthia Group chairman and chief executive.
Under terms of the deal, 15 existing Corinthia-owned hotels across Europe, Africa and the Mediterranean will be rebranded as Ramada Plaza and Wyndham hotels, and certain Corinthia Branded properties will be affiliated with a new tier, the Wyndham Grand Collection.
Wyndham Hotel Group will also enter into a partnership with Corinthia Hotels International to offer hotel management services to those brands in the EMEA region.
Under the partnership, the companies expect to gain mutual efficiencies by consolidating support functions including sales and marketing, which will focus on driving business to Ramada, Wyndham and Corinthia hotels in the region.
“This relationship will expand our portfolio in the EMEA region and establish our management business, which will become an integral component of our expansion strategy,” said Rudnitsky. “Our goal is to deliver more bookings to existing Corinthia properties by integrating them into our sales, marketing and distribution systems.”
Pisani said his company will explore opportunities to develop Ramada, Wyndham and Wyndham Grand Collection hotels throughout the region.
“Our association with Wyndham Hotel Group will expand our profile and provide a much broader base of potential customers through their worldwide distribution system,” Pisani said. “Our knowledge of the markets and experience developing and managing upscale hotels in the region will accelerate Wyndham Hotel Group’s ability to expand its portfolio.”
Pending customary regulatory approval and conditions of closing, the deal is expected to be finalized within the next 60 days. Financial terms were not disclosed.
Wyndham Hotel Group, one of three principal components of Wyndham Worldwide (NYSE:WYN), encompasses more than 6,400 franchised and managed hotels and 535,000 hotel rooms worldwide. Through Wyndham Hotel Group, RCI Global Vacation Network and Wyndham Vacation Ownership, Wyndham Worldwide offers individual consumers and business-to-business customers a broad suite of hospitality products and services across various accommodation alternatives and price ranges through its premier portfolio of world-renowned brands. RCI Global Vacation Network offers its more than 3 million members access to approximately 55,000 vacation properties located in more than 100 countries. Wyndham Vacation Ownership develops, markets and sells vacation ownership interests and provides consumer financing to owners through its network of more than 140 vacation ownership resorts serving more than 750,000 owners throughout North America, the Caribbean and the South Pacific. Wyndham Worldwide, headquartered in Parsippany, N.J., employs approximately 28,800 employees globally.
The Corinthia Group participates in the world travel industry through its four business units including International Hotel Investments, which focuses on hotel real estate acquisition and investment; Corinthia Hotels International, which manages 20 four- and five-star hotels totaling 5,300 rooms in 11 countries in Europe, Africa and the Mediterranean as well as a network of sales offices worldwide; Quality Project Management, which provides construction and project management services; and Corinthia In-Flight Services, which provides industrial catering. The company employs approximately 5,000.
Certain statements in this press release constitute “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995.
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