Cendant Will Merge Hotel Brands

"It's a move to fulfill a strategic priority by strengthening our position in the mid-scale lodging segment," says Steven Rudnitsky, chairman/CEO of the Cendant Hotel Group. "The merger aims to promote brand awareness and distribution in the marketplace by nearly doubling the Baymont brand's system size. It will create critical mass for the brand, accelerating our efforts to drive more business to both our AmeriHost and Baymont franchisees."

Another reason for the merger of brands is that "the AmeriHost Inn trademark was compelling only in the US," says Anthony Berger, the hotel group's COO. "The Baymont brand is licensed worldwide, creating broader opportunities to expand the brand."

The hotel group itself is being spun off to shareholders as a separate company by parent Cendant as part of a devolution that will lead to three separate companies and the retirement of the Cendant name. When the hotel group's spin-off is completed later this year, it will be known as Wyndham Worldwide, reflecting its premier hotel brand.