"We built the Amerihost brand over the last ten years," saysAmerihost CFO Jim Dale. "But Cendant is the world's largestfranchisor. They can network much more effectively than we can tobring us development partners and help identify buyers for ourexisting hotels."

In a filing with the Securities and Exchange Commissionyesterday, Amerihost revealed details of its arrangement withCendant, which purchased the Amerihost brand in September. Inaddition to the previously disclosed $5.1 million initial paymentas well as a preferred franchise agreement on its 70 ownedAmerihost properties, Amerihost revealed that it will receive aportion of Amerihost franchise royalties for the next 25 years. Onthe development side, Amerihost said it will earn fees fromCendant, the exact nature of which was not disclosed, every timeAmerihost develops and sells a Amerihost hotel that executes afranchise agreement with Cendant.

"We expect to build between 12 and 15 new Amerihost hotelsthroughout the Midwest next year," says Dale. In the deal withCendant, Amerihost can now earn extra fees from these hotel dealsover and above whatever profits they make either as builders of thehotels for a third party or as a speculative developer ofhotels.