Thank you for sharing!

Your article was successfully shared with the contacts you provided.

PARSIPPANY, NJ-Cendant Corp., the largest US travel and real estate services company based here, signed a non-binding letter of intent to buy Ramada International Hotels & Resorts from Marriott International. Ramada International is primarily a franchised brand of 204 hotels totaling more than 27,700 rooms in 26 countries.

Terms of the transaction were not disclosed pending the signing of a formal sales agreement. The deal also must clear with regulatory authorities, and Cendant officials expect the whole thing to be finalized “within the next few months,” according to a spokesperson. Transition plans were also not disclosed.

The deal will also combine the Ramada brand under one roof. Back in April, Marriott sold both the domestic Ramada brand and the Days Inn brand to Cendant for a reported $200 million.

“The transaction will unite the Ramada brand as a worldwide entity and further demonstrate our commitment to the brand,” says Steven A. Rudnitsky, chairman and CEO of Cendant’s Hotel Group. “When completed, this purchase will extend our control of the brand and integrate two systems currently led separately by Cendant and Marriott.”

Marriott had bought the rights to Ramada through a larger acquisition back in 1997. After that acquisition, Marriott continued to license the Ramada name in the US to Cendant under existing long-term agreements. A little more than two years ago, the two companies had formed a joint venture called Two Flags to license the trademarks for both Ramada and Days Inn in the US.

Cendant had already been set to launch what Rudnitsky terms “a major upgrading and repositioning of the Ramada brand throughout the US and Canada.” Cendant currently franchises 819 Ramada properties totaling more than 94,000 rooms in the US, and another 71 properties totaling more than 7,500 rooms in Canada. Besides Ramada and Days Inn, the Cendant Hotel Group also franchises the Super 8, Travelodge and Howard Johnson brands.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 3 free articles* across the ALM subscription network every 30 days
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

Dig Deeper


Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2020 ALM Media Properties, LLC. All Rights Reserved.