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US travel giant Cendant poised to buy Ramada
Cendant Corporation’s hotel group has agreed to purchase Ramada International Hotels & Resorts from Marriott.
The deal, which is expected to be concluded in the next few months, will add 204 mainly franchised hotels to Cendant’s portfolio, representing 27,728 rooms in 26 countries. Financial terms have not been disclosed.
“Both Cendant Corporation and Marriott International do not expect that the financial impact of the transaction will be material,” a statement said.
The transaction will complete the acquisition of all worldwide trademark rights for the Ramada brand by Cendant. The company acquired the rights for the US, where it franchises 819 Ramada properties representing 94,128 rooms, earlier this year. Cendant also licenses Ramada rights in Canada, where it franchises 71 properties representing 7,571 rooms.
Cendant Hotel Group chairman and chief executive Steven A. Rudnitsky said the transaction would “unite the Ramada brand as a worldwide entity under a single company and further demonstrate Cendant Hotel Group’s commitment to the brand.”
He added: “When completed, this purchase of Ramada International will extend our control of the brand throughout the world and integrate two systems currently led separately by Cendant and Marriott.”
Cendant claims to be the world’s largest lodging franchisor with 6,349 hotels representing 509,932 rooms on five continents including brands such as under the Super 8, Days Inn, Ramada, Travelodge and Howard Johnson.
Report by Phil Davies
Phil Davies
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