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Cendant to take possession of Ramada flag

16 September 2004
Cendant to take possession of Ramada flag

US hotel chain Cendant is to buy Ramada International Hotels & Resorts from Marriott International.

The two companies have signed a non-binding letter of intent that will see the 204-strong chain of primarily franchised hotels swap hands, providing it clears all the necessary regulatory hurdles.

While the financial terms of the agreement have not been disclosed, both sides said they did not expect there to be any material financial impact from the deal.

Earlier this year Cendant bought the trademark rights to the Ramada brand for the USA, where there are 819 franchised hotels.

It also already owns the rights to the brand in Canada, where there are 71 properties.

Steven Rudnitsky, Cendant chairman and chief executive, said the transaction would "unite the Ramada brand as a worldwide entity under a single company."

The company intended now to invest in the brand and give it a major upgrading and repositioning throughout the USA and Canada, he added.

by Nic Paton

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