Cendant To Split Into Four Companies

Cendant Corporation today announced it is spinning off its four primary business units into separate companies in an effort largely designed to attract investors and boost share prices. Cendant's divide-and-conquer strategy will create standalone, "pure-play" companies in the travel distribution, hospitality, vehicle rental and real estate industries.

Cendant said the transition, which is expected to be completed next summer, "should not affect the operations of its business units and that generally customers, suppliers, franchisees and other business partners should see no changes in their relationships with Cendant businesses."

The company today said it would drop the Cendant name and reflag the four companies. Galileo International, Travelport and Orbitz for Business, among other brands, will comprise the distribution spin-off. Avis and Budget will make up the vehicle rental business, while Cendant's hospitality company will include its brands Amerihost Inn, Days Inn, Howard Johnson, Knights Inn, Ramada, Super 8, Travelodge and Wingate Inn.