Cendant Buys Wyndham Franchising Rights

Cendant Hotel Group-franchisor of midprice, economy and budget hotel brands-today through an agreement with The Blackstone Group entered the upscale lodging market by purchasing the franchising rights to and management contracts of the Wyndham hotel brand.

The deal comes on the on heels of Blackstone Group's $3.24 billion acquisition of Wyndham International, which closed last month. Through the $100 million transaction, Cendant is acquiring franchise agreements for 82 hotels and management contracts for 29 hotels, but will not acquire any properties. Cendant said it expects the deal to close next month.

"We have long sought to add an upscale hospitality brand to our portfolio, and our patience has been rewarded," Stephen Holmes, chairman and chief executive officer of Cendant's travel content division, said in a statement. "We intend to build upon Wyndham's existing franchising and property management capabilities."