Cendant To Complete Purchase Of Ramada Brand

The Cendant Hotel Group today announced that it will acquire the Ramada International Hotels and Resorts brand from Marriott International. Financial terms of the deal, which is expected to close by year-end, were not disclosed.

Marriott in 1997 had acquired rights to the franchise organization as part of a larger deal. Following that transaction, Marriott continued to license the Ramada name in the United States to Cendant Hotel Group under existing long-term agreements. This latest deal reunites the brand under single ownership, which will allow for more cohesive marketing to travel managers and other customers, officials said.

In announcing the arrangement, Cendant Hotel Group chairman and CEO Steven Rudnitsky said Cendant planned to upgrade and reposition the 890 Ramada properties in the United States and Canada to be more consistent with the positioning in other parts of the world. Ramada International also has 204 hotels outside of the United States and Canada, consisting of almost 28,000 rooms in 26 countries.

Ramada primarily is a midprice brand in the United States, but in many international markets it operates in the full-service sector with onsite restaurants and other upscale amenities. Marriott grew the brand significantly in Asia.