Marriott Sells Cendant U.S. Rights To Ramada Name

Marriott International today announced it sold its 50 percent share in the Ramada brand trademark and licenses to co-owner Cendant Corp. for $200 million. Cendant will continue to franchise the midprice brand domestically. At present, there are approximately 970 Ramadas in the United States.

Marriott continues to own the trademark for Ramada outside of the United States. It operates and franchises approximately 150 Ramada International properties in numerous global markets. The brand has grown particularly rapidly during the past two years in Asia. Unlike Ramadas in the United States, Ramada International is positioned as a full-service chain.

Marriott viewed its stake in the Ramada name in the United States as a "non-core asset," according to Marriott CFO Arne Sorenson, so it made sense to cash out of the joint venture it entered with Cendant in 1997, he said.