Cendant to manage Wyndhams
Oct 25, 2005, 1:23 am
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Cendant rolls up several brands from several industries and even while working/closing on deals decides to break up into various companies. Interesting.
Oct 25, 2005, 1:43 am
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Originally Posted by GUWonder
Cendant rolls up several brands from several industries and even while working/closing on deals decides to break up into various companies. Interesting.
Oct 25, 2005, 8:36 am
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Oct 25, 2005, 1:00 pm
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Originally Posted by CalItalian
Breaking up to give maximum shareholder value is the latest fad on Wall Street. Just as much at they used to like to buy up everything. Viacom, Clear Channel, Albertsons, Cendant are just a few who are in the process of doing this.
Oct 27, 2005, 2:50 pm
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Originally Posted by Frenchie Flyer
Noted in the USA Today newspaper today. Cendant has purchased the rights to manage Wyndhams and brand future hotels as Wyndhams. Cendant is better known as the owner of Days Inn, Ramada Inns, and Travelodge. Their loyalty program is TripRewards.
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Cendant to Break Up; Includes Lodging, Car Rentals, Travel Distribution
OCTOBER 24, 2005 -- New York -- The giant franchisor, Cendant Corp., today announced plans to break itself into four publicly traded companies next summer, thus dividing its lodging, car rental, travel distribution, and real estate businesses.
Customers should notice little or no difference in operations, Cendant emphasized in its statement today.
In approving the break-up, the Cendant board expects that stock in the four companies will fetch a greater price collectively than stock for the present company. Investors will probably favor a company that focuses on a single business, otherwise known as a pure play in the stock market, to a company with a variety of businesses. Cendant, which trades on the New York Stock Exchange under the symbol, CD, has a market capitalization of approximately $21 billion.
"All of our businesses have done well, yet despite Cendant's consistently strong operating and financial performance in recent years, the market has not fully recognized the value of the company," said Henry Silverman, Cendant's chairman and chief executive.
Cendant lodging brands are mainly limited service, including Super 8, Days Inn, and AmeriHost Inn. But last month, the company announced a deal to acquire the franchise system and brand rights to the upscale, full-service Wyndham brand.
In its travel distribution business, Cendant operates the online travel agencies, Orbitz and Cheap Tickets; and the global distribution system, Galileo. In car rentals, Cendant franchises the Avis and Budget brands; and in real estate brokerage, Coldwell Banker and Century 21.
Silverman will retain control of the travel distribution company as chairman and chief executive. Cendant's current vice chairman Stephen Holmes will head the hotel-franchising company as chairman and chief executive. He also currently serves as chairman and chief executive of the division that operates Cendant's hotel and car-rental franchising businesses. Ronald Nelson, Cendant's current president and chief financial officer, will lead the car rental company as its chairman and chief executive.
The lodging, car rental, and real estate companies are expected to establish headquarters in Parsippany, N.J., from where those businesses are now based. The travel distribution company will remain at Cendant's current New York City headquarters.
No names have been selected yet for the new companies, but the Cendant name will disappear.
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Oct 29, 2005, 3:17 pm
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Originally Posted by TTT103
It looks like Henry Silverman came up with another way to make a quick buck for himself. Are the shareholders so blind as to not see how he completely destroyed the brands Cendant owns?
How much money was wasted on these M&As and how much more will be wasted on these breakups and rebrandings? Just glad it's not my money.
Nov 9, 2005, 6:43 pm
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Wyndham deal creates wait-and-see approach
NATIONAL REPORT-There are mixed emotions among Wyndham International staff and franchisees about Cendant Corp's announcement that it will acquire die Wyndham brand and several management and franchise contracts.
In September, Cendant announced plans to acquire 82 franchise contracts, 29 management contracts and the Wyndham brand from Wyndham International, an affiliate of The Blackstone Group. The deal is scheduled to close this month. Blackstone declined to comment on the future of what's left of Wyndham International, but modified the relationship between Wyndham International and Tempus Resorts International to allow Tempus marketing rights at specific Blackstone properties and branding of The Wyndham Palms Resort & Country Club in Kissimmee, Fla., according to a September press release. Tempus will no longer sell or market with the Wyndham Vacation Ownership name.
At Wyndham, the staff is excited about the opportunities at a larger company, according to Mark Soils, executive v.p. & general counsel.
"This is an acquisition that is very positive from our standpoint because it's an acquisition by a company that is excited about the brand," he said. "Cendant is a very strong company and has always had an interest in a brand like ours."
Soils said he hopes Cendant will use its financial strength to enhance the Wyndham brand.
"As everyone knows, we've been in a position where it was a little bit more difficult for us to do all of the things we wanted to do because of our debt load," he said. "Now we can see a clear opportunity for the hotels to become stronger-each hotel to become stronger from a financial standpoint-but also stronger because of the portfolio of assets Cendant brings."
Dave Johnson, president & c.e.o. of Carrollton, Texas-based Aimbridge Hospitality, also was anxious to see what Cendant planned to do with the brand.
"It could potentially mean very positive things for the brand," Johnson said. "Its too soon to tell.
"I appreciate that the leadership of Cendant has reached out to us to communicate plans for the brand going forward," he said.
Aimbridge has 11 Wyndham properties in its portfolio. The Wisconsin Wyndham Garden-Brookfield was scheduled to become a Doubletree property on Oct. 7. The change was decided before the Cendant acquisition announcement, Johnson said.
Mike Roberts, owner of The Roberts Mayfair-A Wyndham Historic hotel in St. Louis, was disappointed that advance notification of the acquisition wasn't given. He is concerned that Cendant might depress property values unless it can show some "quick and impressive indicators."
"It's just not necessarily a step up for the brand unless there's some evidence of a major consideration on [Cendant s] part to increase the brand value," he said.
Johnson said Wyndham franchisees and third-party owners have been frustrated with the "limbo phase" of the past 18 to 24 months.
"We see somebody permanently committing to the brand as potentially an exciting thing," he said.
Roberts and Johnson said they have the ability to terminate their contracts and were taking a waitand-see approach to the transition.
Cendant hotel Group declined to comment on the terms of the contracts it was to acquire.
The future of the Wyndham Garden properties, a midscale-with-food-and-beverage product that accounts for 15 contracts in the Cendant portfolio, was a concern for Johnson. Before joining Aimbridge, he spent 17 years at Wyndham hotels & Resorts. While at Wyndham, he worked with Les Bentley, chairman and founder of Aimbridge, and former president of Wyndham Hotels & Resorts, to grow the Wyridham Garden product from one property to 65 properties.
"We have a commitment to that product type," Johnson said. "We are anxious to see if Cen- ' dant sees [Wyndham Garden] as a growth vehicle for the brand."
Something new
The acquisition would mark Cendant's first step into the management arena.
Soils said Wyndham is working with Cendant on its management business.
"The management business is something that they'te getting into, but it's a lot of common business sense," he said. "In the short time that we've had with them so far, we're working together closely to assure that we show them what it is that we do. ... Blackstone has given us the opportunity and the reins to be able to work closely with Cendant and to be able to ensure that it's a smooth transition."
Soils anticipated that a large part of the Wyndham staff would move to Cendant to assist with the brand on an ongoing basis.
Cendant declined to comment on its plans for the management division.
Johnson, along with current Cendant franchisees ["Cendant goes upscale," Oct. 3 issue, page 1], saw the management aspect as the biggest challenge because it is unfamiliar territory for the company.
Room for improvement
Roberts said Wyndham International never did a good job of gathering franchisees and owners.
"We didn't have an active ownership group," he said. "Maybe Cendant can do that. Maybe it's something diey can do to build encouragement."
[Author Affiliation]
By Stacey Mieyal Higgins
ASSOCIATE EDITOR
[Author Affiliation]
[email protected]
In September, Cendant announced plans to acquire 82 franchise contracts, 29 management contracts and the Wyndham brand from Wyndham International, an affiliate of The Blackstone Group. The deal is scheduled to close this month. Blackstone declined to comment on the future of what's left of Wyndham International, but modified the relationship between Wyndham International and Tempus Resorts International to allow Tempus marketing rights at specific Blackstone properties and branding of The Wyndham Palms Resort & Country Club in Kissimmee, Fla., according to a September press release. Tempus will no longer sell or market with the Wyndham Vacation Ownership name.
At Wyndham, the staff is excited about the opportunities at a larger company, according to Mark Soils, executive v.p. & general counsel.
"This is an acquisition that is very positive from our standpoint because it's an acquisition by a company that is excited about the brand," he said. "Cendant is a very strong company and has always had an interest in a brand like ours."
Soils said he hopes Cendant will use its financial strength to enhance the Wyndham brand.
"As everyone knows, we've been in a position where it was a little bit more difficult for us to do all of the things we wanted to do because of our debt load," he said. "Now we can see a clear opportunity for the hotels to become stronger-each hotel to become stronger from a financial standpoint-but also stronger because of the portfolio of assets Cendant brings."
Dave Johnson, president & c.e.o. of Carrollton, Texas-based Aimbridge Hospitality, also was anxious to see what Cendant planned to do with the brand.
"It could potentially mean very positive things for the brand," Johnson said. "Its too soon to tell.
"I appreciate that the leadership of Cendant has reached out to us to communicate plans for the brand going forward," he said.
Aimbridge has 11 Wyndham properties in its portfolio. The Wisconsin Wyndham Garden-Brookfield was scheduled to become a Doubletree property on Oct. 7. The change was decided before the Cendant acquisition announcement, Johnson said.
Mike Roberts, owner of The Roberts Mayfair-A Wyndham Historic hotel in St. Louis, was disappointed that advance notification of the acquisition wasn't given. He is concerned that Cendant might depress property values unless it can show some "quick and impressive indicators."
"It's just not necessarily a step up for the brand unless there's some evidence of a major consideration on [Cendant s] part to increase the brand value," he said.
Johnson said Wyndham franchisees and third-party owners have been frustrated with the "limbo phase" of the past 18 to 24 months.
"We see somebody permanently committing to the brand as potentially an exciting thing," he said.
Roberts and Johnson said they have the ability to terminate their contracts and were taking a waitand-see approach to the transition.
Cendant hotel Group declined to comment on the terms of the contracts it was to acquire.
The future of the Wyndham Garden properties, a midscale-with-food-and-beverage product that accounts for 15 contracts in the Cendant portfolio, was a concern for Johnson. Before joining Aimbridge, he spent 17 years at Wyndham hotels & Resorts. While at Wyndham, he worked with Les Bentley, chairman and founder of Aimbridge, and former president of Wyndham Hotels & Resorts, to grow the Wyridham Garden product from one property to 65 properties.
"We have a commitment to that product type," Johnson said. "We are anxious to see if Cen- ' dant sees [Wyndham Garden] as a growth vehicle for the brand."
Something new
The acquisition would mark Cendant's first step into the management arena.
Soils said Wyndham is working with Cendant on its management business.
"The management business is something that they'te getting into, but it's a lot of common business sense," he said. "In the short time that we've had with them so far, we're working together closely to assure that we show them what it is that we do. ... Blackstone has given us the opportunity and the reins to be able to work closely with Cendant and to be able to ensure that it's a smooth transition."
Soils anticipated that a large part of the Wyndham staff would move to Cendant to assist with the brand on an ongoing basis.
Cendant declined to comment on its plans for the management division.
Johnson, along with current Cendant franchisees ["Cendant goes upscale," Oct. 3 issue, page 1], saw the management aspect as the biggest challenge because it is unfamiliar territory for the company.
Room for improvement
Roberts said Wyndham International never did a good job of gathering franchisees and owners.
"We didn't have an active ownership group," he said. "Maybe Cendant can do that. Maybe it's something diey can do to build encouragement."
[Author Affiliation]
By Stacey Mieyal Higgins
ASSOCIATE EDITOR
[Author Affiliation]
[email protected]