Cendant to enter upscale lodging sector, to acquire Wyndham hotel brand and franchise system

Cendant Corporation has confirmed its plans of entering the upscale
lodging sector. The company is to  acquire the Wyndham hotel brand and
franchise system.

The transaction is scheduled to close next month, subject to
satisfaction of customary closing conditions including regulatory
approvals.

Cendant intends to build upon Wyndham's existing franchising and
property management capabilities. The company also expect to pursue
cross-selling opportunities and to explore property development,
branding and marketing synergies with our vacation ownership and other
travel businesses. As a result of acquiring the Wyndham management
contracts, Cendant Hotel Group will transition from a pure franchisor
into a diversified management and franchise company for the first time
in its 15-year history.

As per the information available, Cendant will acquire franchise
agreements for 82 hotels and management contracts for 29 hotels from
Wyndham International Inc., an affiliate of The Blackstone Group.

The acquisition also includes the worldwide rights to the Wyndham brand
for timeshare development and sales. Cendant is not acquiring any
properties as part of this transaction, said the company.

Stephen P. Holmes, chairman and chief executive officer of Cendant's
Travel Content Division said that the company has long sought to add an
upscale hospitality brand to our portfolio. "Our patience has been
rewarded," said Holmes.

Steven A. Rudnitsky, Cendant Hotel Group chairman and chief executive
officer, said the company intends to leverage Cendant's scale to build
on Wyndham's brand equity, further strengthen the existing base of
properties and grow the brand both domestically and internationally in
the upscale lodging sector. The company will create distinct Wyndham
management and brand organisations, reporting directly to Rudnitsky.