Ramada Franchise Systems Inc., a unit of Cendant Corporation, has announced that has signed a definitive agreement to become the franchisor for Ramada hotels in Canada, which will expand its…
Ramada Franchise Systems Inc., a unit of Cendant Corporation, has announced that has signed a definitive agreement to become the franchisor for Ramada hotels in Canada, which will expand its existing system from 941 Ramada hotels in the United States to 1,012 hotels in both countries.
Under the agreement, the Canadian franchise rights for the Ramada brand will be transferred to the Cendant unit from Ramada Franchise Canada Inc., a wholly owned subsidiary of AFM Hospitality Corp., based in Toronto. The transaction, which is expected to close no later than the first quarter of 2003, is subject to certain regulatory approvals in Canada. Financial terms were not disclosed.
This agreement demonstrates that we are committed to the Ramada brand and enthusiastic about its growth potential, said Steve Rudnitsky, chairman & chief executive officer of Cendant’s Hotel Group. Our goal is to build upon the existing system in every province where we find favorable markets.
AFM Hospitality, which is licensed by Cendant to franchise Howard Johnson, Knights Inn and Villager brand hotels in Canada, now will focus on expanding those and its seven other hotel brands and management business, according to Lawrence Horwitz, the company’s chairman & chief executive officer.
This agreement will enable us to accelerate our plans for other AFM brands in Canada and to aggressively pursue growth opportunities for our business, he said. Our goal at AFM is to continue to be Canada’s hospitality industry leader and largest multibrand hotel franchisor.
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