Cendant Corporation to Acquire AmeriHost Inn(R) and
AmeriHost Inn and SuitesSM Brand Names and Franchising Rights
New York, NY, August 18, 2000--Cendant Corporation (NYSE: CD) and Amerihost
Properties, Inc. (NASDAQ: HOST) today announced that they have signed a
definitive agreement for Cendant's acquisition of the AmeriHost Inn(R) and
AmeriHost Inn and Suites(SM) brand names and franchising rights. Terms were not
disclosed.
AmeriHost Inn(R) and AmeriHost Inn and Suites(SM) are new construction, limited
service, mid-priced hotels. Amerihost Properties, Inc. (API) and Cendant intend
to grow the AmeriHost hotel system through continued property development by API
and active franchise sales to third parties by Cendant.
Cendant Chairman, President and CEO, Henry R. Silverman stated: "Amerihost is an
established lodging brand with excellent prospects for future growth considering
our expertise and world-class skills in franchising and marketing. This
transaction exemplifies our renewed focus on strategic tuck-in acquisitions
that, in aggregate, will create greater value for Cendant shareholders in the
longer term. Through this strategic approach we see opportunities to enhance
revenues and reduce costs by leveraging the synergies within our existing
operations."
Amerihost Chairman, President and CEO, Michael P. Holtz stated: "Cendant has the
proven ability to grow a brand both with additional franchisees and with the
travelling public. Amerihost has worked with the Cendant team for the past 13
years as a franchisee of Days Inn, Ramada Inn and Howard Johnson. We have
experienced first hand the support and expertise the world's largest franchisor
can deliver to its franchisees. To that end, we feel that this transaction is a
perfect fit for Amerihost and its current franchisees. This transaction will
also allow Amerihost to focus its resources more in the development and
management of new AmeriHost Inn hotels."
The transaction is subject to customary conditions, including clearance under
the Hart Scott Rodino Antitrust Improvements Act, and is expected to close in
the fourth quarter.
Statements about future results made in this release may constitute
forward-looking statements within the meaning of the Private Securities
Litigation Reform Act of 1995. These statements are based on current
expectations and the current economic environment. These statements are not
guarantees of future performance. They involve a number of risks and
uncertainties that are difficult to predict including the outcome of litigation.
Actual results could differ materially from those expressed or implied in the
forward-looking statements. Important assumptions and other important factors
that could cause actual results to differ materially from those in the
forward-looking statements are specified in the Form 10-K for the year ended
December 31, 1999, for Amerihost and for Cendant, including completion of the
settlement of the class action litigation.
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Amerihost Properties, Inc. is a hotel development, operations, management and
franchise company that owns, builds, manages and franchises mid-priced hotels.
Currently, Amerihost manages or franchises 91 properties (with an ownership
position in 80 of these hotels) in 18 states, including 78 properties within its
proprietary brand--AmeriHost Inn(R) , for a total of 6,809 rooms. An additional
four AmeriHost Inn(R) hotels are under construction in Ohio and Wisconsin. The
AmeriHost Inn(R) brand offers an expanded amenity package not often found in
other mid-priced hotels, and is rated "three-diamond" by the American Automobile
Association.
Cendant Corporation is a global provider of real estate, travel and direct
marketing related consumer and business services. The Company's core
competencies include building franchise systems, providing outsourcing solutions
and direct marketing. As a franchiser, Cendant is among the world's leading
franchisers of real estate brokerage offices, hotels, rental car agencies, and
tax preparation services. The Company's real estate-related operations also
include Move.com Group, Cendant's relocation, real estate and home-related
services portal on the Internet. As a provider of outsourcing solutions, Cendant
is a major provider of mortgage services to consumers, the global leader in
employee relocation, and the world's largest vacation exchange service. In
direct marketing, Cendant provides access to insurance, travel, shopping, auto,
and other services primarily to customers of its affinity partners. In addition,
Cendant Internet Group is pursuing a convergence strategy for the Company's
off-line and online businesses. Other business units include NCP, the UK's
largest private car park operator, and Wizcom, an information technology
services provider. Headquartered in New York, NY, the Company has approximately
28,000 employees and operates in over 100 countries.
More information about Cendant, its companies, brands and current SEC filings
may be obtained by calling 877-4INFO-CD (877-446-3623) or by visiting the
Company's Web site at www.Cendant.com.
FOR CENDANT
Media Contact: Investor Contacts:
Elliot Bloom Denise Gillen Sam Levenson
212-413-1832 212-413-1833 212-413-1834
FOR AMERIHOST
Media Contact: Investor Contacts:
Rebecca Hayne Jim Dale - CFO
Alexander and Walsh (847) 228-5400 ext 361
(847) 604-9800
