Cendant

Hospitality Franchise Systems Inc. (HFS) was created as an affiliate of the Blackstone Group, a private equity firm, as a vehicle to acquire hotel franchises.{{cite news|title=Hospitality on the move|work=The Star-Ledger|location=Newark, NJ|author=Iris Taylor|date=October 28, 1990|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1223D84252EE38D0&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} It was led by Henry Silverman, a Blackstone partner and former CEO of Days Inn.{{cite news|title=Prime Motor to sell 2 hotel franchises|work=The Star-Ledger|location=Newark, NJ|author=Iris Taylor|date=June 14, 1990|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1223D6DD63B85150&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} It began in 1990 by buying Howard Johnson's and the U.S. rights to the Ramada brand from Prime Motor Inns for $170 million.{{cite news|title=Hotelier braces for loss|work=The Record|location=Hackensack, NJ|author=Joseph Woelfel|date=July 3, 1990|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EB2765FE522CC66&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} In 1992, HFS bought the Days Inn franchise out of bankruptcy for $290 million.{{cite news|title=Sale of Days Inns hotel chain franchise business completed|work=The Gazette|location=Cedar Rapids, IA|agency=AP|date=February 2, 1992|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EAFE650109C7EF9&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} This purchase made HFS the largest hotel franchisor in the world, with its brands licensed to 2,300 hotels.{{cite news|title=Takeover of Days Inn would create world's biggest hotel franchiser|work=Houston Chronicle|agency=Reuters|date=October 1, 1991|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0ED7B131935E05D4&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}

Blackstone took Hospitality Franchise Systems public in a December 1992 IPO.{{cite news|title=Hospitality Franchise sells 6 million shares to public|work=The New York Times|date=December 10, 1992|url=https://www.nytimes.com/1992/12/10/business/company-news-hospitality-franchise-sells-6-million-shares-to-public.html|accessdate=2020-11-15}} HFS was among the fastest growing companies of its size in the 1990s and the company's stock rose from its IPO price of $4 per share to $77 per share in 1998.

In 1993, HFS purchased the Super 8 brand, franchised to 1,000 motels, for $125 million,{{cite news|title=Super 8 deal is done|work=The Star-Ledger|location=Newark, NJ|date=May 4, 1993|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1224738EA63BAC88&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite news|title=Hotel giant makes room for one more|work=The Record|location=Hackensack, NJ|author=Marilee Loboda Braue|date=February 17, 1993|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EB277D1501FD75C&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} and bought the 61-hotel Park Inn brand.{{cite news|title=Hospitality Franchise purchases Park Inn, has plans for Days Inn-type|work=The Star-Ledger|location=Newark, NJ|author=Beth Fitzgerald|date=June 29, 1993|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F122474D7F70140C8&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} The company made a brief foray into the casino industry, but then spun off that business in November 1994 as National Gaming.{{cite news|title=Hospitality Franchise: Sees trading symbol of 'NAGC'|newspaper=Dow Jones News Service|date=November 10, 1994|url=http://global.factiva.com/redir/default.aspx?P=sa&an=dj00000020011101dqba0239r&cat=a&ep=ASE}} {{subscription required|via=Factiva}} In 1995, HFS launched a new hotel brand, Wingate Inn.{{cite news|title=A hotel window of opportunity|work=The Record|location=Hackensack, NJ|author=Stephen G. Hirsch|date=April 27, 1995|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EB475EDED41704B&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}

After company management found that they had mostly exhausted the field of desirable acquisition targets in the hotel industry, Hospitality Franchise Systems expanded into the real estate business.{{cite news|title=HFS gobbling up the competition|work=The Record|location=Hackensack, NJ|author=Mark Lowery|date=June 30, 1996|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EB476E710278917&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} Silverman hoped that HFS's skills at franchise management would bring success in fields outside of hospitality.{{cite news|title=HFS is a fast-moving company whose share price has soared|work=The New York Times|author=Edwin McDowell|date=January 4, 1996|url=https://www.nytimes.com/1996/01/04/business/market-place-hfs-is-a-fast-moving-company-whose-share-price-has-soared.html|accessdate=2020-11-27}} In August 1995, it acquired Century 21, a franchised chain of brokerages, from MetLife for $200 million.{{cite news|title=HFS shakes up Century 21|work=The Star-Ledger|location=Newark, NJ|author=David Klein|date=September 29, 1995|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1224D536156DDED0&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} The company changed its name to HFS Inc. the same month, to reflect its broadened scope.{{cite news|title=Hotel franchiser books success|work=USA Today|author=Donna Rosato|date=December 7, 1995|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EB7728E892E003D&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} This was followed the next year with the acquisition of Electronic Realty Associates for $37 million,{{cite news|title=HFS buys Century 21, ERA but realtors expect little change|work=The Morning Call|location=Allentown, PA|author=Beth W. Orenstein|date=February 18, 1996|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F10D991C22CBBF720&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} and Coldwell Banker for $740 million, making HFS the largest franchisor of real estate brokerages in the U.S.{{cite news|title=Coldwell Banker now part of HFS|work=Tampa Bay Times|author=Robert Keefe|date=June 1, 1996|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EB52E14AE689158&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}

In 1996, HFS acquired the Avis car rental company for $793 million.{{Cite news|author=Edwin McDowell|title=HFS will acquire employee-controlled Avis for $800 million in cash and stock|work=The New York Times|accessdate=2020-11-22|date=July 2, 1996|url = https://www.nytimes.com/1996/07/02/business/hfs-will-acquire-employee-controlled-avis-for-800-million-in-cash-andstock.html}}{{cite news|title=HFS completes purchase of Avis|work=Sun Sentinel|location=Fort Lauderdale, FL|date=October 18, 1996|agency=Bloomberg|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EB4EF7319BC42E1&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} In keeping with HFS's strategy of being primarily a franchisor, it kept ownership of the Avis brand name and reservations system, while selling off the operations of Avis's corporate-owned locations as a new company, Avis Rent a Car, Inc.{{cite news|title=Avis shares hit the Street jumping|work=The Baltimore Sun|date=September 25, 1997|agency=Bloomberg|url=https://www.baltimoresun.com/news/bs-xpm-1997-09-25-1997268113-story.html|accessdate=2020-11-22}}{{cite news|title=Avis to join HFS fold|work=The Record|location=Hackensack, NJ|author=Don Stancavish|date=July 2, 1996|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EB476E85ECB52AA&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} HFS also bought Resort Condominiums International, a timeshare exchange service, for up to $825 million.{{cite news|title=HFS buys time-share firm|work=The Record|location=Hackensack, NJ|author=Mark Lowery|date=October 8, 1996|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EB4771C5AC5186A&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite news|title=HFS acquisition|work=The Star-Ledger|location=Newark, NJ|date=November 13, 1996|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EFDABAEA933F99B&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}

In 1997, HFS acquired PHH Corp. for $1.8 billion.{{cite news|title=Sale of PHH to HFS OK'd too fast for tears|work=The Baltimore Sun|author=Sean Somerville|date=May 1, 1997|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EB2EDA60975C08F&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} PHH's businesses of mortgage brokerage, relocation services, and fleet management were expected to synergize with HFS's real estate and car rental businesses.{{cite news|title=Little guy grows fast|work=The Baltimore Sun|author=Sean Somerville|date=February 16, 1997|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EB2ED3C2CA5BBBE&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}

However, later that year, Silverman led HFS into what would prove a disastrous merger with CUC International, a direct marketing company that operated discount membership programs like Shoppers Advantage and Travelers Advantage. HFS and CUC combined in a "merger of equals" on December 18, 1997, to form Cendant Corporation.{{cite news|title=$10.9B 'merger of equals': HFS hooks up with CUC|work=The Record|location=Hackensack, NJ|author=Mark Lowery|date=May 28, 1997|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EAF92A8ACD888DD&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite news|title=Merged partners adopt new name|work=The Star-Ledger|location=Newark, NJ|author=Beth Fitzgerald|date=December 19, 1997|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EFDA970CA3871A1&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} As part of the merger, Silverman announced he would reduce his day-to-day involvement with the company and assume the company's chairmanship in preference of CUC's founder and CEO Walter Forbes.

In January 1998, Cendant purchased Jackson Hewitt, a franchised chain of tax preparation offices, for $480 million.{{cite news|title=Jackson Hewitt sale is nearly complete|work=The Virginian-Pilot|location=Norfolk, VA|author=Tom Shean|date=January 7, 1998|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EAFFB350C7FF66F&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite news|title=Jackson Hewitt deal complete|work=The Virginian-Pilot|location=Norfolk, VA|date=January 9, 1998|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EAFFB370156035E&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}

Just months after the merger, in April 1998 Cendant uncovered massive accounting improprieties at CUC which resulted in one of the largest financial scandals of the 1990s. At the time, Vice Chairman E. Kirk Shelton was reported to have inflated the company's revenue by $500 million over a period of three years. He had reported a 1997 net income of $55.4 million when the true 1997 result was a net loss of $217.2 million. As these irregularities in the books of Cendant were discovered in early 1998, an audit committee set up by Cendant's Board of Directors launched an investigation and discovered that the former management team of CUC, including its top executives Walter Forbes and Kirk Shelton, had been fraudulently preparing false business statements for several years.{{citation needed|date=August 2015}} When this report was released to the public, the resulting damage to the market value for the company was approximately $14 billion, with their stock tumbling from a high of $41 down to nearly $12. At the time, this fiasco was the largest case of accounting fraud in the country's history. After the accounting scandal was uncovered, Silverman and the Cendant board forced Forbes’ resignation and Silverman assumed the CEO post.

In March 2001, Forbes and Shelton were indicted by a federal grand jury and sued by the Securities and Exchange Commission, which accused the company of directing the massive accounting fraud that ultimately cost the company and its investors billions of dollars. Shelton served 8 of his 10-year prison sentence before being released early for exemplary behavior. Former CEO Walter Forbes was sentenced to 12 years in prison in 2007.

Under Silverman, Cendant bounced back from the accounting scandal far outperforming the markets in the early 2000s.

Following the fraud debacle, Cendant began selling businesses to reduce its debt and repair the financial damage caused by the accounting scandal.{{cite news|title=Cendant trims the fat by selling car business|work=The Star-Ledger|location=Newark, NJ|author=John T. Ward|date=May 25, 1999|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EFD4E88C92F4AE4&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} In 1998 the company sold Hebdo Mag, a publisher of classified advertising publications, for $450 million to a management buyout group.{{cite report|title=Form 10-K: Annual Report|publisher=Cendant Corporation|date=March 1, 2000|url=https://www.sec.gov/Archives/edgar/data/723612/000095013600000281/0000950136-00-000281.txt|pages=33–34|via=EDGAR}}{{cite news|title=Cendant showing promised restraint|work=The Star-Ledger|location=Newark, NJ|author=John T. Ward|date=August 13, 1998|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EFDA52E522F1362&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} In 1999 it sold its consumer software division, Cendant Software (consisting of Blizzard Entertainment, Davidson & Associates, Knowledge Adventure, and Sierra On-Line), to French publisher Havas for $770 million.{{cite news|title=Vivendi buys Torrance software unit|work=Daily Breeze|location=Torrance, CA|author=Melissa Pozsgay|date=November 21, 1998|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1125B562CFF66918&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}

By 2001, Cendant was again in acquisition mode.{{cite news|title=Galileo travel company in talks to be bought|work=Chicago Sun-Times|author=Howard Wolinsky|date=June 8, 2001|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0ED612C9B4F3A000&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} It re-acquired the operations of Avis Rent a Car for $937 million.{{cite news|title=Cendant takes off with Avis|work=CNN Money|date=November 13, 2000|url=https://money.cnn.com/2000/11/13/deals/cendant/index.htm|accessdate=2020-11-22}}{{cite press release|title=Cendant completes acquisition of Avis Group Holdings, Inc.|publisher=Cendant Corporation|date=March 1, 2001|url=https://www.sec.gov/Archives/edgar/data/723612/000095017201000308/0000950172-01-000308-0002.txt|via=EDGAR}} It made moves towards building a major online travel portal by acquiring Galileo International for $2.9 billion,{{cite news|title=Cendant to propel Denver's Trip.com|work=The Denver Post|author=Greg Griffin|date=June 24, 2001|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0ECDEADA1D056E98&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite news|title=Cendant completes Galileo buy|work=Rocky Mountain News|date=October 2, 2001|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0EEEB849F34A9525&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} and Cheap Tickets for $425 million.{{cite news|title=Cheap Tickets exec gets new post|work=Honolulu Star-Bulletin|author=Russ Lynch|date=October 9, 2001|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1296DE0471146078&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite news|title=Cendant closes offer for Cheap Tickets|work=Honolulu Star-Bulletin|author=Russ Lynch|date=October 8, 2001|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1296DE046191BC18&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} It entered the timeshare sales and management business by buying Fairfield Communities for $690 million,{{cite news|title=Cendant to buy No. 1 operator of timeshares|work=The Baltimore Sun|agency=Bloomberg|date=November 3, 2000|url=https://www.baltimoresun.com/news/bs-xpm-2000-11-03-0011030080-story.html|access-date=2020-11-28}}{{cite news|title=LR office of Fairfield set to clos|work=Arkansas Democrat-Gazette|author=Jim Lovel|date=April 12, 2001|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F13D19D8FFAF3EB40&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} and Trendwest Resorts for $980 million.{{cite report|title=Form 10-K: Annual Report|publisher=Cendant Corporation|date=March 5, 2003|page=14|url=https://www.sec.gov/Archives/edgar/data/723612/000104746903007743/a2104329z10-k.htm|via=EDGAR}}{{cite news|title=Cendant acquiring Trendwest|work=The Seattle Times|author=Robert Burgess|agency=Bloomberg|date=April 2, 2002|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0F94CA55C34FD3E7&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} In 2002, Cendant bought Budget Rent a Car out of bankruptcy for $110 million plus $2.8 billion in assumed debt.{{cite news|title=Cendant adds Budget to fold|work=The Daytona Beach News-Journal|author=Thomas S. Brown|date=November 26, 2002|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F0F791ACB5E40A94B&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} The combination of Budget with Avis made Cendant the second-largest car rental company in the U.S.

In 2004, Cendant began a series of moves to simplify its business and focus on its core areas of real estate and travel.{{cite news|title=Cendant spinoff could yield $1B|work=The Record|location=Hackensack, NJ|author=Kevin G. DeMarrais|date=November 24, 2004|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F106A7710632DBC22&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}

As part of this strategy, several non-core businesses were sold or spun off. In June 2004, Cendant sold Jackson Hewitt for $638 million through an initial public offering.{{cite news|title=Jackson Hewitt inches up after first day on markets|work=The Press of Atlantic City|author=Raymond Hennessey|agency=Dow Jones|date=June 23, 2004|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1036998339BB3B99&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} In January 2005, Cendant spun off its mortgage and fleet management businesses as PHH Corporation.{{cite news|title=Cendant completes its spinoff of PHH Corp.|work=The Record|location=Hackensack, NJ|author=Teresa M. McAleavy|date=February 2, 2005|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F10804B89CB1D807F&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite press release|title=PHH Corporation completes spin-off from Cendant Corporation|publisher=PHH Corporation|date=January 31, 2005|url=https://www.sec.gov/Archives/edgar/data/77776/000095012305001007/e05226exv99w1.htm|via=EDGAR}} The next month, Cendant sold its Wright Express division, a provider of fleet cards, for $1.03 billion through an initial public offering.{{cite news|title=Wright Express offering seen as good for Maine|work=Portland Press Herald|author=Matt Wickenheiser|date=February 17, 2005|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F10853EE2D0D1E3AE&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} In October 2005, Cendant sold its marketing services division, including its membership shopping programs, to Affinion Group, a vehicle of Apollo Management, for $1.8 billion.{{cite news|title=Cendant divisions to be sold|work=Connecticut Post|author=Rob Varnon|date=July 27, 2005|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F10B9DCAE954E73D8&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite report|title=Form 10-K: Annual Report|publisher=Affinion Group|date=March 23, 2007|url=https://www.sec.gov/Archives/edgar/data/1361394/000119312507061957/d10k.htm|page=40|via=EDGAR}}

Meanwhile, proceeds from these sales were used for acquisitions to expand Cendant's core businesses. In November 2004, Cendant purchased Orbitz, the third-largest travel booking site in the U.S., for $1.2 billion.{{cite news|title=Cendant to buy No. 3 Web travel firm|work=Baltimore Sun|author=Kathy Bergen|date=September 30, 2004|url=https://www.baltimoresun.com/news/bs-xpm-2004-09-30-0409300363-story.html|accessdate=2020-11-21}}{{cite press release|title=Cendant Corporation completes acquisition of Orbitz, Inc.|publisher=Cendant Corporation|date=November 12, 2004|url=https://www.sec.gov/Archives/edgar/data/723612/000095017204002643/nyc488469.txt|via=EDGAR}} In December 2004, Cendant consolidated its control of the Ramada name by buying out Marriott International's stake in the hotel brand.{{cite news|title=Agreement would give Cendant full control over Ramada brand|work=The Record|location=Hackensack, NJ|author=Kevin G. DeMarrais|date=September 16, 2004|url=https://infoweb.newsbank.com/resources/doc/nb/news/10527AD79432A8E6?p=AWNB|via=NewsBank}}{{cite press release|title=Cendant Hotel Group completes acquisition of Ramada International|publisher=Marriott International|date=December 10, 2004|url=https://www.hospitalitynet.org/news/4021554.html|via=HospitalityNet}} In February 2005, Cendant acquired Ebookers, the second-largest travel booking site in Europe, for $350 million.{{cite report|title=Form 10-K: Annual Report|publisher=Cendant Corporation|date=March 1, 2005|page=19|url=https://www.sec.gov/Archives/edgar/data/723612/000095012305002491/y05947e10vk.htm|via=EDGAR}}{{cite news|title=Cendant gets British travel site|work=The Star-Ledger|location=Newark, NJ|date=December 3, 2004|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F106C3CB79295020B&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} In April 2005, Cendant acquired Gullivers Travel Associates, a British seller of travel packages and wholesale hotel nights, for $1.1 billion.{{cite news|title=Cendant acquires U.K. travel firm|work=The Record|location=Hackensack, NJ|date=April 2, 2005|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F109463D29817C0E4&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}{{cite press release|title=Cendant Corporation acquires Gullivers Travel Associates And OctopusTravel.com|publisher=Cendant Corporation|date=December 16, 2004|url=https://www.sec.gov/Archives/edgar/data/723612/000095017204003039/cen99.txt|via=EDGAR}} In October 2005, the company bought the Wyndham hotel brand from Blackstone for $111 million.{{cite report|title=Form 10-K: Annual Report|publisher=Cendant Corporation|date=March 1, 2006|url=https://www.sec.gov/Archives/edgar/data/723612/000095012306002437/y17817e10vk.htm|page=F-24|via=EDGAR}}{{cite news|title=Cendant acquires Wyndham brand|work=The Orlando Sentinel|author=Jerry W. Jackson|date=September 15, 2005|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F10CA5D04BA0EEA40&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}

On October 23, 2005, Cendant's strategy of simplification culminated in the announcement that it would split into four separate companies, focused respectively on hotels, real estate, travel services, and rental cars.{{cite news|title=Travel, real-estate giant Cendant to split into four companies|agency=Associated Press|author=Ellen Simon|date=October 24, 2005|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F10DC2961C43C6190&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}} Silverman said the breakup would improve shareholder value by allowing the market to better recognize the value of Cendant's component businesses.{{cite news|title=Investors skeptical about Cendant spinoffs|work=The Star-Ledger|location=Newark, NJ|author=Joseph R. Perone|date=October 25, 2005|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F10D79D3CA2B15CE8&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}

Cendant originally planned to spin off its travel services division to shareholders as a company named Travelport, but on June 30, 2006, Cendant announced it would sell Travelport to Blackstone for $4.3 billion.{{cite news|title=Blackstone plans to acquire Cendant travel services unit|work=The New York Times|author=Claudia H. Deutsch|date=July 1, 2006|url=https://www.nytimes.com/2006/07/01/business/blackstone-plans-to-acquire-cendant-travel-services-unit.html|accessdate=2020-11-15}}

On July 31, 2006, Cendant's real estate and hotel divisions were spun off and became separate companies under the names Realogy and Wyndham Worldwide, respectively.{{cite press release|title=Cendant Corporation completes spin-offs of Realogy Corporation and Wyndham Worldwide Corporation|publisher=Cendant Corporation|date=July 31, 2006|url=https://www.sec.gov/Archives/edgar/data/723612/000119312506162523/dex991.htm|via=EDGAR}}{{cite news|title=Cendant's split into 4 firms effective today|work=The Star-Ledger|location=Newark, NJ|author=Joseph R. Perone|date=August 1, 2006|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F1133E2CD0C48F178&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}

The sale of Travelport to Blackstone was completed on August 23, 2006.{{cite press release|title=Blackstone Group completes acquisition of Cendant's Travelport subsidiary|publisher=The Blackstone Group|date=August 23, 2006|url=https://www.blackstone.com/press-releases/article/blackstone-group-completes-acquisition-of-cendant-s-travelport-subsidiary/|accessdate=2020-11-15}} This left Cendant with only its car rental business, comprising Avis, Budget Rent a Car, and Budget Truck Rental. The company retired the Cendant name and renamed itself to Avis Budget Group on September 1, 2006.{{cite report|title=Form 8-K: Current Report|publisher=Avis Budget Group|date=September 5, 2006|url=https://www.sec.gov/Archives/edgar/data/723612/000072361206000058/cendantcorporation8k.htm|via=EDGAR}}{{cite news|title=Cendant changes wrapped up at tense meeting|work=The Star-Ledger|location=Newark, NJ|author=Kaja Whitehouse|agency=Dow Jones|date=August 30, 2006|url=https://infoweb.newsbank.com/resources/openurl?ctx_ver=z39.88-2004&rft_dat=document_id%3Anews%252F113D720F405069F0&rft_id=info%3Asid%2Finfoweb.newsbank.com&rft_val_format=info%3Aofi%2Ffmt%3Akev%3Amtx%3Actx&svc_dat=AWNB&req_dat=1028A39C75C2B899|via=NewsBank}}

Cendant owned the rental brands of Avis and Budget, holding these properties in the CCRG (Cendant Car Rental Group). Avis and Budget operate a shared fleet of cars, and have the same "back end" system, but operate at different locations, offer different service levels, and have somewhat different pricing. After the Cendant name was dissolved, the car rental segment became known as Avis Budget Group and currently trades on the NASDAQ stock exchange under the ticker symbol CAR.

These brands were spun off into Wyndham Worldwide.

• AmeriHost Inn
• Baymont Inn & Suites
• Days Inn
• Days Inn China
• Hawthorn Suites by Wyndham
• Howard Johnson
• Knights Inn (includes Villager Inn, which was merged into Knights Inn in 2004)
• Ramada
• Ramada Asia-Pacific
• Super 8 Worldwide
• Travelodge
• Wingate Inn
• Wyndham Hotels & Resorts

These companies are now under the Realogy banner.

• Century 21 Real Estate
• Citi-Habitats
• Coldwell Banker
• Corcoran Group
• ERA Real Estate
• NRT
• Sotheby's International Realty

These companies are now under the Affinion Group banner.

• CUC International (Comp-U-Card)
• Shopper's Advantage
• AutoVantage
• Traveler's Advantage
• Buyer's Advantage
• NetMarket
• PrivacyGuard

These brands were separated into a new company called Travelport.

• CheapTickets
• TripRewards
• HotelClub.com
• AoYou.com
• RatesToGo.com
• Galileo CRS
• Orbitz
• ebookers
• Lodging.com
• Asia-hotels.com
• Away.com
• travelbag.co.uk
• OctopusTravel.com
• Travelport.com
• Gta-travel.com (Gullivers Travel Associates)
• Trust International

These companies are owned by Wyndham Worldwide.

• Fairfield Resorts
• Trendwest Resorts
• Shell Vacation Club

• RCI
• Cuendet
• Landal GreenParks
• French Life
• Novasol

• Lightfoot v. Cendant Mortgage Corp.

{{Reflist}}

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Category:Companies based in Morris County, New Jersey

Category:American companies established in 1996

Category:Hospitality companies established in 1996

Category:Companies disestablished in 2006

Category:Parsippany-Troy Hills, New Jersey

Category:Hospitality companies disestablished in 2006