Search
 

GlobeSt.com UPDATE: Owners Back Cendant Tough-Love Plan

NEW YORK CITY-By ordering 300 poor-performing hotels to either shape up or ship out, Cendant hotel group head Steve Rudnitsky wins rave reviews from franchisees who've grown tired of picking up the slack.

By Glen Thompson | Updated on August 20, 2002

NEW YORK CITY-Cendant Corp. hotel group’s decision to remove its brand names from 300 US hotels represents the first step in a sweeping long-term business plan designed to improve its franchise system’s overall competitiveness. Two major franchisees tell GlobeSt.com the program is exactly the shot in the arm needed for a company that has been too lenient for too long.

Cendant hotel group chairman and CEO Steve Rudnitsky’s four-pronged plan is designed to re-establish brand value, improve profitability of franchised hotels, ensure hotel consistency and grow the franchise system through the addition of high-quality hotels. And the first step–a put-up-or-shut-up ultimatum that could result in Cendant rescinding brand affiliation from as many as 300 properties–will eliminate up to 40,000 keys from the group’s worldwide total of 547,303 rooms. (See original story, Cendant to Cut Loose 300 Hotels.)

“This is an initiative to really make sure all our brands are consistent with our standards,” Rudnitsky tells GlobeSt.com. “These 300 properties are the worst offenders, not just on quality assurance issues but on payment as well. Some of them just aren’t paying us.” The affected properties were notified last week.

Want to continue reading?
Become a Free ALM Digital Reader.

Once you are an ALM digital member, you’ll receive:

  • Unlimited access to GlobeSt and other free ALM publications
  • Access to 15 years of GlobeSt archives
  • Your choice of GlobeSt digital newsletters and over 70 others from popular sister publications
  • 1 free article* every 30 days across the ALM subscription network
  • Exclusive discounts on ALM events and publications

*May exclude premium content
Already have an account?

NOT FOR REPRINT

© 2024 ALM Global, LLC, All Rights Reserved. Request academic re-use from www.copyright.com. All other uses, submit a request to [email protected]. For more information visit Asset & Logo Licensing.

GlobeSt

Join GlobeSt

Don't miss crucial news and insights you need to make informed commercial real estate decisions. Join GlobeSt.com now!

  • Free unlimited access to GlobeSt.com's trusted and independent team of experts who provide commercial real estate owners, investors, developers, brokers and finance professionals with comprehensive coverage, analysis and best practices necessary to innovate and build business.
  • Exclusive discounts on ALM and GlobeSt events.
  • Access to other award-winning ALM websites including ThinkAdvisor.com and Law.com.

Already have an account? Sign In Now
Join GlobeSt

Copyright © 2024 ALM Global, LLC. All Rights Reserved.