Press Release: Cendant Corporation
August 13, 2002
NEW YORK, NY -- Cendant Corporation (NYSE: CD) yesterday announced that it has acquired Lodging.com. Lodging.com
is a leading and growing online hotel reservation travel site, generating approximately 115,000 hotel reservations
per month predominantly through its network of web sites as well as through its call center at 888-LODGING. The
transaction is expected to be accretive to earnings but not material to Cendant. The consideration paid was in
the form of cash.
Providing its growing customer base with access to both discounted and regularly published lodging rates, Lodging.com
spans more than 500 markets, primarily concentrated in North America and the Caribbean. Lodging.com offers unpublished,
discounted rates at approximately 3,000 hotels. Through its affiliate program, Lodging.com has partnered with over
2,500 travel-related Internet sites. Lodging.com will further broaden Cendant's marketing of discounted hotel rooms
to consumers and travel agencies as it is integrated into Cendant's Travel Distribution Division.
"This acquisition fits perfectly into Cendant's Travel Distribution strategy as it gives us immediate access
to additional discounted lodging merchant inventory, great technology and long-term lodging partnerships while
providing a platform on which to grow," said Samuel L. Katz, chairman and CEO of Cendant's Travel Distribution
Division. "We expect Lodging.com to increase annual bookings across all travel brands, provide discounted
deals for customers that can be cross-marketed through other Cendant businesses and affiliates, expand our agencies'
and Galileo's non-air distribution, and deliver more attractive offerings to the desktops of Galileo travel agencies."
It is expected that Lodging.com will add Cendant's global vacation rental, timeshare and RCI Holiday Network inventory
as well as continue to add other hotel partner inventory into its rapidly growing portfolio of well-known lodging
brands. Lodging.com will also become the preferred hotel distribution partner of Trip Network, Inc., an independent
Cendant affiliate, providing even greater lodging discounts to Trip.com and Cheaptickets.com customers. It is further
expected that Galileo travel agencies and their customers will gain access to Lodging.com's discounted lodging
inventory.
"Adding Lodging.com to Cendant's growing list of hotel distribution and services businesses is yet another
great value-add service to our lodging suppliers, who receive the benefit of a new effective and flexible distribution
channel," said Sam E. Galeotos, president and CEO of Galileo International, who assumed this post and operational
oversight of all Cendant's Travel Distribution businesses last week. "We are excited to incorporate the expertise
and entrepreneurial spirit of Lodging.com's management team as an integral part of our distribution business."
"We are excited to become part of Cendant and its innovative and growing Travel Distribution Division,"
said Carl Marbach, president of Lodging.com. "We've been diligent in establishing a successful business model
by providing flexible, consistent and quality services for our customers and suppliers that we expect will only
improve with the power and experience of Cendant."
About Lodging.com
Founded in 1995, Lodging.com is one of the leading online travel sites with a focus on hotel reservations. Lodging.com
is a one-stop site for travelers, providing extensive information to help travelers select the most suitable accommodations
-- at the best possible rates. Guests can check hotels and rates online, as well as book immediately -- either
through the site or a call center. The Company provides all original content on the site, including travel tips,
destination write-ups, and city guides. Today, Lodging.com offers proprietary discounted rates throughout the U.S.,
Canada, the Caribbean, and many major international destinations, and reservation capabilities at properties worldwide
through traditional supplier channels. Lodging.com books approximately 115,000 reservations per month.
About Cendant Corporation
Cendant Corporation is primarily a provider of travel and residential real estate services. With approximately
70,000 employees, New York City-based Cendant provides these services to business and consumers in over 100 countries.
More information about Cendant, its companies, brands and current SEC filings may be obtained by visiting the Company's
Web site at http://www.cendant.com or by calling 877-4-INFOCD (877-446-3623).
About Cendant's Travel Distribution Division
Cendant's Travel Distribution Division is Cendant's newest division, formed in October 2001, following the Company's
acquisitions of Galileo International, a leading global distribution system, and Cheap Tickets, Inc. With more
than 5,200 employees in more than 100 countries, the division includes: Galileo, a leading global distribution
system serving more than 45,000 travel agencies and over 51,000 hotels; hotel distribution and services businesses,
including Wizcom, THOR, and Trust International; Cendant Travel Services, a top-ranked travel agency which operates
eight contact centers for Cendant-affiliated brands; and an affiliation with Trip Network, Inc., which operates
Trip.com and Cheaptickets.com, two leading consumer leisure travel Web sites.
This press release contains "forward-looking statements" within the meaning of federal securities law,
including statements concerning business strategies and their intended results and similar statements concerning
anticipated future events and expectations that are not historical facts. The forward-looking statements in this
press release are subject to numerous risks and uncertainties, including the effects of economic conditions, supply
and demand changes for hotel rooms, competitive conditions in the lodging industry, relationships with clients
and property owners, the impact of government regulations, and the availability of capital to finance growth, which
could cause actual results to differ materially from those expressed in or implied by the statements herein.
SOURCE: Cendant Corporation