ramada hotels, franchising

Ramada: How does this US chain grow worldwide?

Universita della Svizzera Italiana –Master International TourismInnovation and Cooperation in Tourism – Case StudyElnara Mehdiyeva

Description and brief history

• Ramada Worldwide Inc. is a Delaware corporation, a subsidiary of Wyndham Hotel Group, LLC

• 1954: Founded by Marion W. Isbell• 1989: Ramada was acquired by New World

Development Co. Ltd., Hong Kong • 1989: Ramada Inc., divested it restaurants & hotel

operations• 1997: Marriott acquired Ramada International• 2004: Ramada was sold to Cendant Corporation of

N.Y • 2006: Cendant spun off their hospitality division to

Wyndham Worldwide

• The name 'Ramada', a Spanish word meaning 'a shaded rest place', and sold its first franchise. Since then, Ramada Worldwide has grown to over 900 locations in over 45 countries.

Early achievements

• From the early 80s Ramada started developing a chain of restaurants, which were located inside the hotels and was an innovation at that times

• Ramada restaurants became defunct in 1990

• Ramada Inns, Inc. in 1989 decided to split its hotel/restaurant businesses, its gaming

businesses, and The Ramada hotels and restaurants were sold for $540 million to New World Development Company and the gaming business were spun off to a new company called Aztar Corporation.

International glory

• In 2009, the development of two new hotels in the Chongqing municipality, China

• In Australia, Ramada Inn is a traditional motel in Parkville, Melbourne affiliated with the Australian "Golden Chain" group of hotels and motels.

• In the United Kingdom, Jarvis Hotels Ltd were the largest franchisee of the Ramada brand. They operated corporately as "Ramada Jarvis Hotels".

• Ramada International currently manages three hotels on Sri Lanka's western coast

Under Cendant/Wyndham ownership

• in 2004, Ramada International was purchased by Cendant, giving Cendant the worldwide rights to the Ramada name.

• Ramada International remains separate from the Ramada operations in the United States and Canada.

Ramada Tiers - United States & Canada

is great for a business trip, weekend getaway or overnight stay

• The Ramada Limited • The Ramada Inn• The Ramada Plaza• The standard Ramada Hotel

the services outside of the United States and Canada, which made Ramada chains world-famous

• Ramada• Ramada Resort• Ramada Hotel & Resort• Ramada Hotel & Suites• Ramada Plaza• Ramada Encore

Wyndham Rewards points

• The guests from the Wyndham Hotel group, can receive benefits (points) and convert it to the free nights, airline tickets, rail points, gift cards

• Wyndham Rewards (benefits travel program) that is offered at over 6,000 Wyndham Worldwide hotels

Reward points

The power of franchising

• The Ramada hotel chain operates the Ramada Franchise System

• Ramada is included in chief franchise system of Hospitality Franchise Systems, Inc., (HFS),

• During the 1991 72 franchise agreements were entered into by its two hotel chains, Ramada and Howard Johnson

• Twenty-seven agreements were entered into by Ramada Franchise Systems, Inc

• The Ramada chain brought 472 hotels with more than 77,608 rooms under HFS's corporate umbrella

Franchise Units

Year U.S Canadian International

Company owned

2011 510 67 307 0

2010 537 68 296 0

2009 547 64 283 0

2008 555 63 247 0

Wyndham Worldwide brands

• Ramada Worldwide brand among many other hotel chains stay under the Wyndham Worldwide provider.

the location of the Ramada hotel chain throughout the world

Conclusion• Ramada hotel chain was able to build a well-

known brand throughout the world, to enchant the guests (more repetitive ones), to open new hotels and resorts on five continents