Ramada
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Ramada is a hotel chain owned and operated by Wyndamn Worldwide.
History
The company was founded in 1954 by longtime Chicago restauranter Marion W. Isbell (1905-1988) in Phoenix, Arizona. Mr. Isbell, who, like his counterpart, Kemmons Wilson, the founder of the Holiday Inn hotel chain had devised the idea of building and operating a chain of roadside motor hotels while he was on a cross-country trip with his wife in 1929. The name "Ramada" was coined for its Spanish definition of "shady resting place."The chain at one point was owned by Ramada Inns, Inc., a holding company created by Isbell to oversee Ramada's various divisions including hotel operations, franchising, real estate, equipment purchasing and others. Under Isbell's leadership, Ramada grew into one of the nation's largest lodging chains during the 1960s and 1970s with 100 Ramada Inns in operation by 1964 growing to 250 in 1970 and nearly 650 by 1976, when Ramada ranked as the second largest hotel chain in the U.S. behind industry leader Holiday Inns. Also during the 1970s, Ramada expanded into a worldwide operation by opening new hotels in various European nations and other continents.
Ramada developed a chain of restaurants similar to the Howard Johnson's restaurants which were also located inside of the hotels under various names including Uncle Ben's Kitchen, Ramada Pancake Cottage and Chez Bon. The Ramada restaurants became defunct in 1990.
Around 1980 the comany formed a division, Adamar of New Jersey (Ramada spelled backwards), to hold some of the its casino operations. As the lodging business suffered from the devastating effects of the early 1980s recession, Ramada began to retrench some of its operations by dropping many of its older and less profitable franchisees and tightening quality standards of remaining franchised inns and hotels while plunging further into the casino and luxury hotel market and leaving behind its old image as predominately a chain of roadside hotels.
In an attempt to revive the company's lagging business, Ramada Inns, Inc. in 1989 decided to split its hotel/restaurant businesses and its gaming businesses. The Ramada hotels and restaurants were sold for $540 million to New World Development Company and the gaming business which included Tropicana Casino Resort Atlantic City and the Tropicana Resort & Casino in Las Vegas, Nevada as well as the Ramada Express in Laughlin, Nevada, Casino Aztar Evansville in Evansville, Indiana and and Casino Aztar Caruthersville in Caruthersville, Missouri were spun off to a new company called Aztar Corporation. In the original deal for the gaming business Ramada shareholders were supposed to get $7 in cash per share plus half a share of the new Aztar Corporation. However, this changed fairly quickly to a new deal where shareholders would receive $1 per share plus one share of Aztar Corporation. In the late 1990's Ramada was sold to Cendant Corporation of New York City.
Under Cendant's ownership Ramada franchises Ramada, Ramada Limited, Ramada Renaissance and Ramada Suites in the United States and Canada. Ramada itself no longer directly or indirectly owns or operates any of the Ramada hotels. Outside of the U.S. and Canada, Ramada hotels are owned, operated or franchised by Ramada International which until recently was owned by rival hotel operator Marriott International but was purchased in 2004 by Cendant Corporation, giving Cendant the worldwide rights to the Ramada name. Ramada International remains separate from the Ramada operations in the United States and Canada.
See also
External links
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