Construction project in Seaside will 
continue with business as usual 

The rumors are true and the deal is done.

Trendwest Resorts, Inc., currently involved in the largest construction project
in Seaside’s history, is merging with gigantic hotel, real estate and resort
franchise operator Cendant in an $894 million deal. (Photo: crane hovers over project, R.)

The two companies have signed an agreement in which Cendant will acquire all of the outstanding common stock of Trendwest through a tax-free exchange of Cendant common stock. Cendant has also entered into an agreement to acquire approximately 90 percent of the outstanding shares of Trendwest from JELD-WEN and other certain stockholders. The agreement
calls for Cendant to assume $74 million of Trendwest net debt.

JELD-WEN, which started as a small Oregon millwork plant in 1960, has
more than 20,000 employees worldwide. It owns 81 percent of the stock in
Trendwest.

“It’s business as usual,” said Sonia Tolbert, Trendwest’s community relations manager. “It won’t affect our Seaside project at all.”

Trendwest is building a 283-unit, eight-story timeshare resort hotel and
five-story parking garage between Broadway and Avenue A on the Prom.
The $55 million-plus project includes retail space and is expected to be
completed by the summer of 2003.

One of the most successful companies in the vacation ownership industry,
Trendwest has revenues exceeding $400 million and resorts in the United
States, British Columbia, Mexico, Fiji, and Australia. 

“We’re moving ahead,” said Trendwest Marketing and Communication
Director Rick Rosa. “As the parent company, they (Cendant) will have
oversight but as far as day to day decisions, we won’t go to them for
clearance. We’ll still be making independent decisions. Most of the bottom
line type things will probably be run through them (budgets, etc.) but
otherwise we’ve been given the go to maintain the current status quo.”

Rosa added that Trendwest management in Redmond, Wash.,will remain
intact. “There’s nothing changing at all.” 

“From what I understand they (Trendwest) have sold it to a large
organization that is similar to them,” said Seaside City Councilor Larry
Haller. “This is just going to be a subsidiary. They’re going to keep the same
people here and run it like it has been run.”

Cendant, based in New York City, employees approximately 60,000
people. It is the world’s largest real estate brokerage franchisor (Centuary
21, Coldwell Banker, ERA); the world’s largest hotel franchisor (Days Inn,
Howard Johnson, Ramada Inn, Super 8, Travelodge, Wingate Inn,
Amerihost Inn, Villager); the world’s second-largest general-use car rental
agency (Avis); and the world’s largest vacation ownership organization
(Fairfield Resorts, RCI).

Text and photo (by the author) © 2002  Seaside Signal    Reprinted by permission