Marriott to Sell Stake in Brands to Cendant

Marriott International Inc., the largest U.S. hotel operator, agreed Friday to sell its U.S. stake in the Ramada and Days Inn hotel brands to partner Cendant Corp. for about $200 million, ending a 2-year-old venture.

Cendant exercised an option to buy Marriott’s stake in a venture that owns the trademarks and licenses for the brands in the U.S., Marriott said.

Marriott, based in Bethesda, Md., said the sale would enable it to shed an asset that wasn’t part of its strategy of owning and managing hotels under names including Marriott, Renaissance and Ritz-Carlton. The company will receive the proceeds on Sept. 1, boosting third-quarter profit by $13 million before taxes.

Meanwhile, New York-based Cendant said the firm’s directors had been sued by a shareholder seeking to have Chief Executive Henry R. Silverman repay what the suit calls “grossly excessive” compensation.

The complaint, filed March 10 by the Leonard Loventhal Account under seal in Delaware Chancery Court and unsealed Friday at Bloomberg News’ request, said Silverman, 63, received more than $60 million, including options last year, and may receive $140 million if he quits his job.

Cendant has said in a report to the Securities and Exchange Commission that Silverman’s $13.8-million bonus is based on pretax income.

On the New York Stock Exchange, shares of Marriott rose 83 cents to $44.51 and Cendant shares fell 11 cents to $24.73.