Marriott Corporation

From Wikipedia, the free encyclopedia
Jump to navigation Jump to search
Marriott Corporation
Formerly
The Hot Shoppe (1927–1929)
Hot Shoppes, Inc. (1929–1964)
Marriott-Hot Shoppes, Inc. (1964–1967)
Public
Traded as NYSE: MHS
Industry Hospitality
Fate Corporate split
Successor Marriott International and Host Marriott Corporation
Founded 1927; 91 years ago (1927) as The Hot Shoppe in Washington, D.C., U.S.
Founder J. Willard Marriott
Defunct 1993; 25 years ago (1993)
Headquarters Bethesda, Maryland, U.S.
Area served
Worldwide
Key people
Bill Marriott (Chairman, CEO and President) at time of corporate split
Products Hotels, resorts, restaurants, food service
Total assets $9.1 billion (1992)
Owner Marriott family (25%)
Footnotes / references
[1]

Marriott Corporation was a hospitality company that operated from 1927 until 1993, founded by J. Willard Marriott and Frank Kimball as Hot Shoppes, Inc. in 1957, Marriott Corporation opened its first hotel in Arlington County, Virginia, United States as the Twin Bridges Motor Hotel (demolished 1990).[2] Marriott Corporation's first international property was opened in Acapulco, Mexico in 1969.[2] Hot Shoppes became Marriott Corporation in 1967, which subsequently split into Marriott International, Inc. and Host Marriott Corporation in 1993.

History[edit]

J. Willard Marriott, who had moved away with his business partner Hugh Colton and his wife Alice from Utah to Washington, D.C., started the brand new startup company in 1927, when he operated a curbside food stand selling A&W Root Beer in the Columbia Heights neighborhood of Washington at 14th Street and Park Road NW. He would later rename the food stand The Hot Shoppe, adding Mexican food items to the menu.[3][2] Marriott's business expanded to Baltimore, Maryland, in 1934, shortly after which the company started its food services division. During Second World War, the business expanded to include the management of food services in defense plants and government buildings, such as the U.S. Treasury. Then in the 1950s, Hot Shoppes, Inc. started providing food services to public schools and to Children's Hospital in 1955, a contract which they held for 35 years.

The company went public in 1953.[4][5][dead link] [6] In 1957, the firm expanded into the hotel industry by opening the first Marriott hotel (actually a motel), the Twin Bridges Motor Hotel, in Arlington County, Virginia.

In 1964, Hot Shoppes, Inc. was renamed Marriott-Hot Shoppes, Inc.[7] The company later became Marriott Corporation in 1967.

In 1967, Marriott acquired the Big Boy family restaurants chain from Bob Wian.[8][9]

The following year, Marriott acquired the Fort Wayne-based RoBee's, a roast beef sandwich fast-food chain,[10] but later discovered that they would not be able to use the RoBee's name nationally.[11] At the suggestion of the new Marriott board member Bob Wian, cowboy actor Roy Rogers was contacted to lend his name to the roast beef sandwich venture and the Roy Rogers Family Restaurants was formed in a few months later by converting RoBee's and a few Hot Shoppe locations.[12][13]

Over the years, Marriott's company interests expanded. Continuing with food services, Marriott eventually became involved with airline in-flight food service. This segment of their enterprise continues to be a large part of their business, providing food services to many major airlines.

In 1976, Marriott opened two theme parks called Marriott's Great America in California[14] and Illinois.[15] Another was planned for Maryland or Virginia, but local opposition prevented construction from ever beginning at any of the three proposed sites. The parks had replicas of the first Hot Shoppes. Both parks were sold in the mid-1980s and continue to operate today under their new owners.[16][17]

In 1982, the company acquired Host International for $120 million[18] and also Gino's Inc., the owner of Gino's Hamburgers and Rustler Steak House restaurant chains, for $48.6 million.[19][20] 108 Rustler Steak House Restaurants plus three other restaurants were sold in the following year to two different firms for undisclosed amounts. Newly formed Tenly Enterprises purchased 94 restaurants while Sizzler Restaurants International purchased the remaining 17.[21]

By 1984, Marriott had formed a vacation time-share division, now called Marriott Vacation Club International, through the purchase of American Resorts Group for an undisclosed amount[22] and also a senior-living division.[citation needed]

In 1985, the company purchased the Howard Johnson's restaurant chain from the Imperial Group P.L.C. of London for $314 million[23][24] with plans of converting the acquired restaurants to the Bob's Big Boy brand and to make Bob's the largest coffee-shop business in the country.[25]

In 1987, Marriott sold the Big Boy restaurants franchise rights to Elias Brothers for an undisclosed amount while keeping 208 company-owned Bob's Big Boy restaurants in California and selected locations on the East Coast.[26]

In 1988, Marriott purchased all 91 Wag's restaurants from Walgreens Corporation,[27] but dissolved the chain in 1991.

The Roy Rogers chain was sold to Hardee's in 1990 for $365 million in cash.[13]

The Marriott Corporation ended its existence as a single company in 1993, when it was split into two separate entities:[28] 1) Marriott International Corporation, which operated the hotel and lodging aspect of the business and Marriott Vacation Club International, and 2) Host Marriott Corporation, the new name for the original Marriott Corporation and operating the Marriott Food Services Management. The last Hot Shoppes restaurant, located in the Marlow Heights Shopping Center, closed on December 2, 1999.[29]

See also[edit]

References[edit]

  1. ^ McDowell, Edwin (February 4, 1993). "Will Marriott Ever Stand Divided?". New York Times. 
  2. ^ a b c "The Marriott Timeline". Marriott International. 
  3. ^ Feldmeier, Julia (October 8, 2006). "Capital Knowledge: Trivia to Challenge Longtime Locals and Newbies Alike". The Washington Post. 
  4. ^ "Hot Shoppes Stock Offering"Paid subscription required. Wall Street Journal. February 18, 1953. p. 13. Hot Shoppes, Inc., Washington, D. C., plans to offer its stock to the public for the first time since the curb-service restaurant chain was founded in 1927.  Alternate Link via ProQuest.
  5. ^ Goodman, S. Oliver (February 17, 1953). "Hot Shoppes Plans Public Sale of Stock"Paid subscription required. Washington Post. p. 14. Hot Shoppes, Inc., family-owned for a quarter of a century, is expected to file a registration statement with the Securitics and Exchange Comission this week for the first public offering of shares.  Alternate Link via ProQuest.
  6. ^ Goodman, S. Oliver (March 18, 1953). "Hot Shoppes Issue Is Sold In Two Hours"Paid subscription required. Washington Post. p. 17. First public offering of Hot Shoppes Inc. common stock was snapped up within two hours yesterday. Some local brokers reported oversubscription by two or three times the amount allotted to them.  Alternate Link via ProQuest.
  7. ^ "Hot Shoppe Name Change Is Proposed"Paid subscription required. The Washington Post. October 18, 1964. p. C15. Marriott Hot Shoppes, Inc., will be the new corporate name of Hot Shoppes, if shareholders vote approval at the annual meeting on Nov. 10.  Alternate Link via ProQuest.
  8. ^ "Marriott-Hot Shoppes Negotiating Acquisition Of Wian Enterprises". Wall Street Journal. December 8, 1966. p. 10. (Subscription required (help)).  Alternate Link via ProQuest.
  9. ^ "Marriott, Big Boy Chains Dickering"Paid subscription required. Los Angeles Times. December 8, 1966. p. c10. Marriott-Hot Shoppes Inc., is negotiating to acquire Robert C. Wian Enterprises Inc., and its affiliated Big Boy Properties Inc., officials of the two firms announced Wednesday.  Alternate Link via ProQuest.
  10. ^ "Marriott Buys Ro Bee Restaurant Franchise"Paid subscription required. Washington Post. February 9, 1968. p. D6. The Marriott Corp. has completed the acquisition of the RoBee's fast-food franchise organization based in Fort Wayne...  Alternate Link via ProQuest.
  11. ^ Heath, Thomas (April 17, 2016). "Brothers bring back Roy Rogers and its 'holy trio' of burgers, chicken, roast beef". Washington Post. 
  12. ^ Marriott, Bill (December 30, 2013). "Tasting Success With Roy Rogers". Marriott on the Move. Marriott International. 
  13. ^ a b "Roy Rogers Chain Is Sold to Hardee's". New York Times. January 31, 1990. 
  14. ^ Warga, Wayne (July 4, 1976). "Sugar-Coated History in New Marriott Fun Park"Paid subscription required. Los Angeles Times. p. N1.  Alternate Link via ProQuest.
  15. ^ Enstad, Robert (May 23, 1976). "Planning your trip to Great America"Paid subscription required. Chicago Tribune. p. 12.  Alternate Link via ProQuest.
  16. ^ "Santa Clara to Buy Park for $101 Million"Paid subscription required. Los Angeles Times. February 2, 1984. p. F1. The city of Santa Clara has decided to buy Marriott's Great America amusement park in a $101-million deal to save 138 acres of prime Silicon Valley land from developers...  Alternate Link via ProQuest.
  17. ^ "Bally completes purchase of Great America"Paid subscription required. Chicago Tribune. May 26, 1984. p. A7. Bally Manufacturing Corp. completed Friday its previously announced $114.5 million acquisition of Marriott's Great America theme park in Gurnee from Marriott Corp.  Alternate Link via ProQuest.
  18. ^ "Marriott Plans To Buy Host". New York Times. December 4, 1981. 
  19. ^ "Marriott Offers To Buy Gino's". New York Times. January 5, 1982. 
  20. ^ Knight, Jerry (January 5, 1982). "Marriott Corp. Makes Bid For Gino's". Washington Post. 
  21. ^ "Briefs". New York Times. May 3, 1983. 
  22. ^ "Marriott Acquires American Resorts Group"Paid subscription required. Washington Post. April 19, 1984. p. B1. Marriott Corp. has acquired the American Resorts Group, a Florida-based developer and operator of vacation time-sharing condominiums, it was announced yesterday. Terms were not disclosed.  Alternate Link via ProQuest.
  23. ^ Horovitz, Bruce (September 25, 1985). "Marriott and Partner Buy Howard Johnson". Los Angeles Times. 
  24. ^ Daniels, Lee A. (September 25, 1985). "Howard Johnson Acquired". New York Times. 
  25. ^ Abramowit, Michael (September 25, 1985). "Marriott Corp. Buys Howard Johnson's". Washington Post. 
  26. ^ Walsh, Sharon Warren (November 5, 1987). "Detroit Company Picks Up Rights to Marriott's Big Boy Franchises". Washington Post. 
  27. ^ "Marriott to Buy 91 Wag's Restaurants". New York Times. June 30, 1988. 
  28. ^ "Marriott to Split Into 2 Firms, Shift Debt Load : Strategy: The hotel management and franchise business will be separated from hotel and retirement properties". Los Angeles Times. October 6, 1992. The two companies, known as Marriott International Inc. and Host Marriott Corp., will be listed separately on the New York Stock Exchange and have their own management teams. 
  29. ^ Brown, DeNeen L. (December 3, 1999). "Last Taste of a Tradition; In Marlow Heights, Hot Shoppes Closes Its Doors and an Era". Washington Post. p. A.01. But the last of the Hot Shoppes closed its doors at exactly 1 p.m. yesterday, bringing an end to a chain of restaurants that epitomized the '50s and '60s... Most of the Hot Shoppes closed in the '80s. A few weeks ago, the second to the last closed in Crystal City.  Link via ProQuest.

External links[edit]