company acquired Saga, a contract food service and restaurant chain for $694 million.
In 1987, Marriott started to return to its specialties and dispose of various divisions (Company Histories, pp. 102-103). The cruise line was sold in that year, while its hotel line expanded. Marriott Suites (full-service suites), Residence Inns (moderately-priced suites bought for $260 million), and Fairfield Inns ($30-40 per night economy hotels) were added to Marriott's hotel empire. In 1988, the company diversified into the elderly nursing care business with its life care communities. And in 1989, Marriott sold off its airline catering division and most of its restaurant divisions as well.
In 1992, facing a major national recession and corporate debt crisis, the Marriott corporation hired a new outside chief financial officer, Stephen Bollenbach, to streamline and re-structure the company (Hoover Handbook of American Business, p.378). The same year, the company bought the Duna International Hotel in Hungary.
As of 1991, Marriott operates 698 hotels including franchises (p. 378). It is also the major American company for food service management to businesses, the health care industry, and educational institutions, and provides food, beverage, and merchandise to airport and highway travelers through Host and Travel Plaza and under license agreements with Pizza Hut, Dunkin Donuts, TCBY Yogurt, and other. Marriott also operates senior citizen retirement communities, golf courses, and an employer-sponsored day care chain. As for overseas, the company is investing in joint ventures with foreign partners in hotel and related enterprises, mainly in Europe, Canada, Mexico and the Pacific Rim.
Macroeconomically, Marriott's environment is that of recession, which is particularly detrimental because business and vacation travel have been sharply down in recent years (Rice, 1993, June 28, pp. 101-102). Similarly, commercial real estate...