Expanding the Marriott Brand

Marriott International grew to an international hospitality giant from humble roots as a single root beer stand started by John and Alice Marriott in Washington, D.C., during the
1920s. The Marriotts added hot food to their root beer stand and renamed their business the Hot Shoppe, which they incorporated in 1929 when they began building a regional chain of restaurants. As the number of Hot Shoppes in the Southeast grew, Marriott expanded into in-flight catering by serving food on Eastern, American, and Capital Airlines, beginning in 1937. In 1939, Hot Shoppes began its food service management business when it opened a cafeteria in the U.S. Treasury building. The company expanded into another hospitality sector in 1957, when Hot Shoppes opened its first hotel in Arlington, Virginia. Hot Shoppes, which was renamed Marriott Corporation in 1967, grew nationally and internationally by making strategic acquisitions and entering new service categories; by 1977, sales topped $1 billion.
In pursuit of more growth, Marriott continued to diversify
its business. Its 1982 acquisition of Host International made it the top U.S. operator of airport food and beverage facilities. Over the following three years, Marriott added 1,000 food service accounts by purchasing three food service companies: Gladieux, Service Systems, and Saga Corporation. Determining that its high penetration in the traditional hotel market did not offer many opportunities for growth, the company initiated a segmented marketing strategy for its hotels by introducing the moderately priced Courtyard by Marriott brand in 1983. Moderately priced hotels constituted the largest segment of the U.S. lodging industry, filled with established competitors such as Holiday Inn, Ramada, and Quality Inn. Marriott’s re- search registered the greatest consumer dissatisfaction in this segment, so Courtyard hotels were designed to offer travelers greater convenience and amenities, such as balconies and patios, large desks and sofas, and pools and spas.
Early success with Courtyard prompted Marriott to expand
further. In 1984, the company entered the vacation timesharing business by acquiring American Resorts Group. The following year, it purchased Howard Johnson Company, selling the hotels and retaining the restaurants and rest stops. The first JW Marriott luxury hotel was opened on Pennsylvania Avenue in Washington, D.C. as a tribute to the founder.
In 1987, Marriott added three new market segments: Marriott Suites, full-service suite accommodations; Residence Inn, extended-stay rooms for business travelers; and Fairfield Inn, an economy hotel brand. A company spokesman explained this rapid expansion: “There is a lot of segmentation that’s going on in the hotel business. Travelers are sophisticated and have many wants and needs. In addition to that, we saw there would be a finite … ability to grow the traditional business.”
In 1993, Marriott Corporation split in two, forming Host Marriott to own the hotel properties, and Marriott Interna-Brand Category Brands
Iconic Luxury Bvlgari

The Ritz‐Carlton
The Ritz‐Carlton Destination Club
Luxury JW Marriott
Lifestyle | Collections Edition
Autograph Collection Renaissance Hotels AC Hotels
Signature Marriott Hotels and Resorts
Modern Essentials Courtyard SpringHill Suites
Fairfield Inn and Suites
Extended Stay Residence Inn TownePlace Suites ExecuStay
Marriott Executive Apartments
Vacation Clubs Marriott Vacation Club Grand Residences
FIGURE 11-4 Marriott International Portfolio Architecture
Source: Marriott International, Inc. Used with permission.

tional to manage them and franchise its brands. Marriott International bought a minority stake in the Ritz-Carlton luxury hotel group in 1995 and purchased the remaining share in 1998. It expanded again in 1997 by acquiring the Renaissance Hotel Group and introducing TownePlace Suites, Fairfield Suites, and Marriott Executive Residences. Marriott added a new hotel brand in 1998 with the introduction of SpringHill Suites, which provide moderately priced suites that are 25 percent larger than standard hotel rooms. The follow- ing year, the company acquired corporate housing specialist ExecuStay Corporation and formed ExecuStay by Marriott, now a franchise business.
A new century saw new growth. The launch in 2007 of stylish EDITION hotels put Marriott in the luxury boutique market. Each property was distinctive and designed by famed hotel developer Ian Schrager. The Autograph Collection was also introduced in 2011, a diverse collection of high-person- ality, upper-upscale independent hotels. AC Hotels by Marriott was another lifestyle hotel entry in 2011, an upper-moderate tier brand targeting design-conscious younger travelers in Europe with stylish, urban properties.
The last Hot Shoppe restaurant, located in a shopping mall in Washington, D.C., closed on December 2, 1999. This closing was fitting, since the tiny restaurant in no way resembled the multinational hospitality leader it had


Like many major hotel companies, Marriott carefully manages
its brand portfolio, including its Courtyard by Marriott, Marriott, and Ritz-Carlton brands.
Source: Andre Jenny Stock Connection Worldwide/Newscom; Andre Jenny Stock Connection Worldwide/ Newscom; Lana Sundman/Alamy

spawned. Today, Marriott International is one of the leading hospitality companies in the world, with 3,700 properties in 72 countries and territories worldwide that brought in almost
$12 billion in global revenues in 2010. In 2012, after extensive consumer research, Marriott International developed a formal brand architecture that it shared with prospective guests on its Web sites to aid them in their lodging decisions

Sources: www.marriott.com; Kim Clark, “Lawyers Clash on Timing of Marriott’s Plan to Split,” Baltimore Sun, 27 September 1994; Neil Henderson, “Marriott Gambles on Low-Cost, Classy Suburban Motels,” Washington Post, 18 June 1994; Neil Henderson, “Marriott Bares Courtyard Plans,” Washington Post, 12 June 1984; Elizabeth Tucker, “Marriott’s Recipe for Corporate Growth,” Washington Post, 1 June 1987; Paul Farhi, “Marriott to Sell 800 Restaurants,” Washington Post, 19 December 1989; Stephane Fitch, “Soft Pillows and Sharp Elbows,” Forbes, 10 May 2004, 66.

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