Business Wars Hilton vs Marriott | Wake-Up Call | 3
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Aug 23, 2023 In the early 1990s, Marriott faces a financial crisis, desperately trying to reshape its image as Hilton begins to rise. A pivotal meeting highlights Marriott’s debt issues and strategic pivots. Meanwhile, Hilton enhances its loyalty program, enticing guests and increasing membership. The rivalry intensifies as Hilton expands aggressively while Marriott makes luxury acquisitions. The podcast reveals the strategic movements of both giants, setting the stage for a fierce competition in the evolving hotel industry.
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Marriott's Financial Troubles
- Marriott faced financial struggles in the early 1990s, prompting them to bring back Stephen Bollenbach as CFO.
- Bollenbach, known for rescuing Holiday Inn and the Trump Organization, aimed to change Marriott's narrative and rebuild investor confidence.
Changing the Narrative
- Stephen Bollenbach believed that changing Marriott's narrative was key to addressing their financial woes.
- Instead of portraying their real estate as a burden, he proposed highlighting its value and waiting for a better market.
Splitting Marriott
- To tackle Marriott's debt, Bollenbach proposed splitting the company into two entities: Marriott International and Host Marriott.
- Marriott International would manage hotels, while Host Marriott would own the properties and absorb the existing debt.
