Marriott is known today for a large global hotel system, but the business began in 1927 with food service. It took three decades before the company entered lodging.
The bigger transformation came later. Marriott expanded its hotel portfolio while management increasingly emphasized management and franchising, then separated much of the real estate from the operating business in 1993. A second reorganization in 1998 created the public Marriott International, Inc. that exists today.
Those changes help explain how a business that started with a nine-seat root-beer stand developed into a lodging platform built largely around management, franchising, licensing, brands, loyalty, and distribution.
A Quick Look at the History of Marriott International
Company History Summary
Marriott’s business history dates to 1927, when J. Willard and Alice Sheets Marriott began a small Washington food-service venture. Hot Shoppes expanded into catering and managed food service before opening its first hotel in 1957. The company became Marriott Corporation in 1967 and continued expanding its lodging business in the United States and internationally.
Major restructurings later changed the company itself. A 1993 split separated much of the lodging real estate from the lodging and service-management operations. A 1998 reorganization created the current public Marriott International, Inc. Marriott later spun off its timeshare operations, acquired Starwood, unified major loyalty programs under Marriott Bonvoy, and continued adding brands and lodging formats.
Company Snapshot
Business Origin: 1927
Founders: J. Willard Marriott and Alice Sheets Marriott
Early Corporate Name: Hot Shoppes, Inc.
Origin: Washington, D.C.
First Hotel: Twin Bridges Motor Hotel, opened in January 1957
Current Legal Company: Marriott International, Inc., organized in Delaware in 1997 and made public through a March 1998 spin-off
Industry: Hotels and lodging
Current Leadership: Anthony G. Capuano, President and CEO; David S. Marriott, Chairman of the Board
Business Model: Predominantly hotel management, franchising, and licensing rather than ownership of most properties
Reported System Size at June 30, 2026: 10,082 properties and 1,813,698 rooms
From Food Service to Hotels
J. Willard Marriott and Alice Sheets Marriott entered business in Washington, D.C., in 1927. With early partner Hugh Colton, they opened a nine-seat A&W root-beer stand. In 1929, the business was incorporated as Hot Shoppes, Inc., with J.W. Marriott as president and Alice Marriott as vice president.
The company then expanded beyond restaurants. Marriott’s corporate history records an airline-catering business beginning in 1937 and later cafeteria management for government, corporate, college, and hospital customers.
Hotels entered the picture in January 1957, when Hot Shoppes opened the 370-room Twin Bridges Motor Hotel. In 1967, the company was renamed Marriott Corporation. Two years later, it opened its first international hotel in Acapulco, Mexico, followed by its first European hotel in Amsterdam in 1975.
Bill Marriott, Brand Expansion and Real-Estate Strain
J.W. Marriott Jr., commonly known as Bill Marriott, became CEO in 1972 after serving as company president since 1964. Marriott’s corporate biography credits him with shifting the business model toward hotel management and franchising beginning in the late 1970s.
The shift was gradual. Marriott continued financing hotel development with plans to sell properties to investors while retaining management contracts. That exposure became important when the real-estate market weakened.
Marriott also broadened its lodging portfolio. Courtyard by Marriott launched in 1983. In 1987, the company acquired Residence Inn and introduced Fairfield, extending its reach across additional lodging segments.
By the early 1990s, real-estate exposure had become a serious constraint. Contemporaneous reporting in The Washington Post described roughly $1.3 billion in unsold properties and substantial related debt. Interest obligations were consuming cash flow and limiting Marriott’s ability to borrow for expansion.
The 1993 Split Changed Marriott’s Structure
In October 1992, Marriott’s board approved a plan to separate much of the real-estate business from its lodging and service-management operations. Bill Marriott described the structural problem this way:
“We were constrained by the way the company was structured and by being in both businesses, frankly.”
The transaction was completed on October 8, 1993. Host Marriott Corporation retained lodging real estate along with airport and toll-road concessions. Marriott International took the lodging and service-management businesses.
The real-estate slump and debt burden were major pressures behind the restructuring, while Marriott had also been moving toward hotel management and franchising. The split separated much of the property ownership exposure from the operating and management business without eliminating Marriott’s involvement in investments, acquisitions, or development.
The 1998 Reorganization Created Today’s Public Marriott
The 1993 split did not create the exact legal company that exists today. Another reorganization followed several years later.
The current Marriott International, Inc. was organized in Delaware in 1997 and became a public company in March 1998 through a spin-off. The new Marriott International received lodging, senior-living, and distribution businesses.
At the same time, the former Marriott International’s food-service and facilities-management operations were combined with Sodexho North America. The old Marriott International entity became Sodexho Marriott Services, Inc.
That distinction makes both dates important. Marriott’s business lineage begins in 1927, while the present public corporation dates legally to the 1997–1998 reorganization.
In 1999, the final Hot Shoppe closed. By then, lodging had become the central business associated with the Marriott name.
From Timeshare Separation to the Starwood Deal
Another structural change came in 2011, when Marriott International spun off its timeshare operations and timeshare development business as Marriott Vacations Worldwide Corporation. Marriott Vacations Worldwide became a separate public company, while licensing relationships continued under agreements covering certain brands.
Leadership changed the following year. On March 31, 2012, Arne Sorenson became President and CEO of Marriott International, and Bill Marriott moved from the CEO role to Executive Chairman. Sorenson was Marriott’s first nonfamily CEO.
On September 23, 2016, Marriott completed its acquisition of Starwood Hotels & Resorts Worldwide. Starwood became an indirect wholly owned subsidiary, adding brands including Sheraton, Westin, W, St. Regis, and Le Méridien.
At the end of 2016, the combined system reported 6,080 properties and 1,190,604 rooms. Marriott then introduced Marriott Bonvoy in 2019, replacing Marriott Rewards, Starwood Preferred Guest, and Ritz-Carlton Rewards with a unified loyalty program.
The Starwood Data-Security Aftermath
Marriott announced unauthorized access to the Starwood reservations database in November 2018. The Federal Trade Commission later reported that some Starwood breaches had begun in 2014, before Marriott acquired Starwood.
In December 2024, the FTC finalized an order settling charges against Marriott and Starwood and requiring a comprehensive information-security program. The FTC said the breaches covered by its action affected more than 344 million customers worldwide.
Private litigation continued after the regulatory settlement. Marriott’s June 30, 2026 filing reported ongoing cases in the United States and Canada and stated that the company disputed the allegations and was defending the claims.
The episode also shows a risk that can accompany acquisitions: technology and security problems at an acquired business may remain relevant long after the transaction. In this case, some of the underlying Starwood intrusions predated Marriott’s ownership.
Pandemic Shock and Leadership Transition
COVID-19 produced a sudden collapse in travel demand. In April 2020, Marriott’s worldwide comparable systemwide constant-dollar revenue per available room fell 90% from the prior year, and 27% of its hotels were temporarily closed.
The disruption was an external shock rather than a company-specific strategic failure. Leadership also changed during the period. Arne Sorenson died in February 2021, and Anthony Capuano became CEO. In 2022, David S. Marriott became Chairman of the Board.
The company remained publicly traded. Marriott’s 2026 proxy described the Marriott family as holding a significant ownership stake, but the filing did not establish majority family control.
A Larger, More Asset-Light Platform
From 2023 through 2026, Marriott continued expanding through acquisitions, licensing relationships, conversions, and new brand or collection formats.
In May 2023, Marriott acquired the City Express brand portfolio, adding 149 properties in Mexico, Costa Rica, Colombia, and Chile to its franchise portfolio. Marriott also added the MGM Collection licensing relationship.
In 2025, Marriott acquired the citizenM brand and related intellectual property. Integration later added 37 open hotels and 8,789 rooms. Marriott also introduced Series by Marriott and the Outdoor Collection by Marriott Bonvoy.
In a February 2026 Travel Weekly interview, Capuano linked the company’s interest in outdoor hospitality with demand for more local and authentic experiences. His comments provided management’s perspective on why Marriott was experimenting with those formats.
Marriott describes its current business model as predominantly asset-light. The company manages, franchises, and licenses hotels and related lodging offerings rather than owning most of the properties carrying its brands.
At June 30, 2026, Marriott reported 10,082 properties and 1,813,698 rooms across the system. The mix included 7,939 franchised, licensed, or other properties; 1,947 managed properties; 50 owned or leased properties; and 146 residential properties.
Marriott earns management fees, franchise fees and royalties, licensing income, loyalty and co-branded-card income, and other brand- and platform-related fees. Anthony G. Capuano was serving as President and CEO in October 2026, while David S. Marriott was Chairman of the Board and J.W. Marriott Jr. held the title Chairman Emeritus.
A Business Repeatedly Reshaped
Marriott’s history is not simply a sequence of hotel openings. The business moved from restaurants into catering, managed food service, and lodging; broadened its hotel portfolio; separated much of its hotel real estate; reorganized again to create the current public corporation; spun off timeshare operations; and expanded through brands, contracts, licensing, and acquisitions.
By 2026, the overwhelming majority of properties in the Marriott system were managed, franchised, licensed, or otherwise operated without Marriott owning or leasing the underlying hotel property. That long shift connects the company’s 1927 food-service origins with its current form as a broad lodging platform.
Timeline
This timeline highlights major milestones in Marriott’s development from its 1927 business origin to its current lodging system.
1927
J. Willard Marriott and Alice Sheets Marriott begin a small food-service business in Washington, D.C., centered on a nine-seat A&W root-beer stand.
1929
Hot Shoppes, Inc. is incorporated.
1937
The Marriott business expands into airline catering.
January 1957
The 370-room Twin Bridges Motor Hotel opens, marking Marriott’s entry into the hotel business.
1967
The company is renamed Marriott Corporation.
1969
Marriott opens its first international hotel in Acapulco, Mexico.
1972
J.W. Marriott Jr. becomes CEO.
1983
Courtyard by Marriott launches.
1987
Marriott acquires Residence Inn and launches Fairfield.
October 1992
Marriott announces a plan to separate much of its real estate from its lodging and service-management operations.
October 8, 1993
The split is completed. Host Marriott retains lodging real estate and airport and toll-road concessions, while Marriott International takes lodging and service-management businesses.
March 27, 1998
The current Marriott International becomes a public company through a spin-off. The former Marriott International becomes Sodexho Marriott Services after its food and facilities-management transaction.
November 21, 2011
Marriott completes the spin-off of its timeshare operations and development business as Marriott Vacations Worldwide Corporation.
March 31, 2012
Arne Sorenson becomes President and CEO.
September 23, 2016
Marriott completes its acquisition of Starwood Hotels & Resorts Worldwide.
2019
Marriott Bonvoy launches as the unified loyalty program across the combined portfolio.
April 2020
Worldwide comparable systemwide constant-dollar RevPAR falls 90% year over year, and 27% of Marriott hotels are temporarily closed during the COVID-19 travel collapse.
2021
Anthony Capuano becomes CEO following Arne Sorenson’s death.
2022
David S. Marriott becomes Chairman of the Board.
May 1, 2023
Marriott completes the acquisition of the City Express brand portfolio.
2025
Marriott acquires citizenM and introduces Series by Marriott and the Outdoor Collection by Marriott Bonvoy.
June 30, 2026
Marriott reports a system of 10,082 properties and 1,813,698 rooms.
FAQs
Question: Who founded Marriott?
Answer: J. Willard Marriott and Alice Sheets Marriott founded the business that became Marriott. They began the venture in Washington, D.C., in 1927. Early partner Hugh Colton also participated in the first root-beer stand.
Question: Did Marriott start as a hotel company?
Answer: No. Marriott began as a small food-service business in 1927. It expanded through restaurants, airline catering, and institutional food service before opening its first hotel, the Twin Bridges Motor Hotel, in 1957.
Question: Why are 1927 and 1998 both important dates in Marriott’s history?
Answer: 1927 is the origin of the Marriott business. The current legal Marriott International, Inc. was organized in 1997 and became a public company through a 1998 spin-off. The business history is continuous, but the legal corporation changed through major restructurings.
Question: Is Host Hotels & Resorts the parent company of Marriott International?
Answer: No. The businesses became separate through the 1993 Marriott restructuring. Host Marriott retained much of the lodging real estate, while Marriott International took lodging and service-management businesses.
Question: Does Marriott own most Marriott hotels?
Answer: No. Marriott’s current model is predominantly based on management, franchising, and licensing. At June 30, 2026, Marriott reported only 50 owned or leased properties, compared with thousands of franchised, licensed, and managed properties.
Question: What changed when Marriott acquired Starwood?
Answer: Marriott completed the Starwood acquisition in September 2016. The transaction added a large portfolio of hotels and brands, including Sheraton, Westin, W, St. Regis, and Le Méridien. At year-end 2016, the combined Marriott system reported more than 6,000 properties.
Question: Is Marriott Vacations Worldwide part of Marriott International?
Answer: No. Marriott Vacations Worldwide is a separate public company. Marriott International spun off its timeshare operations and development business in 2011, although licensing relationships between the companies continued.
Question: Who leads Marriott International today?
Answer: As of October 2026, Anthony G. Capuano was President and CEO of Marriott International, and David S. Marriott was Chairman of the Board.
Interviews & Firsthand Resources
Bill Marriott on Choosing Marriott’s First Nonfamily CEO
In a 2013 Harvard Business Review article, Bill Marriott discussed the succession process that led to Arne Sorenson becoming Marriott’s first nonfamily CEO. It provides firsthand context on a leadership transition that changed a long-running pattern of family chief executives.
Anthony Capuano on Marriott’s Current Portfolio Direction
Travel Weekly’s 2026 interview with Anthony Capuano covers luxury, all-inclusive properties, outdoor hospitality, and Marriott’s current portfolio strategy. It is useful for understanding management’s perspective on newer lodging formats and experience-led expansion.
Bill Marriott on the Proposed 1993 Split
The Washington Post’s 1992 report includes Bill Marriott’s comments while the company was preparing to separate its real-estate and operating businesses. The article gives readers a firsthand view of management’s rationale at one of the most important structural turning points in Marriott’s history.
Further Reading
Sources
- Marriott International: Our Story of Innovation, Bill Marriott, Marriott International Completes Spinoff and Merger Transactions Resulting in “New” Marriott International and Sodexho Marriott Services
- The Washington Post: At Marriott, It’s Divide and Conquer Debt Load
- U.S. Securities and Exchange Commission: Host Marriott historical separation disclosure, Marriott International November 21, 2011 Form 8-K, Marriott International 2016 Form 10-K, Marriott International June 30, 2023 Form 10-Q, Marriott International 2025 Form 10-K, Marriott International June 30, 2026 Form 10-Q, Marriott International 2026 Proxy Statement
- Marriott International Annual Report: 2020 Annual Report
- Federal Trade Commission: FTC Finalizes Order with Marriott and Starwood Requiring Them to Implement a Robust Data Security Program to Address Security Failures
- Harvard Business Review: Marriott’s Executive Chairman on Choosing the First Nonfamily CEO
- Travel Weekly: Marriott CEO Anthony Capuano on luxury, all-inclusives and ‘outdoor hospitality’