Marriott Corp. continued its withdrawal from the restaurant business Friday, announcing the sale of 120 family restaurants in California for approximately $65 million.
The buyer, The Restaurant Enterprises Group Inc., is expected to take control of the restaurants by early summer, Marriott said in statement. The restaurants are mostly Bob's Big Boy, with a few in the Allie's chain.The deal is subject to approval by the buyer's board of directors and the completion of financing.
Marriott already has contracts for the sale of another 45 restaurants for about $23 million, the company said.
The company sold nearly $1 billion of hotel and restaurant properties during 1990.
The diversified lodging and contract services company also announced that it has received a $150 million loan commitment from a group of major banks. The statement said Marriott is seeking up to $400 million in loan commitments.
"We believe these actions will help give Marriott Corp. the financial flexibility it needs in a difficult economic environment, including the uncertain impact of the war in the Middle East," said J.W. Marriott Jr., president and chairman.
He also said 1991 administrative costs have been reduced by 10 percent and capital spending cut by $700 million, under 1990 levels.
"These moves enhance our cash flow and provide added assurance that we will have adequate capital available to complete currently planned projects and construction in progress," Marriott added.