Marriott Corp. In 1975, Malek joined Bethesda-based
Marriott Corporation, and was quickly promoted, eventually becoming president of Marriott Hotels. He was elected executive vice president of Marriott in March 1978. Under Malek's oversight of the hotel and resort division from 1981 to 1988, earnings increased nearly fourfold, or 18 percent a year, during a period that encompassed a recession, industry overbuilding and profit declines by competitors. In early 1989, Malek became a senior advisor to the
Carlyle Group. He led a group of investors to purchase the Coldwell Banker Commercial Group, the nation's largest commercial real estate services company, from
Sears, Roebuck and Company at a price estimated at $300 million. He went on to become co-chairman of the company, serving on the board of directors for 29 years, helping to increase the value of the company to over $15 billion.
Northwest Airlines Malek soon joined Los Angeles investor
Al Checchi and Marriott's Gary Wilson in a $3.65 billion, all-cash purchase of
Northwest Airlines. The investor group was joined in the leveraged buyout by KLM Royal Dutch Airlines and Elders IXL, which contributed $480 million in equity. Malek and Checchi joined the airline's 10-member board, and Malek became president. In July 1989, Malek and a group of Carlyle investors bought Marriott's leading airline catering division for an estimated price of $650 million. From January 1, 2002, to December 31, 2005, Malek was a member of the board of directors of
Fannie Mae.
Thayer Lodging Group In 1991, Malek founded Thayer Lodging Group, a private equity firm named after
Sylvanus Thayer, West Point class of 1808, the "father of the Military Academy." Thayer's funds currently own a portfolio of 14 hotels and 3,637 guest rooms. On May 21, 2014, Thayer Lodging Group announced its acquisition by
Brookfield Asset Management. Thayer continues to own the hotels it acquired during the years prior to its partnership with Brookfield. Malek continued to be actively involved as chairman of Thayer Lodging.
Thayer Capital Partners/Thayer Hidden Creek/HCI Equity Partners In 1993, Malek also founded and became chairman of
Thayer Capital Partners, a Washington, D.C.-based private equity firm. In 2005 the company merged with Hidden Creek Partners and was renamed to Thayer Hidden Creek. Following the SEC administrative action and a number of other setbacks the company rebranded as HCI Equity Partners, a name it operated under as of 2016.
Fraud On August 12, 2003, the
SEC filed a civil fraud lawsuit against former Connecticut state Senate
Democratic Majority Leader
William DiBella for participating in a fraudulent scheme to invest $75 million of the state pension funds with Malek's firm, Thayer Capital Partners. It was alleged that Malek acted to enrich himself as well as advance his own political and financial interests, in addition to the benefit the fraudulent scheme would bring to him as a significant partner in Thayer. Former
Connecticut State Senator and Representative DiBella testified under oath in federal court that his relationship with Malek went beyond the latter's official position at Thayer, he testified that his contract obligated him to assist Malek personally with "ongoing investor relations.” and that Malek personally told him "I need you for the new treasurer” (the new treasurer being the incoming Denise Nappier). The scheme moved much of the Connecticut State Retirement and Trust Fund into high-risk, long term, non-liquid private equity funds (such as Thayer's). This unbalanced the investment plan, increasing the risk of a long term failure.
Major League Baseball Malek was a co-owner in the
Texas Rangers of
Major League Baseball, along with
George W. Bush and other investors, from 1989 to 1998. Beginning in 1999, Malek led the recruitment of the
Montreal Expos franchise to Washington, D.C. Working alongside city leaders, Malek set up the Washington Baseball Club, an ultimately unsuccessful investment group with partners that included
Jeff Zients, Steve Porter, Paul Wolff, Frank Raines,
Jim Kimsey,
Colin Powell,
Vernon Jordan and David Bradley. ==Political career==