Many hotel food and beverage operations lose money or barely break even, Mr. Gross said.

"We're looking to support our food and beverage operations and the programs that go on."

Mr. Enrico is currently president and chief executive of the compay's worldwide beverage operations.

The distinguishing factor of the chain is its food and beverage operations, and its restaurants are popular in the respective cities.

The sales for the combined beverage operations are estimated at $470 million, an increase of 6 percent.

PepsiCo said its domestic beverage operations would be realigned into three core businesses.

In 1998, the company sold its European beverage operations.

The company took one-time charges amounting to 23 cents a share for write-offs in its international beverage operations.

Without the international beverage operations, Cadbury will be tilted more toward confectioneries, whose sales totaled about $3.7 billion in 1997.

In an effort to turn its international beverage operations around, Pepsico said it intended to reduce those annual operating costs by more than $100 million.