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| Title | Marriott Corporation, 1980 Annual Report |
| Creator (LCNAF) |
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| Publisher | Marriott International, Inc. |
| Date | 1980 |
| Description | Marriott Corporation Annual Report for calendar year 1980. |
| Subject.Topical (LCSH) |
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| Subject.Name (LCNAF) |
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| Genre (AAT) |
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| Language | English |
| Type (DCMI) |
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| Original Item Location | Marriott Hotels Collection |
| Digital Collection | Annual Reports from the Hospitality Industry Archives |
| Digital Collection URL | http://digital.lib.uh.edu/collection/hiltonar |
| Repository | Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston |
| Repository URL | http://www.uh.edu/hilton-college/About/hospitality-industry-archives |
| Use and Reproduction | No Copyright - United States |
| File Name | index.cpd |
| Title | Image 10 |
| Format (IMT) |
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| File Name | hiltonar_201609_052_010.jpg |
| Transcript | Hotels Marriott Hotels is one of the world's leading operators of hotels and resorts. At year-end, Marriott offered more than 30,000 rooms through 75 hotels, resorts and franchised inns located in 59 cities, primarily in the U.S. An aggressive expansion program will more than double the number of rooms by 1985. Review of 1980 Performance of the Hotel Group was strong again in 1980. Operating profits rose 17% over 1979, while sales increased 21%. The 1980 results reflected a 13% growth in the number of company-operated rooms, and higher room rates. While industry occupancy rates were hurt by the recession, demand for Marriott rooms remained strong and occupancy of comparable units averaged above 80% for the year. The recession did cause a slight decline in customer counts in hotel restaurants. Approximately 70% of our company-operated rooms are owned by outside investors and managed by Marriott under long-term agreements. This proportion increased during 1980, resulting in a slight decline in the group's profit margin. Marriott proved again in 1980, as it had in 1974, that its strong marketing capability can adjust to offset a dip in the nation's economy. And Marriott continues as one of the world's most successful major hotel companies in terms of overall profits, occupancy rates, and food and beverage profitability. Expansion Program We plan to expand the company's hotel rooms at the rate of 20 to 25% per year through the mid-1980s. This is an ambitious but achievable program. To accommodate this expansion, we have substantially strengthened our management development capabilities and quality control programs. Since the average hotel project takes about four years to complete, much of the room growth for the next five years now is in some stage of development We now have over 50,000 hotel rooms—representing nearly 100 properties—in our development "pipeline". We gained 3,900 rooms in 1980 through the addition often hotels, resorts and franchised inns, and expansion at existing properties. Approximately 10,500 rooms, including 22 new hotels, are scheduled to open in 1981. A complete list of Marriott Hotels appears on page 16. Strengths of the Marriott System Over the years, Marriott has developed unique strengths and capabilities in the hotel business, which we continue to build upon as the Hotel Group is expanded. These strengths include: □ Fully integrated, marketing oriented hotel development process. We manage every aspect of development, construction and operation, locating only where two of our three key market segments appear in depth (individual business, groups of all types, or individual pleasure travelers). Locations are carefully balanced among downtown, suburban, airport and resort sites, with geographic dispersion over most major markets. □ Distinctive management philosophy. Marriott hotels have more comprehensive management involvement and control than is typical in the industry—particularly in key areas such as food and beverage, and marketing. We also have full- time regional executive teams for every eight to ten hotels, to help ensure consistently high service standards and substantially increased productivity. □ Strong commitment to organizational and management development. The company worked for two years to complete the organizational groundwork and accelerated management development necessary to accommodate the Hotel Group's rapid expansion in the 1980s. The regional management organization necessary to handle the new hotels through 1981 was largely set by mid-1980 Estimated needs for property-level management over the next four years are updated constantly. Special cross-training and other development programs are underway, supplemented by selective recruiting, to ensure that an adequate pool of qualified management candidates is available. □ Continued improvements in products and services. In addition to innovations in our new hotels, we continue to improve existing hotels with an expanded reservation system, updated room decor, new restaurant concepts, rapid check-in and check-out, and other refinements. Outlook The prospects for Marriott's hotel operations are more promising than at any time since we entered the business 24 years ago. Aggressive expansion into growth markets, plus proven management and a continued industry shortage of high quality rooms, underscore our expectations. We will continue to further strengthen our leadership in this industry during the 1980s. |