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Marriott Corporation, 1980 Annual Report
Image 26
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Marriott International, Inc.. Marriott Corporation, 1980 Annual Report - Image 26. 1980. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. May 25, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1134/show/1115.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Marriott International, Inc.. (1980). Marriott Corporation, 1980 Annual Report - Image 26. Annual Reports from the Hospitality Industry Archives. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. Retrieved from https://digital.lib.uh.edu/collection/hiltonar/item/1134/show/1115

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

Marriott International, Inc., Marriott Corporation, 1980 Annual Report - Image 26, 1980, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed May 25, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1134/show/1115.

Disclaimer: This is a general citation for reference purposes. Please consult the most recent edition of your style manual for the proper formatting of the type of source you are citing. If the date given in the citation does not match the date on the digital item, use the more accurate date below the digital item.

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Compound Item Description
Title Marriott Corporation, 1980 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1980
Description Marriott Corporation Annual Report for calendar year 1980.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Marriott International, Inc.
Genre (AAT)
  • annual reports
  • business records
Language English
Type (DCMI)
  • Text
  • Image
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
Item Description
Title Image 26
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_052_026.jpg
Transcript 2. Income tax expense as reported exceeds Marriott's annual cash tax payments, because Marriott defers a substantial amount of its taxes through accelerated depreciation. Therefore, current year after-tax cash flow is greater than reported net income. Further, the profit and loss statement does not reflect the annual appreciation of Marriott's real estate. Yet interest expense to carry the assets is charged annually to reported earnings. The appreciation of Marriott's real estate is reflected in its large residual value, which is an important component of the anticipated earnings stream from Marriott's assets. Hotel Rooms Growth* (in thousands) 76 77 78 79 80 ■i Managed /leased rooms ■I Owned rooms •Company-operated hotels only Future Cash Growth The magnitude and certainty of anticipated discretionary cash flow growth are important determinants of common stock value as they affect the size and risk of the future earnings stream. Marriott's businesses exhibit relatively certain prospects for growth over the intermediate future. The hotel business provides the largest and most visible growth prospects. Since the average hotel project takes approximately four years to develop, most of the 20% to 2 5% annual room growth planned through the mid-1980s already is in some stage of development The company currently has over 50,000 hotel rooms, comprising nearly 100 hotel properties, in its development pipeline. Nineteen new company-operated properties and additions to existing hotels will add 9,500 rooms during 1981, while 5,400 rooms are already under construction for 1982-83 opening. The present size and quality of the pipeline indicates the achievability of the company's hotel expansion objectives. The Contract Food Service and Theme Park groups will generate substantial discretionary cash flow in the early 1980s. The operating assets for both these groups are largely developed. Contract Food Services has been a net cash generator over the last decade and its In-Flite Division, with 65 flight kitchens, will add individual kitchens only on a selective basis. Theme Parks will reverse its position from capital consumer in the 1970s (largely for initial construction) to a major capital generator (over $100 million through 1985). No additional company-owned theme parks are anticipated. The Restaurant Group was a major cash consumer in the 1970s with the simultaneous expansion of Farrell's, Big Boys and Roy Rogers. With growth now limited largely to Roy Rogers, this group will move to a basically cash-balanced position in the 1980s. Outlook Marriott again should develop substantial excess debt capacity in the mid-1980s. It will then face the same four choices—accelerate growth in existing businesses, diversify, pay larger dividends or repurchase stock. 22