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Marriott Corporation, 1982 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1982 Annual Report - Image 20. 1982. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. October 27, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1296/show/1263.

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.. (1982). Marriott Corporation, 1982 Annual Report - Image 20. 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/1296/show/1263

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, 1982 Annual Report - Image 20, 1982, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed October 27, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1296/show/1263.

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, 1982 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1982
Description Marriott Corporation Annual Report for calendar year 1982.
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 20
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_054_020.jpg
Transcript Tb <•** Top—The 494-room Dallas Marriott Hotel/Airport, opened in December 1982, is one of 11 properties owned by Potomac Hotel Limited Partnership and managed under long-term agreements. Above—First class room service and beautifully designed rooms show Marriott hotel guests how "We do it right." In recent years, Marriott has continued to strengthen its position as the lodging industry's leading performer, as measured by occupancy and profitability rates. In 1982, Marriott Hotels became a billion dollar operation. Over the past five years, sales and operating income from this business have grown at compound rates of 26% and 19%, respectively. At the same time, Marriott has more than doubled the total number of rooms in its system. There are sufficient other hotels under development to continue this rate of growth in the years ahead. Performance in 1982 Hotel results in 1982 were strong considering the depressed economy and reduced levels of business travel which hurt the entire lodging industry. Operating income rose 13% over 1981, and sales were up 27%. The addition of 20 hotels and expansion at five existing properties helped boost overall sales. However, these new hotels did not contribute significantly to profits because new properties normally need a year or more to fully establish themselves in the marketplace. Reported operating income margins declined slightly due to the new hotels, and a higher proportion of managed (vs. owned) hotels opened in 1982. Marriott receives management fees for the operation of the properties owned by others. While managed hotels provide lower operating profits, the company benefits from lower risk and interest expense, and receives a higher return on capital because these hotels do not require significant investment by Marriott. Marriott's occupancy for comparable hotels was two percentage points below 1981 levels, relatively stable compared to declines in the overall lodging industry. In recent years, the company consistently has outperformed the industry's reported average occupancy rates by as much as 10 percentage points. Key Strengths Marriott's achievements in 1982 demonstrated the benefit of several strategic strengths: Balanced market distribution. Marriott hotels are well dispersed geographically throughout the United States, with a balanced mix of property types (including downtown, suburban, airport and resort sites). This broad distribution of market exposure helps soften the overall impact of temporary or localized market conditions. Strong management and marketing systems. The Marriott system has far more comprehensive management involvement and control than is typical in the industry, particularly in the areas of food and beverage, and marketing. Thus, the company can bring strong capabilities to bear in problem solving. The key problem for Marriott in 1982 was responding to the decision by many businesses to reduce travel and to minimize the expense of any travel that was required. This condition reduced hotel occupancies. Marriott approached this problem in two ways: First, ongoing cost reduction programs at both property and division headquarters levels helped support profit margins. These programs included installation of automatic call accounting systems that reduced telephone costs for each hotel. Also, refinements in the company's forecasting and labor management systems improved the accuracy of guest traffic forecasts, significantly reducing labor costs. Second, Marriott implemented an aggressive program to improve sales and sustain occupancy. Contract business—with companies that use hotels seven days a week— was increased substantially. Pleasure travel volume was stimulated by special promotion and advertising efforts, such as tie-ins with product and rental car promotions, and with airline and travel industry packages. Business travelers were reached through a new advertising campaign in the financial press and tie-ins with several airline frequent flyer programs. Food and beverage programs were supported at the property level with over 140 different promotions. Continued improvement in products and services. The company constantly seeks to maximize the marketability of Marriott hotels, through refinements in available guest services and improvements in operating efficiency. In 1982, such changes included the introduction of teleconferencing (initially involving 14 Marriott hotels) and direct linkage of computer terminals at each property with