Keyword
in
Collection
Date
to
Marriott Corporation, 1982 Annual Report
Image 29
Citation
MLA
APA
Chicago/Turabian
Marriott International, Inc.. Marriott Corporation, 1982 Annual Report - Image 29. 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/1272.

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 29. 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/1272

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 29, 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/1272.

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.

URL
Embed Image
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 29
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_054_029.jpg
Transcript Debt Maturity Schedule ($ in millions) Year 1982 1981 1980 1979 1978 1 $ 23 $ 16 $ 9 $ 9 $ 11 2 28 17 18 18 20 3 36 22 18 24 20 4 42 40 34 27 26 5 48 43 38 35 25 Total $177 $138 $117 $113 $102 Funds Provided from Operations $231 $187 $150 $141 $122 Debt maturity will remain well within Marriott's conservative policy limits, which require that total debt amortizing in the subsequent five-year period not exceed Funds Provided from Operations of the prior year. The company has met this policy constraint by wide margins since 1978, as shown above. Marriott has no requirement for positive working capital, since it principally sells services (rather than goods) for cash. Therefore, the company maintains relatively low receivable and cash balances. Negative working capital is a source of interest-free financing. The company instituted a program to aggressively reduce current asset investment during 1982. As a result, Marriott increased its negative working capital to $46 million during 1982 and plans further improvement in 1983. Dividends and Stock Price Increase In November 1982, the Board of Directors increased the cash dividend 20% to 36 cents annually. This is consistent with Marriott's goal to increase dividends with planned long-term earnings growth. The company has a good record of reinvesting cash flow ingrowth businesses at high returns. Marriott will continue this investment strategy to support planned profit growth averaging at least 20% annually through the mid-1980s. If management is successful, shareholders should continue to profit through share appreciation taxed at advantageous capital gains rates, rather than through higher dividends taxed at ordinary rates. The range of Marriott stock prices by quarter was: Quarter Ended in 1982 1981 High Low High Low March June September December 39 40)4 50% 61% 33 33'/4 32 44% 35 47 43% 38% 29% 33% 33% 31% Marriott's stock price has increased over five-fold during the past five years to a total market value of $1.5 billion. We believe this has occurred because: □ The company has maintained high real earnings growth and high capital productivity in a difficult economic environment. □ Marriott's aggressive unit expansion program has a high probability of continued success, considering units presently under construction for opening through the mid- 1980s. □ The investment community has a favorable market outlook for hotels—the company's principal business-in which Marriott's market share is rapidly growing through its aggressive expansion program. Current Value Increases Shareholders' equity per share, expressed on a Current Value basis, increased to $62.15 in 1982 from $54.90 in 1981. This compares favorably with the historical cost book value of $19.43 per share. Historical cost accounting understates both the value of Marriott's real estate-based assets and its investment capacity. The company's Current Value balance sheet restates historical cost assets and liabilities to reflect 1982 year-end valuations. Current Value is based on the company's productive capacity and does not include anticipated growth. Therefore, it does not reflect the intrinsic value of Marriott. As shown, Current Value shareholders' equity increased 15% during 1982, primarily Real Rate of Return Interest Rates vs. Inflation Rates Interest rate on 20-year govt, bonds {%) 3.1 4.6 7.6 11.4 13.7 12.9 11.8* Inflation rate (GNP deflator. %) 2.6 2.5 6.6 93 94 6.1 6.0* 27