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Marriott Corporation, 1982 Annual Report
Image 31
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Marriott International, Inc.. Marriott Corporation, 1982 Annual Report - Image 31. 1982. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. October 23, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1296/show/1274.

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 31. 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/1274

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 31, 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 23, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1296/show/1274.

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 31
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_054_031.jpg
Transcript HOTEL DEVELOPMENT Marriott's goal is to increase shareholder wealth primarily through increasing common stock values. Marriott's stock has shown an average annual gain of 19% since becoming publicly held in 1954, while Earnings Per Share (EPS) growth has averaged 18% per year during the same period. Marriott's strategy for increasing share value in the 1980s will continue to be based upon profitable growth through unit expansion within existing lines of business. Unit expansion will be accomplished through an aggressive internal development program and acquisitions of closely related businesses. Unit growth is the key element for achieving the corporate goal of 20% average annual profit increases during the 1980s. The company's growth ■should continue to produce unusually high returns on capital because of the strong mixture of management and franchise fee income on assets owned by others. About 78% of Marriott-operated hotels are owned by third parties and managed by the company under long-term agreements. We believe the company is the industry leader in creative finance, which is the critical element underlying the successful management fee program. Please refer to Marriott's 1981 Annual Report for a full discussion of "Financing Hotel Growth." Hotel Expansion Key to Growth Hotels are Marriott's most important growth vehicle. Hotel room expansion averaged 21 % annually since 1978 and should average about 20% annually during the next five years. Aggressive unit expansion, combined with real demand growth and full inflation pass-through of costs, enables the Hotel Group to provide a significant base for Marriott's corporate growth goals through the 1980s. Expansion also will enable Marriott to become the world's largest manager—as distinct from franchisor—of hotels. This gives the company significant competitive advantages in maintenance of quality and marketing concentration that will become increasingly important in the hotel industry of the future. For several important reasons, Marriott is expanding its hotels while competitive chains are not aggressively growing in the lodging business: □ Marriott is still a relatively young chain with only a small market share, which provides an unusual opportunity for growth. □ Marriott is not burdened by a high percentage of independent franchisees that have limited the growth ability of larger chains due to territorial and other restrictive agreements. □ Marriott is one of the few major chains that has focused its financial and management resources on the lodging industry, rather than diverting energies to the capital and management-intensive gaming business. □ Marriott has committed substantial resources to establish itself as the world's leading hotel developer and financier. The company spends about $5 million annually—charged against earnings rather than capitalized—to support this development effort. The expansion program projected through 1986 has a high probability of success because many of the projects either are financed and under construction or in the advanced stages of development as shown on the chart below. The number of rooms opening in 1985 will be high because two large projects—the New York Marriott Marquis (1,887 rooms) and the Atlanta Marriott Marquis (1,670 rooms)—are scheduled for completion. Major acquisitions have not been projected, but are being pursued and could augment planned expansion. Development Process Is Unique in Hotel Industry Marriott has built the expertise and organizational structure to site, design and construct large numbers of complex hotel projects simultaneously. We are now the industry's only major, totally vertically integrated hotel developer, creating about $1 billion of product annually. Marriott has internally developed over half of its company- operated rooms. The development process is complex and requires a total team effort among the Corporate Planning, Real Estate Development, Architecture and Construction (A&C), Hotel Operations, Legal and Finance functions. Understanding this unique process is important in assessing Marriott's ambitious expansion program. The first step in the process is Hotel Feasibility (organized within Corporate Planning), together with Hotel Operations, biennially updating the hotel development plan which determines Marriott's target metro Hotel Rooms {total rooms in thousands) I Franchised 1H Owned i Managed Planned Hotel Growth (additional rooms in thousands) I Under construction/open I Financed but not yet under construction I Underdevelopment 29