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Marriott Corporation, 1981 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1981 Annual Report - Image 4. 1981. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. August 9, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1445/show/1404.

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.. (1981). Marriott Corporation, 1981 Annual Report - Image 4. 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/1445/show/1404

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, 1981 Annual Report - Image 4, 1981, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed August 9, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1445/show/1404.

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, 1981 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1981
Description Marriott Corporation Annual Report for calendar year 1981.
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 4
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_053_004.jpg
Transcript To Our Shareholders Marriott Corporation achieved significant growth again in 1981, despite a troubled economy and disrupted air traffic. Net income increased 20%, earnings per share increased 23%, and return on shareholders' equity remained above 23%. The company has maintained an exceptional record over the last five years. Sales have doubled, reaching the $2 billion level. Earnings per share have compounded at an annual rate of 30%. Return on equity has more than doubled. As we move through the 1980s, we are guided by three strategic principles that have served us well in the recent past: □ Controlled expansion within existing lines of business. □ Application of operating expertise to deliver superior products and services efficiently. □ Full commitment of investment capacity to opportunities offering attractive returns. We believe that through successful application of these principles Marriott will achieve 20% average earnings growth throughout the 1980s, will increase dividends commensurately, and will maintain a return on equity greater than 20%. Expand Existing Businesses Our strategy calls for continued expansion of business segments in which we can build and sustain a competitive advantage. Hotels are Marriott's largest, most visible single vehicle for growth. During 1981, we successfully added 23 hotels, increasing total rooms by 34%. We plan to add approximately 30,000 rooms to our system over the next three years. Financing for these rooms has been largely completed. We also intend to expand our position in strong markets now served by Roy Rogers fast food restaurants. The acquisition of Gino's Inc. common stock in early 1982 for $48 million is a step in this direction. Marriott will convert approximately 200 Gino's units to Roy Rogers over two years— accomplishing more than three years of normal growth in existing markets at a lower investment, after conversion, than would have been required to build new stores. The remaining units acquired in the transaction will be sold. The acquisition of the common stock of Host International, Inc. since year-end for approximately $148 million provides us with a strong airport terminal restaurant business. Marriott has nearly 25 years experience in this business and has long recognized the value of Host and its excellent management. Spanning 25 airports, Host's airport operations accounted for approximately 70% of its sales in 1981. The airline catering, hotel and specialty restaurant portions of Host's operations also fit with our existing businesses. In addition, we continue to believe there are excellent opportunities to expand our non-hotel businesses through internal growth. For example, we are expanding our Food Service Management Division as rapidly as we can develop qualified managers. Profits from this operation increased more than 50% in 1981. Selective expansion also continues in our airline catering operations worldwide, as well as in our Big Boy coffee shops. While we are pursuing expansion in selected areas, we continue to dispose of businesses that do not fit our long-range plans. In early 1982, we sold Farrell's Ice Cream Parlour Restaurants for $15 million. Emphasize Operating Excellence Marriott's principal asset is its operating expertise. We will continue to refine our operating systems and invest heavily in developing the managers who run them. We believe these operating systems are essential in providing superior products and services across a range of food, lodging and entertainment businesses. In these businesses, we rely on millions of face-to-face customer contacts each day to convey the Marriott philosophy of "we do it right". We are pleased that our hotel guests and food service customers recognize us for our "friendly and efficient" service. A strong commitment to management development is an integral part of our operating philosophy. Marriott carefully invests substantial time and funds in comprehensive programs to develop professionals to manage our businesses profitably, using some of the most sophisticated information and performance measurement systems in the hospitality industry. Utilize Investment Capacity Marriott Corporation constantly seeks investment opportunities that offer unusually attractive returns, consistent with our stated strategy. In 1979 and 1980, we used our investment capacity to repurchase approximately one third of our stock, which we believed to have been undervalued. During 1981, we actively considered several acquisition prospects that fit our lines of business but ultimately were not economically priced.