executive team oversees every seven to ten
hotels, helping to ensure high service standards and to maintain productivity.
Marriott has the most intensive individual
sales effort in the industry. There is one
salesperson for every 90 rooms. Activity
focuses on the three key markets for each
hotel (individual business and pleasure travelers, and group meetings).
The regional team management and
strong individual sales effort, coupled with
highly trained and experienced management
at each hotel, have helped the company
maintain high occupancy rates and profit
margins even in difficult periods.
□ Reduced capital intensity. Outside investors own about 75% of our hotel rooms,
which Marriott operates under long-term
operating agreements. The higher proportion
of company-operated hotels owned by outsiders has enabled Marriott to capitalize
on its hotel management expertise. Thus our
hotel business has become far less capital
intensive, permitting Marriott to continue its
dynamic expansion program.
□ Assured future growth. Growth of
rooms in the Marriott system at an annual
rate in excess of 20% through the mid-1980s
is virtually assured by projects already under
construction and financed. All projects to be
completed through 1983, and most of those
in 1984, are progressing satisfactorily. The
remaining 1984 and 1985 projects have
been developed to the extent that we are
confident of producing an adequate supply
of additional rooms to reach our expansion
While financing new hotels obviously has
become more difficult, we have been able to
continue to expand at an acceptable rate
using alternative sources of financing. One
innovative new source of funding is an
equity syndication involving 11 Marriott hotels, to be offered in the form of limited
partnership interests in the spring of 1982.
Bank commitments to this partnership already have been arranged.
Expansion in 1981 and 1982
In 1981, the total number of rooms in the
Marriott system increased by 10,250, or
34%. This was accomplished through the
addition of 23 hotels, resorts and franchised inns, and expansion at six existing
Such growth obviously presents difficult
challenges in manpower planning and development, but the company's management
development systems have proven equal to
the task. Years of careful preparations for
our hotel growth in the early 1980s now are
New hotels opened in 1981 included
(rooms in brackets): Anaheim, California
(746), Atlanta Airport (653), Des Moines
(416), Gaithersburg, Maryland (301), Houston Greenspoint (400), LaGuardia Airport
(440), Nashville (400), Salt Lake City (518),
Seattle (462), South Bend (300), Tampa
(312), Tysons Corner, Virginia (398), Washington, D.C. (350) and Westchester, New
York (444). New resorts were opened at
Hilton Head Island, South Carolina (341),
Lexington, Kentucky (317) and Maui, Hawaii
(720). New franchised inns opened in Buffalo (360) and Columbus, Ohio (306). The
company acquired the Mountain Shadows
Resort in Scottsdale, Arizona (346), the
Grand Hotel—a resort in Point Clear, Alabama (172) and a hotel in Oak Brook, Illinois
(350). One new international hotel was
opened in Amman, Jordan (300).
For 1982, approximately 10,000 rooms
are scheduled to be added, of which 8,600
will come from 18 new hotels and from
existing hotels gained in the Host merger.
The remainder will result from expansion
at four existing locations.
Heated swimming pools and
extensive health facilities, like
those at our new Atlanta Airport
hotel, are found throughout
the Marriott system.
No one does banquets better than
Marriott, here at our luxurious
new Hilton Head Island resort.