Keyword
in
Collection
Date
to
Marriott Corporation, 1981 Annual Report
Image 29
Citation
MLA
APA
Chicago/Turabian
Marriott International, Inc.. Marriott Corporation, 1981 Annual Report - Image 29. 1981. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. October 29, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1445/show/1429.

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 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/1445/show/1429

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 29, 1981, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed October 29, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1445/show/1429.

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, 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 29
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_053_029.jpg
Transcript Marriott's objective is to increase the pro- Debt maturity will remain well within portion of long-term, fixed rate debt in its Marriott's conservative policy limits, which capital structure when the fixed long interest require that total debt amortizing in the rates return to economic levels. Debt with subsequent five-year period not exceed floating short interest rates reached 33% of Funds Provided from Operations of the prior capitalization during 1981, principally be- year. The company has met this policy con- cause Marriott's policy is to finance its con- straint by increasingly wide margins since struction in progress with floating rate debt. 1977 as shown below: Marriott was protected from the sharp in- Debt Maturity Schedule creases in short rates experienced during the (dollars in millions) year because 64% of these borrowings car- Year 1981 1980 1979 1978 1977 ried a negotiated weighted rate ceiling of l $16 $ 9 $ 9 $11 $10 16%. In addition, about 29% of 1981 floating 2 17 18 18 20 12 .... r *} 99 18 94 20 15 rate mterest was capitalized as a cost ol new ° rr *° ~j or 21 hotels and will be recouped when the prop- 5'' 43 38 35 25 32 erties are placed with investors ^ ' "il^ ilr7 $113 $102 ?W Long-term interest rates will decrease ii = = ===== ===== = there is a return to "normal" real return Funds Provided •r • n !_• «. »_• from Operations $187 $150 $141 $122 $100 requirements, or it inflation expectations decline Ratio to 5-year Interest rates are composed of real Maturities _L4 _L3 _^2 _L2 _lj. economic return plus inflation. With infla- Dividends and Stock Price Increase tion at 7 to 8%, the chart at right shows that In November 1981, the Board of Directors today s real economic returns of 7% are the increased the cash dividend 25% to 30 cents highest m post-war history. Marriott s in- annually. This is consistent with Marriott's vestments are in stable long-term, real plan to increase dividends commensurately estate-related assets. These assets will not ,,n-tu „QTTM-r.„c rtmwtu . .. . ,, . witn earnings growtn. produce sufficient profits to justify such rhe company has a good record of re_ high real returns to debt holders without investing cash flow in growth businesses at either applying an umeahsticaUy high ^ returns. Marriott will continue this re- inflation rate to projected profits or reducing investment strategy to support planned pro- returns to Marnott shareholders. fit &owih averaging at least 20% annually Interest rates will decline commensurate fao^ the mid-1980s. If management is with the reduction in inflation expectations. succeSsful, shareholders should profit There is a reasonable probability that ^ugh share appreciation taxed at advan- mflation will fall rather than rise in the tageous ^^j gains rates> rather ^ 1980s considering the Reagan admimstra- ^^ Ug^eT dividends taxed at ordinary tion s tocus on this important economic rates issue. However, inflation will remain high The of Marriott stock prices by by historical standards. Quarter is ■ Marriott's profits are inflation-hedged and 1981 198q vary directly with the inflation rate, if infla- Quarter tion declines, Marriott's profit increases Ended in High Low High Low should moderate and interest rates will de- March 35 29% 24 16% cline. For these reasons, Marriott has not June 47 33% 21% 17% added non-prepayable, fixed-rate, long-term September 43% 33% 28 20% debt that could present an expensive fixed December 38% 31% 37 27% cost element in the company's capital structure. Real Rate of Return Interest Rates vs. Inflation Rates 50s 60s 70s 80 81 82° Interest rate on 20-year govt, bonds (%) 3.1 4.6 7.6 11.4 13.7 14.6™ Inflation rate (GNP deflator, %) 2.6 2.5 6.5 9.0 9.1 7.5' "January/February 1982 27