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Marriott Corporation, 1975 Annual Report
Image 24
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Marriott International, Inc.. Marriott Corporation, 1975 Annual Report - Image 24. 1975. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. October 20, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1560/show/1543.

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.. (1975). Marriott Corporation, 1975 Annual Report - Image 24. 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/1560/show/1543

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, 1975 Annual Report - Image 24, 1975, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed October 20, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1560/show/1543.

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, 1975 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1975
Description Marriott Corporation Annual Report for the 52 weeks ending on July 25, 1975.
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 24
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_046_024.jpg
Transcript Financial Review—Fiscal 1975 ROBERT E. K0EHLER Senior Vice President, Finance Marriott Corporation significantly expanded its asset base in fiscal 1975 with a 19.6% increase in working capital and fixed assets, including construction in progress (see table this page). The expansion program in 1975 produced a net gain of 86 profit centers. This will provide a strong platform for future growth and broad-based profitability. Operating units totaled 774 at year-end, a net gain of 13%. Financing commitments have been secured for needs through fiscal 1977. With increasing cash flow and declining capital expenditures, coverage of capital programs entirely from internal funds will occur in 1977. Cash requirements for intermediate- term debt amortization are minimal as a result of an improved debt maturity schedule. Aggressive programs are being implemented to improve return on investment. 22 FINANCIAL COMMITMENTS NEGOTIATED Marriott financed its $159 million 1975 capital expenditure program through $70 million in cash flow from operations, $65 million in long- and intermediate-term debt, principally mortgage financing, and the $24 million sale and lease/management agreement for the Lincolnshire (111.) Hotel completed after year-end. The capital expenditure program budgeted for 1976 is $140 million. Financing will derive principally from the projected '76 operating cash flow of $90 million, supplemented by recently committed long-term mortgages and intermediate- term bank commitments. Non-theme park capital expenditures plateaued in 1974 and 1975, and in 1976 will decline to a projected $85 million —less than the expected cash flow from 1976 operations. In 1977, with completion of the two theme parks, total capital expenditures under current plans will decline to a level financeable through internally generated funds. To provide maximum flexibility in the face of uncertain capital markets, Marriott has secured sufficient financial commitments to meet all of its external financing requirements through fiscal 1977. Although Marriott's debt ratios increased as expected in 1975 due to the major hotel and theme park expenditures, the company significantly improved its debt maturity schedule with heavy emphasis on 20- to 30-year long-term mortgage financing: Five-Year Debt Maturity Schedule (In Thousands) Year 1975 $11,424 14,727 14,052 20,280 23,922 $84,405 1974 $ 12,842 18,712 14,747 27,697 27,190 $101,188 Cash requirements for debt amortization in the intermediate term are minimal; and for the entire five-year period ending in fiscal 1980, cash requirements are less than the cash flow from operations projected for fiscal 1976 alone. This demonstrates Marriott's strength as a "cash flow" company. While the debt-to-total capitalization ratio is expected to remain at its present level through fiscal 1976 to provide for completion of the California and Illinois theme parks, debt WORKING CAPITAL AND FIXED ASSETS % 1975 1974 Increase Increase Working capital $ 15,425,000 $ 14,518,000 $ 907,000 6.2 Fixed assets— Used in operations 447,373,000 383,777,000 63,596,000 16.6 Purchased for future operations or resale 33,262,000 26,900,000 6,362,000 23.7 Construction in progress 98,044,000 71,810,000 26,234,000 36.5 Other assets 57,905,000 47,979,000 9,926,000 20.7 Total $652,009,000 $544,984,000 $107,025,000 19.6%