The Chairman and President Report to Shareholders
J.W. MARRIOTT, JR.
Marriott Corporation became a
half-a-billion dollar company and
set new earnings records in fiscal
Earnings per share are up another 20 percent, to 72 cents from
60 cents a year ago. Net income
jumped 22 percent to $21,640,000
from the $17,734,000 of last year.
Sales hit $538,193,000, a 27 percent bulge over 1972's total of
This year much of our nation's
food supply picture changed drastically, and strict government controls were imposed. With the sale
of food so much a part of our busi-
ness, it was a difficult challenge
achieving these good results.
In the past we have experienced
continual increases in costs of
wages, interest, real estate taxes
and utilities, but we have not seen
anything like the recent food-cost
situation. Prices at the farm level
floated freely all year, and in January our bills for purchased food
began to spiral upward markedly.
It is a tribute to our strong management and employee teams at
all levels of the organization that
we were able to continue our historic growth trend.
All three of our operating
groups—Hotels, Restaurant Operations, and In-Flite Services—
produced increases in sales and
restaurant operations tightened up internally, set new volume
marks in all its major divisions
and produced our largest earnings
hotels had the biggest sales
gains and enjoyed record occupancy rates. The Group's Sun Line
cruise ships and Camelback Inn
condominium program also made
in-flite services suffered from
disappointing growth in U.S. air
line traffic and certain expansion
costs but continued to turn in
good results both at home and
* * *
Again in 1973, we continued to
expand in new units, new markets,
and new businesses in away-from-
home services. We now operate
570 facilities of various types in
35 states and 14 foreign countries. In addition, our franchisees
operate almost 800 units.
Growth also means jobs—4,600
more in fiscal 1973 alone. We now
have almost 39,000 employees.
This is a 100 per cent increase
over five years ago.
Diversity, we believe, is one of
our great strengths. Entering the
1970's we re-cast our strategic
plan to broaden our base in
leisure-time services. Our ambitious program now encompasses
cruise ships, group travel, resort
condominiums, and family entertainment centers—three "Marriott's Great America" theme parks
to open across the United States
starting in the mid-1970's. We
have carefully structured ourselves
uniquely within the travel, tourism
and leisure-time field. We will do
only what we know best.
* * *
Although there are major challenges to be met in the economy
in the year ahead, we are confident that the demand for quality
food, lodging and leisure-time activities will continue to grow rapidly, and we expect a good 1974.
Chairman of the Board
J.W. Marriott, J r.
September 28, 1973