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Marriott Corporation, 1983 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1983 Annual Report - Image 23. 1983. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. May 30, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/303/show/277.

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.. (1983). Marriott Corporation, 1983 Annual Report - Image 23. 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/303/show/277

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, 1983 Annual Report - Image 23, 1983, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed May 30, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/303/show/277.

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, 1983 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1983
Description Marriott Corporation Annual Report for calendar year 1983.
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 23
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_055_023.jpg
Transcript FINANCIAL REVIEW Marriott Corporation continued to meet its principal goal of maintaining 20% average annual earnings per share (EPS) growth and high capital productivity. □ EPS grew 21% to $4.15, producing a five-year compound annual growth rate of 24%. □ Discretionary Cash Flow increased 26% to $8.85 per share. □ Return on Shareholders' Equity (ROE) was 20%. Earnings and ROE performance maintain Marriott among the top 20% of Standard & Poor's 500 firms. Comparisons of Marriott's performance to the S&P indices are shown in the charts on page 20. Profit Growth Continues Sales and operating income increased 19% and 14%, respectively, reflecting overall improvement in all major lines of business, primarily as a result of sales gains from unit growth and increased customers. Hotel sales rose 21%, driven by an additional 5,600 rooms, a three percentage point improvement in comparable unit occupancy rates and room rate increases that kept pace with inflation. Operating income increased a disproportionate 12%, excluding gains on asset sales and reduced operating income from five hotels transferred to a syndication in 1982, principally because most new hotels are managed rather than owned. The new hotels did not contribute significantly to profits because a new property normally requires a year or more to fully establish itself in the marketplace. Marriott reports total sales of managed hotels yet earns only management fees. The owner's share of operating income, which must cover capital cost, is recorded as an operating expense. Thus, an increasing element of ownership capital cost is present in Marriott's operating expenses. Capital cost for owned hotels is reflected as "interest expense," not operating expense. Contract food services sales increased 16% and operating income rose 30%, excluding the 1982 write-off of airline receivables. Increased airline passenger traffic was reflected in the significantly higher profits for both airline catering and airport terminal restaurant operations. Food service management profits also improved over the prior year. Restaurant sales and operating income increased 24% and 27%, respectively, fueled primarily by 66 new Roy Rogers units and improved customer counts and average checks in all divisions, while food costs remained stable. Operating income gains were particularly strong in Roy Rogers, Bob's Big Boy and Host specialty restaurant operations. Theme park sales were 5% above 1982. Excluding the 1982 gain on the sale of excess land at one park, operating income for 1983 was up substantially. Attendance rose 9%, aided by lower admission prices, aggressive promotion and a major new ride at both parks. Net income increased 22% because of improved operating income and reduced interest costs offset by a higher effective 1983 tax rate. Interest expense declined 17%, primarily due to lower interest rates and the effects of Potomac Hotel Limited Partnership (PHLP) which publicly syndicated 11 hotels costing $365 million, thus eliminating a major capital investment. Discretionary Cash Flow per share increased 26% to $8.85, as reflected in the Current Value Statement. Discretionary Cash Flow represents the company's economic profit. It reports Funds Provided from Operations less actual capital expenditures (rather than accounting depreciation) required to maintain the competitive position of existing fixed assets. The table below shows that Discretionary Cash Flow has averaged over 90% higher than accounting earnings since 1979. A major contribution to 1982 and 1983 cash flow was $29 million from Marriott's allocation for these years of tax benefits from PHLP. Discretionary Cash Flow vs. Net Income ($ in millions) Year Cash Flow Net Income 1983 $246 $115 1982 192 94 1981 157 86 1980 125 72 1979 118 71 21