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Marriott Corporation, 1983 Annual Report
Image 25
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Marriott International, Inc.. Marriott Corporation, 1983 Annual Report - Image 25. 1983. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. August 5, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/303/show/279.

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 25. 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/279

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 25, 1983, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed August 5, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/303/show/279.

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 25
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_055_025.jpg
Transcript Marriott's policy of avoiding new commitments of non-prepayable, fixed-rate, long-term debt since 1980 has served the company well. Rather than speculate on fixed interest rates at relatively high levels, the company has matched capital costs with cash flows, thus minimizing capital cost and risk. The company expects to increase the proportion of fixed-rate debt in its capital structure when appropriate. Debt maturity will remain well within Marriott's conservative policy limits, which require that total debt amortizing in the subsequent five-year period not exceed Funds Provided from Operations of the prior year. The company has met this policy constraint by wide margins since 1979, as shown below. Debt Maturity Schedule ($ in millions) Year 1983 1982 1981 1980 1979 1 2 3 4 5 Total Funds Provided from Operations $ 25 36 43 50 62 $216 23 28 36 42 $177 $ 16 17 22 40 43 $138 $ 9 18 18 34 38 $117 $ 9 18 24 27 35 $113 $294 $231 $187 $150 $141 Marriott has no requirement for positive working capital, since it principally sells services (rather than goods) for cash. Therefore, the company maintains relatively low receivable and cash balances. Negative working capital is a source of interest-free financing. As a result of a company- instituted program to aggressively reduce current asset investment, Marriott increased its negative working capital to $93 million at year-end 1983. Dividends and Stock Price Increase In December 1983, the Board of Directors increased the cash dividend 22% to 44 cents annually. This is consistent with Marriott's goal to increase dividends with planned long-term earnings growth. The company has a good record of reinvesting cash flow in growth businesses at high returns. Marriott will continue this investment strategy to support planned profit growth averaging 20% annually through the late 1980s. If management is successful, shareholders should continue to profit through share appreciation taxed at advantageous capital gains rates, rather than through higher dividends taxed at ordinary rates. The range of Marriott stock prices by quarter was: 1983 1982 Quarter Ended in High Low High Low March June September December 63% 78% 81 771/4 501/4 58% 72% 39 33 4014 33y4 5014 32 61% 44% Marriott's stock price has increased over five-fold during the past five years to a total market value of nearly $2 billion. We believe this has occurred because: □ The company has maintained high real earnings growth and high capital productivity in a difficult economic environment. □ Marriott's aggressive unit expansion program has a high probability of continued success, considering units presently under construction or development. □ The investment community has a favorable market outlook for hotels—the company's principal business— in which Marriott's market share is rapidly growing. 23