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Marriott Corporation, 1983 Annual Report
Image 27
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Marriott International, Inc.. Marriott Corporation, 1983 Annual Report - Image 27. 1983. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. October 24, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/303/show/281.

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 27. 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/281

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 27, 1983, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed October 24, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/303/show/281.

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 27
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_055_027.jpg
Transcript DEVELOPING NEW BUSINESSES Marriott is a quality-oriented growth company. For the last 20 years, our earnings growth has averaged 20% a year. Over the last five years, sales have grown from $1.5 billion to $3 billion, and earnings have compounded at 24% while maintaining a 20% return on equity. This was accomplished despite one of the most severe and prolonged business recessions in 40 years. The company consistently has performed among the top 20% of the Standard & Poor's 500 in both returns and growth. Commitment to Growth Marriott's strong financial performance results from a tightly focused, conservative, long-term growth strategy. We enter only closely related businesses which utilize our marketing, operating and financial skills, and whose economics we understand well. We tightly manage these businesses, emphasizing unit-level performance. Marriott is not a holding company managing only through financial controls. It is a series of interlocking operating units which stresses hands-on management. Marriott adjusts the expansion rate of its businesses according to their current performance and long-term prospects. For example, in the mid-1970s, we greatly stepped up hotel expansion—investing substantial corporate energies to develop hotel management and real estate expertise to accomplish this objective. In another recent case, we were faced with declining customer counts in Eastern markets for Big Boy family restaurants. We suspended expansion until new programs for menus, marketing and operations could be implemented. Expansion of that division was resumed in 1983, after strong increases in customer counts and operating profits. The risks we take in developing new businesses are mitigated somewhat because most of our investment is in readily marketable real estate assets whose appreciation potential does not depend entirely on the particular business being developed. This is true for hotels and restaurants, and recently was demonstrated in theme parks in a transaction involving the sale of our Santa Clara park for substantial profit. We look for businesses which offer meaningful long- term profit growth potential, and generally dispose of those which do not. We sold a security division (1976), a travel agency and some dinner houses (1979), and Farrell's Ice Cream Parlours (1982)—all at relatively early stages of development (and all at a profit). We currently are developing new business opportunities which can each contribute a minimum of 50 cents to $1.00 in earnings per share when fully established. Historically, we have evolved into related business lines. During the 1950s and 1960s, we entered the lodging business, acquired Big Boy restaurants, developed Roy Rogers, and began international expansion. Today, these businesses account for two-thirds of Marriott's operating income. During the 1970s, we focused resources primarily on expansion of the Hotel Group. We have developed and financed over $4 billion in hotels since 1970. By 1980, management began to direct increasing attention to the internal development of new businesses to sustain Marriott's growth through the 1990s. Our corporate planning and market research departments, formed during the late 1970s, began to shift their attention to new business opportunities. The most obvious areas for development were related to Marriott's lodging skills. The project to launch a new moderately priced hotel was begun in 1980. Development of Courtyard This effort resulted in the development of Courtyard hotels. Early results from units operating in Atlanta are promising. Marriott will decide later this year whether to expand the concept. Courtyard is an example of a deliberate, research- based process to develop a new service business. The process involves controlled risks, and is similar to the approach packaged goods companies take when test marketing new products. The business of innovation is considerably different than the operation of established businesses, so we decided to organize differently for new product development. In late 1980, we carefully selected a small team for hotel product development. They had no other responsibilities and had access to all corporate resources. The team studied all aspects of the U.S. lodging industry, from the $25-a-night budget category to the luxury market. It focused on the large, moderately priced segment. Analysis confirmed the long-term vitality of business and pleasure travel demand within that segment. 25