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Marriott Corporation, 1979 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1979 Annual Report - Image 4. 1979. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. July 10, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/637/show/602.

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.. (1979). Marriott Corporation, 1979 Annual Report - Image 4. 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/637/show/602

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, 1979 Annual Report - Image 4, 1979, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed July 10, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/637/show/602.

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, 1979 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1979
Description Marriott Corporation Annual Report for calendar year 1979.
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 4
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_051_004.jpg
Transcript Profits, Return on Equity Jump Again Under New Marriott Strategic Plan; Growth Exceeds 20% for 10 Years That shift in strategy we adopted five years ago continues to prove itself, as we close the 1970s with another excellent year—and open the '80s with great momentum. Operating under a new corporate strategy since the mid-'70s, we now have produced four successive years of substantial improvement: • Profits have almost tripled in the four years since 1975, accelerating our growth rate to 31% for the period and 22% for 10 years. • Return on equity has jumped to 17% from the 1975 low of 9.5%. • Net profit margin is up over 50% since 1975. In 1979 alone, net income rose 31% to $71 million. Earnings per share increased 36% to $1.95. Sales were up 21% to $1.5 billion. Return on equity rose more than three percentage points. New hotels—both those opened and those under development—set a record. Special pro- Sales Net Income grams in management development were strengthened. Our strategy since 1975 has focused on four broad areas: 1. Priority Businesses With 13 separate businesses, diversification has always been our strength. But five of them provide over 80% of total sales and earnings: Marriott Hotels now contribute half the profits of the company. The Marriott Hotel name is at the top of the lodging industry. Customer acceptance multiplies as we expand rapidly, and operating profits have increased almost threefold in five years—and 30% in 1979 alone. Shareholders can expect hotels to be the company's primary growth vehicle of the future. Our strategy provides for 20% to 25% annual increases in the number of rooms through the mid-'80s. That will put Earnings Per Share '75 76 77 78 79 $776 $947 $1,090 $1.250 $1,510 (In Millions) 75 76 77 78 79 $24.1 $31.9 $39.1 $54.3 $71.0 (In Millions) 75 76 77 78 79 $.69 $.86 $1.04 $1.43 $1 95 us over 50,000 rooms-vs. 13,000 when our mid-'70s strategy began. Marriott In-Flite is the leading independent food caterer to the world's airlines. This division will have steady opportunities in the 1980s for new business. But our primary focus will be on improving operating margins. With a solid position in the world's most vital form of transportation, In-Flite will give us a firm base of profits long term. Big Boy and Roy Rogers are strong restaurant concepts. While the industry weakened some in 1979, the coffee-shop and fast-food market segments have bright futures. Our Big Boys and Roy Rogers will show good unit expansion in the 1980s. Great America theme parks near Chicago and San Francisco have been the entertainment successes we anticipated. And now, in their fourth year, profitability also matched expectations. We can see more contributions in the future from this business. Our other restaurant divisions and Food Service Management operations continue to do well in their markets. Sun Line's cruise ships are unequaled for Mediterranean and Caribbean luxury cruises. We will continue to stress operating efficiencies and cash flows for these operations. 2. Financial Condition We have made excellent progress in improving return on equity (ROE), through an aggressive program to turn around unprofitable operations ... sell owned hotels to reduce debt, while keeping operational control under management agreements... pursue new operating contracts for • an even faster rate of hotel growth without over-loading the balance sheet... eliminate over $90 million of idle or marginally profitable assets. We also felt it would be a good use of company funds to buy back shares