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Marriott Corporation, 1979 Annual Report
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Marriott International, Inc.. Marriott Corporation, 1979 Annual Report - Image 19. 1979. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. June 3, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/637/show/617.

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 19. 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/617

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 19, 1979, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed June 3, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/637/show/617.

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 19
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_051_019.jpg
Transcript Capital Productivity Up Sharply Again in 1979; More Records Set in Earnings, Cash Flow, Interest Coverage In 1979 Marriott Corporation continued to meet its financial goals of improving capital productivity and maintaining 20% annual profit growth. Cash flow from operations also continued its historical growth, and interest coverage substantially exceeded target. • Net income grew 31% to $71 million, bringing the 10-year earnings growth rate to 22% annually. • Earnings per share rose 36% to $1.95. • Return on average equity and average capital increased to 17% and 18% from 14% and 15%, respectively. • Cash flow from operations increased 16% to $141 million. e Interest coverage reached a decade high of seven times. • Capital expenditures and acquisitions increased 14%to $159 million. • The company repurchased five million shares of stock. • The cash dividend increased. Financial Returns Improve In 1975 return on capital bottomed out at an unacceptable 9 %—and management announced that improving financial returns would be the principal objective for the remainder of the decade. Programs designed to eliminate underproductive assets, to reduce the capital intensity of Marriott's hotel business, and to increase the return requirements for new investment were announced and implemented. Return on capital has doubled since 1975 to 18% and is expected to exceed 20% in the early 1980s. Return on equity (ROE) rose from 9.5% in 1975 to 17% in 1979-well Capital Productivity Ratios Cash Flow-30 Years (In SMillions) above the 15% goal originally targeted for 1982. The goal was re-set in 1978 to reach 20% by 1983. The company is well ahead of schedule again and should achieve 20% ROE in 1980. It should be noted that in 1979 the company converted to measuring capital productivity based on "average" capital and equity which is more conservative and comparable with other companies. Growth Capacity Enhanced As a major benefit of the program to increase capital productivity, Marriott significantly improved its posture for growth in the 1980s. In 1979 dispositions, including the profitable sale of dinner houses and the travel division, totaled about $26 million. This brings the four-year divestiture total to $92 million. The program has simplified Marriott's businesses in addition to freeing substantial capital for more productive investment. The process of reducing the capital intensity of Marriott's hotel business 150 NON-CASH CHARGES '51 '55 '59 '63 '67 '71 75 79 has resulted in the establishment of significant financial relationships. Investors presently own more than 12,000 Marriott-operated hotel rooms —or 60% of the total. They have signed contracts for 6,700 additional rooms to be developed over the next three years. All investor-owned hotels are performing profitably—many at levels substantially above original expectations. A major proportion of these rooms is owned by large life insurance companies which represent substantial sources of expansion capital for Marriott Hotels in the 1980s. Cash Flow Maintains Growth Marriott's cash flow from operations continues to grow and is both stable and predictable due to the nature of the company's assets and businesses. The 1979 increase to $141 million extends the record of uninterrupted cash flow growth to more than 30 17