about equally in the overall 19% sales gain.
IN-FLITE SERVICES had the greatest rate of
earnings improvement over the year before.
With traffic in the United States up for most
of the year, and new internal efficiencies, domestic results were good. So were results in
South America. Only Europe declined.
RESTAURANT OPERATIONS also had excellent earnings progress, especially in our popular new dinner houses and Farrell's Ice Cream
Parlour Restaurants, in fast-expanding Roy
Rogers Family Restaurants and Big Boy coffee
shops, and in Business Food Service. Of our
major divisions, only Service Restaurants and
Tollroads were off from last year.
HOTELS as a group had only a moderate
increase over the year before. But losses in
the Sun Line and World Travel Divisions obscured the outstanding performance of the
Marriott Hotels themselves, and of our new
Your company now has 688 operations
spread across 34 states and 15 foreign countries. We serve 600,000 people every day in our
restaurants, at our hotels, on airlines from our
flight kitchens, and on Sun Line cruise ships.
This is solid footing as we move into the
second half of the 70's—a period when travel
and leisure time patterns may be changing
somewhat under the pressures of inflation.
Meeting A Trend In Resorts
We have no doubt that the desire for travel
and "escape" is as strong as ever. And as travel
costs rise and inflation reduces disposable
income, we can expect an increase in business for Western Hemisphere resorts and in
mini-vacations closer to home. Marriott is well-
positioned to benefit from this trend.
Our North American-Caribbean resort hotel
expansion moved forward rapidly this last
year with contracts to manage two large and
magnificent resort facilities for Sea Pines Company—one at Amelia Island in Florida and the
other at Palmas del'Mar in Puerto Rico. We
started plans for a 150-room expansion at Sam
Lord's Castle in Barbados. A management fee
on a second Acapulco hotel was consummated.
We began construction of 74 additional rooms
at world-famous Camelback Inn in Arizona.
In fiscal 1975 we will open our new Lincolnshire resort-sports complex, the closest resort
hotel to downtown Chicago and O'Hare Airport. It has been specifically designed to appeal to the two-to-three night mini-vacation
market with short driving time. Our Newport
Beach, California, resort hotel will open this
fiscal year with complete resort amenities de-
J. Willard Marriott
J.W. Marriott Jr.
veloped on a beautiful site overlooking the
Pacific Ocean. And our third Acapulco hotel
will open under management contract.
It should also be emphasized that Marriott,
for several years, has been developing "escape weekend" business in all hotels. We have,
or soon will have, indoor swimming pools and
recreation centers in most properties above the
year-round warm climate zone.
Our In-Flite operations have been developed
through the years with a heavy focus on
growth in leisure travel. We have kitchens at
most warm weather resorts serving the U.S.
domestic market, including Miami (three kitchens), Ft. Lauderdale, Tampa, Barbados, San
Juan, St. Croix, Honolulu, Mexico City, Acapulco, Los Angeles, and Las Vegas. We serve
the growing ski market in Salt Lake City, and
soon will be in Denver.
Our Theme Parks under construction in
Santa Clara, California, and near Chicago—
and planned for the Washington, D.C. area—
are specifically designed to appeal to the local
family vacation market requiring less than a
one hour drive from home. In the spring of 1976
the first two parks will open, and a major new
business for your company will be launched.
Serving New Demands In Dining Out
As the tendency to stay close to home develops, we are finding that dining out takes on
new meaning for leisure-conscious people.
There is a particularly strong desire for the
different and unusual in restaurants. We are
experiencing excellent demand for our dinner
houses and will double this division in 1975.
We also are seeing greater customer appreciation of the entertainment value of Farrell's
Ice Cream Parlour Restaurants. This division
will expand by almost 50% in 1975, making it
one of our fastest growing divisions. In addition, the public is recognizing the uniqueness