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Marriott Corporation, 1974 Annual Report
Image 27
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Marriott International, Inc.. Marriott Corporation, 1974 Annual Report - Image 27. 1974. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. May 24, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/678/show/664.

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.. (1974). Marriott Corporation, 1974 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/678/show/664

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, 1974 Annual Report - Image 27, 1974, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed May 24, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/678/show/664.

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, 1974 Annual Report
Creator (LCNAF)
  • Marriott International, Inc.
Publisher Marriott International, Inc.
Date 1974
Description Marriott Corporation Annual Report for the 52 weeks ending on July 26, 1974.
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_045_027.jpg
Transcript New Financial Strength, Consistency In Growth Accent Fiscal'74 by Robert E. Koehler Vice President Finance Marriott's financial condition improved measurably in fiscal 1974 as a result of $64 million cash flow from operations (a 22% gain over 1973) and $30 million proceeds from the sale of convertible debentures and notes. These sources provided funds for the company's continued growth and expansion, including the following: 1. A net gain of 118 operating units (a 21% increase). 2. A $4.7 million increase in net working capital (to $14.5 million). 3. An $11.1 million increase in "pipeline" assets for future growth (land purchased for future operations or resale and construction in progress). Total capitalization of $514 million is $58 million greater than last year with a strengthened capital structure: 1974 Amount % 1973 % Long-term debt $251,783,000 49.0% 55.0% Subordinated debt 34,300,000 6.7 1.1 Shareholders' investment 227,739,000 44.3 43.9 Total Capitalization $513,822,000 100.0% 100.0% Long-term debt maturity schedules have been leveled, and no more than $20 million is due in any one of the next three years. Interest expense, net of interest income, was up 21.37o in 1974 after a 31.5% increase in 1973. Almost half the rise in 1974 was due to sharply higher rates while in 1973 the increase was due largely to more debt. Most economists expect interest rates to decline slightly during our next fiscal year, but we are budgeting for an increase in interest expense as our capital investments grow. TOTAL ASSETS HIT $631 MILLION We ended the year with total assets of $631 million. Inflation has increased the dollars required to maintain working capital and to replenish and expand our fixed assets, but at the same time the replacement value of the fixed assets expressed in inflated dollars would be much more than net book value. Capital expenditures in fiscal 1974 were a record $113 million, and we project an increase to $140 to $150 million in fiscal 1975, of which $50 to $60 million will relate to theme park development. Although 1976 is a long way off, current indications are that capital expenditures will fall off considerably as the first two "Great America" theme parks are completed and our hotel expansion shifts away from owned properties to more management fee contracts. IMPROVING CASH FLOW PROJECTED Our projections indicate our growth program will continue to be financed from expanding cash flow plus regular sources of long-term mortgage debt. Next year we anticipate continued growth of cash flow and a net increase of $70 million in fixed rate mortgage debt, over half of which is already committed. Over the last four years, cash flow from operations has more than doubled. At the same time long term debt has increased less than two times. GROWTH CONTINUING DESPITE PROBLEMS The costs of unexpected problems resulting from external forces such as record high interest rates, the energy crisis, double-digit inflation, etc. . . . the costs for pre-opening, startup and development of new facilities . . . and our investment in the pipeline for future growth have restrained profit margins and returns on shareholders' equity, and have masked to some degree the true operating performance which is very good and which we carefully measure and control. Marriott's consistent growth record, which now spans 45 consecutive fiscal quarters, has been achieved in spite of these difficulties. In fiscal 1975 we will continue to give our attention to our growth performance and the strength of our balance sheet. 25