suburban Atlanta and in Santa Clara, California
adjacent to "Marriott's Great America." Also, the
world-famous Biltmore Hotel in Santa Barbara,
California was acquired. We assumed management responsibility for existing hotels in Springfield, Massachusetts and Tucson, Arizona.
In their first full year of operation, the four U.S.
properties opened in 1975 improved profits by
more than $1.5 million after pre-opening costs.
The Denver Hotel has surpassed expectations, and
our Lincolnshire (111.) complex has established
itself as a top resort/convention hotel in the
Chicagoland market. Operations in Kansas City
and Newport Beach have shown steady occupancy
gains and should be good contributors in '77.
In fiscal 1976, development costs included a
write-off of $500,000 for discontinued projects.
This was the second year in a row we have
incurred write-offs of that magnitude — all as a
part of our ROI improvement program.
Early in the new year, the company's management contract at Amelia Island, Florida was
terminated. But we will add 1,000 new rooms in '77
including two new 300-room Marriott-managed
hotels in Stamford, Connecticut and Houston.
Construction of a new Marriott hotel, to be
a managed property, is proceeding in downtown
Chicago. Financing arrangements for this
1,214-room hotel on North Michigan Avenue
were completed at fiscal year-end. The hotel
will open early in fiscal 1979.
Construction will begin in 1977 on a 430-
room addition to the New Orleans Marriott
and on a 300-room hotel in Bethesda,
Maryland. Both projects are scheduled
for completion in late fiscal 1978.
Marriott hotels outside the United
States had mixed performances in
'76. Good results at Amsterdam
were offset by profit declines at
our properties in Mexico, where
tourism softened due to a substantial reduction in travelers
from the U.S. and Canada.
In the fall of 1976, results at Sam Lord's Castle
in Barbados should improve with the opening of
144 new rooms.
We are pleased with
the continued customer
acceptance of our 48
Marriott hotels, resorts,
and franchised Inns. Hotel
72 73 74 75 76
S120 S162 S190 >217 »270
GROUP SALES (in millions)
development represents a significant opportunity
for further growth. We are actively seeking new
management opportunities, sites and possible
hotel acquisitions that meet our marketing goals
and stringent requirements for high return on
investment. Nevada, a strong hotel and tourism
market, is among states under consideration. A
serious study of this and other markets and their
potential impact on us was underway as '77 began.
Franchised Marriott Inns turned in another substantial improvement in '76. The 13th Inn, with
244 rooms, was added in Providence bringing the
total number of franchised rooms to 3,085. In
fiscal '77, the Pittsburgh Inn will add 230 rooms
to become the system's largest franchised property.
Early in the following year, two new Inns will
open in Syracuse and near Cleveland.
Condominium sales and profits declined in fiscal
'76 as available inventory was virtually sold
out at famous Camelback Inn in Arizona and
because of disappointing sales at New York's
The Camelback program was successfully
completed with the sale of 96 units (versus 100
the previous year). Also, contracts have been
written for 5 additional units now under construction. In all, 407 units will have been sold.
Marriott continues to manage these 5-Star
Six condominium units (14 rooms) were sold
at the Essex Towers on Central Park South during
the second year of this program. Sales to corporate
buyers did not materialize as anticipated although
marketing efforts had been stepped up in '76.
Costs will be trimmed in '77, but sales and leasing
opportunities will continue to be explored.
Marriott World Travel was profitable in each
quarter of fiscal '76 and ended the year solidly
in the black after breaking even last year. The
travel bureau, based in Washington, provides a service to corporate and individual
travelers, and facilitates arranging group
trips to Marriott properties through
74 75 76
10,187 13,393 14,510
NUMBER OF ROOMS