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Hilton Hotels, 1957 Annual Report
Image 27
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Hilton Hotels Corporation. Hilton Hotels, 1957 Annual Report - Image 27. 1957. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. August 12, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/1056/show/1050.

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.

Hilton Hotels Corporation. (1957). Hilton Hotels, 1957 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/1056/show/1050

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.

Hilton Hotels Corporation, Hilton Hotels, 1957 Annual Report - Image 27, 1957, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed August 12, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/1056/show/1050.

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 Hilton Hotels, 1957 Annual Report
Creator (LCNAF)
  • Hilton Hotels Corporation
Publisher Hilton Hotels Corporation
Date 1957
Description Hilton Hotels Annual Report for calendar year 1957.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Hilton Hotels Corporation
Genre (AAT)
  • annual reports
  • business records
Language English
Type (DCMI)
  • Text
  • Image
Original Item Location Conrad N. Hilton Papers
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_010_027.jpg
Transcript 7—CAPITAL STOCK The 5% Cumulative First Preferred, Series "A" shares are subject to redemption, without premium, out of sinking fund payments, made on or before January 1st in each year in an amount sufficient to redeem 2% of the maximum number of such shares theretofore issued and outstanding. The Company has complied with this sinking fund provision. The S}/2% Series "A" shares were issued during 1957 in connection with an exchange of shares with stockholders of a now majority-owned subsidiary. These shares will be convertible, at the option of the holders, at any time after January 1, 1960, into common shares of the Company at the rate of one share of common for each one and one-half shares of this Series, and, at the option of the Company, such Series "A" shares will be redeemable at not exceeding $26.25 plus accrued dividend on and after January 1, 1961 to the date fixed for redemption. 8—COMMITMENTS AND CONTINGENT LIABILITIES Contract commitments in connection with new hotel construction approximated $11,470,000 at December 31, 1957. The Company has subscribed for and agreed to purchase from its wholly-owned subsidiary Hilton Hotels International, Inc. at par, $2,000,000 aggregate principal amount of 5% subordinated (sinking fund) debentures and 400,000 shares of $5.00 par value common stock to be issued from time to time at the option of the subsidiary. The commitment is irrevocable for a period of four years from November 27, 1956, but shall expire prior thereto if and when such securities in these amounts have been purchased by the Company. As at December 31, 1957, Hilton Hotels Corporation, in connection with the subscription commitment, had purchased 180,000 shares of common stock for $900,000 and in January and February, 1958 purchased an additional 140,000 common shares for $700,000. During 1957 the Company, in connection with a lease and the construction of a hotel in Pittsburgh, Pennsylvania, entered into an Indenture of Mortgage and Deed of Trust pertaining to a $12,000,000 issue of Leasehold Mortgage 4-4^% Sinking Fund Bonds due June 1, 1987. The company had not issued any bonds nor drawn down any of the funds available under the mortgage at December 31, 1957. The Company has not received a release from mortgagees under two first mortgages totaling approximately $10,000,000 which mortgages were assumed by buyers of properties who also agreed to hold the Company harmless against any liability thereon. The Company is guarantor under a long-term note payable of a wholly-owned subsidiary amounting to $400,000 at December 31, 1957. Reference is made to Note 2 concerning a $13,000,000 bank loan commitment. 9—LONG-TERM LEASES The Company and its subsidiaries operate or will operate certain properties under leases ranging from two years and three months to thirty-two years, from December 31* 1957, with option to renew for various periods in some instances. The total minimum annual fixed or basic rentals payable (exclusive of real estate taxes, insurance and other occupancy charges) under such leases for each of the next five years ending December 31, follows: 1958, $11,296,000; 1959, $11,096,000; 1960, $9,925,200; 1961, $9,288,800; and 1962, $8,888,800. The wholly-owned subsidiary, Hilton Hotels International, Inc. has entered into leases and preliminary leases, contracts or undertakings ranging from ten to twenty years, subject to certain conditions, for the operation of hotels under construction or to be constructed in sixteen cities outside the continental United States. In general, "International" or its subsidiaries is required to furnish initial inventories and to maintain sufficient working capital, except in the case of one lease, which specifies that not less than $250,000 shall be furnished for these purposes, to be maintained for the first five years of the lease. The terms of the leases commence either on actual occupancy or within ten days of receipt of architect's certificate of occupancy. The leases basically provide for a rental based on a percentage of gross operating profit, with certain specific rental obligations. IO—LIMITATIONS AND RESTRICTIONS Under the most restrictive covenants of certain indentures relating to long-term debt as of December 31, 1957, the Company and certain subsidiaries on a consolidated basis was (a) required to maintain working capital of $7,000,000 and a ratio of current assets to current liabilities of 148%; (b) prohibited from declaring dividends or distributions on its capital stock unless the sum of $2,500,000 and 60% of the consolidated net income (as defined) shall be greater than the aggregate of all such dividends and distributions. The maximum amount of earned surplus so restricted was $44,821,756 at December 31, 1957. The wholly-owned subsidiary, Hotel Waldorf-Astoria Corporation, is restricted under the terms of a certain note payable, from payment of cash dividends without the written consent of the holder and/or holders, if any, of at least two-thirds of the principal amount of the note outstanding which at December 31, 1957 was $400,000. Earnings so restricted at December 31, 1957 amounted to $4,100,000. The wholly-owned subsidiary, Hilton Hotels International, Inc., is restricted under the terms of a note payable amounting to $296,712 at December 31, 1957 from lending money to the parent or any affiliates, except wholly-owned subsidiaries, purchasing, redeeming, or retiring any of its outstanding capital stock, or paying any dividends in cash or property except after (1) payment in full of all installments of principal and interest on the note ($50,000 principal per annum), (2) full compliance with other provisions aforementioned, in which event dividends payable in cash or property shall be limited to the aggregate of the amount of payments made in such year on the note. 25