domestic hotel industry's room occupancy rate declined to 61 per cent in 1962 from 62 per cent in
1961. Hilton Hotels' average occupancy for domestic
units, faring slightly better than the industry average, was 61.6 per cent, a decrease from 63.8 per cent
the year before. While new modern hotel and motel
accommodations are still needed in thriving communities, the existence of older sub-marginal buildings will have a depressing effect on occupany rates
until they are abandoned.
At December 31, 1962, the Corporation had 47
hotels and inns in operation around the world with
a total of 31,236 hotel rooms.
Consolidated profits for the year ended December
31, 1962 aggregated $17,664,529, equal, after preferred dividends, to $4.54 a share on the 3,843,612
common shares outstanding at year end, or to $4.92
a share on the shares outstanding at January 31,
1963. Through an offer to the Corporation's shareholders, the outstanding shares were reduced in
January, 1963 by the purchase for the corporate
treasury of 300,000 shares. Consolidated earnings
for 1961 were $13,539,701, equal after preferred
dividends to $3.43 a share on the 3,790,988 shares
Earnings from operations for the year 1962
amounted to $5,732,157, or $1.55 a share, based on
the 3,543,612 shares outstanding after giving effect
to the tenders of stock, or $1.43 a share, based on the
shares outstanding at year end, compared with
$6,362,279, or $1.54 a share for 1961.
Of the 1962 earnings from operations, domestic
operations accounted for 73.1 per cent and
International operations for 26.9 per cent. The
ratio in 1961 was 81.9 per cent domestic and 18.1
per cent International.
Several factors contributed to the stability of the
1962 operating income. More profits were received
from non-consolidated over-seas units and the simplification of the Corporation's capital structure
permitted a larger share of profits to become applicable to the common shares.The change in status of
the ten Statler Hilton hotels as a result of the merger
with Statler Hotels Delaware Corporation, had,
however, only a minor effect on operating earnings.
The decrease in lease rentals was approximately
offset by increases in interest and depreciation on
1953 1954 1955 1956 1957 1958 1959 1960 1961 1962