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Hilton Hotels, 1962 Annual Report
Image 17
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Hilton Hotels Corporation. Hilton Hotels, 1962 Annual Report - Image 17. 1962. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. August 3, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/120/show/96.

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. (1962). Hilton Hotels, 1962 Annual Report - Image 17. 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/120/show/96

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, 1962 Annual Report - Image 17, 1962, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed August 3, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/120/show/96.

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, 1962 Annual Report
Creator (LCNAF)
  • Hilton Hotels Corporation
Publisher Hilton Hotels Corporation
Date 1962
Description Hilton Hotels Annual Report for calendar year 1962.
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 17
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_015_017.jpg
Transcript December 31, 1962. The Corporation issued 52,115 shares in connection with the merger of Statler Hotels Delaware Corporation into Hilton Hotels. Conversions of 731 shares of 5H% Preferred Stock at the conversion ratio of 1.42 shares of preferred for each share of common stock increased common shares outstanding by 509. As aforementioned, the remaining shares of both issues of preferred stock have been retired. Subsequent to the year end, Hilton Hotels reduced the number of common shares outstanding by acquiring 300,000 shares for the treasury. On December 17, 1962, the Corporation offered to all shareholders the right to tender a maximum of 300,000 shares at not to exceed $29.50 per share. The offer expired on January 24, 1963. Earned surplus at year end amounted to $75,823,541, compared with $65,229,134 at December 31, 1961. The net book value per common share was $30.28 at year end, compared with $27.66 at December 31,1961. Book value reflects the historical cost basis to the Corporation of its assets less accumulated depreciation. As evidenced by the capital gains which have resulted from recent property sales, real estate values have increased substantially since the Corporation was formed in 1946. Thus the book values are undoubtedly understated in relation to present market values of the Corporation's assets. Hilton common stock was well represented in the portfolios of institutional investors at the year end. Approximately 340,000 shares or nearly nine per cent of the total shares outstanding were held by investment trusts, banks, pension funds and other institutions. Institutions also held over ten per cent of Hilton 6% subordinated debentures due in 1984. At December 31, 1962, the Corporation had approximately 12,000 shareholders, compared with 9,500 shareholders one year earlier. FINANCIAL CONDITION: Working capital at December 31 last amounted to $27,280,816, or $7.10 per share of common stock. The ratio of current assets to current liabilities was 1.84 to 1. Working capital was $20,321,641 and the current ratio was 1.68 to 1 at the close of 1961. Cash and short-term commercial notes included in the current assets at December 31, 1962 amounted to $38,335,197 compared with $27,975,218 a year earlier. In June, 1962, working capital was increased by the receipt of $24.4 million in cash from the sale of The Savoy Hilton. The Corporation is continuing management of the hotel under a five-year contract. In 1962, the Beverly Hilton garage was sold and leased back to the same group of private investors who own The Beverly Hilton. The proceeds from this sale amounted to approximately $900,000. The Corporation has the option of repurchasing the garage at the sale price in either 1966 or 1967, to conform to like options on the hotel. In December, $14,000,000 was received from the sale of the Palmer House land. The land was leased back for 30 years with rights to renew for 60 additional years. Fixed assets at year end amounted to $197,208,358. Of the 47 operating hotel and inn properties, the Corporation owned both the land and buildings of 12 properties with a book value of $113,972,027; owned the buildings but leased the land of 10 properties with a value of $45,037,443; had leasehold interests in 17 properties with a value of $14,616,358; and had fixed assets in five non-consolidated properties of $122,473. Three properties were operated under management contracts. The Corporation also has fixed assets in the amount of $16,063,621 representing Hilton Hotels under construction, and other fixed assets, largely consisting of various parcels of land, totaling $7,518,909. As a result of the merger of Statler Hotels Delaware Corporation into Hilton Hotels Corporation, the Corporation acquired ownership of the fees and leaseholds comprising the ten Statler Hilton Hotels. Since 1954 these properties had been leased from Statler Hotels Delaware Corporation. In December, 1961, an offer was made to all stockholders of Statler Hotels Delaware Corporation to purchase their stock at $6.00 per share. The Corporation acquired 1,504,472 shares or 83 per cent of the outstanding Statler stock, at a cost of $9,055,236. Shareholders of both corporations approved a merger agreement at special meetings on July 13. The Statler stockholders, other than Hilton Hotels Corporation, were offered one share of Hilton common stock in exchange for each five shares of Statler common. In April, 1962, Hilton purchased the land and buildings comprising the Atlanta Hilton Inn for $3,100,000. Of the purchase price, $1,500,000 was represented by a first mortgage. This property had been previously operated under a lease. 15