from sales of food and beverage, with an annual minimum of $225,000.
The $34 million center at 23rd Street and Lake Michigan is scheduled
to open in November, 1960. Water's edge dining areas will include a
full service dining room seating 650, a self service restaurant with a
capacity of 1,800 persons an hour, and complete banquet facilities for
groups up to 25,000. The contract is for a period of six years subject to
the lessee's right to cancel after three years.
On March 31, 1960, our lease on The Hotel Plaza in New York City
will expire. We continue to hold an option to buy a one-half undivided
interest in the land on which the hotel is situated at the option price of
$400,000, exercisable between October 1, 1965, and March 31, 1966.
Hilton Inn Program
The Hilton Inn program gathered momentum during 1959. The first
Inns to open were at the San Francisco International Airport on June
15, at the New Orleans International Airport on July 1, and at the
El Paso International Airport on January 7, 1960. These structures
represent the initial steps in our expansion into the operation of airport
and roadside hotels.
The increase in air traffic, from 16 million passengers in 1949 to an
estimated 57 million in 1960, is creating a demand for the facilities
of airport inns, and your management believes that in convenience
there is profit. Similarly, the increasing automobile traffic on limited
access superhighways will provide the necessary business for the profitable operation of our roadside inns.
The $3 million, 302-room San Francisco Hilton Inn was constructed
and furnished by Hilton Hotels Corporation on land leased from the
City and County of San Francisco. The 307-room New Orleans Hilton
Inn was leased until 1992, with an option for renewal. This lease is
held by Hilton Inns, Inc. which provided the furnishings.
The 150-room El Paso Hilton Inn was erected by the Corporation
on a site leased from the City of El Paso. Cost of construction and furnishings approximated $1,500,000. Ground is available for an addition of 150 rooms as required.
Each Hilton Inn combines the best features of a resort, private club,
convention center, hotel and fine restaurant. No part of these structures is more than two stories in height. In appearance and operating
techniques, each captures the feeling of intimacy and hospitality that
characterized the wayside inns of the past.
These Hilton Inns are adjacent to the main terminal buildings of the
airports. Station wagons, operated by the Inns, carry travelers to and
from the air terminals. Ample parking space is strategically located
around the outer perimeters of the spacious sites in order to preserve
the garden aspects of the central courtyards.
Private clubs with separate facilities, each including a dining room,
cocktail lounge with orchestra and nightly dancing, and a swimming
pool with lockers, have been organized to operate in connection with
these Inns. Members of the clubs pay a monthly fee, and may use the
facilities for entertaining guests.