Convertible Preference Stock
Shares Outstanding ....
Shares Outstanding ....
Book value per
stock after de-
value of Convertible Preference Stock . . .
Since December 31, 1948 funded and long
term indebtedness has been reduced $975,000,
due to the sale of the Palm Beach Biltmore.
Net working capital on December 31, 1948
was $2,554,182.02. Current assets totaled $10,-
061,911.97 at the end of 1948, of which $6,947,-
065.72 was in cash or equivalent. Current liabilities amounted to $7,507,729.95. The ratio of total
current assets to current liabilities was 1.34 to 1.
ACQUISITIONS AND SALES
On July 30, 1948, Hilton Hotels Corporation
disposed of its securities in both the Neil House
Company and the Palm Beach Biltmore Company and acquired full title to the Palm Beach
Biltmore Hotel. On December 31, 1948, accordingly, the Neil House was no longer a part of
the Hilton group while the Palm Beach Biltmore
was a wholly-owned property of the corporation.
On January 10, 1949 your corporation entered
into a contract to sell the Palm Beach Biltmore
Hotel for a total consideration of $1,655,000.
This sale resulted in a loss of $292,979. In last
year's annual report we said: "Properties will be
disposed of when long-term earnings prospects
are unsatisfactory." Both the Neil House and
the Palm Beach Biltmore were sold because of
unsatisfactory earnings prospects and unsuit-
ability for other reasons.
No further acquisitions were made during the
year although Hilton Hotels International, Inc.,
was organized as a wholly-owned subsidiary
with an initial capital of $500,000 to take over
the investment and management contracts for
the operation of properties outside of the
continental limits of the United States. In part
payment of its stock of the subsidiary, your
corporation in July assigned to Hilton Hotels
International, Inc. its interest in the Bermuda
Development Company, Limited, as well as its
management contract for the Bermuda hotels
and the lease of the Caribe-Hilton Hotel now
under construction at San Juan, Puerto Rico.
There is a large measure of diversification
among Hilton properties, which include luxury
and commercial hotels, small and large, with the
greatest number of rooms, however, concentrated in New York and Chicago.
During the past year occupancies have levelled off in all properties. Much of the decrease in
occupancies in our large properties is due to
vacant rooms on weekends. The average decrease, however, has been slightlv more than
6%. Percentage of occupancy and average daily
room rates for the past three years of wholly-
owned and leased hotels are shown in the following table.
ERCENTAGE OF OCCUPANCY
AVERAGE DAILY ROOM RATE
EL PASO HILTON