Operating costs continued to rise in 1948.
There have been some upward adjustments in
the prices of rooms, as indicated above. Rooms
department results, on the whole, were entirely
satisfactory. In spite of slightly lower occupancies, revenues were larger and the percentage
of operating profit was satisfactory.
The tables below indicate room sales as well
as departmental operating profit for the years
1948, 1947 and 1946.
Food and beverage sales produced the second
and third largest source of hotel revenues. Combined 1948 sales showed a decrease compared to
1947, as indicated in the tables below.
While combined sales of food and beverages
have decreased the rate of operating profit has
been maintained at satisfactory levels and neces
sary upward price adjustments held to a minimum.
The combined food and beverage sales for
the last three years were:
Combined food and beverage operating
Operating profit for minor departments increased $38,970 last year, while other income
comprising commissions, concessions, purchase
discounts, waste sales and similar items, was
$796,280, as compared with $802,751 in 1947
and $710,171 in 1946.
There have been several innovations in Hilton
Hotels operations during the past year. In
March, 1948, the Boulevard Room of the
Stevens was remodeled at a cost of approximately $150,000 for a new ice show. This new
type of entertainment complemented the attractions in the Empire Room at the Palmer House
and made it possible for Hilton Hotels to offer
two distinct types of entertainment at its Chicago hotels. The success of the new ice show was
instantaneous and profits from the operation of
the Boulevard Room ran approximately $318,372
for the period from March 27 to December 31.
The Rendez-Vous, opened at the Plaza in
October 31, 1947, has continued to prove its
popularity in New York. While volume of business in all supper clubs throughout the United
States is off considerably, the total volume of
business in our supper clubs in 1948 increased
over 1947. The comparative figures are $3,476,-
070.80 for 1947, and $3,766,946.03 for 1948.