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Sheraton Corporation of America, 1961 Annual Report
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Starwood Hotels & Resorts. Sheraton Corporation of America, 1961 Annual Report - Image 5. 1961. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. September 15, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/1325/show/1301.

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.

Starwood Hotels & Resorts. (1961). Sheraton Corporation of America, 1961 Annual Report - Image 5. 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/1325/show/1301

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.

Starwood Hotels & Resorts, Sheraton Corporation of America, 1961 Annual Report - Image 5, 1961, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed September 15, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/1325/show/1301.

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 Sheraton Corporation of America, 1961 Annual Report
Creator (LCNAF)
  • Starwood Hotels & Resorts
Publisher Starwood Hotels & Resorts
Date 1961
Description Sheraton Corporation of America Annual Report for the year ending on April 30, 1961.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Starwood Hotels & Resorts
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 5
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_023_005.jpg
Transcript * information regarding certain adjustments, see page 14.) Gainings Gains in net asset value plus cash dividends distributed, under our theory of "net worth accounting" provide what we consider the most meaningful measure of performance available. Gainings is the term we apply to this yardstick of performance. Such gainings for the past year amounted to $1.60 per share compared with $3.44 last year. This measure, although fundamental in many respects in guiding Company policy, is often quite properly discounted by many investors, for its accuracy is limited to the Company's ability to measure objectively and accurately its property values, a procedure recognized to be open to possible abuse. Sheraton takes every possible precaution to make its figures accurate. Long Term Debt Sheraton's fixed long term debt, excluding Income Debentures and Capital Income Debentures, amounted to $141,801,834 compared with $138,798,298 a year ago. When all income debentures are included as a part of the Company's long term debt, the combined contingent and fixed long term indebtedness amounted to $178,830,234 compared with $176,320,713 a year ago. The long term "fixed" indebtedness was 38.9% of total assets at estimated values determined by our officers, after deducting current liabilities. This ratio becomes 49.0% when all income debentures and capital income debentures are taken into account. If lease obligations are considered as liabilities to the extent of four times the annual rental requirements, the ratio becomes 52.9%. Ratios of long term debt for the past two years have shown a moderate decline. This favorable trend, however, may not be too significant since the margin of possible error in determining net asset values could exceed this narrow difference. Bank Loans and Cash Position Bank loans of the parent company incurred to finance certain acquisitions and improvements reached $5,000,000 during the year. These loans, however, were paid off in full before the end of the fiscal year. Cash on hand and in banks was $16,597,125 compared with $13,645,563 a year ago. Thompson Industries, Inc. Thompson Industries, Inc. reported earnings of $739,102 for the fiscal year compared with $1,220,834 for the preceding year. This decline affected Sheraton's reported earnings in fiscal 1961 adversely, when compared with the previous year, to the extent of eight cents a share. Thompson Industries, Inc. is an 86% owned Sheraton subsidiary which is normally subject to the cyclical trends in the automobile industry. The currently rising national economy suggests Thompson Industries, Inc. may now be more likely to contribute towards improving rather than retarding Sheraton's relative performance during the current fiscal year. Since Thompson Industries, Lie, a manufacturing company, does not enjoy comparable depreciation deductions available to a hotel corporation owning most of its properties, its earnings normally represent a relatively large proportion of Sheraton's total consolidated reported earnings. Thompson's contribution to Sheraton's cash flow is relatively less significant. Hotel Operations Sheraton's earnings from hotel and other operations, excluding Thompson Industries, Inc., before interest, depreciation and income taxes, despite several presumably nonrecurring adverse factors, were some $29,900,000 this year compared with $29,500,000 last year. Income taxes on these earnings were somewhat lower since over a million dollars more depreciation as compared with last year, was charged off. Our upward trend in basic hotel earnings in the face of a recession ran counter to the general experience in the industry. This favorable trend presently shows signs of accelerating. Sheraton's immediate objective is a minimum rise of eleven per cent a year in net asset value and in cash flow. Although eleven per cent a year compounded annually is far below our historical average annual growth experience over more than two decades, our eleven per cent goal does exceed our performance during,the past three years — a period which included two recessions and several other significant though presumably nonrecurring adverse circumstances. Profit Margins Somewhat narrower profit margins than have been customary were largely due to higher than customary overhead, to heavier competition, and to higher interest rates. Despite these recent handicaps, we believe that our goal of achieving an eleven per cent a year growth pattern is not only attainable; we think it should be our minimum objective. High overhead which alone accounts for a major portion of our overall net shrinkage in