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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 7. 1961. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. September 17, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/1325/show/1303.

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 7. 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/1303

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 7, 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 17, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/1325/show/1303.

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 7
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_023_007.jpg
Transcript • profit margins of recent years, has now been largely remedied by means of a "Belt-Tightening" program which has reduced overhead to the extent of approximately $3,000,000 a year. Serious competition in two areas, — Montreal and Pittsburgh, where Sheraton was especially vulnerable due to its significant position in those cities, tended to narrow over-all profit margins. This loss appears to be largely of a temporary nature. During the three years since major competition developed in Montreal, much of the lost earning power has already been regained. Even in Pittsburgh, where competition from a major new hotel occurred only a year and a half ago, there are already strong indications of recovery in earning power. Fortunately there are no other major cities where we are similarly vulnerable to any possible competition that may occur. We anticipate that our hotels in Montreal and Pittsburgh during the coming years will be contributing to, rather than retarding our future growth rate or profit margins as these hotels face anticipated further recovery. High interest rates will probably be with us for some time to come, though there are some indications that the recovery philosophy of the present Administration in Washington is leaning towards lower long term interest rates. With possible prospects of a resumption of an inflationary trend amounting to perhaps two to three per cent a year as a further Administration recovery measure, this could add an actual five to eight per cent to our eleven per cent growth objective, due to the leverage inherent in our debt structure. Each Sheraton share, we estimate, represents $64 gross value of real estate at indicated fair market value. (For further discussion of profit margins, see page 14.) Room Oooupancy Sheraton's room occupancy of 72 per cent is the same as it was five years ago. The trend for the past three years has been moderately upward, and with signs of economic expansion, this trend should accelerate. Occupancy levels for Sheraton mainland hotels, compared with the industry as reported by Horwath and Horwath, were as follows: (calendar years) 1956 1957 1958 1959 1960 Sheraton 72 73 69 71 72 Industry 72 70 67 66 65 Sheraton's improved occupancy is attributable in part to a campaign to attract permanent guests, a policy which necessarily affects average room rates adversely. On balance, this policy seems to have considerable merit. Economy Program Last November Sheraton, realizing that profit margins were somewhat narrower than seemed warranted, and believing this was largely due to excessive overhead, inaugurated its $3,000,000 "Belt-Tightening" project. This was accomplished without materially affecting sales promotion, maintenance or service to guests. Not until April 1961, the final month of our last fiscal year, did we feel anywhere near the full impact of this program. Last April proved to be one of the best months of April in the Company's history, — both with respect to basic as well as reported hotel earnings. The full benefit of this economy program is expected to be felt during the new fiscal year which started in May. Profit Improvement Projects Much of Sheraton's growth each year is due to profit improvement projects. A survey covering such projects completed in recent years indicates that these investments can produce average annual profits or savings before income taxes of from 20% to 30% of the investment. This estimated return is after providing for appropriate amortization of these expenditures. Sheraton customarily reinvests each year a substantial portion of the depreciation reserve set up for that year in profit improvement projects. Much of the balance is usually reinvested — either in new properties, or in profit maintenance projects necessary to sustain earning power of the various Sheraton properties. For the past fiscal year we estimate that some $1,500,000 of added basic earnings were created by profit improvement projects of the type referred to above. Several adverse and presumably nonrecurring circumstances caused offsetting reductions in basic earnings for the year. These include: — (a) Shrinkage in earnings of the Penn- Sheraton in Pittsburgh noted above. (b) Losses due to an estimated 1 J^% reduction from otherwise attainable rooms occupancy due to the 1960 recession. (c) Reduction in the contribution of Thompson Industries, Inc. to Sheraton earnings in fiscal 1961. There should be few losses of this nature in the current (1962) fiscal year; in fact several added new sources of revenue are indicated. These include over twenty millions of temporarily non- income producing assets consisting primarily of new construction. The greater part of these assets are now producing income and should add to