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Sheraton Corporation of America, 1967 Annual Report
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Starwood Hotels & Resorts. Sheraton Corporation of America, 1967 Annual Report - Image 5. 1967. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. May 24, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/1346/show/1330.

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. (1967). Sheraton Corporation of America, 1967 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/1346/show/1330

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, 1967 Annual Report - Image 5, 1967, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed May 24, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/1346/show/1330.

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, 1967 Annual Report
Creator (LCNAF)
  • Starwood Hotels & Resorts
Publisher Starwood Hotels & Resorts
Date 1967
Description Sheraton Corporation of America Annual Report for the year ending on April 30, 1967.
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_026_005.jpg
Transcript Modified Earnings (Ratio Chart) (See discussion in Chairman's comments below) 1948 1949 1950 1951 1952 1954 1955 1956 1957 1959 1960 1961 1962 1963 1964 1965 1966 despite the slackening this spring in automobile production. Thompson makes metal trim, wire harnesses, welding guns, and plastic accessories. Thompson profits were increased as the result of the sale of an unprofitable metal stampings plant and by increasing profit margins in the wire harness division. Prospects for this year appear bright because of the backlog of orders presently on the books. For the second time In four years, the "Sheraton-Thompson Special," driven by A. J. Foyt, won the Indianapolis "500" Speedway Race. We were very pleased that a hundred Sheraton stockholders participated in the Second Annual Stockholders Tour which visited San Francisco, Honolulu, Maui, Hong Kong, Tokyo, and Los Angeles. The first tour in 1966 covered Sheraton hotels in the Caribbean. Plans are already being formulated for next year's tour. Our new second generation electronic reservation system, "Reservatron II," the most advanced automated reservation system in the hotel and motel industry, Is now In operation connecting all mainland hotels in the United States and Canada. It is the successor to our "Reservatron I" Installed ten years ago, the nation's first electronic hotel reservation system. The new equipment will contribute to increased occupancy as well as improve service to our guests. We expect shortly to enter a new but related Industry. While a hospital is basically a hotel with medical facilities, hospital rates are necessarily related to medical services available, whether used or not. Sheraton is planning to build convalescent hospitals to serve the needs of those who are recuperating and do not need, and would prefer not to pay for, extensive medical services, We expect to break ground this fall for our first convalescent center. Much of the past decade had seen a comparatively stable dollar; however, we see indication of rising inflationary pressures. Sheraton's equity in its real estate should benefit from inflation especially due to the leverage provided by mortgage indebtedness. This coming year looks promising. The backlog of convention sales is not only at an all time peak but is 11% above last year. This, coupled with the Company's plan for further improvement in profit margins as well as Increased sales, should improve next year's earnings. On the basis of such yardsticks as sales volume, total assets at estimated market value, cash earnings, and number of hotel rooms owned, Sheraton Is presently the world's largest hotel corporation. This carries with It responsibilities which our Sheraton staff of over 26,000 is prepared to assume. The Company's ambitious training and development programs are a measure of its recognition of these responsibilities. Our new five-year plan is especially designed to achieve a sustained long-range growth of earnings. We hope and sincerely believe that next year we will again be able to report substantial improvement in our net income. Your patronage of Sheraton hotels and motor inns will help us to achieve that goal. For some years we have attempted to develop a method of accounting which will provide a satisfactory measure and a realistic appraisal of our management objectives, performance, and accomplishments. Stockholders may be interested in studying the following presentation of a concept which we refer to as "Modified Earnings." President "Modified Earnings" The adverse effect of excess depreciation on the reported earnings of Sheraton is a matter that may be of interest to shareholders of the Company, especially because of the magnitude of the reserves permissible under present accounting practice and because of certain provisions of existing treasury rulings. Although some corporations, notably public utilities, meet the problem posed by high allowable depreciation reserves by reporting differently for purposes of income taxes and when reporting to shareholders, this procedure is not generally practical for certain reasons for a hotel enterprise. Accordingly, Sheraton follows the practice of setting up maximum depreciation reserves both for tax purposes and when officially reporting to shareholders. It is true that heretofore somewhat more realistic earnings figures have been Included in Company annual and semiannual reports under the heading of "adjusted earnings." Such earnings are based on a formula that in practice tends to reduce depreciation reserves by approximately 25%. This latter approach, however, still provides excessive depreciation. The resolution of the problem of needed depreciation can determine whether operating earnings of 91 cents a share for fiscal '67 as reported are the correct amount, or whether $1.94 a share (after provision for possible added income taxes) is more realistic. Based on actual experience over the past 15 years, the net amount of depreciation needed in order to maintain constant Sheraton's property values can be demonstrated to be only about half of the $210 million provided out of current earnings for this purpose during these 15 years. If this conclusion is correct, the higher earnings figure should be accurate. The conclusion that depreciation reserves are excessive is supported in part