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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 8. 1967. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. July 19, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/1346/show/1333.

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 8. 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/1333

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 8, 1967, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed July 19, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/1346/show/1333.

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 8
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_026_008.jpg
Transcript ■HBLHBH Wffl Ratio ol April 30 long-term debt to total assets at estimated values less current liabilities (000's omitted) Long-Term Ratio — Ratio — Total Assets at Less Debt including Excluding estimated Current Including Income Income Income Value (a) Liabilities Net Debentures Debentures Debentures (b) Profit Margin Percentage of Gross Income (c) 1967 $392,691 $43,820 $348,871 $177,253 30.8% 39.9% 18.5% 1966 366,184 45,956 320,228 177,392 55.4 43.3 17.7 1965 343,031 48,790 294,241 168,444 57.2 43.4 16.8 1964 328,934 40,743 288,191 165,138 .57.3 42.8 16.5 1963 346,554 43,247 303,307 182,618 60.3 45.9 16.2 1962 393,984 40,825 353,159 180,941 51.2 38.7 17.9 1961 400,445 35,565 364,880 178,830 49.0 38.9 19.0 1960 390,620 36,853 353,767 176,321 49.8 39.2 19.2 1959 346,910 28,641 318,269 159,615 50.2 40.7 19.8 1958 304,007 24,345 279,662 137,410 49.1 45.8 20.4 1957 304,645 26,028 278,617 140,524 50.4 47.3 20.5 1956 243,697 20,865 222,832 99,584 44.7 43.9 20.9 1955 193,033 16,746 176,287 68,267 38.7 38.7 20.4 1954 132,520 12,199 120,321 36,394 30.3 30.3 21.2 1953 129,475 10,899 118,576 43,085 36.3 36.3 20.2 1952 113,524 11,375 102,149 35,266 34.5 34.5 19.3 1951 101,861 9,260 92,601 32,483 35.1 35.1 20.6 1950 87,874 12,396 75,478 30,171 40.0 40.0 20.5 1949 60,279 6,803 53,476 22,776 42.6 42.6 18.7 1948 55,710 7,760 47,950 20,202 42.1 42.1 19.2 (a) Estimated by Company Officers. Although estimated asset values represent the best judgment of the Officers these nonetheless are based on determination tliat have not as yet become generally accepted. They should not be given undue weight until subjected to more critical evaluation dent and knowledgeable authorities. methods of by indepen- (b) Ratios in this column are determined on long-term debt excluding 6%% income Debentures and 7l/2% Capital Income Debentures. (c) Represents Basic Earnings before Rent Expense stated as a percentage of Gross Income. Percentages shown for Profit Margins exclude operations of Thompson Division and International Hotel Supply Corporation, the latter Is a merchandise distributor to outside companies. values of improved operating techniques, of expanding referral business, and other benefits resulting from large scale operations. An interesting illustration, by no means unique, of unneeded depreciation reserves is the experience of the Sheraton-Plaza in Boston, originally built as the Copley Plaza in 1913 at a cost of $4 million. Today, 54 years later when its assigned 50 year life has more than run out, the present value arrived at by capitalizing the equity earnings at 9% is actually far in excess of the original cost. Obviously the annual charge for depreciation reserves set up was unrealistic. The charges were an unnecessary penalty on earnings. All the forces tending to counteract the effects of aging, obsolescence, etc., outlined in the above summary, thus diminish— and in some instances eliminate, as in the case of the Sheraton- Plaza — the need for depreciation reserves, which might otherwise be needed to compensate for shrinkages in values. From the Sheraton-Plaza illustration, although It is not typical, it can be seen that there can be a substantial difference between the amount of depreciation used quite properly for book purposes, and for the determination of net depreciation required in order to make earnings figures meaningful to an investor. For the latter, any provision for depreciation in excess of the amount needed to maintain property values constant, introduces a distortion in the earnings picture. Any excess reserves should be considered reserves to meet a contingency which simply did not arise. The Company's theoretical earnings in a given year, based on actual depreciation required for that particular year, can of course be readily determined. This we refer to as "Economic Performance" for the year. It takes Into account the increase In net asset value for the year and adds thereto the amount of dividends paid (columns 11-A and 8-B, page 4). Because of excessive fluctuations from year to year such "Economic Performance" figures, although interesting, are of limited value in establishing trends. Depreciation requirements in order to be practical and thus more useful, should be determined on the basis of average needs over a number of years. This procedure will tend to smooth out earnings which might otherwise fluc tuate excessively. To be meaningful, both good and bad years should be included in the interval used as a base period. A 15- year span seems adequate to meet these requirements. Determining depreciation requirements averaged out over a 15-year period, forms the basis for what we call "Modified Earnings." The sum of the amounts of annual "Economic Performance" figures added up for the 15 years since 1952 will equal in general the total of "Modified Earnings'for the same period. The only significant differences between "Economic Performance" and "Modified Earnings" are that In determining the latter, not only have depreciation needs been "averaged out," but provisions for possible future income taxes (in the amount of $42 million) have been made. Actually, for any specific year or period of years, depreciation requirements from an investor's standpoint can be easily determined by means of the Tables presented on page 4. We can simply subtract from the Cash Flow generated for one or more years (columns 6-A and 5-B) the "Economic Performance" (columns 11-A and 8-B) for the same period. The resulting figure is the correct amount of net