G?ftoss Revenues omA. SoJwM^qs Jvuca&oa&cLs. .,
revenues: The dynamic character of Hilton
Hotels Corporation is evidenced by the fact that,
despite the recession, gross revenues continued their
unbroken climb, which dates back to the founding of
the Company. Gross revenues rose to $215,092,441
from $205,311,024 in 1957, a five per cent increase.
During the first six months of 1958, the hotel
industry, in common with United States industry in
general, felt acutely the effects of the sharpest postwar recession yet experienced. The industry's average room occupancy for this period dropped five
percentage points below that for the corresponding
period of the preceding year.
In the final six months of the year, as the resilient
United States economy recovered from its temporary set-back, the sharp downward trend of room
occupancy eased somewhat. For the year as a
whole, room occupancy for the industry averaged
67 per cent, compared with 70 per cent in 1957.
While your Company could not escape the effects
of the business readjustment in 1958, it experienced
higher occupancy than the industry as a whole.
The average room occupancy for the 33 hotels in
the organization last year was 69 per cent, or two
percentage points above the average of the industry.
Revenues accounted for by the Company's various operating departments, together with the
previous year's comparative figures, were as follows:
Rooms $ 91,337,695 $ 87,637,170
Food and Beverage 97,716,369 92,342,835
Other Operated Departments.. 15,981,552 15,546,591
Store Rentals 3,226,803 3,043,641
Office Building Rentals 1,051,240 1,038,372
Interest on Investments 986,424 1,028,392
Other Income 4,792,358 4,674,023
TOTAL $215,092,441 $205,311,024
earni NGS:Earnings improved modestly over 1957,
a significant achievement in view of the lower occu
pancy attributable to the year's economic uncertainties. Consolidated net profit amounted to
$10,103,190 in 1958. This was equal, after preferred
dividends, to $2.47 per share on the 3,856,166
shares of common stock outstanding at December
31, 1958. In 1957, consolidated net profit was
$10,063,618, or $2.42 per share on the 3,938,671
shares of common stock then outstanding.
Both periods include substantially equal profits
from the sale of properties in prior years. The gain
from this source included in the 1958 net profit was
$1,399,424, equal to 36 cents per common share.
In 1957, the figure was $1,454,554, or 37 cents per
share. Both figures are after provision for income
taxes at the capital gains rate.
Operations in 1958 produced net profit of
$8,703,766, which was equal to $2.11 per share on
the common stock. In 1957, net profit from operations was $8,609,064, or $2.05 per common share.
The increase in per share earnings from operations
amounted to three per cent.
Percentage-wise, earnings did not increase as
much as revenues. Repairs and maintenance expenditures, aimed at keeping the Company's properties in their traditional excellence, continued at
a high level but were below those of 1957, reflecting
the completion of major modernization projects.
However, the savings were more than offset by
losses experienced at The Habana Hilton, resulting
from the political turbulence in Cuba. Because of
these losses, Hilton Hotels International made no
contribution to 1958 earnings, whereas it contributed $376,232 to earnings in 1957.
The 250,000 shares of common stock of Hotel
Corporation of America held by the Company were
sold at $6.00 per share, at which amount the shares
were carried on the books of the Company.