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Hilton Hotels, 1958 Annual Report
Image 31
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Hilton Hotels Corporation. Hilton Hotels, 1958 Annual Report - Image 31. 1958. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. May 22, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/1383/show/1377.

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.

Hilton Hotels Corporation. (1958). Hilton Hotels, 1958 Annual Report - Image 31. 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/1383/show/1377

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.

Hilton Hotels Corporation, Hilton Hotels, 1958 Annual Report - Image 31, 1958, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed May 22, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/1383/show/1377.

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 Hilton Hotels, 1958 Annual Report
Creator (LCNAF)
  • Hilton Hotels Corporation
Publisher Hilton Hotels Corporation
Date 1958
Description Hilton Hotels Annual Report for calendar year 1958.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Hilton Hotels Corporation
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 31
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_011_031.jpg
Transcript December 31, 1958. These shares will be convertible into common stock of the Company at the rate of one share of common for each one and one-half shares of this series, and, at the option of the Company, such Series "A" shares will be redeemable at $26.25 plus accrued dividends on and after January 1, 1961 to the date fixed for redemption. 7—COMMITMENTS AND CONTINGENT LIABILITIES Contract commitments in connection with the construction of new hotel projects approximated $8,732,116 at December 31, 1958. The Company has subscribed for and agreed to purchase from its wholly-owned subsidiary Hilton Hotels International, Inc., at par, $2,000,000 aggregate principal amount of 5% subordinated (sinking fund) debentures and 400,000 shares of $5.00 par value common stock to be issued from time to time at the option of the subsidiary. The commitment is irrevocable for a period of four years from November 27, 1956, but shall expire prior thereto if and when such securities in these amounts have been purchased by the Company. At December 31, 1958, Hilton Hotels Corporation, in connection with the subscription commitment, had purchased, 320,000 shares of common stock and $200,000 face amount of debentures. During 1957 the Company, in connection with a lease and the construction of a hotel in Pittsburgh, Pennsylvania, entered into an Indenture of Mortgage and Deed of Trust pertaining to a $12,000,000 issue of Leasehold Mortgage 4 — 4^% Sinking Fund Bonds due June 1, 1987. The Company has not issued any bonds nor drawn down any of the funds available under the mortgage at December 31, 1958. A subsidiary entered into an agreement providing for a first mortgage construction loan in the amount of $5,000,000 of which $1,666,667 is to be guaranteed by the Company. At December 31, 1958 the subsidiary had not drawn any of the funds available under this agreement. The Company is guarantor to the extent of $1,000,000 under a $3,000,000 long-term obligation of a subsidiary. The Company has agreed to purchase all of the authorized capital stock of Hilton Inns, Inc., in the amount of $5,000,000. The Company was contingently liable to the extent of approximately $5,000,000 as it did not receive releases from mortgagees under certain mortgages assumed by buyers of properties who, however, agreed to hold the Company harmless against any liability thereon. 8—LONG-TERM LEASES The Company and its subsidiaries operate or will operate certain properties under leases ranging from one year and three months to forty years from December 31, 1958, with option to renew for various periods in some instances. The total minimum annual fixed or basic rentals payable (exclusive of real estate taxes, insurance and other occupancy charges) under such leases for each of the next five years ending December 31, follows: 1959, $11,076,600; 1960, $9,905,100; 1961, $9,268,700; 1962, $8,868,700; and 1963, $8,535,300. The wholly-owned Subsidiary, Hilton Hotels International, Inc., has entered into leases and contracts ranging from fifteen to twenty-one years, subject to certain conditions, for the operation of hotels under construction or to be constructed in eight cities outside the continental United States. In general, "International" or its Subsidiaries is required to furnish initial inventories and to maintain sufficient working capital, except in the case of one lease, which specifies that not less than $250,000 shall be furnished for these purposes, to be maintained for the first five years of the lease. In connection with the hotels to be constructed in the Netherlands, "International" is required to subscribe to 5% of the total cost or approximately $500,000, and is committed to invest 500,000 pounds in an English Company to be formed for purposes of constructing a hotel in London. The terms of the leases commence either on actual occupancy or within ten days of receipt of architect's certificate of occupancy. The leases basically provide for a rental based on a percentage of gross operating profit, with certain specific rental obligations. 9—LIMITATIONS AND RESTRICTIONS Under the most restrictive covenants of certain indentures relating to long-term debt of the Company and an affiliate as of December 31, 1958, the Company and certain Subsidiaries on a consolidated basis was (a) required to maintain working capital of not less than $7,000,000 and a ratio of current assets to current liabilities of not less than 125%; and, (b) prohibited from declaring cash dividends on its capital stock, purchasing, redeeming or otherwise retiring any shares of its capital stock unless the sum of $2,500,000 and 80% of the consolidated net income from January 1, 1957 to date of declaration shall be greater than the aggregate of all such dividends and payments. The maximum amount of earned surplus so restricted was $50,292,529 at December 31, 1958. Under the most restrictive covenants of certain long- term obligations of the wholly-owned Subsidiary, Hilton Hotels International, Inc., the Subsidiary is obligated to (a) maintain consolidated working capital -of not less than $1,250,000, one-half thereof to be represented by assets located in the United States, its territories and possessions, or in countries whose currencies are readily and favorably convertible into dollars; and, (b) prohibited from declaring dividends, other than in its own stock, and from reacquiring its own stock for consideration. 29