March 1, June 1, September 1 and December
1. Total payments for the year were $1.20 a
share. In addition, regular quarterly dividends
of 50 cents a share were paid on the same dates
on convertible preference stock not under option to the corporation.
The total dividend distribution of $2,039,-
592 on both the common and preference stock
represented 51.6 per cent of the net earnings.
The balance was reinvested in the business.
Your corporation during the past year has
continued its policy of applying industrial
methods to hotel operations to the end that
man-power, facilities and material be used at
the maximum level of efficiency. This policy
has helped to sustain operating profit reasonably well in the face of increased costs for
services and operating supplies.
The techniques which have been evolved
include job analysis, time and method studies,
budgetary control, safety programs and a pricing policy adjusted as far as possible to increasing costs.
Revenues from operational departments of
the hotels, exclusive of commercial rentals
totaled $78,857,334 in 1951, compared with
$70,485,967 in 1950. The operating profit before the deduction of such items as rent, taxes,
interest and depreciation was $19,167,068,
against $18,328,584 in the preceding year; and
the rate of operating profit was 24.31 per cent.
For 1950 the rate was 26.00 per cent.
Following the pattern of the hotel industry,
our room occupancy rate declined somewhat
last year being 77.63 per cent against 79.80 per
cent in the preceding year. Room prices were
adjusted moderately to compensate in part for
higher operating costs. The net result was that
the department's net sales totaled $31,350,484
of which $21,791,591, or 69.51 per cent was
operating profit. In 1950 net room sales
amounted to $28,248,855, of which $19,823,766,
or 70.18 per cent was operating profit. Comparison with other years is shown below.
Food and Beverage Department
By reason of federal legislation which became
effective in April, 1951, increases in restaurant
prices are restricted. We were required to
maintain the same food cost ratio to sales we
had during an established base period. Price
advances could be made when food costs increased. There was no provision, however,
under which we could make price adjustments
to cover increases in wages or other expenses.
Sales of food and beverages last year totaled
$38,215,048 of which operating profit was
$10,087,811, or 26.40 per cent. In 1950 sales
aggregated $33,822,503, of which operating
profit was $8,966,451, or 26.51 per cent. Below
is a comparison of results of recent years.
Combined Food and Beverage
THE ROOSEVELT, New York City
The Roosevelt, with its direct passageway to Grand Central
Station and all subways, and its proximity to the airline
terminals, is one of New York's most conveniently located
hotels. Personal services are expressed by free television in
many guest rooms; a special Latin-American representative
to assist Spanish-speaking guests; and the About the Town
Bureau to offer advice and information of all kinds. A variety
of shops, restaurants and entertainment is at the disposal of
The Roosevelt guest, to add pleasure to his New York visit.