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1353
ANNUAL REPORT
Hilton Hotels Corporation in 1953 materially strengthened its
position as the world's leading operator of hotels. At home, two
hotels were acquired, including the world's third largest, and
construction of another was started. Abroad, the Corporation's
wholly owned subsidiary, Hilton Hotels International, Inc.,
opened its first hotel beyond the Western Hemisphere.
Financially, the Corporation established new records in practically all phases of the business. Both revenues and profits
reached the highest levels in history in spite of substantial
increases in operating costs, other expenses and income tax.
Revenues
Gross revenues of the Corporation in 1953 totaled $97,569,412,
compared with the previous record high volume of $87,155,372
attained in 1952. Of the total, $39,307,529 was derived from
room operations, as compared with $34,331,105 in 1952;
$45,301,690 was received from sale of food and beverages, against
$40,950,719 from that source the year before; $9,649,254 from
other operating departments, compared with $8,983,416 in 1952;
and $1,471,666 from store rentals, compared with $1,334,514
a year earlier. Other income in 1953 amounted to $1,839,273,
against $1,555,618 the previous year.
Gross revenues in 1953 included sales of The Roosevelt,
New York City, the leasehold of which was acquired by the
Corporation on December 31, 1952. Sales of the Deshler Hilton
in Columbus, Ohio, leased on July 1, 1953, and the Castellana
Hilton, opened in Madrid on July 13, 1953, were also included
in 1953 gross revenues. Sales of the Hilton Hotel, Lubbock,
Texas, sold on May 1, 1952, were, of course, excluded from 1953
gross revenues, as were sales of The Town House, Los Angeles,
after the sale of this property on September 30, 1953.
Earnings and Taxes
Net consolidated profit for 1953 reached a new record high of
$6,414,000 after all charges, including federal taxes. After deducting preferred dividend requirements, this was the equivalent
of $3.92 per share on the 1,613,640 shares of common stock
outstanding on December 31, 1953. It should be pointed out
that the outstanding shares included 74,125 shares of common
stock issued at the end of the year in connection with the acquisition of the Hotel New Yorker and the merger of Hotel Waldorf-
Astoria Corporation into this Corporation. Net consolidated
profit in 1952 was $4,521,415, or $2.74 per share on the 1,620,844
shares of common stock outstanding on December 31, 1952.
The Corporation's net profit from operations in 1953
was $4,218,450, or $2.56 per common share, compared with
$4,004,939, or $2.42 per common share, realized from operations in 1952. The balance of consolidated net profit in 1953,
$2,195,550, or $1.36 per common share, was derived principally
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