| Transcript |
Maintenance and Modernization
10
Millions of Dollars
5-
4-1
3-
2-
1-
1949 1950 1951 1952 1953
the property for a period of two and one-
half years, commencing as of October 1,
1953, the date of sale. In addition, the
Corporation obtained an option to purchase a one-half interest in the land on
which the hotel is built at any time within
the six-month period commencing October 1, 1965, for the sum of $400,000.
The sale of The Plaza resulted in a
long term capital gain after taxes of
$4,067,147, equivalent to $2.52 per share
of Hilton common stock. The profit will
be reflected in the Corporation income
account in future years as installments
of the sales price are received.
The Town House, which also was one
of the hotels owned at the time of the
consolidation which formed Hilton
Hotels Corporation in 1946, was originally purchased for $1,004,000. The sales
price was $3,600,000 as follows: cash of
$1,860,000, of which $1,800,000 was the
proceeds of a first mortgage placed against
the property at the time of sale; a second
mortgage note in the sum of $1,100,000;
$600,000 in notes of the purchaser
maturing in quarterly installments of
$120,000 each three months, guaranteed
by Mr. R. E. Crummer, and $40,000 in
notes of Hilton Hotels Corporation.
The sale of the Town House resulted
in a long term gain, after taxes, of
$1,818,545 or $1.13 a share on common
stock. This profit will be taken into the
Corporation's income on an installment
basis over a period of twelve years.
Long Term Debt
The consolidated long term debt of Hilton
Hotels Corporation on December 31,
1953, amounted to $36,101,844, a reduction of $376,452 from the $36,478,296
debt outstanding a year earlier. A detailed analysis of the changes in debt
structure appears in the accompanying-
table. (See page 10)
An outstanding first mortgage of
$4,786,748 on The Plaza was eliminated
by the sale of that property. A first mortgage of $1,800,000 placed against The
Town House at the time of its sale was assumed by the purchaser and therefore
does not appear as a direct obligation
of the Corporation. New long term
mortgage obligations in the amount of
$5,326,429 were assumed in connection
with the purchase of the Hotel New
Yorker, but the enforcement of the obligations is limited to the property. Mortgages
on The Conrad Hilton, Palmer House
|
