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Sheraton Corporation of America, 1957 Annual Report
Image 9
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Starwood Hotels & Resorts. Sheraton Corporation of America, 1957 Annual Report - Image 9. 1957. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. December 6, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/1659/show/1639.

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.

Starwood Hotels & Resorts. (1957). Sheraton Corporation of America, 1957 Annual Report - Image 9. 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/1659/show/1639

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.

Starwood Hotels & Resorts, Sheraton Corporation of America, 1957 Annual Report - Image 9, 1957, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed December 6, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/1659/show/1639.

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 Sheraton Corporation of America, 1957 Annual Report
Creator (LCNAF)
  • Starwood Hotels & Resorts
Publisher Starwood Hotels & Resorts
Date 1957
Description Sheraton Corporation of America Annual Report for the year ending on April 30, 1957.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Starwood Hotels & Resorts
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 9
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_021_009.jpg
Transcript • large investment in buildings, furniture, etc. in relation to its sales. The matter of depreciation, therefore, has an important bearing on the Company's reported earnings. Depreciation reserves are of course set aside as a deduction from earnings to allow for possible shrinkage in the value of assets due to obsolescence, deterioration, etc. Real estate firms are given considerable latitude as to the number of years over which depreciation may be calculated and the methods of determining such deductions. Companies can use their best judgment as to whether or not advantage should be taken of provisions in the new tax law permitting in some instances 200 % depreciation subject to declining balances. This flexibility in selecting methods and rates of depreciation provides considerable leeway with respect to reported earnings, which of course rise or fall in inverse ratio as depreciation reserves are increased or diminished. Sheraton has consistently elected to take the maximum depreciation deductions believed to be allowable under the provisions of the revenue laws, and considered consistent with good accounting practice. Although this policy can affect reported earnings adversely, it increases "cash flow", and therefore adds to the financial strength of the Company. But there is more to the subject of depreciation. If properties are poorly maintained, or if earnings (on which valuations are generally based) decline due to ineffective management, the value of such properties may decrease considerably. Under such circumstances, even the maximum allowable depreciation reserves may be inadequate to compensate for the resulting shrinkage in value. On the other hand, if the properties are well maintained, modernized, and provided with effective management, particularly during a period of creeping inflation, they may be more valuable at the end than at the beginning of a fiscal year. In such event, depreciation reserves may have been set up to meet a contingency that did not eventuate, even though at a later date these reserves provide desirable protection. During the past year Sheraton set aside for depreciation $2.18 for every dollar of earnings reported from operations. "ECONOMIC PERFORMANCE" Actually, during the past two decades, Sheraton's hotels and office buildings have generally advanced each year in value. In every instance over the entire twenty-year period, the value of each property has risen substantially. Of course the trend in the coming years may not necessarily continue this pattern. Competition from newer hotels may become more severe. However, there seems to be no visible end to the upward pressure of annual wage demands, and resulting further inflation may more than offset adverse factors as an influence on the value of existing hotels. Sheraton represents one of the relatively few businesses that benefit quite measurably from inflation. The presence or absence of a change in the value of properties commensurate with the depreciation reserves provided is of course important in determining the performance of a company owning real estate. In fact, there is the further possibility of unrealized "appreciation" which may have occurred during the year .We have attempted to measure such progress with a yardstick which we call "economic gains" or "economic performance" and is defined as the increase in net Twenty-five Sheraton executives from the home officer and the field attended a management development course given by the American Management Association at the Sheraton-Plaza last winter. Purpose of the course was to help develop skills in working through people to get results. Paul Davis of The Gillette Company (standing) was the speaker at this session.