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Sheraton Corporation of America, 1957 Annual Report
Image 11
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Starwood Hotels & Resorts. Sheraton Corporation of America, 1957 Annual Report - Image 11. 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/1641.

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 11. 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/1641

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 11, 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/1641.

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 11
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_021_011.jpg
Transcript LONG TERM DEBT Sheraton's long term debt on April 30th amounted to $140,523,713. This figure includes $8,780,300 of the company's 6%% subordinated income debentures of 1981. Approximately 85% of the long term debt represents obligations of subsidiary companies and is therefore not a direct liability of the parent company. The aggregate long term debt represents 50% of the total assets at estimated market value, less current liabilities. (See chart page 10.) Sheraton endeavors to maintain this debt ratio at a level close to 50% or lower, on the theory that such a ratio is below the limits frequently set by life insurance companies and savings banks when making conservative real estate loans. During the year, interest requirements on all debt including income debentures were earned 2.7 times, or 4.7 times before deducting reserves set aside for any possible depreciation. The financial stability of Sheraton is strengthened by the fact that a large part of the consolidated long term debt is concentrated in a small number of its subsidiaries, — companies in which Sheraton has a relatively small equity investment. If these companies whose indebtedness is not a parent company obligation, were excluded from the consolidated balance sheet, the ratio of total debt to market value of assets would be even more favorable. However, these "thin equity" companies, which do not represent any appreciable liability to the parent company, represent a particularly valuable advantage to Sheraton common stockholders because of the heavy leverage inherent in their capital structure. CASH POSITION Total cash on hand and in the banks was $12,070,653 compared with $12,199,682 a year earlier. LIQUIDITY We again draw attention to the fact that a large proportion of Sheraton's fixed assets consist of land, buildings and equipment which have a ready market at a price which represents considerably more than book value or the amount indicated by the market value of the Company's common shares. Sheraton officers believe that these fixed assets have in some instances greater liquidity than the current assets of certain manu- GROSS INCOME $160,000 150,000 1947 '48^49 '50 '51 '52 '53 '54^p5^j>6 '57 (AJriiU3o) facturing companies, although of course the market value of hotels might be subject to substantial decline in a period of prolonged depression. However, during recent periods when minor recessions occurred, and many companies suffered reverses, Sheraton properties as a whole continued an upward earnings trend, and therefore enjoyed higher indicated market values, since these values are based largely on earnings. We note that several of the country's larger investment trusts, as well as many other institutional investors, have acquired, and in some instances added substantially, to their holdings of Sheraton securities. Included in such holdings are Sheraton debentures, income debentures, and common shares. The wide acceptance of our income debentures has been of substantial benefit to the Company. Although these securities have a twenty-five year maturity and certain sinking fund provisions, in other respects they have many of the features more characteristic of preferred shares. They are, however, much less burdensome than preferred shares, since the interest payable, being tax deductible, costs the Company less than half the cost of paying comparable dividends on preferred shares. Sheraton officers believe that the investing public will eventually insist that income debentures replace preferred shares in our present economy because of the larger yield that a company can afford to pay on this type of security.