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RATIO OF LONG-TERM DEBT TO TOTAL ASSETS AT ESTIMATED VALUE LESS CURRENT LIABILITIES
Long-Term Debt
Total Assets
At Estimated Value*
Less
Current Liabilities
Net
Estimated by Company Officers.
Ratio
1947
$ 49,860
$ 5,767
i 44,093
$18,426
41.8%
1948
55/10
7,760
47,950
20,202
42.1
1949
60,279
6,803
53/76
22/76
42.6
1950
87,874
12,396
75,478
30,171
40.0
1951
101,861
9,260
92,601
32,483
35.1
1952
113,524
11,375
102,149
35,266
34.5
1953
129,475
10,899
118,576
43,085
36.3
1954
132,520
12,199
120,321
36,394
30.3
1955
193,033
16,746
176,287
68,267
38,7
1956
243,697
20,865
222,832
99,584
44.7
1957
304,645
26,028
278,617
140,524
50.4
Above Amounts in Thousands of Dollars
FORECASTING
One of the more important managerial devices
now being used more extensively by Sheraton is
that of forecasting future performance. This
policy is in accord with the emphasis given this
subject by the American Management Association (now occupying several floors of the Sheraton-
Astor Hotel). Present forecasts indicate that
losses resulting largely from modernization at
several hotels and expenses incurred in connection
with the new Philadelphia hotel, amounting in all
to some two and one half million dollars, will be
sharply reduced during the present year, and are
expected to turn into satisfactory earnings during
the following year. The ehmination of these
deductions which are to a large extent "nonrecurring", should result in increased future
earnings.
DECENTRALIZATION
Sheraton's program of decentralization is proceeding effectively. The feeling of concern at the
first impact of changes in administrative policies
has given way to enthusiastic support for a program which places greater responsibilities on
Regional Managers and General Managers of
hotels. The staff relationships of the home office
specialists in food and beverage control, engineering, architecture and decoration, sales promotion,
etc. have been clarified and the relationship of
the "line" authority is being more clearly understood, with resulting benefits to all Sheraton
Hotels.
NEW TRAINING PROGRAM
Mindful of the growing interest in their work by
employees as they acquire greater skills, and likewise aware of the favorable impression on the
travehing public of a well-trained organization,
Sheraton is now placing major emphasis ori extensive training programs designed to reach each
of the many thousand men and women who
comprise the Sheraton company. Mr. Frank A.
Petrie, who has gained eminence in the establishment of training programs in the aviation industry
and in government work, has been named
Sheraton Director of Education Programs. Mr.
Petrie advises that neither dishwashing machine
operators, bellmen, or hotel managers, or the company's president for that matter, will be exempt
from the new training programs aimed at
creating greater proficiency on the part of all
Sheraton personnel.
COMPARISON WITH INDUSTRY
Sheraton's statistical department reports that
the average room occupancy of Sheraton
Hotels (excluding the Eppley hotels acquired
during the 1957 fiscal year) rose from 75.2% to
76.1 % as compared with a decline from 71.5 % to
70.6% for the industry (as reported by H.K.F.).
The inclusion of the Eppley hotels, many of which
operated at a relatively low percentage of occupancy, reduced the 1957 occupancy rate by 2-4
percentage points.
Although Sheraton is not classified as an industrial company, it is interesting to note that in
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