I Washington^ E>. C Completed in 1949 it is fully^^ auNcondition^l.":; j^^^
'.rOOB niNUMTION PROBLEMS worked out in the experimental kitchen
in the Sheraton Plaza of Boston will benefit the restaurant operation of
all Sheraton hotels •' . [iiSli
by the high percentage of the Company's revenues
currently being translated into net income despite
higher wages, higher real estate and income taxes, and
generally higher operating costs.
During the year approximately 89% of the shares of
Book-Cadillac Corporation, owning the Book-Cadillac
Hotel in Detroit, were acquired by your Company at a
cost of $3,182,733. Following the acquisition of these
shares, the name of the Book-Cadillac Hotel was
changed to Sheraton-Cadillac Hotel and a $1,000,000
program of modernization, improvement and rehabilitation was set in motion. This program is scheduled
for completion in October, 1952, at which time the
Sheraton-Cadillac will be one of the most important
units in the Sheraton chain and undoubtedly one of the
finest hotels in the middle west.
During the year the Foxhead Inn at Niagara Falls,
Ontario, was purchased as an adjunct to the very successful General Brock owned by your Company in that
Canadian city. The acquisition of this small inn,
together with substantial land overlooking the Canadian
Falls, assures Sheraton a dominant position overlooking
one of nature's greatest wonders.
During the year the Park Square Building in Boston,
New England's largest office building, was sold at a
satisfactory price and a smaller office building in Washington, D. C, was purchased. The latter building,
completed in 1949 and fully air-conditioned, will give
the Company an opportunity to retain a substantial
interest in the office building field. Although only a
relatively small proportion of the funds realized from
the sale of the Park Square Building were reinvested in
Washington, D. C, yet earnings nearly comparable to
those achieved by the Park Square Building are
Since April 30, 1952, the Company has entered into
contracts for the sale of the former Sheraton Hotel of
Detroit, now known as the Park Sheraton in that city,
and the Alms Hotel of Cincinnati, both being in areas in
which the Company is represented by larger hotels.
Accordingly, the properties now being disposed of are
no longer necessary from the point of view of adequate
representation in principal cities.
The Park Sheraton of Detroit was acquired in
October, 1941, following a long period of nearly continuous losses. Ownership was secured with a cash
investment of $50,000, all of which was applied to the
reduction of the then existing mortgage. Under the
direction of Sheraton's supervisory personnel, this
Detroit hotel started showing profits for the first time.
During the following ten years over a half million in
earnings have been made available to your Company,
and the equity originally costing $50,000 has now been
sold for more than $3,000,000.00.
Further modernization and redecorating of the
Canadian hotels is in progress. This program should be
completed during the present fiscal year. The bulk of
expenditures, however, is now out of the way, and as a