Interest charges in 1950 amounted to $905,306
and principal payments of $725,821 were made on
mortgages and notes.
The increase in the mortgage on the Stevens was
arranged in December 1950 by drawing $2,500,000
additional under the standby agreement with the
Equitable Life Assurance Society of the United
States. The proceeds together with approximately
$300,000 from current funds were used to pay for the
stock of the Jefferson Hotel Company and to make
the initial payment on the Beverly Hills property.
The loan commitment from Equitable, amounting to $7,000,000, was obtained in 1949. The company has utilized $4,500,000 to date for corporate
purposes, and the remaining $2,500,000 is available.
At the end of 1950 Hilton Hotels Corporation had
outstanding 98,077 shares of 4% convertible preference stock of $50 par value and 1,498,217 common
You have been advised heretofore of the offers
made by the corporation to purchase convertible
preference stock at $40 a share on terms which have
resulted in the substantial reduction of the amount
of this stock outstanding during the past two years.
NUMBER OF SHAREHOLDERS
EXPENDITURES FOR IMPROVEMENTS
(Includes additions to buildings, leasehold improvements,
rehabilitation and revisions and furniture and fixtures)
During 1950, 18,188 shares were purchased at that
price and at the end of the year 54,564 shares
remained under option to the corporation.
On January 31, 1951 the corporation exercised
its option to purchase 18,188 shares, thus reducing
the amount of outstanding convertible preference
stock at the date of this report to 79,889 shares of
which 36,376 are under option.
Your corporation held an option to purchase at
their cost of $12.00 a share, without interest (currently quoted at $17.00 a share), 41,666 shares of
the Hotel Waldorf-Astoria Corporation common
stock owned by Mr. Conrad N. Hilton and Mr.
Henry Crown, who had acquired the stock on
October 13, 1949. This option was exercised January 23, 1950. In addition, 16,825 shares of Waldorf-Astoria stock were received as the result of an
offer made to the other members of the original
syndicate to exchange Hilton Hotels Corporation
common stock for Waldorf-Astoria stock on a
share-for-share basis. These transactions brought
our holdings of Hotel Waldorf-Astoria Corporation
stock to 212,788 shares, constituting 58.13 per cent
of the outstanding stock.