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Hilton Hotels, 1963 Annual Report
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Hilton Hotels Corporation. Hilton Hotels, 1963 Annual Report - Image 6. 1963. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. July 6, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/332/show/309.

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.

Hilton Hotels Corporation. (1963). Hilton Hotels, 1963 Annual Report - Image 6. 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/332/show/309

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.

Hilton Hotels Corporation, Hilton Hotels, 1963 Annual Report - Image 6, 1963, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed July 6, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/332/show/309.

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 Hilton Hotels, 1963 Annual Report
Creator (LCNAF)
  • Hilton Hotels Corporation
Publisher Hilton Hotels Corporation
Date 1963
Description Hilton Hotels Annual Report for calendar year 1963.
Subject.Topical (LCSH)
  • Hospitality industry
  • Hotel management
  • Corporation reports
Subject.Name (LCNAF)
  • Hilton Hotels Corporation
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 6
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_016_006.jpg
Transcript cities construction of new hotels has increased the number of available rooms beyond the need for such accommodations. In New York City, for example, there was an over-abundance of guest rooms in 1963 in anticipation of the opening of the 1964-1965 World's Fair. With 6,810 hotel rooms available at The Waldorf- Astoria, The New York Hilton, The Statler Hilton and The Savoy Hilton, we expect that our business in New York in 1964 and 1965 will benefit from the influx of people to the World's Fair. The Olympic games in Tokyo and the Republican National Convention in San Francisco should also aid our business prospects in those cities during the coming year. Unexpectedly, the Internal Revenue Service regulations on travel and entertainment expenses adversely affected the revenues and profits of the Corporation and other companies engaged in the hotel and restaurant business throughout the country. Attendance at many conventions was less than anticipated, expenditures of our guests were reduced and the length of their visits shortened. The Corporation, as well as the entire hotel and restaurant industry, has been very active throughout the year in obtaining clarification from Internal Revenue Service as to the scope and effect of these regulations. In this connection, we prepared and distributed in our hotels a booklet discussing these regulations. As a result of the growing public understanding of these regulations, we believe that the adverse effect on our business will be temporary. Nevertheless, since earnings failed to develop as expected, your Board of Directors has not authorized the payment of any dividends since June 1, 1963. I have always been optimistic that, despite the excess capacity which exists in certain locations in the hotel industry, Hilton Hotels would prosper, and therefore, the inability of earnings in 1963 to justify the continuation of our regular dividend policy was a very great personal disappointment. Marketing, sales and advertising are now integrated on an international scale to encourage travelers, without regard to nationality, race, color or creed, to patronize Hilton Hotels. Since the Corporation has taken a leading role in the endeavor to eliminate discrimination in the hotel industry, we anticipate no adverse effects from the enactment of the proposed civil rights legislation. During 1963 we continued our endeavor to dispose of certain properties (including some of the Statler hotels) which are no longer suited to our operational standards. As a result, the Hilton Hotels in Albuquerque and El Paso were leased to other interests. In view of the unwillingness of responsible parties to pay reasonable prices, we were unable to dispose of all these properties during 1963. We shall endeavor to dispose of these properties on terms favorable to the Corporation in the ensuing year. As previously reported, our present policy in new ventures, both domestic and international, is to operate hotels under management contracts or long-term leases with nominal or no equity investment. The Corporation is being very selective with respect to new locations, and it is our goal to enter into management agreements for hotels in only those locations where satisfactory earnings can be projected and achieved for both Hilton and the owners. While many communities are temporarily overbuilt, the right location still means profits. A number of recently-opened hotels which are being operated under management contracts have already begun to produce substantial management fee income. As fees are generally based on a percentage of revenues plus, in some cases, a percentage of the operating profit, the risk is minimal and the contribution to earnings is immediate, once the hotel is opened. Even though the profit trend has been adverse recently, the Corporation's financial condition is sound. We have simplified the capital structure during the past few years by retiring all preferred stock, and by the purchase in 1963 of 300,000 shares of common stock in accordance with the long-standing policy of repurchasing shares originally issued for properties which are no longer owned by the Corporation. Also, in 1963 the Corporation increased its ownership of the outstanding stock of Hilton Credit to approximately 73 per cent, resulting in the inclusion of $767,811 of earnings from Hilton Credit in our consolidated statement. Substantial assets underlie each share of Hilton common stock outstanding. Stockholders' equity amounted to $29.49 per share at year end. I have asked each executive of the Corporation to dedicate his efforts to the improvement of revenues as well as to the reduction of expenses, wherever possible, without affecting the quality of service. I am encouraged by the fact that the operating results for the last quarter of 1963 showed a considerable improvement over those of the corresponding quarter of 1962. The 1963 fourth quarter earnings per share amounted to 53 cents as compared with 23 cents a year earlier. I have every hope that this favorable trend will continue during the year 1964 so that the Board of Directors may consider the resumption of dividends. I will devote every personal effort during 1964 to the fulfillment of this goal. March 16, 1964 CONRAD N. HILTON Chairman and President