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Hilton Hotels, 1963 Annual Report
Image 11
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Hilton Hotels Corporation. Hilton Hotels, 1963 Annual Report - Image 11. 1963. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. December 4, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/332/show/314.

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 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/332/show/314

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 11, 1963, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed December 4, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/332/show/314.

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 11
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_016_011.jpg
Transcript sales effort. Moderate increases were shown for administrative and general, heat, light and power, and maintenance and repairs expenses. Lease rentals and interest were up over 1962 while property taxes and corporate expenses and sundry capital charges were down. Depreciation and amortization amounted to $13,464,229, or $772,744 higher than in 1962. Consolidated profits for the year, including capital gains from the sale of properties, amounted to $4,770,356, equal to $1.35 a share in 1963, compared with $17,664,529, or $4.54 a share in 1962. During 1963, property sales accounted for a gain of $890,021 or 25 cents a share. The only significant sale during the year was that of an undivided one-half interest in The San Francisco Hilton Hotel, now in the final stages of construction. A large portion of the capital gains represented profits realized in 1963 on the sale of properties in prior years. In 1962, capital gains amounted to $11,932,372, or $3.11 a share. These unusually large gains primarily reflected the sale during 1962 of The Savoy Hilton and the land under The Palmer House. In September 1963 Hilton Inns, Inc., a wholly- owned subsidiary, entered into a contract, subject to certain conditions, involving the sale of the buildings, furniture and equipment, and leasehold comprising The Hilton Inn, Aurora, Illinois, at a price which is approximately $2,510,000 less than its cost basis. Accordingly, a reserve was established for revaluation of the carrying value of this property in the amount of the anticipated loss. Pending the consummation of the sale, Hilton will continue to operate the inn. With the exception of the expropriation of the subsidiary company in Havana, Cuba, this is the first transaction, if consummated, in which the Corporation or any of its wholly-owned subsidiaries will realize a substantial loss upon the disposition of a hotel. DIVIDENDS: Dividend payments were made in March and June at the rate of 37!/2 cents per share for a total of 75 cents a share of common stock during the year. Payments during 1962 totalled $1.50 per common share. All of the preferred stock was retired during 1962. FINANCIAL CONDITION: Working capital of the Corporation and consolidated subsidiaries at December 31, 1963 amounted to $20,779,109 or $5.86 a share of common stock. Accounts receivable were up substantially over a year earlier, primarily because of the consolidation of Hilton Credit Corporation and additional operating units. Current liabilities were significantly higher because of the inclusion of $4,050,000 in bank loans of Hilton Credit which were paid in February 1964, a bank overdraft of The London Hilton subsidiary and an increase in the amount of long-term indebtedness due within one year. The ratio of current assets to current liabilities was 1.48 to 1 at December 31, 1963, compared with 1.84 to 1 the previous year end. Working capital was increased on October 15, 1963 through the sale of an undivided one-half interest in The San Francisco Hilton Hotel. Hilton received $7,620,823 which represented one half of its investment plus interest from this sale thereby reducing the Corporation's equity in the project to $4,500,000. Concurrently the co-owners arranged a $17,000,000 interim construction loan and an additional unsecured loan of $1,500,000. A $17,000,000 first mortgage commitment has been obtained for the permanent financing of the hotel. The estimated total cost of the hotel project is $29,000,000. Hilton Hotels has an agreement to operate the hotel for a term of 25 years on a management fee basis. On March 1, 1963, the Corporation sublet the Albuquerque Hilton to another operator. The property comprising the El Paso Hilton Hotel was leased on October 1, 1963 to another operator and the lessee was granted an option to buy the property. Fixed assets consisting of land, buildings, leaseholds, leasehold improvements, furnishings and equipment, at year end had a book value of $195,811,668. Of this amount $119,881,289 was invested in twelve hotels owned in fee and $58,748,527 was represented in thirty-one leased properties. The remaining $17,181,852 of fixed assets included land acquired for development and the Corporation's undivided one half interest in The San Francisco Hilton Hotel. Long-term indebtedness amounted to $151,486,378 at December 31, 1963, compared with $138,390,496 a year earlier. The consolidation of Hilton Credit Corporation brought bank loans of $6,075,000 and subordinated notes of $3,050,000 of the subsidiary onto the consolidated balance sheet although Hilton Hotels Corporation is not liable therefor. The $4,110,000 balance of The Portland Hilton mortgage commitment and $4,480,213, representing the Corporation's 50 per cent share of interim financing on The San Francisco Hilton were drawn down.