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Hilton Hotels, 1963 Annual Report
Image 23
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Hilton Hotels Corporation. Hilton Hotels, 1963 Annual Report - Image 23. 1963. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. February 26, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/332/show/326.

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 23. 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/326

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 23, 1963, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed February 26, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/332/show/326.

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 23
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_016_023.jpg
Transcript Guarantees of loans to subsidiaries or 50% owned companies were: First Mortgage loan of $1,893,695 on the Hilton Inn, New Orleans; and, the first maturing $7,500,000 of a $15,000,000 First Mortgage loan of Hilton-Burns Hotels Company, Inc. which had been paid down to $14,586,710 at December 31, 1963. The Company has also guaranteed payment of principal and interest under a land contract payable by its wholly-owned subsidiary, 145 West Elizabeth Street Garage Corporation for the first three years of the contract term. The contract, dated September 30, 1963, in the original amount of $250,000, was paid down to $248,052 at December 31, 1963. The Company has agreed to guarantee $2,500,000 of a $10,000,000 loan commitment of the 25% owned Rock-Hil- Uris, Inc. Of the amount so guaranteed by the Company, $2,100,000 had been drawn down at December 31, 1963. The costs of construction and equipping the New York Hilton Hotel, owned by Rock-Hil-Uris, Inc. have not been finally determined. Claims of $3,000,000 made by the builder in connection with certain construction work are in dispute and such claims have not as yet been resolved but are being negotiated. The subsidiary, Hilton Hotels International, Inc., has subscribed and paid for a 50% interest ($375,000) in the share capital and $875,000 face value of 5% subordinated notes, maturing December 31, 1974, of Kahala Hilton Hotel Company, Inc. In addition, International has agreed to further invest $250,000 in Kahala, to be evidenced by a note bearing interest at 5% per annum, to be repaid in five years in equal annual installments of $50,000. A loan in the amount of $900,000 maturing November 15, 1966, entered into by lessor companies of the Acapulco Hilton and Continental Hilton has been guaranteed by International and another person. Securities of two Mexican companies have been pledged to secure the loan, which was paid down to $705,000 at December 31, 1963. International is also guarantor of a $150,000 obligation of Hilton of Panama, S. A., a wholly-owned subsidiary; $3,500,000, Canadian, first mortgage bonds of a 50% owned Canadian subsidiary; a $375,000 demand bank loan of its wholly-owned Japanese subsidiary; a $153,000 obligation of the Athens branch of Hilton of Panama, Ltd., a wholly-owned subsidiary; and, $1,000,000 of a $5,000,000 mortgage bond issue of a 50% owned Hawaiian subsidiary. Hilton Hotels (UK), Ltd., a wholly- owned subsidiary of International, has arranged to borrow a total of 1,450,000 pounds sterling ($4,060,000) from Lloyds Bank, Ltd. in connection with furnishing the London Hilton Hotel. At December 31, 1963, the sterling equivalent to $3,695,366.61 had been drawn by an overdraft. The Company is contingently liable as guarantor respecting two second mortgage notes aggregating $7,164,929 which were sold as part of the transaction involving the sale and leaseback of The Beverly Hilton Hotel under which sale the Company has the option to repurchase the hotel together with an adjoining garage in 1966 or 1967 at a price of $14,315,050, the original sale price attributable to the land and buildings comprising said hotel and garage. The Company has purchased $2,200,000 of 6K% notes, maturing January 1, 1971, of the 50% owned Hilton-Uris, Inc. (hotel under construction) and is committed to purchase an additional $800,000 of such notes. Under an agreement with Rock-Hil-Uris, Inc., (owner of the New York Hilton) in which the Company has a $500,000 investment, representing 25% of the capital stock, the Company is obliged to purchase up to $3,750,000 principal amount of Series "A" notes of the affiliate and $2,507,000 of such notes had been purchased to December 31, 1963. In addition, in accordance with the terms of the agreement, the Company has also purchased a total of $250,000 Series "B" notes of the affiliate. Both series of notes bear interest at 5lA% per annum and mature January 1, 1971. On October 15, 1963, the Company sold an undivided one- half interest in The San Francisco Hilton (under construction) to Houston International Hotels, Inc. Concurrently the co- owners arranged a $17,000,000 interim construction loan and an additional $1,500,000 unsecured loan. At December 31, 1963, $8,960,426 of the funds available under the construction loan had been drawn down. Of this amount 50% or $4,480,213 represented the obligation of the Company. A $17,000,000 first mortgage commitment has been obtained by the co-owners for the permanent financing of the hotel. The Company is obligated to make an additional contribution of $225,000 to the partnership in which it now has a majority interest (Hawaiian Village Development Company), and is to further purchase $1,294,200 of subordinated notes of the partnership unless such additional capital contribution and purchase of subordinated notes are made by other persons. During the current year, under an offer dated December 17, 1962 which expired January 24, 1963, the Company acquired an additional 300,000 shares of its $2.50 par value common stock for the Treasury at a total cost of $8,572,021. The Palmer House Company, a wholly-owned subsidiary, has a first mortgage loan commitment in the amount of $15,000,000 under which an initial draw down of $10,500,000 was made December 11, 1962. The commitment for the additional borrowing expires December 11, 1965 unless detailed plans and contractors' bids, in connection with a proposed building program, have been submitted to and approved by the mortgagee prior to that date. The Company, its officers, directors and subsidiaries are engaged in various litigation, but the Company's legal counsel does not anticipate that any amounts that the Company, its officers, directors or its subsidiaries may be required to pay by reason thereof will be of material importance. (9) LONG-TERM LEASES The Company and its subsidiaries operate or will operate certain properties under leases ranging from one year and ten months to fifty-one years and three months from December 31, 1963 with options to renew in some instances. The total minimum annual fixed or basic rentals payable (exclusive of real estate taxes, insurance and other occupancy charges) under such leases for each of the next five years ending December 31, follows: 1964, $6,809,789; 1965, $6,791,456; 1966, 1967 and 1968, $6,287,289. Rental based on a percentage of gross operating profit and other lease obligations of a Canadian subsidiary of Hilton Hotels International, Inc., are guaranteed by both International and by the Company. Under the terms of The Caribe Hilton lease, International and the Company are liable for the tenant's obligations under the lease which, among other things, require payment of a small fixed rental and additional rental based on gross operating profit. International is contingently liable for performance under all other leases entered into by or assigned to its foreign subsidiaries. The Company has not been released from its obligations under a ground lease which was assigned to Hilton Inns, Inc. The subsidiary, International, has negotiated preliminary contracts and agreements for the operation of hotels (certain of which are now under construction), or under consideration, on sites outside the Continental United States, subject to fulfillment of certain conditions and execution of final leases. In general, International or its subsidiaries are required to furnish initial operating inventories and maintain sufficient working capital. Leases basically provide for a rental based on a percentage of gross operating profit. HILTON HOTELS CORPORATION AND CONSOLIDATED SUBSIDIARIES