REPORT ON OPERATIONS
revenue: Gross revenues of Hilton Hotels Corporation continued to
climb as they have done each year since the organization of the Corporation in 1946. In 1960, the total was $231,502,403, up 4.7 per cent from 1959
revenues of $221,057,350.
Hotels in operation during the full twelve months of both years had
revenues of $206,173,748 in 1960 and $202,833,089 in 1959. Nine currently
operating units which were opened or acquired at some point during the
24-month span produced revenues of $19,456,832 in 1960 and $2,244,821
in 1959. Units no longer a part of the Hilton system contributed $4,232,623
in 1960 compared with $14,922,451 the preceding year. It is evident therefore that the newer units accounted for the bulk of the gain in revenues.
An analysis of total revenues indicates each of the principal operating
departments—rooms, food and beverage—assisted in the gains. A two-
year comparison follows:
Rooms $100,259,521 94,580,703
Food and beverage 102,737,737 99,709,479
Other operated departments 17,545,670 16,686,079
Store rentals 3,429,103 3,144,339
Office building rentals 996,898 1,057,325
Interest on investments 1,544,360 1,042,852
Other income 4,989,114 4,836,573
Total $231,502,403 221,057,350
During 1960, the Corporation had a room occupancy rate in its domestic
operations averaging 66.7 per cent compared with 69.1 per cent in 1959.
This was slightly better than the U. S. hotel industry's average occupancy
which was 65 per cent in 1960 compared with 66 per cent in 1959. The rate
reflects such traditionally slack periods as weekends and mid-summer as
well as many "sold out" weekdays during conventions. Our promotional
efforts are beamed at groups and individuals and our expansion efforts
are geared towards achieving a better year-round occupancy pattern.
earnings: Consolidated net profit in 1960 was $9,792,010, equal
after preferred dividends to $2.46 per share on the 3,731,228 shares of common stock outstanding at December 31. This compares with $11,582,864,
equal after preferred dividends to $2.90 per share on the 3,790,817 shares
outstanding at the 1959 year end.
Net income from operations was $7,544,982, or $1.86 a share, compared