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Hilton Hotels, 1961 Annual Report
Image 33
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Hilton Hotels Corporation. Hilton Hotels, 1961 Annual Report - Image 33. 1961. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. November 24, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/561/show/555.

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. (1961). Hilton Hotels, 1961 Annual Report - Image 33. 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/561/show/555

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, 1961 Annual Report - Image 33, 1961, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed November 24, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/561/show/555.

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, 1961 Annual Report
Creator (LCNAF)
  • Hilton Hotels Corporation
Publisher Hilton Hotels Corporation
Date 1961
Description Hilton Hotels Annual Report for calendar year 1961.
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 33
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_014_033.jpg
Transcript of the holders into common stock of the Company at a conversion ratio of 1.42 shares of preferred for each share of common (150,404 common shares have been reserved for this purpose), and, at the option of the Company, such Series "A" shares are redeemable at $26.25 plus accrued dividends to the date fixed for redemption. 450,000 shares of common stock of the Company have been reserved for the exercise of warrants which were originally attached to the $30,000,000. issue in 1959 of 6% subordinated sinking fund debentures of the Company. Each $1,000. debenture unit carried a warrant to purchase 15 shares of common stock. The warrants provide that this stock may be purchased at $42. per share until October 15, 1963; $46. per share thereafter to October 15, 1967; and, $50. per share thereafter to October 15, 1971, the expiration date of the warrants. (7) COMMITMENTS AND CONTINGENT LIABILITIES The Company and its subsidiaries were committed to approximately $23,000,000. in connection with contracts for the construction of hotels. A subsidiary entered into a first mortgage construction loan in the amount of $5,000,000. of which the first $1,666,667. is guaranteed by the Company. At December 31, 1961 the subsidiary had drawn $890,000. of the funds available under the loan. The Company is also guarantor to the extent of the first $1,000,000. under a $3,000,000. long-term obligation of this subsidiary and has agreed to purchase from time to time, as the subsidiary shall request, but not later than December 31, 1962, a 4% twenty-five year subordinated note of the subsidiary, in the principal amount of $1,500,000. at a price equal to the principal amount. Other guarantees of loans to subsidiaries or 50% owned companies were: First Mortgage loan of $2,024,000. on the Hilton Inn, New Orleans and the first $7,500,000. of a $15,000,000. First Mortgage loan of Hilton-Burns Hotel Company, Inc. The subsidiary, Hilton Hotels International, Inc. has subscribed for a 50% interest ($250,000.) in the share capital of Kahala Hilton Hotel Company, Inc. (hotel to be constructed) and had paid $50,000. of the subscription price. In addition, International has agreed to purchase $750,000. of 5% debenture notes of Kahala. In connection with two hotels under construction in The Netherlands, Hilton Hotels International, Inc. (to be lessee) subscribed to 1,000,000 guilders in the share capital of each company and made 50% payments amounting in the aggregate to $275,820. The total balance payable under the subscription is $278,500. at the current exchange rate. In accordance with lease terms for the London Hilton, International is required to furnish the hotel at an estimated cost of $4,000,000. A loan in the amount of $900,000. maturing November 15, 1966 entered into by lessor companies of the Acapulco Hilton and the Continental Hilton has been guaranteed by International and another person. Securities of two Mexican companies have been pledged to secure the loan. The Company is contingently liable as guarantor respecting two second mortgage notes aggregating $8,964,929. which were sold in the transaction of the sale and leaseback of the Beverly Hilton Hotel under which sale the Company has the option to repurchase the hotel in 1966 or 1967 at a price of $13,400,000., the original sale price attributable to the land and buildings comprising the hotel. The Company has purchased $500,000. of 6}4% notes, maturing January 1, 1971, of the 50% owned Hilton-Uris, Inc. (hotel under construction) and is committed to purchase an additional $2,500,000. of such notes. An agreement has been made with Rock-Hil-Uris, Inc. (hotel under construction) in which the Company has a $500,000. investment, representing 25% of the capital stock, whereby the Company will purchase up to $3,750,000. principal amount of Series "A" notes of the affiliate. Both hotels when completed will be operated by Hilton Hotels Corporation under management agreements. Hilton Inns, Inc., a subsidiary, has received a First Mortgage loan commitment in an amount up to $18,000,000. The Company has received a $16,000,000. loan commitment in connection with the construction of a Hilton Hotel in San Francisco. No funds have been drawn down under either commitment. The Company is obligated to make an additional capital contribution of $225,000. to the partnership in which it now has a majority interest, (Hawaiian Village Development Company), and is to further purchase $2,025,000. of subordinated notes of the partnership unless such additional capital contribution and purchase of subordinated notes are made by other persons. On December 20, 1961, Hilton Hotels Corporation made an offer to the stockholders of the affiliated Statler Hotels Delaware Corporation to purchase their shares for $6.00 per share subject to certain conditions. As of February 28, 1962 there had been tendered to the designated depositories, 1,339,221 shares costing $8,035,326. (8) LONG-TERM LEASES The Company and its subsidiaries operate or will operate certain properties under leases ranging from one month to thirty-seven years five and one-half months from December 31, 1961 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: 1962, $5,557,611.; 1963, $5,544,633.; and, 1964, 1965 and 1966, $5,548,383. per year. 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 assignment of the Caribe Hilton lease to Caribe Hilton Hotel Corporation of Delaware, International and the Company continued liable for the tenant's obligations under the lease which, among other things, requires payment of a small fixed rental and additional rental based on gross operating profit. International remained 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, Hilton Hotels International, Inc., has negotiated preliminary contracts or agreements for the operation of hotels 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 is 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 with certain specific rental obligations. (9) LIMITATIONS AND RESTRICTIONS Indentures of the Company and an affiliate, as amended, contain certain restrictive provisions providing for the Company and its subsidiaries, on a consolidated basis, to maintain working capital of not less than $5,000,000., and include limitations upon the declaration and payment of cash dividends and the payment for purchase, redemption or retirement of shares of any class of capital stock. In accordance with the indentures, as amended, earned surplus in the amount of $64,160,304. was restricted at December 31, 1961. 29