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Hilton Hotels, 1956 Annual Report
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Hilton Hotels Corporation. Hilton Hotels, 1956 Annual Report - Image 10. 1956. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. October 21, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/598/show/571.

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. (1956). Hilton Hotels, 1956 Annual Report - Image 10. 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/598/show/571

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, 1956 Annual Report - Image 10, 1956, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed October 21, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/598/show/571.

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, 1956 Annual Report
Creator (LCNAF)
  • Hilton Hotels Corporation
Publisher Hilton Hotels Corporation
Date 1956
Description Hilton Hotels Annual Report for calendar year 1956.
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 10
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_009_010.jpg
Transcript Consolidated net profit of Hilton Hotels Corporation in 1956, after all charges and taxes, soared to $16,752,369, a gain of 84% over the $9,104,760 net profit of 1955. The 1956 net profit is equal, after preferred dividend requirements to $4.48 a share on the 3,671,602 shares of common stock outstanding on December 31, 1956. A year earlier, net profit after preferred dividends was equal to $2.52 per share on the equivalent 3,440,478 common shares then outstanding, adjusted for the two-for-one stock split effected in September. Operations in 1956 accounted for $9,587,214 of the total consolidated net profit. This amount was equal, after preferred dividends, to $2.53 per common share. In 1955, net profit from operations was $8,002,259, or $2.20 per common share. Profit from the sale of properties in 1956 amounted to $7,165,155, or $1.95 per common share. This amount compared with similar profits in 1955 of $1,102,501, which came to 32 cents per common share of stock. The substantial net profit derived from property sales was occasioned by a number of extraordinary circumstances. Three hotels, the Jefferson in St. Louis, the Mayflower in Washington, and the Roosevelt in New York, were sold in compliance with a consent decree entered on February 6, 1956. This decree, which in no way admits any violation on the part of the Corporation, brought to an end an anti-trust suit filed by the Justice Department against the Corporation and the Statler Hotels Delaware Corporation. The Jefferson Hotel was sold in Decem ber of 1955, prior to the entry of the consent decree, at a profit of $2,617,655 after capital gains tax. This sale was followed by that of the Hotel Roosevelt on February 29, 1956, which resulted in a profit after taxes of $1,845,950. The Mayflower Hotel in Washington, D.C. was sold on March 31 at a profit after taxes of $5,862,867. The sale of the Hotel New Yorker was completed on October 16, 1956. Payment received by Hilton Hotels Corporation consisted of $1,679,625 in cash, plus 12,815 shares of Hilton Hotels common stock valued at $320,375. As part of the transaction, Hilton earlier had received the equity in the Hotel Senator in Sacramento, California. The remainder of the purchase price consisted of a second mortgage and other notes. The total profit after taxes accruing from the New Yorker sale is $7,169,847, which will be received in installments over a ten-year period. The Hotel Senator was sold, as of October 31, upon receipt of $1,800,000 in cash from the purchaser. The balance of the purchase price was represented by a second mortgage of $450,000, and a new first mortgage of $1,500,000, both assumed by the purchaser. Of the $23,327,920 pre-tax profit accruing to Hilton Hotels Corporation from the sale of the Jefferson, Roosevelt, Mayflower, and New Yorker hotels, a total of $8,589,793 was taken into income in 1956. Additional profit was also realized from property sales of prior years. At December 31, 1956, there remained $19,092,518 in unrealized profit from property sales, which will be applied to income over the next 10 years. This profit amounts to $3.90 per share, after provision for capital gains tax at the current rate based on the 3,671,602 common shares outstanding at the year-end.