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Hilton Hotels, 1956 Annual Report
Image 30
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Hilton Hotels Corporation. Hilton Hotels, 1956 Annual Report - Image 30. 1956. 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/598/show/591.

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 30. 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/591

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 30, 1956, 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/598/show/591.

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 30
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_009_030.jpg
Transcript shareholders at a special meeting held September 17, 1956, the certificate of incorporation was amended by changing the Company's authorized common stock from 4,000,000 shares, of a par value of $5.00 per share to 8,000,000 shares, of a par value of $2.50 per share. As a result of such amendment, each share of old common stock was converted into two shares of new common stock. T—COMMITMENTS AND CONTINGENT LIABILITIES Contract commitments in connection with air-conditioning and other projects approximated $3,590,000 at December 31, 1956. The Company has subscribed for and agreed to purchase from its wholly-owned subsidiary, Hilton Hotels International, Inc. at par, $2,000,000 aggregate principal amount of 5% subordinated (sinking fund) debentures and 400,000 shares of $5.00 par value common stock to be issued from time to time at the option of the subsidiary. The commitment is irrevocable for a period o^ four years from November 27, 1956, but shall expire prior thereto if and when such securities in these amounts have been purchased by the Company. As at December 31, 1956, Hilton Hotels Corporation, in connection with the subscription commitment, had purchased 40,000 shares of the common stock for $200,000 and in January 1957 purchased an additional 20,000 shares for $100,000. The Company is guarantor under a long-term note payable of a wholly-owned subsidiary amounting to $750,000 at December 31, 1956. 8—LONG-TERM LEASES The Company and its subsidiaries operate certain properties under leases ranging from three years and three months to twenty-five years, from December 31, 1956, with option to renew for various periods in some instances. The total minimum annual fixed or basic rentals payable (exclusive of real estate taxes, insurance and other occupancy charges) under all long- term leases for each of the next five years ending December 31, follows: 1957, $11,641,800; 1958, $11,296,000; 1959, $11,- 096,000; 1960, $9,925,200; and 1961, $9,112,700. The wholly-owned Subsidiary, Hilton Hotels International, Inc. has entered into leases and preliminary leases, contracts, or undertakings ranging from fifteen to twenty years, subject to certain conditions for the operation of hotels under construction or to be constructed in eighteen cities outside the continental United States. This Subsidiary had a commitment, subject to certain conditions, to invest 500,000 pounds ($1,393,- 000 at the exchange rate of $2,786 per pound at December 31, 1956) in connection with one of these projects. In general, "International" or its Subsidiaries is required to furnish initial inventories and to maintain sufficient working capital, except in the case of one lease, which specifies that not less than $250,000 shall be furnished for these purposes, to be maintained for the first five years of the lease. The terms of the leases commence either on actual occupancy or within ten days of receipt of architect's certificate of occupancy. The leases basically provide for a rental based on a percentage of gross operating profit, with certain specific rental obligations. 9—LIMITATIONS AND RESTRICTIONS Under the most restrictive covenants of certain indentures relating to long-term debt, the Company and certain Subsidiaries on a consolidated basis is, (a) required to maintain working capital of $7,000,000 and a ratio of current assets to current liabilities of 13314% to June 30, 1957 and 150% thereafter; (b) prohibited from declaring dividends or distributions on its capital stock or making certain acquisitions or redemptions of any of its capital stock unless 60% of the consolidated net income (as defined) shall be greater than the aggregate of all such dividends or payments. The maximum amount of earned surplus so restricted was $41,445,081 at December 31, 1956. The wholly-owned Subsidiary, Hotel Waldorf-Astoria Corporation, is restricted under the terms of a certain note payable, from payment of cash dividends without the written consent of the holder and/or holders, if any, of at least two-thirds of the principal amount of the note outstanding which at December 31, 1956 was $750,000. Earnings so restricted at December 31, 1956 amounted to $3,350,000. The wholly-owned Subsidiary, Hilton Hotels International, Inc., is restricted under the terms of a note payable amounting to $346,712.25 at December 31, 1956 from lending money to the Parent or any Affiliates, except wholly-owned Subsidiaries, purchasing, redeeming, or retiring any of its outstanding capital stock, or paying any dividends in cash or property except after (1) payment in full of all installments of principal and interest on the note ($50,000. principal per annum), (2) full compliance with other provisions aforementioned, in which event dividends payable in cash or property shall be limited to the aggregate of the amount of payments made in such year on the note. 28