national, Inc., a wholly owned subsidiary
of your Corporation, has been actively
engaged for the past several years in providing superior hotel facilities in key cities
outside of the United States. It is presently operating two hotels, the Caribe
Hilton in San Juan, Puerto Rico, and the
Castellana Hilton in Madrid, Spain.
Seven hotels are now planned or being
built in various foreign nations. The next
to open will be the Istanbul Hilton in
Istanbul, Turkey. This hotel, which is
being constructed and will be owned by
an agency of the Turkish government,
will be operated by Hilton Hotels International under a contract similar to that
in effect for the Caribe Hilton and the
Castellana Hilton. Under the terms of
these contracts, the hotels are built and
owned by the governments or business
interests of the countries, with Hilton
Hotels International supplying the work
ing capital and management skill, usually
retaining one-third of the operating profit.
This arrangement has the advantage of
limiting risks and providing opportunities
for substantial profits.
Hotels are also under construction in
Mexico City and Acapulco, Mexico, in
Havana, Cuba, and in Cairo, Egypt.
During 1954 contracts were signed for
new hotels to be constructed in Montreal,
Canada, and in Rome, Italy. The
Montreal transaction is being carried out
by Hilton of Canada, Ltd., a new wholly
owned subsidiary of Hilton Hotels International, Inc., which, on November 8,
1954, entered into an agreement with
Canadian National Railway Company
and its wholly owned subsidiary, Canadian National Hotels, Limited, to operate
the new $24,000,000 Queen Elizabeth
Hotel to be constructed in Montreal by
Canadian National Railway Company.
This hotel is scheduled for completion in
1957. An agreement also was signed in
November for operation by Hilton Hotels
International of the Albergo dei Cava-
lieri Hilton, a new $7,000,000 hotel to be
built in Rome, Italy, and finished in
1957. These hotels will add another 2,450
rooms to the total operated by Hilton
Hotels Corporation at home and abroad.