The taxes are payable only as the payments
on the purchase price are received. After
providing for taxes on the profit attributable
to 1952 income, the net profit attributable
to that year was $123,192.
In December, the leasehold estate comprising the Dayton Biltmore Hotel, Dayton,
Ohio, was sold under a "lease back"
arrangement. The purchase price was
$3,300,000 of which $250,000 was paid
in cash and the balance of $3,050,000 was
represented by installment notes, of which
$1,900,000 was paid in January, 1953. The
profit on this sale was $2,623,116 which
was also subject to income taxes at the
capital gains rate, payable only as the payments on the purchase price are received.
After providing for taxes, the profit attributable to 1952 income was $147,053. Our
lease agreement with the new owners provides for a rental of $350,000 annually, as
well as ground rent of $105,000. The average income of this property during the past
few years has been in excess of $470,000.
LONG TERM DEBT
At the 1952 year end, consolidated long
term debt amounted to $36,478,295, an increase of $984,665 over the $35,493,630
debt on December 31, 1951. A detailed
statement of changes appears in the accompanying table.
A new mortgage of $2,000,000 was placed
on the Jefferson Hotel and the old first and
second mortgages totaling $1,170,007 were
retired. With the acquisition of the Hotel
Roosevelt, the debentures of $1,836,558
issued by the Roosevelt Hotel, Inc., and
assumed by our subsidiary were included
in the consolidated figure. Mortgages on
The Conrad Hilton, Palmer House and
Plaza and the note on The Mayflower were
reduced by prepayments called for under
terms of the loan agreements. The Hotel
Waldorf-Astoria Corporation retired
$885,000 of its debentures through operation
of the sinking fund. The Mayflower note
was completely retired shortly after January
The Corporation authorized the issuance of
65,526 shares of common stock to effect the
merger with Mayflower Hotel Corporation.
THE TOWN HOUSE
EL PASO HILTON