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Hilton Hotels, 1952 Annual Report
Image 18
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Hilton Hotels Corporation. Hilton Hotels, 1952 Annual Report - Image 18. 1952. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. September 17, 2019. https://digital.lib.uh.edu/collection/hiltonar/item/736/show/725.

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. (1952). Hilton Hotels, 1952 Annual Report - Image 18. 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/736/show/725

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, 1952 Annual Report - Image 18, 1952, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed September 17, 2019, https://digital.lib.uh.edu/collection/hiltonar/item/736/show/725.

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, 1952 Annual Report
Creator (LCNAF)
  • Hilton Hotels Corporation
Publisher Hilton Hotels Corporation
Date 1952
Description Hilton Hotels Annual Report for calendar year 1952.
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 18
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_005_018.jpg
Transcript NOTES TO FINANCIAL STATEMENTS HILTON HO (1) BASIS OF CONSOLIDATION It is the policy of the Corporation to include in the consolidated financial statements all wholly-owned and majority- owned subsidiaries and to reflect in consolidated income subsidiary operations from dates of acquisition of control. In consolidation, the intercompany accounts and transactions are eliminated. New to the consolidation this year are the wholly-owned subsidiaries Hotel Roosevelt Corporation organized November 13, 1951 which acquired control of Roosevelt Hotel, Inc. (operating Hotel Roosevelt, New York, under lease), as of October 16, 1952 which latter company was merged with its parent immediately after the close of business, December 31, 1952; Hotel Blackstone Corporation, organized January 16, 1952 and operating The Hilton Hotel, Fort Worth, under lease since February 1, 1952; Hilton Hotel Drug Co., organized January 23, 1952 and operating since February 10, 1952 under lease of space in The El Paso Hilton Hotel, an operating unit of the Corporation; The Palmer House Drug Store, Inc., and Palmer House Fountain Luncheonette, Inc., both organized on January 11, 1952 and both operating since February 1, 1952 under lease of space in The Palmer House, Chicago, an operating unit of the Corporation; and The Jefferson Drug Company, organized March 22, 1952 and operating since July 1, 1952 under lease of space in The Jefferson Hotel, St. Louis, an operating unit of the Corporation. The Mayflower Hotel Corporation carried in consolidation last year as a majority-owned subsidiary was merged with the Corporation as of December 1, 1952 thereby becoming an operating unit of Hilton Hotels Corporation. There continues to be carried in the consolidated financial statements the wholly-owned Hilton Hotels International, Inc., and the majority-owned Hotel Waldorf-Astoria Corporation in which Hilton Hotels Corporation had an 83.88% interest at December 31, 1952. A former operating unit, Lubbock Hilton Hotel was sold as of the close of business April 30, 1952 and, accordingly, the income accounts reflect only four months operations of this unit for 1952. On December 11, 1952 the Corporation sold its interest in the ninety-nine year lease of The Dayton Biltmore Hotel together with certain assets that were related to it and at about the same time acquired a sub-lease from the purchaser. Accordingly, the income accounts contain a full year's operations of this Unit as in prior years. (2) INVESTMENTS Included under this caption is a real estate and a chattel mortgage installment note both maturing April 30, 1960 in the original respective amounts of $925,000.00 and $225,000.00, paid down to $889,591.33 and $216,358.03, respectively at December 31, 1952. These notes were received in connection with the sale of The Lubbock Hilton Hotel property under which terms of sale the Corporation received $300,000.00 in cash and the balance in notes as aforementioned. The profit of $792,602.05 on the sale was deferred and is being taken into income in the year payments are made. Accordingly, the income accounts for the year ended December 31, 1952 included $166,475.10 of realized profit included in the 1952 payment of $344,050.64. The leasehold sales agreement included under this caption in the original amount of $3,300,000.00 paid down to $3,050,000.00 at December 31, 1952 was entered into in connection with the sale of The Dayton Biltmore leasehold and certain related assets. On January 7, 1953 a further payment of $1,900,000.00 was made to the Corporation in accordance with the agreement and there was received in addition thereto a promissory installment note for the balance of $1,150,000.00 secured by a real estate leasehold mortgage maturing January 5, 1965. The profit of $2,623,116.19 on the sale was deferred and is being taken into income in the year payments are made. Accordingly, the income accounts for the year ended December 31, 1952 included $198,720.92 of realized profit included in the 1952 payment of $250,000.00. (3) FIXED ASSETS The properties included under fixed assets at December 31, 1952 were the same as in the preceding year except as mentioned in Note 1. Such asset values were carried at cost or were carried over from the predecessor companies together with related depreciation reserves at predecessors' basis, plus additions at cost. The cost of securities of Roosevelt Hotel, Inc., held by the wholly-owned subsidiary, Hotel Roosevelt Corporation at December 31, 1952 and the cost of securities of Hotel Waldorf-Astoria Corporation, majority-owned subsidiary were acquired at $1,880,326.30 more than the book values of the equities thus acquired. The difference has been treated in consolidation as additional cost of leaseholds. Amortization of leaseholds is accordingly stated herein at $148,617.83 more than is shown by the subsidiaries of which $60,048.28 has been charged against consolidated income this year. The investment in Mayflower Hotel Corporation, which was merged with the Parent as of December 1, 1952, was acquired at $1,376,797.15 more than the book value of the equity thus acquired. The difference has been treated as additional cost of fixed assets and allocated on a pro-rata basis to the respective assets and depreciated accordingly. In addition, the basis of fixed assets and related depreciation reserves were adjusted to conform with the tax basis of property which in net was $367,640.47 higher than the adjusted basis in merger. (4) FEDERAL TAXES ON INCOME Provision has been made for all Federal Income Taxes based on separate returns of the companies. Federal Income Tax returns have been examined and settled through 1948, for Hilton Hotels Corporation, through 1949 for Hotel Waldorf-Astoria Corporation and through 1950 for Mayflower Hotel Corporation. The Bureau of Internal Revenue has examined the Federal Income Tax return of Roosevelt Hotel, Inc. for the year 1944 and in connection therewith has proposed a deficiency of approximately $46,000.00 based on the disallowance as a deduction, of interest expense relating to the 5% Subordinated Income Debentures due May 1, 1964. The company contested the proposed deficiency and the case has been tried in the Tax Court of the United States but no decision has been rendered. If the Tax Court should uphold the findings of the Bureau of Internal Revenue, the total Federal Income Tax liability (including interest) at December 31, 1952 would be approximately $482,000.00 for the 16