TO THE SHAREHOLDERS OF
HILTON HOTELS CORPORATION:
This annual report to the 2,654 shareholders of Hilton Hotels Corporation is the first to cover operations
for a full calendar year, since the present corporation was created by consolidation May 31, 1946. It is a
pleasure to report that 1947 business volume and earnings exceeded those experienced in any previous year
by the individual properties which now comprise Hilton Hotels Corporation. Precise comparisons cannot
be made because of changes in corporate structure, but charts and tables accompanying this letter, pages
8, 9 and 26, show the business trends of recent years.
The 1947 results reflect in part the continuation of widespread travelling by the public. They also are the
product of our efforts to operate the hotels in a manner which will best serve the interests'; of our guests,
stockholders, and employees. Accompanying this letter are the financial statements of Hilton Hotels Corporation certified by Harris, Kerr, Forster & Company.
Gross revenue includingdividends and interest on securities in the year ended December 31,1947, was $42,534,238.
• Combining the figures of the predecessor'companies fop the first five months of 194tt with the actual results of
your corporation for the last seven months, gross revenue for the year 1946 was approximately $39,483,266.
Net profit after all'charges ill 1947 totalled $5,509,040-including non-recurring net profit of $949,508. This
compared with approximately $3,550,547 for your corporation and predecessor companies,in 1946. After providing for payment of-dividends on convertible preference stock, 1947 net profit was equal to $3.13 a share on
the 1,618,578 common shares outstanding on December 31st, last. Net profit of the combined operation, in 1946
was equal, after providing for a full year's dividends on convertible preference stock outstanding December
31, 1946, to approximately $1.90 a share on the 1,618,377 common shares then outstanding.
Hotel operations in 1947 accounted for net profit-of $4,559,532, or $2.54 per common share, after convertible
preference dividends paid.
Non-recurring profits arose from the sale of the Palmer House Garage, Palmer House laundry building "and
equipment, Ambassador Hotel securities and the Hilton Long Beach Hotel. There also were non-recurring
expenses caused chiefly by prepayment premiums incident to your corporation's refinancing program. The net
result of these transactions after provision for applicable taxes was a non-recurring profit of $949,508, or ■
59 cents per common share. , ...i; - .„,..; -.)*>■.,