2.6 per cent over 1946. While labor expenses were up $514,924, they
were more than offset by greater sales volume and higher prices.
The operating profit from minor departments increased $152,845 last
year; while other income comprising commissions, concessions,
purchase discounts, waste sales and similar items, was $110,907
above the 1946 level.
NEW PRODUCTIVE SPACE
One key to profitable hotel operation is maximum use of space for
purposes which will bring the greatest returns. Further progress was
made last year by Hilton Hotels in converting non-productive areas
into revenue producing space.
The Plaza Rendez-Vous was opened on October 31st as a theatre
dinner and supper club. It is in space occupied by the old Plaza Grill
until 1929, and which was used after that time for storage. The cost
of rehabilitation, decoration and air-conditioning was $85,000. Immediately the Rendez-Vous became one of the most popular supper
rooms in New York. Its total revenues for November and December
were $102,000. Since the room is expected to be open six months of
the year, revenues are running in excess of $300,000 annually.
The Town and Country room at the Palmer House operated for. its
first full year in 1947, with sales of food and beyerages amounting to
$490,000. Prior to the conversion of this space into a cocktail lounge,
it rented as a book store for $250 a month.
Similar action to increase revenues from available space was taken at
other properties last year. This conformed to a basic policy which has
been followed by Hilton Hotels for years.
MAINTENANCE OF PROPERTIES
The best insurance for the preservation of value in a hotel lies in
constant maintenance and repair work. During the war years and for
some time thereafter, scarcity of materials and equipment, coupled
with the unprecedented demand for rooms, made it necessary to defer
maintenance and rehabilitation. Last year, however, we made vigorous
strides in our program to take care of deferred projects.
During 1947 a total of $4,367,409 was spent for repairs and maintenance, purchase of new equipment and alterations on the properties.
Of this amount, $2,081,633 was for maintenance and repairs, and
$2,285,776 for capital improvements. Of the 7,400 guest rooms in
the wholly-owned and leased properties, approximately 3,700 were
redecorated last year. In addition, public space was redecorated,
bathrooms retiled, furniture replaced, kitchens rehabilitated, new
public rooms installed and old ones improved. New equipment of
various kinds also was installed. Some,expenditures were made with
a view toward increasing employee efficiency. These combined expenditures.represented an average of $590 per guest room.
Expenditures for maintenance and repairs will again be substantial
in 1948. As a matter of policy they will remain at a level which will
keep Hilton Hotels in such condition that they will continue to be
regarded as the equal or superior of any hotel-hi their respective
communities. • ■*.»-'
1 The Te-iwti^d Country Room at the Palmer House,
which occupies space once rented to a book shop'
now brings m many times its former revenue'
-The Plaza Rendez-Vous, opened late in'wrollfj
'» already oite of New York's most popular
-.and successful theater dinnef and supper cfubss