This bedroom at the Hilton Hotel in Lubbock is
art example of the attractive accommodations
available at our Texas hotels.
Wli0^^^^^mp.ioyees recently honored for their
long service are these waiters. Two have been
with the Palmer House as long as 35 years.
The Hilton Hotel group, with its total of 11,200 rooms, is the largest
in the country. The individual units range from 100 rooms to 2,700
rooms. No attempt is being made to standardize the hotels, each
maintaining its own individuality and tradition. The best features of
every hotel acquired have been retained. However, new operating
methods and features have been introduced in order to provide
maximum service for the guest as well as an adequate return on the
investment. In short, while avoiding the limitations on patronage
which go with a standardized system, your hotels do enjoy economies
which accompany a large scale operation.
Labor expense is relatively high in hotels because it is a personal
service business. However, new approaches to our operations are
constantly being sought, with the objective of promoting efficiency.
Research now in progress is expected to produce new methods which
will benefit future operations. Whenever possible, duplication of
functions is being eliminated. For example, ownership of both The
Stevens and Palmer House in Chicago made it feasible to consolidate
laundering in one place. Originally, 250 people were employed in the
two laundries. Today, the number is 186 and when additional equipment is installed the total will be cut to approximately 100. When the
changeover is completed it is expected that a savings of around
$230,000 annually will have been effected.
In December, 1947, an arrangement was made with Marshall Field &
Company of Chicago, Illinois, whereby that concern now acts as
national purchasing agent for Hilton Hotels Corporation on a percentage basis for the purchase of a substantial portion of certain
types of hotel operating equipment and supplies. Your management
believes that the experience and buying knowledge of this outstanding
merchandising organization will result in substantial economies in
the purchase of equipment and supplies.
A successful hotel operation requires efficient, courteous, and tactful
job performance by its personnel. The Hilton management makes
every effort to secure such performance, while at the same time providing each employee with a good standard of living, and an opportunity for advancement.
At the close of the year, your corporation had approximately 7,540
employees, while the partially owned and managed hotels had 1,857.
Payroll and related expense of the former amounted to $15,768,440,
and of the latter to $3,244,244. These expenses constitute a substantial portion of the cost of operation.
Relations between employees and management were harmonious
during the year. All of your corporation's existing labor contracts
were revised or extended by negotiations with employees or their
bargaining agencies, with upward adjustments made. A comprehensive
job analysis program was inaugurated in the Chicago properties during
1947. This will result in better procedures in employee hiring, training and job relationships. Through this job analysis program, we are
laying the groundwork for improving the methods of doing a par-