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Hilton Hotels, 1955 Annual Report
Image 21
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Hilton Hotels Corporation. Hilton Hotels, 1955 Annual Report - Image 21. 1955. Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston. University of Houston Digital Library. Web. July 7, 2020. https://digital.lib.uh.edu/collection/hiltonar/item/886/show/878.

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. (1955). Hilton Hotels, 1955 Annual Report - Image 21. 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/886/show/878

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, 1955 Annual Report - Image 21, 1955, Annual Reports from the Hospitality Industry Archives, Hospitality Industry Archives, Conrad N. Hilton College of Hotel and Restaurant Management, University of Houston, accessed July 7, 2020, https://digital.lib.uh.edu/collection/hiltonar/item/886/show/878.

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, 1955 Annual Report
Creator (LCNAF)
  • Hilton Hotels Corporation
Publisher Hilton Hotels Corporation
Date 1955
Description Hilton Hotels Annual Report for calendar year 1955.
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 21
Format (IMT)
  • image/jpeg
File Name hiltonar_201609_008_021.jpg
Transcript The Company had not provided for sinking fund requirements at January 1, 1956 but has since surrendered for cancellation and credit to the sinking fund 1,240 shares of Treasury, Series "A" of $100. par ($124,000.) and is depositing $76,000. to provide for sinking fund requirements of Series "B" shares. 6-COMMITMENTS AND CONTINGENT LIABILITIES Contract commitments in connection with air- conditioning and construction work approximated $1,850,000. at December 31, 1955. The Company is guarantor under a long-term note payable of a wholly-owned subsidiary amounting to $1,450,000. at December 31, 1955. 7-LONG-TERM LEASES Certain properties are operated by the Company and its Subsidiaries under leases ranging from four years and three months to twenty-three years and ten months, from December 31, 1955, with option to renew for various periods in certain instances. Total minimum annual fixed or basic rentals payable under such leases approximated $10,950,000. at December 31, 1955. The wholly-owned subsidiary Hilton Hotels International, Inc. has entered into leases and preliminary leases or contracts ranging from fifteen to twenty years, subject to certain conditions, for the operation of hotels under construction or to be constructed in Mexico City and Acapulco, Mexico; Havana, Cuba; Montreal, Canada; Cairo, Egypt; Berlin, Germany; New Delhi, India; Rome, Italy; Tokyo, Japan; and Honolulu, Hawaii. In general, Hilton Hotels International, Inc., is required to furnish initial operating inventories and to maintain sufficient working capital, except in the case of the Cuban lease, which specifies that not less than $250,000. shall be furnished for these purposes to be maintained for the first five years of the lease. The terms of the leases commence either on actual occupancy or within ten days of receipts of architects certificate of occupancy. The leases provide for a rental based on a percentage of gross operating profit and certain specific rental obligations provide for additional annual rent based on a percentage of the value of furnishings while other leases provide for a flat basic minimum rent or a minimum rent based on a percentage of gross sales or a percentage of the cost of construction. Hilton Hotels Corporation, by Board action, has limited any additional investment by it in Hilton Hotels International, Inc., not to exceed $500,000. of which not to exceed $100,000. shall be used for any one hotel project, such sum to be used for working capital and expenses. 8-LIMITATIONS AND RESTRICTIONS The Company is prohibited under the terms of certain loan agreements from declaring dividends or distributions on its capital stock or making certain acquisitions or redemptions of any of its capital stock in excess of $1,600,000. plus 70% of the consolidated net income of the Company and certain subsidiaries. The wholly-owned subsidiary, Hotel Waldorf- Astoria Corporation, is restricted under the terms of a certain note payable, from payment of cash dividends without the written consent of the holder and/or holders, if any, of at least two-thirds of the principal amount of the note outstanding which at December 31, 1955 was $1,450,000. Earnings so restricted at December 31, 1955 amounted to $1,050,000. The wholly-owned subsidiary, Hilton Hotels International, Inc., is restricted under the terms of a certain note payable amounting to $400,000. at December 31, 1955 from lending money to the Parent or any affiliates, except wholly-owned subsidiaries; purchasing, redeeming, or retiring any of its outstanding capital stock; or paying any dividends in cash or property except after (1) payment in full of all installments of principal and interest on the note ($50,000. principal per annum); (2) full compliance with other provisions aforementioned, in which event dividends payable in cash or property shall be limited to the aggregate of the amount of payments made in such year on the note. 9-EVENTS SUBSEQUENT TO DECEMBER 31, 1955 On February 27, 1956 the Company entered into a contract for the sale of its investment in the wholly- owned subsidiary, Hotel Roosevelt Corporation for $2,130,000., plus other adjustments of which $750,000. was paid in cash on closing March 1, 1956, and the balance was represented by a 3% note payable in seven equal semi-annual installments of $175,000. each, with a final payment of $155,000. in 1960. At the same time a contract was entered into for the sale of the Mayflower Hotel, Washington, D.C. for $12,800,000., plus adjustments for current assets. The contract calls for the assumption of the present mortgage on the property; payment of $1,000,000. in cash; 250,000 shares of Hotel Corporation of America capital stock on the basis of $6.00 per share and a note secured by a second mortgage for the balance of the purchase price payable in installments over ten years; all to be consummated on the closing date, April 2, 1956. 19