Howard Hughes Corporation

The Howard Hughes Corporation
Public
Traded as NYSE: HHC
Industry Real Estate, Development
Founded 1913 (1913)
Headquarters Dallas, Texas
United States
Revenue US$1.10 billion[1] (2017)
US$218.5 million[1] (2017)
US$166.6 million[1] (2017)
Total assets US$6.73 billion[2] (2017)
Total equity US$3.19 billion[2] (2017)
Number of employees
 1,100[3] (2017)
Website Howard Hughes Corporation

The Howard Hughes Corporation (NYSE: HHC) is a major real estate development and management company based in Dallas, Texas. It began as part of the oil drilling tool business founded by Howard R. Hughes, Sr., in 1913, which under his son Howard Hughes, Jr., diversified into real estate development. The real estate operations became a separate company, which was acquired by The Rouse Company, which in turn was acquired by General Growth Properties (GGP). In 2010, GGP formed The Howard Hughes Corporation as a separate company.[4]

History

Early origins

The company dates to 1909 when Howard Hughes, Sr. received two patents for his revolutionary oil well drilling bits. In 1913, Hughes and Walter Sharp incorporated the Sharp-Hughes Tool Company. In 1915, Hughes became the sole owner and renamed the company Hughes Tool Company.[5] Hughes Sr. died in 1924, and was succeeded by his son Howard Jr. The younger Hughes became involved in many businesses, including aviation, motion pictures, radio and television broadcasting, and real estate. In the 1950s, Hughes acquired some vacant land in and around Las Vegas; in the 1960s, he moved to Las Vegas, where he lived in (and bought) the Desert Inn Hotel and Casino, acquired other casinos and hotels, and bought up more vacant land, which was left undeveloped during his lifetime.

Formation as Summa Corporation

In 1972, Hughes Tool Company was separated from other Hughes interests and became a publicly owned company. The rest of Hughes' businesses were regrouped as Summa Corporation. The name "Summa" (Latin for "highest") was adopted by corporate managers against the wishes of Hughes himself, who wanted to use his name. (He suggested "HRH Properties", for "Hughes Resorts and Hotels" - also his own initials, but was ignored.)

Company refocused on real estate

After Hughes died in 1976 at age 70, successors at Summa refocused the company on real estate development and casino operations, selling all non-core business holdings over the next few year.

Holdings sold off were:

  • Hughes Nevada Mining, sold off in 1977.
  • KLAS Inc., holding company for the Las Vegas affiliate of CBS, sold to Landmark Communications (now Landmark Media Enterprises) in 1978.
  • Hughes Air Corporation, holding company for Hughes Air West; sold to Republic Airlines in 1979.
  • Hughes Helicopters Inc., sold to McDonnell-Douglas in 1984 and renamed McDonnell-Douglas Helicopters.
  • Hughes Sports Network, a production company specializing in the broadcast of sporting events, sold in the mid-1980s.

Summa also owned hotels and casinos, primarily in Las Vegas, which constituted the bulk of Summa's business in the 1970s.

Hotels and casinos formerly owned by Summa

Company renamed and sold off

In 1994, Hughes' heirs renamed Summa "The Howard Hughes Corporation". Hughes' heirs sold the company to The Rouse Company in 1996, and the company survived as a Rouse subsidiary. Rouse was acquired by General Growth Properties (GGP) in 2004.

GGP filed for Chapter 11 bankruptcy protection in 2009.[7] The company proposed a reorganization plan that included spinning off a new company named General Growth Opportunities, which would include those properties that had long-term development potential but little or no income.[8] The name of the proposed spin-off was later changed to The Howard Hughes Corporation (THHC).[9] The spin-off of THHC to GGP's shareholders was completed on November 9, 2010, when GGP exited bankruptcy.[10][11] The new company held a portfolio that included GGP's master planned communities, mixed-use developments, and undeveloped land.[11] Hedge fund manager Bill Ackman was appointed chairman of the new company.[10]

Current properties

The company divides its properties into three segments: master planned communities, operating assets, and strategic developments.[12]

Master planned communities

The company has five master planned communities, with a total of approximately 11,000 acres (4,500 ha) of land remaining to be developed or sold.

Operating assets

This category comprises 57 revenue-generating assets, including retail, office, multi-family residential, and hotel properties. Notable properties include:

Strategic developments

The company lists 28 strategic projects, in various stages of development. Notable projects include:

References

  1. 1 2 3 Form 10-K: Annual Report (Report). Howard Hughes Corporation. February 26, 2018. p. F-4 – via EDGAR.
  2. 1 2 Form 10-K: Annual Report (Report). Howard Hughes Corporation. February 26, 2018. p. 27 – via EDGAR.
  3. ↑ Form 10-K: Annual Report (Report). Howard Hughes Corporation. February 26, 2018. p. 8 – via EDGAR.
  4. ↑ "General Growth Properties Plan Of Reorganization Confirmed By Court" (Press release). General Growth Properties. October 21, 2010. Archived from the original on March 4, 2016. Retrieved 2010-10-22.
  5. ↑ Vassiliou, Marius (2009). Historical dictionary of the petroleum industry. Scarecrow Press. p. 665. ISBN 978-0-8108-5993-7.
  6. ↑ Bruce Bledsoe (2010-10-18). "Harolds Club". The Online Nevada Encyclopedia. Retrieved 2010-10-22.
  7. ↑ Steve Green (April 15, 2009). "General Growth files for bankruptcy; malls likely stay open". Las Vegas Sun. Retrieved 2018-02-25.
  8. ↑ Dale Kasler (February 25, 2010). "New firm could get stalled mall". Sacramento Bee – via NewsBank.
  9. ↑ Steve Green (October 8, 2010). "General Growth's new real estate business: Howard Hughes Corporation". Las Vegas Sun. Retrieved 2018-02-25.
  10. 1 2 "General Growth exits Chapter 11 after 19 months". Associated Press. November 10, 2010 – via NewsBank.
  11. 1 2 "General Growth Properties completes spinoff of The Howard Hughes Corporation" (Press release). General Growth Properties. November 9, 2010. Retrieved 2018-02-25 – via BusinessWire.
  12. ↑ Form 10-K: Annual Report (Report). The Howard Hughes Corporation. February 26, 2018. pp. 3–6 – via EDGAR.
  13. ↑ Betsy Helfand (May 3, 2017). "Howard Hughes Corp. buys out Play Ball Owners Group's share of 51s". Las Vegas Review-Journal. Retrieved 2018-02-25.
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