Howard Hughes Corporation
|Traded as||NYSE: HHC|
|Industry||Real Estate, Development|
|Revenue||US$797.08 million (2015)|
|US$118.76 million (2015)|
|US$130.44 million (2015)|
|Total assets||US$5.72 billion (2015)|
|Total equity||US$2.36 billion (2015)|
|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.
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. 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
- Desert Inn Hotel and Casino (demolished in 2001, replaced by Wynn Las Vegas)
- Sands Hotel and Casino (demolished in 1996, replaced by The Venetian)
- The Landmark Hotel and Casino (demolished in 1993 to expand parking lot of Las Vegas Convention Center)
- Castaways hotel and casino (demolished in 1987, replaced by The Mirage and Treasure Island)
- Silver Slipper (demolished in 1986 to expand parking lot of Frontier Hotel and Casino)
- Frontier Hotel and Casino (demolished in November, 2007, replaced by Alon Las Vegas)
- Xanadu Beach Resort & Marina, Grand Bahama Island, Bahamas
- Britannia Beach Hotel Paradise Island, Bahamas - now the Coral Towers Hotel at Atlantis Paradise Island
- Harold's Club, Reno, Nevada
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 in 2004.
GGP filed for bankruptcy in 2009. Upon exiting bankruptcy, GGP spun off The Howard Hughes Corporation (THHC) as a public company on November 9, 2010. GGP stockholders received 0.098344 shares of THHC common stock for each share of GGP common stock held. The new company owned all of GGP's planned developments. Hedge fund manager Bill Ackman took control.
THHC's current projects are Summerlin, a massive master planned community on the outskirts of Las Vegas that houses over 80,000 residents and will eventually house 160,000; The Shops at Summerlin Centre, a mixed-use town center for Summerlin, and Fashion Show, a giant retail center in downtown Las Vegas currently undergoing a major redevelopment. THHC inherited from GGP the mixed-use Town Center of Columbia, Maryland, one of the country's earliest master planned communities, for which a world-class redevelopment plan was recently approved that incorporates modern environmental and smart growth principles.
Hughes' heirs, primarily the Lummis family, continue to hold an equity interest in Summerlin.
Most of THHC's past projects have been business parks in the Las Vegas area, including The Crossings, The Canyons, The Plazas, Corporate Pointe, and Hughes Center. THHC is also the manager and developer of South Street Seaport in New York City, started as a Rouse development, and owns the Pier 17 shopping mall there.
- "General Growth Properties Plan Of Reorganization Confirmed By Court" (Press release). General Growth Properties. October 21, 2010. Retrieved 2010-10-22.
- Vassiliou, Marius (2009). Historical dictionary of the petroleum industry. Scarecrow Press. p. 665. ISBN 978-0-8108-5993-7.
- Bruce Bledsoe (2010-10-18). "Harolds Club". The Online Nevada Encyclopedia. Retrieved 2010-10-22.
- "General Growth Properties Completes Spinoff of the Howard Hughes Corporation" (Press release). General Growth Properties. November 9, 2010.
- "The Howard Hughes Corporation". The Howard Hughes Corporation. Retrieved 2009-12-07.