Hershey Entertainment and Resorts Company

Last updated
Hershey Entertainment & Resorts Company
FormerlyHershey Estates (1927–1976)
HERCO, Inc. (1976–1998)
Company type Private
Industry Entertainment and hospitality
FoundedOctober 31, 1927;96 years ago (October 31, 1927)
Founder Milton S. Hershey
Headquarters
Hershey, Pennsylvania
,
U.S.
Key people
List
  • Directors:
    Jane Cooper
    Sheila E. Dow-Ford
    Richard A. Harvey
    Eric Henry
    Jeffrey W. Jones
    Joseph M. Senser
    Executive Officers:
    John Lawn (CEO)
    David P. Lavery (CFO)
    Garrett Gallia (VP)
    Andrew Helmer (VP)
    Jane LaFranchi (VP)
    Leslie Ferraro (VP)
Brands Hersheypark
The Hotel Hershey
Services Amusement park, attractions, hotels, restaurants, meetings
Owner Hershey Trust Company
Website hersheypa.com

Hershey Entertainment and Resorts Company is a privately held company based in the U.S. state of Pennsylvania. Milton S. Hershey established HE&R in 1927 to distinguish and separate his chocolate manufacturing company from his other business ventures. All of his non-chocolate producing businesses were established as Hershey Estates, renamed HERCO, Inc. in 1976 and Hershey Entertainment and Resorts Company in 1998.

Contents

History

Predecessors

In 1894, Milton S. Hershey founded the Hershey Chocolate Company as a subsidiary of his Lancaster Caramel Company. [1] In 1900, the American Caramel Company offered to purchase the Lancaster Caramel Company for $1 million. Hershey accepted the offer, maintaining ownership of the Hershey Chocolate Company. [2] In 1903, Hershey began purchasing land in Derry Township, Pennsylvania, not far from the family homestead he owned, to create a company town for his proposed chocolate factory. [3] To build the structures of the town, Hershey created a subsidiary company called the Hershey Improvement Company. This company was the predecessor to Hershey Entertainment and Resorts. [4] After the factory was completed and put in operation in 1904, the Hershey Improvement Company turned toward building the town, which included homes, stores and parks. Hershey Park was opened on May 30, 1906, with a dance hall pavilion, band shell for shows, tennis courts and a baseball field with a grand stand available for sporting events. [5] [6] As the park gained popularity, further improvements were made, such as a grand entrance for the park in 1916. [7]

In 1905, Hershey created the Hershey Trust Company to provide banking to the town of Hershey. In 1909, Hershey and his wife Catherine, who were unable to have children, established the Hershey Industrial School for orphan boys (renamed the Milton Hershey School in 1951). Hershey created a deed of trust establishing a trust fund for the school. He named the Hershey Trust Company as administrator of the school trust. In 1918, three years after Catherine Hershey died, Hershey transferred nearly all of his assets, including his control of the chocolate company, and various other entities, to the school. This made the Hershey Trust Company owner of the Hershey Improvement Company.

In 1920, Hershey experienced financial difficulty following the collapse in sugar futures. Hershey was forced to sign a promissory note from National City Bank to keep the chocolate company in business. Under the terms of the note, National City Bank sent R.J. DeCamp to be on the board of managers, to assume management of the company. DeCamp remained on the board until 1922, when the company settled the debt. [7] During that time period, DeCamp prevented substantial improvements to the park or the town, as it was considered too costly an investment. Once Hershey regained control of the company, this made him realize that he should split his operations such that if the chocolate company ever failed again as it had, it wouldn't directly impact the town as the DeCamp period had.

Hershey Estates established

In 1927, the Hershey Chocolate Company was reorganized and divided into several independent entities under the ownership of Hershey Trust Company. The chocolate company was incorporated and renamed Hershey Chocolate Corporation (today known as The Hershey Company) on October 24. [8] (A prior company called Hershey Chocolate Corporation existed in the early 1920s when National City Bank took control of Hershey Chocolate Company.) On October 30, the company became a publicly traded company on the New York Stock Exchange. [9] The Cuban businesses held within the chocolate company were spun out into a wholly privately owned company called Hershey Corporation. The Hershey Industrial School remained a separate interest.

All of Hershey's other non-chocolate business endeavors were incorporated into a separate entity known as Hershey Estates. The company was established on October 31, 1927, in Lebanon, Pennsylvania, with paperwork submitted on October 28. Milton S. Hershey owned 47 of the 50 shares in the company, and Ezra F. Hershey, John E. Snyder, and William F.R. Murrie each owned one share. A share was valued at $100, for a total capital stock of $5,000. [10] On October 31, Hershey Estates elected to increase its capital stock from $5,000 to $50,000 and 46 of Hershey's shares were transferred to Murrie under Hershey Chocolate Company. [11] The increase was issued for property. [12]

On November 12, Hershey Chocolate Company sold the property designated for Hershey Estates to the company for one dollar. [13] On December 12, Hershey Estates relocated from Lebanon to Hershey. [14] On December 20, Hershey Chocolate Company filed notice to the Dauphin County prothonotary's office and the Secretary of the Commonwealth's office that they were no longer connected in the operation of various companies including Hersheypark and Hershey Laundry. [15] This formally separated operations between Hershey Estates properties and Hershey Chocolate Company operations.

Company growth 1930s-1970s

In 1933, The Hotel Hershey opened, becoming Hershey Estate's second hotel in Hershey. Hershey Estates was a conglomeration, having ownership of such things as a bakery, electric company, creamery, sports arena, air park, amusement park, and lumber yard. The Estates company maintained this kind of control until the 1960s, when they began selling off public works companies such as the electric company, gave control of the roads they owned to Derry Township, and began closing poor performing divisions. In 1971, Hershey Estates began a large renovation project for Hershey Park, involving new rides, a gate around the park, live acts, and other kinds of entertainment. The park was also renamed Hersheypark. [7]

Herco / Hershey Entertainment & Resorts

In 1976, the company changed its name from Hershey Estates to Herco, Inc., because of public perception that Hershey Estates referred to land that Milton Hershey once owned. [16] The new name was found to be confusing, so Herco began doing business as Hershey Entertainment & Resort Co. in 1980. [17] Herco formally changed its name to Hershey Entertainment & Resorts in 1998. [18]

Between 1980 and 1987, HE&R began expanding their presence to hotels in the Pocono Mountains, Philadelphia and Corpus Christi, Texas, as well as purchasing Lake Compounce in Bristol and Southington, Connecticut. However, economic and political circumstances caused the Philadelphia and Corpus Christi hotels to struggle substantially. This caused HE&R to experience severe financial difficulties, leading to the promotion of J. Bruce McKinney as CEO of the company. One of his first significant decisions was the controversial move to sell Hershey Lake Compounce. [19]

Ultimately, McKinney successfully led the company back to financial stability, which led to substantial growth within Hersheypark and at the Hershey Lodge in the mid and late 1990s. [20] McKinney retired in 2000 and was replaced by Scott Newkam. [21]

In 2005, HE&R completed renovations of the historic Hershey Press Building in downtown Hershey and moved its headquarters into the building. [22]

Newkam served as CEO of HE&R until 2006, when Newkam was replaced by Ted Kleisner. On January 1, 2013, William F. Simpson Jr. replaced Kleisner as the CEO of Hershey Entertainment and Resorts. [23] John Lawn succeeded Simpson as chief executive on June 14, 2017. [24]

Company divisions

There are two main divisions of the Hershey Entertainment and Resorts Company: Hershey Entertainment Group and the Hershey Resorts Group. [25]

Hershey Entertainment Group

Hershey Resorts Group

Restaurant Group

See also

Related Research Articles

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The Hershey Company, often called just Hershey or Hershey's, is an American multinational confectionery company headquartered in Hershey, Pennsylvania, which is also home to Hersheypark and Hershey's Chocolate World. The Hershey Company is one of the largest chocolate manufacturers in the world; it also manufactures baked products, such as cookies and cakes, and sells beverages like milkshakes, as well as other products. The Hershey Company was founded by Milton S. Hershey in 1894 as the Hershey Chocolate Company, originally established as a subsidiary of his Lancaster Caramel Company. The Hershey Trust Company owns a minority stake but retains a majority of the voting power within the company.

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<span class="mw-page-title-main">Derry Township, Dauphin County, Pennsylvania</span> Township in Pennsylvania, United States

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Hershey is an unincorporated community and census-designated place (CDP) in Derry Township, Dauphin County, Pennsylvania, United States. It is home to the Hershey Company, which was founded by candy magnate Milton S. Hershey, and Hersheypark, an amusement park.

<span class="mw-page-title-main">Hersheypark</span> Theme park in Hershey, Pennsylvania, United States

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The Hershey Trust Company is an American trust company based in Hershey, Pennsylvania, established in 1905. Its sole business is the management of several charitable trusts endowed by Milton S. Hershey. The largest is the Milton Hershey School Trust, which has $17.4 billion of assets as of 2021, including Hershey Entertainment and Resorts Company and a controlling stake in The Hershey Company.

<span class="mw-page-title-main">Pennsylvania Route 39</span> State highway in Dauphin County, Pennsylvania, United States

Pennsylvania Route 39 (PA 39) is a 17.83-mile-long (28.69 km) state highway located in Dauphin County, Pennsylvania, United States. PA 39 runs from North Front Street near Harrisburg east to U.S. Route 322 (US 322) and US 422 near Hummelstown and Hershey. The route passes through the northern and eastern suburbs of Harrisburg and passes by Hersheypark, Giant Center, as well as the primary production factory for The Hershey Company. Between Harrisburg and Manada Hill, it is known as Linglestown Road, from Manada Hill to Hershey as Hershey Road and from Hershey to near Hummelstown and Hershey as Hersheypark Drive. Prior to the establishment of PA 39 in 1937, PA 39, had previously been designated as a route in northeastern Pennsylvania during the 1920s. That designation was deleted when it was renumbered US 11. As a result, PA 39 is one of a few routes which has a set of child routes which are no where near the primary route.

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Hershey Gardens is a 23-acre (9.3 ha) botanical garden and arboretum located at 170 Hotel Road, Hershey, near Harrisburg, Pennsylvania. They are set atop a hill overlooking Hersheypark. It was built as a gift from chocolate magnate Milton S. Hershey for his community and to honor his wife, Catherine.

<span class="mw-page-title-main">The Hotel Hershey</span>

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The Wild Cat, originally named The Joy Ride, was a wooden roller coaster located at Hersheypark in Hershey, Pennsylvania. The roller coaster was constructed in 1923 by the Philadelphia Toboggan Company (PTC). Under an agreement between Hersheypark and PTC, Hersheypark leased the land the coaster occupied, while PTC owned and operated the coaster. The agreement was for 15 years, at which point they had the option to extend the contract. The contract was ultimately extended to 1945. The roller coaster operated from June 16, 1923, through September 1945. PTC and Hershey Park elected to close The Wild Cat and construct a new roller coaster in 1946.

<span class="mw-page-title-main">Chocolate Avenue</span> Street in Hershey Pennsylvania

Chocolate Avenue is a street in Hershey, Pennsylvania, that runs past the site of the original Hershey's Chocolate Factory, and is considered to be the main street of the town. It runs northeasterly from Hersheypark Drive to the intersection of Pennsylvania Route 3017, at which point the road crosses into Lebanon County and continues as Main Street in Palmyra Borough. Most of Chocolate Avenue is a segment of U.S. Route 422.

<span class="mw-page-title-main">History of Hersheypark</span>

The history of Hersheypark begins with the founding of the town of Hershey in 1903. Milton Hershey, the owner of the Hershey Chocolate Company, surveyed a nearby area of land, which was to become a leisure park for the employees of his chocolate company. People began visiting the grounds of the future park in 1904 and 1905, while the park's first pavilion was built in the fall of 1905. The park was formally opened on May 30, 1906, when it opened as Hershey Park. The park slowly added rides until 1923, when the first roller coaster, the Wild Cat, was built. From then on, rides were regularly added, except during World War II. The park was redeveloped into Hersheypark in 1970, through a multi-phase project. Since then, it has added ten roller coasters, expanded to over 110 acres, and features many other attractions including shows with sea lions, well-known acts including Weird Al Yankovic and Duff Goldman from Charm City Cakes in the Hersheypark Amphitheater, and a short-lived laser light show.

The Miniature Railroad was a ride at Hersheypark from 1910 until 1971. The train ran a course along Park Boulevard, near the intersection with Park Avenue, around Spring Creek into Comet Hollow. It was the second ride Milton S. Hershey purchased for his park, after buying a carousel. While the railroad is no longer in operation, the train has been undergoing restoration since 2007, and was first publicly displayed in 2011.

<span class="mw-page-title-main">Hershey Lodge</span> Hotel and convention center in Pennsylvania

The Hershey Lodge is a hotel and convention center located in Hershey, Pennsylvania. It has 665 guest rooms and 100,000 square feet of function space, divided between two ballrooms and several other large event spaces.

John B. Sollenberger (1897–1967) was an American sports and entertainment executive closely associated with Milton S. Hershey and the development of Hershey, Pennsylvania. He was born on a farm in Cumberland County, Pennsylvania. At age 16 he enrolled in a stenographic school and became an exceptional stenographer. This led to his joining the Hershey Improvement Company about two years later, and to a long association with various Hershey enterprises.

<span class="mw-page-title-main">Candymonium</span> Steel roller coaster at Hersheypark

Candymonium is a steel roller coaster located at Hersheypark in Hershey, Pennsylvania. Designed by Bolliger & Mabillard, the ride was announced in 2019 and opened on July 3, 2020. It is the tallest, fastest, and longest roller coaster at Hersheypark. It was introduced with a newly-themed section of the park called Hershey's Chocolatetown, adjacent to Hershey's Chocolate World.

References

  1. ↑ "Hershey Community Archives | Lancaster Caramel Company". www.hersheyarchives.org. Retrieved 2018-07-31.
  2. ↑ Smith, Andrew F. (2011-12-02). Fast Food and Junk Food: An Encyclopedia of What We Love to Eat [2 volumes]: An Encyclopedia of What We Love to Eat. ABC-CLIO. ISBN   9780313393945.
  3. ↑ "The Hershey Company". The Hershey Company. Retrieved 20 January 2015.
  4. ↑ "Paul Wallace Research Collection". Hershey Community Archives. Retrieved March 19, 2015.
  5. ↑ "The Opening of Hershey Park". The Hummelstown Sun. 25 May 1906.
  6. ↑ "Opening of Hershey Park". Lebanon Courier and Semi-Weekly Report. May 30, 1906. p. 5. "Hershey Park will be formally opened to the public on Memorial Day, May 30th.
  7. 1 2 3 Jacques, Charles J. (1996). Hersheypark: The Sweetness of Success. Pennsylvania: Amusement Park Journal. ISBN   0-9614392-2-X.
  8. ↑ The Hershey Company Form 10-K Report for the Fiscal Year Ended December 31, 2009, U.S. Securities and Exchange Commission, February 19, 2010, retrieved December 18, 2018
  9. ↑ "The Hershey Company (NYSE:HSY) Celebrates their 90th Anniversary of Listing". YouTube. New York Stock Exchange. October 30, 2017. Archived from the original on 2021-12-19. Retrieved December 18, 2018.
  10. ↑ Hershey Estates Articles of Incorporation, Harrisburg, PA: Commonwealth of Pennsylvania, October 31, 1927
  11. ↑ Hershey Estates Waiver of Notice, Harrisburg, PA: Commonwealth of Pennsylvania, November 26, 1927
  12. ↑ Hershey Estates Articles of Amendment, Harrisburg, PA: Commonwealth of Pennsylvania, December 2, 1927
  13. ↑ Indenture Between Hershey Chocolate Company and Hershey Estates (Deed Book U, Volume 21, Page 1), Harrisburg, PA: Dauphin County Recorder of Deeds, November 12, 1927
  14. ↑ Hershey Estates Articles of Amendment, Harrisburg, PA: Commonwealth of Pennsylvania, December 15, 1927
  15. ↑ "Hershey Estates Take Over Five Company Units". Harrisburg Telegraph. December 20, 1927. p. 1.
  16. ↑ "Hershey Estates has new name: Herco". Lebanon Daily News. Lebanon, PA. June 23, 1976 – via Newspapers.com.
  17. ↑ Chuck Muir (March 26, 1980). "You can call it Herco, or you can call it..." The Patriot-News. Harrisburg, PA – via Newspapers.com.
  18. ↑ "Hershey changes name and logo". The York Dispatch. York, PA. April 30, 1998 – via Newspapers.com.
  19. ↑ "Bristol Fights Park Closing". The New York Times . October 11, 1987. pp. 1, 13. Retrieved December 18, 2018.
  20. ↑ "Congressional Record - Extension of Remarks" (PDF) (PDF). United States Government Publishing Office. March 1, 2000. p. E206. Retrieved March 19, 2015. Mr. McKinney is remembered chiefly for leading the team that brought the corporation out of near financial ruin to an extremely high level of prosperity, saving the company from certain failure. Because of his honorable services, a year later, on March 1, 1986, Mr. McKinney became the chief operating officer at HERCO, later assuming the role as chief executive officer on August 10, 1987, and then taking the position of chairman of the board on October 24, 1989. Mr. McKinney remained at HERCO for another eleven years, eventually becoming chief executive officer and chairman of the board. On September 22, 1999, after seven consecutive record-breaking years from 1993–2000, Mr. McKinney decided to respectfully retire from HERCO.
  21. ↑ "Congressional Record - Extension of Remarks" (PDF) (PDF). United States Government Publishing Office. March 1, 2000. p. E206. Retrieved March 19, 2015. Assuming Mr. McKinney's responsibilities is Mr. Scott J. Newkam, who was named president and chief executive officer.
  22. ↑ Howard Kolus (February 7, 2006). "Historic structure is reborn in Hershey". The Daily News. Lebanon, PA – via Newspapers.com. (Part 2 of article)
  23. ↑ Gleiter, Sue (November 25, 2012). "Hershey Entertainment's new CEO expects updates at Hersheypark, restaurants". The Patriot-News . Retrieved December 18, 2018.
  24. ↑ Scott, Jason (June 14, 2017). "Hershey Entertainment names its new CEO". Central Penn Business Journal. Retrieved December 18, 2018.
  25. ↑ "Hershey, PA About Hershey Who is Hershey Entertainment & Resorts? Find ThiAbout: Hershey Entertainment & Resorts". Hersheypa.com. Retrieved 20 January 2015.
  26. ↑ "Hershey Lodge - Fire & Grain". www.hersheylodge.com. Retrieved 2017-05-22.
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