Atari doesn’t have the cultural cachet it used to. After an industry-crashing downfall in the ’80s, the video game pioneer has been unable to find its niche, and recently, its oft-delayed retro console has had a troubled development. Atari hopes to find some success by lending what gaming cred it has left to the hospitality industry. The company signed a contract that see Atari license its name and branding to a real estate developer, which will build eight hotels across the US. The first location will break ground this year in Phoenix. Others in Austin, Chicago, Denver, Las Vegas, San Francisco, San Jose and Seattle will follow.
The main draw of the Atari hotels will likely be their esports studios. There are no details about what these will include, but each hotel will also have an “Atari gaming playground.” Assuming the esports studios are venues where pros compete, the “playgrounds” could be lounges for guests that are equipped with gaming PCs. The hotels will have a few accoutrements outside of the standard pool and gym — restaurants, bars, bakeries and movie theaters will also be part of each building.
165-room Hyatt House San Jose Airport officially opens in heart of Silicon Valley
Hyatt Hotels Corporation (NYSE: H) today celebrates a significant brand milestone with the opening of the 100th Hyatt House hotel: Hyatt House San Jose Airport. The newly built airport hotel provides guests the service and convenience of hotel living with the casual comforts of home. The hotel is jointly owned by Liberty Group and Hyatt Hotels.
Conveniently located adjacent to the Norman Y. Mineta San Jose International Airport (SJC), Hyatt House San Jose Airport is accessible from all major freeways in Silicon Valley including 880, 101, and 87, and is less than 35 miles from San Francisco International Airport (SFO). Downtown San Jose is just five miles from the hotel, where guests can enjoy a number of attractions, including California’s Great America amusement park, Levi’s Stadium, San Jose McEnery Convention Center, Avaya Stadium, and SAP Center at San Jose.
“We are thrilled to be the Hyatt House brand’s one hundredth hotel and to bring a new and dynamic guest experience to the San Jose marketplace for both business and personal occasion travelers,” said General Manager John McEntee. “With more than 15 million passengers traveling through SJC in 2019, we’re confident Hyatt House San Jose Airport will provide guests with a comfortable stay experience before embarking on the next leg of their journey.”
Hyatt House San Jose Airport offers:
165 stylish guestrooms, including 113 apartment-style Kitchen Suites with fully equipped kitchens, comfy living rooms, spacious bedrooms and stylish bathrooms
Free Wi-Fi throughout hotel and guestrooms
The Commons, a comfy lobby lounge with an open and welcoming space for guests to relax, work or socialize, and the Outdoor Commons, which includes a fire pit and BBQ grill, the perfect place to sip cocktails and enjoy savory bites
Complimentary Morning Spread, a full hot breakfast buffet served daily for guests, featuring a made-to-order Omelet Bar and assorted breakfast breads and bowls bar with steel-cut oatmeal, fresh fruit and more, along with vegetarian and gluten free options
H Bar, which features the Sip + Snack menu, serving freshly prepared items including soups and sandwiches, plus craft cocktails and premium beers and wines, offered seven days a week
24-hour grab-and-go H Market to meet the everyday needs of guests, from snacks and sundries to freshly prepared salads and sandwiches
24-hour Workout Room to keep fitness routines going
Gathering Rooms with more than 1,800 square feet of flexible meeting or event spaces, a thoughtful food and beverage menu, audiovisual equipment and a House Host to make sure gatherings are a real crowd pleaser
Borrows Menu with often-forgotten items from phone charges to razors and extended stay extras like blenders and laundry baskets
A Very Important Resident (VIR) program, which includes a complimentary welcome amenity, H Bar dining credit, laundry credit, and other personalized perks, for guests staying 21 or more consecutive nights
Additional conveniences, including 24-hour Guest Laundry
A pet-friendly policy that welcomes most dogs or cats (fees apply)
Free hotel shuttle for guests to/from SJC and companies within a three-mile radius
“The opening of this hotel comes at a time of strong momentum for the brand, with Hyatt House hotels under development around the world, including new markets for the brand, such as Canada and Kenya,” said Paul Daly, senior vice president of operations, Americas, Hyatt Place and Hyatt House. “We continue to build and cultivate strong relationships with guests, colleagues, owners, operators, and developers around the world. With their support, the Hyatt House brand is on a terrific trajectory.”
Hyatt House San Jose Airport Leadership
Hyatt House San Jose Airport is under the leadership of General Manager John McEntee and Director of Sales Joanne Bianchi. In his role, McEntee is directly responsible for managing the day-to-day operations of the hotel, including overseeing the hotel’s 45 associates and ensuring guests encounter the neighborly service for which the Hyatt House brand is known. McEntee joined by Bianchi, Director of Sales, who is responsible for providing sales, service and support to travelers and meeting planners frequenting the San Jose area.
Continued growth gives members more rewarding opportunities to experience luxurious destinations around the globe
Hyatt and Small Luxury Hotels of the World™ (SLH) today announced the ongoing expansion of their existing loyalty alliance, celebrating a milestone of over 300 participating SLH hotels around the world for World of Hyatt members to earn and redeem points and enjoy on-property benefits. Since launching in November 2018, this alliance has grown by 500 percent with the number of participating SLH properties in the World of Hyatt program for members to enjoy, and will continue to expand throughout 2020.
“Since launching this alliance, many members have shared their positive experiences when staying at participating SLH properties around the globe and enjoying valuable World of Hyatt loyalty benefits,” said Amy Weinberg, senior vice president, World of Hyatt. “This strategic alliance has grown at rapid pace and is a direct reflection of our commitment to caring for our members in more ways and places beyond our hotels. We remain focused on delivering unique experiences and exclusive benefits for members in order to enhance how they live and travel, and are thrilled that this alliance helps us meet our members in more locations globally.”
World of Hyatt members now have access to more than 300 of SLH’s luxury boutique hotels that offer new locations across growth markets for Hyatt, including:
Le Refuge de la Traye, a mountain retreat in the French Alps with newly renovated eco-luxury chalets set between lake and mountain in Les 3 Vallées ski region
Arima Hotel, a boutique hideaway in the Basque region of San Sebastián, Spain with leading authority in eco-friendly lodging that offers majestic views of the Miramón forest
Vista Palazzo Lago di Como, a 19th century Venetian-style Palazzo offering 18 palatial rooms and suites, known for its glamour and panoramic views of world-famous Lake Como
Ksar Char-Bagh in Morocco, a stunning Moorish palace in a Marrakech palm grove oozing opulence and tranquility with its Persian-style gardens and plunge pools
French CoCo, an all-suite Caribbean escape set on the beautiful island of Tartane, Martinique
The Reef by CuisinArt, a luxury beach resort in Anguilla nestled on the southerly shores of Merrywing Bay overlooking the beautiful coastline
“Our purpose at SLH is to perfectly match the world’s independent travelers with the most individual, intimate and intense hotel and travel experiences around the world,” said Jean-François Ferret, Chief Executive Officer, Small Luxury Hotels of the World™. “This strategic alliance has allowed us to significantly expand our brand awareness by sharing our distinct properties with more than 16 million World of Hyatt members. Our independently-owned hotels participating in this program have seen immediate results and the benefits of sharing their vision with World of Hyatt members.”
Since launching, the World of Hyatt and SLH alliance has added 27 new countries where World of Hyatt members can earn and redeem points, including places like Sweden, Laos, Turks & Caicos, Portugal, Kenya, Iceland, Belize, New Zealand, Belgium, Anguilla and many more. Additionally, hotels that are part of this exclusive relationship have seen a significant uptick in bookings, including Enso Ango Fuya II, The Sukhothai Shanghai, Hotel Eclat Taipei, Claris Hotel & Spa, and Hotel Éclat Beijing. World of Hyatt members of all tiers can take advantage of the following loyalty benefits when booking a participating SLH hotel through a Hyatt channel:
Earning and Redemption
World of Hyatt members earn five Base Points per $1 USD spent on eligible room revenue
World of Hyatt members will receive their standard tier Bonus Points on eligible room revenue spend (10 percent Discoverist, 20 percent Explorist, 30 percent Globalist)
Qualifying nights at SLH hotels will count toward earning World of Hyatt elite-tier status
World of Hyatt members can redeem points to use for free night awards on SLH hotel reservations; each SLH property has been categorized into Hyatt’s existing hotel award chart.
All World of Hyatt Credit Cardmembers will earn an additional four Bonus Points, for a total of nine World of Hyatt points, per $1 spent at participating SLH properties. Hyatt Credit Cardmembers will earn an additional three Bonus Points (U.S. only).
Member Benefits
Participating SLH properties will provide the following on-property benefits to all World of Hyatt members who book through Hyatt, regardless of status:
Complimentary Wi-Fi
Daily complimentary continental breakfast for two guests
Room upgrade (one category at check-in if available)
Early check-in (noon, based upon availability at check-in)
Late check-out (2:00pm, based upon availability at check-in)
SLH 3K Stay Promotion
To further celebrate the continued expansion of this relationship, World of Hyatt members can earn 3,000 Bonus Points for every eligible paid stay at participating SLH properties. To participate, travelers must:
Be a World of Hyatt member (enroll here – membership is complimentary)
Register for the promotion from December 10, 2019 through January 31, 2020 by visiting the promotion landing page on hyatt.com or through the Hyatt Global Contact Center in order to earn Bonus Points
Complete an eligible paid stay at any participating SLH hotel between December 10, 2019 and March 2, 2020.
For more information about World of Hyatt and SLH, please visit hyatt.com/SLH.
The term “Hyatt” is used in this release for convenience to refer to Hyatt Hotels Corporation and/or one or more of its affiliates.
LAS VEGAS, Dec. 5, 2019 /PRNewswire/ — Caesars Entertainment Corporation (NASDAQ: CZR) (“Caesars” or “Caesars Entertainment”), one of the world’s most diversified casino-entertainment providers, today announced it has completed the previously announced sale of the Rio All-Suite Hotel & Casino (the “Rio”) to a company (the “Buyer”) affiliated with Dreamscape Companies (“Dreamscape”), which is owned and controlled by Eric Birnbaum, for $516.3 million (including certain fees, expenses and $40 million in seller financing provided by a Caesars affiliate). Dreamscape acquires, repositions and/or develops hospitality, residential, retail, gaming and entertainment assets.
Caesars Entertainment Corporation logo. (PRNewsFoto/Caesars Entertainment Corporation)
In connection with the completion of the sale, a Caesars subsidiary entered into a lease with the Buyer under which Caesars will continue to operate the property for a minimum of two years and pay annualized rent of $45 million. The Buyer has the option to pay Caesars $7 million to extend the lease under similar terms for a third year. At the end of the lease term and at the request of the Buyer, Caesars may continue to manage the Rio or may provide transition services to the Buyer.
The Rio will continue to be part of the Caesars Rewards network during the lease term, and the transaction is not expected to result in any changes to the guest experience. The World Series of Poker will be hosted at the Rio in 2020 and hosting rights will remain with Caesars Entertainment thereafter. Further details on the transaction are available in the Form 8-K to be filed with the Securities and Exchange Commission.
Planned Openings from Tokyo to Mexico City and Reykjavik to Melbourne, Marriott International Continues to Create Enriching Experiences Through Its Portfolio of Distinct Luxury Brands
BETHESDA, Md., Dec. 4, 2019 /PRNewswire/ — Marriott International, Inc. (NASDAQ: MAR) today announced it is projecting to open more than 30 luxury properties in 2020 as the company focuses on creating the future of high-end travel through its portfolio of distinct luxury brands. With the world-renowned hospitality hallmarks of The Ritz-Carlton, Ritz-Carlton Reserve, St. Regis Hotels & Resorts, W Hotels, The Luxury Collection, EDITION, JW Marriott and Bvlgari, Marriott International uses the global perspective gained from its boundless network of more than 420 landmark hotels and resorts in nearly 65 countries and territories to provide an unmatched variety of luxury experiences. From the world’s most established destinations to the ultimate undiscovered gems, Marriott International has more than 185 luxury properties in its signed development pipeline that could add more than 15 new countries and territories to the company’s luxury portfolio, from Iceland to Montenegro and the Philippines.
Matild Palace, a Luxury Collection Hotel, Budapest
“Celebrating the distinct nature and individuality of our luxury brands, Marriott International offers a diverse variety of nuanced brand experiences that speak to the needs of the modern luxury traveler,” said Tina Edmundson, Global Brand Officer and Luxury Portfolio Leader, Marriott International. “Across our luxury brands portfolio, we will continue to incubate innovation and apply fresh thinking, both at the brand level and across our individual hotels, as we seek to be future forward, push boundaries, and continue to raise the bar by creating new, unexpected, and enriching guest experiences.”
“Our plan to open more than 30 luxury properties in 2020 – an average of about three exciting new hotels per month – speaks to the remarkable momentum that brands such as St. Regis, The Ritz-Carlton and EDITION have with affluent travelers, our Marriott Bonvoy members and hotel developers around the world,” said Tony Capuano, EVP and Global Chief Development Officer, Marriott International. “Each year, our luxury portfolio continues to grow in both quality and quantity in strategic destinations around the world.”
Transformative Travel Gives Rise to The Purposeful Luxurian In looking at the future of luxury hospitality, Marriott International collaborated with a team of trend forecasters at The Future Laboratory to better understand the attitudinal shifts that are creating a new genre of travelers. Edmundson continued: “The concept of transformative travel – travel motivated and defined by a shift in perspective, self-reflection and development – has become more pronounced and it has given rise to The Purposeful Luxurian, a new breed of traveler that is more progressive, proactive, and looking to affect positive change. This new global explorer views travel as a way to improve physical and mental wellbeing, as well as a means to do good.” With its scale and breadth of distribution, Marriott International is on the frontlines of the evolving global luxury economy, elevating its approach and inviting globally minded travelers to look at the world through a new lens. “We are defining the future of luxury travel by creating the real, rare and personal experiences this new Purposeful Luxurian craves,” said Edmundson.
The Ritz-Carlton Elevates Luxury Through Legendary Service Known for leaving indelible marks and creating memories that last a lifetime, The Ritz-Carlton continues to set the standard for luxury. The iconic luxury brand recently celebrated the opening of its 100th property with the debut of The Ritz-Carlton, Perth and expanded the Ritz-Carlton Reserve portfolio to four exceptional properties with the opening of Zadún, a Ritz-Carlton Reserve in Los Cabos, Mexico. In the coming year, the brand is expected to bring its legendary service to Morocco for the first time, with the planned opening of The Ritz-Carlton Rabat, Dar es Salam in the country’s dynamic capital. The Ritz-Carlton, Nikko is slated to expand the brand’s footprint in Japan, while a highly anticipated property in Mexico City is expected to give guests a unique way to experience the Mexican capital. Overlooking Camelback Mountain in Scottsdale, Arizona, The Ritz-Carlton, Paradise Valley is slated to grow the brand’s resort portfolio, while the brand also anticipates an opening in Nanjing, China, expects to see the completion of a major renovation of The Ritz-Carlton, South Beach, and continues to work towards the inaugural voyage of The Ritz-Carlton Yacht Collection expected in June 2020.
St. Regis Debuts the Newest Best Addresses in Extraordinary Destinations Offering modern glamour and sophisticated design, the St. Regis brand recently grew its footprint in Europe with the opening of The St. Regis Venice, boasting a magnificent outdoor garden and one of the most coveted locations along the city’s famed Grand Canal. Currently offering 45 hotels in more than 20 countries and territories, the brand in the year ahead expects to introduce St. Regis to Cairo, a destination that has long allured travelers with its enthralling history, and which is quickly reclaiming its place as a global hotspot. Additionally, St. Regis expects to expand its resort portfolio with the anticipated opening of The St. Regis Kanai Resort in Riviera Maya, Mexico. The St. Regis Dubai, The Palm is also slated to open in 2020, bringing highly bespoke service and beloved signature rituals to the most populous city in the United Arab Emirates.
Lux Rebel W Hotels Turns Traditional Luxury on its Head This year, W Hotels brought its boundary-breaking approach, bold design and innovative programming to destinations including Dubai,Abu Dhabi, Muscat, Ibiza and Aspen, the brand’s first alpine destination in the United States. Multi-million-dollar renovations by owners are underway or completed at more than half the brand’s properties in North America, including W Washington D. C. and W San Francisco. In addition, the company recently announced plans to transform W New York – Union Square into a cutting-edge W Hotels showcase, advancing a larger strategy to redefine and reinvigorate the W portfolio in North America. Also underway is the exciting addition of W Nashville to the brand’s growing portfolio. The brand continues to trailblaze its way around the globe with 2020 expected openings in Philadelphia, Toronto, Chengdu, and Melbourne. Offering the insider track wherever the iconic W sign lands, the brand is also slated to debut in Italy with the planned openings of W Milan and W Rome, giving locals and visitors alike a distinctly W take on “la dolce vita.”
EDITION Matches Sophisticated Style With Global Growth In 2019, the EDITION brand made global news with the debuts of The Times Square EDITION in New York and The West Hollywood EDITION in Los Angeles, proving sustained high demand for its curated mix of modern design and service. Created through a collaboration between boutique hotel creator and innovator Ian Schrager and Marriott International, the lifestyle brand is slated to bring its distinct point of view to the in-demand destination of Reykjavik in 2020. Additionally, with 10 hotels in six countries and territories, the rapidly growing EDITION brand is expected to bring its sophisticated style to the global hotspotsof Tokyo and Dubai.
The Luxury Collection Continues on its Quest as the Destination Authority With a rapidly growing ensemble of 114 hotels in more than 30 countries and territories around the world, The Luxury Collection takes guests on journeys to the world’s most captivating places. In 2019, the brand celebrated the opening of North Island, Seychelles, the portfolio’s first private island destination, and welcomed properties in Cyprus, Nanning, Buckinghamshire, Kolkata and Çeşme. Looking to the year ahead, The Luxury Collection anticipates openings in coveted locations spanning the globe, including Nashville and Budapest, Hungary, as well as Hobart, Australia – a destination that signals the future of luxury travel.
JW Marriott Inspires Guests to be Mindful and Present through Uplifting Experiences JW Marriott offers warm and intentional luxury experiences at nearly 90 properties around the world, including the recent, highly anticipated debut of JW Marriott Maldives Resort & Spa. Inspired by the principles of mindfulness, JW Marriott is a haven designed to let guests focus on feeling whole – present in mind, nourished in body and revitalized in spirit. Expected to reach more than 115 hotels by 2022, the year 2020 is slated to be a period of rapid growth for the brand, with planned U.S. openings in Savannah, Orlando and Anaheim, in addition to global destinations ranging from Istanbul and Danang, Vietnam, to Nara, Japan, Muscat, Oman and Monterrey, Mexico.
LONDON and SOUTHLAKE, Texas, Dec. 4, 2019 /PRNewswire/ — Wizz Air (PNK: WZZAF) Europe’s greenest airline and leading low cost carrier in Central Eastern Europe, has selected Sabre Corporation (NASDAQ: SABR), the leading technology provider to the global travel industry, as a strategic partner to enhance its network planning and scheduling technology. With this new agreement, Wizz Air joins a portfolio of more than 80 airlines that have implemented Sabre’s leading technology to optimize complex schedule and slot management processes.
Sabre has a strong reputation in driving results through its intelligent planning and scheduling solutions. Empowering collaborative and intelligent decision-making, Sabre AirVision Schedule Manager helps airlines build and deliver robust, accurate and operationally feasible schedules across their networks. This proven solution has helped airlines achieve up to 9% incremental operating profit and up to 12% increase in productivity.
Wizz Air has implemented Sabre AirVision Slot Manager and Schedule Manager, equipping it with the right mechanisms to reduce the risks of losing valuable historic slot rights, while enabling increased productivity and a fast response to rescheduling.
“Adopting the right planning and scheduling technology has a significant impact on revenue optimization and cost reduction, as well as running a robust and efficient operation,” said George Michalopoulos, chief commercial officer at Wizz Air. “Sabre’s end-to-end planning and scheduling suite provides Wizz Air with the intelligence and flexibility needed to deploy optimized schedules.”
Sabre’s agreement with Wizz Air reflects its ongoing investment in creating technology solutions that are perfectly adapted to the requirements of different airline business models. With a customer community that includes a portfolio of airlines in the network, low-cost and ultra-low-cost categories, Sabre is consistently driving innovation through its partnerships.
“Wizz Air has a solid and ambitious plan for profitable expansion, and therefore needed a strong technology partner,” said Alessandro Ciancimino, vice president sales Europe, Travel Solutions, Sabre. “Sabre’s suite of technology helps airlines to get schedules to market faster, rapidly respond to market conditions in real time, and more efficiently manage a growing network of routes – which will help it position itself competitively, and differentiate itself among increased competition.”
About Sabre Corporation Sabre Corporation is the leading technology provider to the global travel industry. Sabre’s software, data, mobile and distribution solutions are used by hundreds of airlines and thousands of hotel properties to manage critical operations, including passenger and guest reservations, revenue management, flight, network and crew management. Sabre also operates a leading global travel marketplace, which processes more than US$120 billion of global travel spend annually by connecting travel buyers and suppliers. Headquartered in Southlake, Texas, USA, Sabre serves customers in more than 160 countries around the world.
About Wizz Air Wizz Air, the largest low-cost airline in Central and Eastern Europe, offers more than 700 routes from 25 bases, connecting 152 destinations across 44 countries. A team of more than 5,000 aviation professionals delivers superior service and very low fares making Wizz Air the preferred choice of 38 million passengers in the past 12 months. WIZZ operates an all-Airbus fleet of 120 aircraft. Its A320s are equipped with 180 seats, its A321s with 230 seats and its A321neo aircraft with 239 seats. According to the latest data of the Swiss airline intelligence provider CH-Aviation, Wizz Air has one of the youngest airline fleets in the world.
The first dual-branded Hyatt Place and Hyatt House project in Southeast Asia is expected to open in 2023
Hyatt Hotels Corporation (NYSE:H) announced today that a Hyatt affiliate has entered into a management agreement with Xuan Mai Sai Gon Construction Investment Joint Stock Company (“Xuan Mai”) to develop a 300-key Hyatt Place Saigon, District 7 and 250-key Hyatt House Saigon, District 7 in one of Ho Chi Minh City’s largest districts. Planned for completion in 2023, the new hotels will be Hyatt’s first dual-branded Hyatt Place and Hyatt House hotel project in Southeast Asia and will also mark the entry of the Hyatt House brand in Vietnam.
The Hyatt Place brand combines style, innovation and 24/7 conveniences to create an easy to navigate experience for today’s multi-tasking traveler. Guests can enjoy thoughtfully designed guestrooms featuring distinct zones for sleep, work and play, and free flowing social spaces. Hyatt House hotels are designed to welcome guests as extended stay residents seeking the conveniences of home in modern, apartment-style suites with fully equipped kitchens and separate living and sleeping areas.
“We are delighted to be working with Xuan Mai to develop Hyatt’s first dual-branded select-service hotel project featuring the Hyatt Place and Hyatt House brands in Southeast Asia,” said David Udell, group president, Asia-Pacific, Hyatt Hotels Corporation. “Whether guests are looking for short term or extended stay accommodations, the location of Hyatt Place Saigon, District 7 and Hyatt House Saigon, District 7 will put them in the heart of an up-and-coming residential, commercial and entertainment district that is well connected to Ho Chi Minh City’s Central Business District.”
The new Hyatt Place Saigon, District 7 and Hyatt House Saigon, District 7 will be integral to Eco Green Saigon, an iconic 34-acre mixed-use development, which will also include residential units, office space, event space, and a primary school. Eco Green is strategically located eight miles (13 kilometers) from the Tan Son Nhat International Airport, the busiest airport in Vietnam, three miles (five kilometers) from District 1, Ho Chi Minh City’s Central Business District, and less than two miles (three kilometres) from Phu My Hung New Urban Area comprising of office developments, high end residences and schools, as well as the Saigon Exhibition and Convention Centre.
Hyatt Place Saigon, District 7 will consist of 300 rooms, a café, a bar serving coffee and cocktails, a lobby lounge, and three meeting rooms, as well as an outdoor pool and fitness center. Hyatt House Saigon, District 7 will predominantly cater to guests looking for longer term accommodations, and will consist of 250 rooms divided into studios and one-bedroom suites, a bar, a lobby lounge, one meeting room, as well as an outdoor pool and fitness center. Once completed, the 69-story tower housing both hotels will be one of the tallest buildings in Ho Chi Minh City.
“With this signing, Hyatt is set to more than triple its brand presence in Vietnam over the next few years, and we are delighted to now offer locals and travelers additional accommodation options across the country, as well as have an opportunity to further solidify Hyatt’s brand presence in Ho Chi Minh City,” said Patrick Finn, Senior Vice President – Development, Asia-Pacific, Hyatt. “This project also presents Hyatt with an ideal opportunity to launch the Hyatt House brand in Vietnam’s gateway city that has the potential to be a catalyst for further Hyatt Place and Hyatt House developments in the country.”
“Hyatt Place Saigon, District 7 and Hyatt House Saigon, District 7 is expected to be the center piece of the Eco Green Saigon development in the heart of Ho Chi Minh City’s largest district,” said Mr. Bùi Khắc Sơn, a member of the board of Xuan Mai Sài Gòn. “This is our first hotel project and we are excited to introduce guests to the first dual-branded Hyatt Place and Hyatt House project in Southeast Asia, and furthermore, collaborate with Hyatt, a globally recognized company with extensive hospitality knowledge.”
Strong Net Rooms Growth Fuels Nearly 11% Increase in Management and Franchise Fees
CHICAGO (October 30, 2019) – Hyatt Hotels Corporation (“Hyatt” or the “Company”) (NYSE: H) today reported third-quarter 2019 financial results. Net income attributable to Hyatt was $296 million, or $2.80 per diluted share, in the third quarter of 2019, compared to $237 million, or $2.09 per diluted share, in the third quarter of 2018. Adjusted net income attributable to Hyatt was $39 million, or $0.37 per diluted share, in the third quarter of 2019, compared to $37 million, or $0.33 per diluted share, in the third quarter of 2018. Refer to the table on page 14 of the schedules for a summary of special items impacting Adjusted net income and Adjusted earnings per share in the three months ended September 30, 2019.
Mark S. Hoplamazian, president and chief executive officer of Hyatt Hotels Corporation, said, “The strength of our brands and the consistent approach we have to operating with excellence and efficiency are serving us very well in this period of volatile economic conditions. In particular, our management and franchise fee growth of nearly 11% this quarter is driven by roughly 13% year-over-year net rooms growth. Further, we have successfully increased productivity and operating efficiency for 23 straight quarters which has allowed us to maintain strong hotel operating margins even in the face of flat RevPAR growth this quarter.”
Third quarter of 2019 financial highlights as compared to the third quarter of 2018 are as follows:
Net income increased 25.4% to $296 million.
Adjusted EBITDA decreased 7.3% to $163 million, a decrease of 6.5% in constant currency.
Comparable system-wide RevPAR was flat, including a decrease of 0.1% at comparable owned and leased hotels. Comparable system-wide RevPAR growth was favorably impacted by approximately 50 basis points from the timing of the Jewish holidays, but was offset by a similar reduction resulting from political unrest in Hong Kong.
Comparable U.S. hotel RevPAR decreased 0.6%; full service hotel RevPAR increased 0.2% and select service hotel RevPAR decreased 2.3%.
Net rooms growth was 13.2%, or 7.9% excluding the acquisition of Two Roads Hospitality LLC (“Two Roads”) in the fourth quarter of 2018.
Comparable owned and leased hotels operating margin decreased 20 basis points to 21.0%.
Adjusted EBITDA margin of 26.9% decreased 280 basis points in constant currency.Mr. Hoplamazian continued, “We continue to execute on our capital strategy and shift our earnings profile while maintaining our focus on global growth. We expect to end the year with approximately 57% of our earnings coming from our hotel management and franchise business, an increase of roughly 400 basis points from 2018. Our pipeline remains robust while continuing to deliver solid organic net rooms growth of almost 8% this quarter, net of the acquisition of Two Roads in the fourth quarter of 2018. While theNote: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.
current global operating environment is challenging, we feel confident in our ability to manage through volatility and identify opportunities to strengthen our brands and performance.”
Third quarter of 2019 financial results as compared to the third quarter of 2018 are as follows:
Management, Franchise and Other Fees
Total management, franchise and other fees increased 11.9% (12.5% increase in constant currency) to $148 million. Base management fees increased 17.8% to $64 million, primarily in the Americas management and franchising segment due to the acquisition of Two Roads. Incentive management fees decreased 1.3% to $33 million. Franchise fees increased 11.8% to $37 million. Other fees increased 22.0% to $14 million. Excluding other fees, management and franchise fees increased 10.9% (11.6% increase in constant currency) to $134 million.
Americas Management and Franchising Segment
Americas management and franchising segment Adjusted EBITDA increased 11.2% (11.4% increase in constant currency), driven by higher management, franchise, and other fees from the Two Roads acquisition and recently opened hotels. RevPAR for comparable Americas full service hotels increased 1.5%, occupancy increased 70 basis points, and ADR increased 0.7%. RevPAR growth was driven by strength in certain resort locations outside of the United States and benefited from the timing of the Jewish holidays which had an approximate 110 basis point favorable impact. RevPAR for comparable Americas select service hotels decreased 2.4%, occupancy decreased 40 basis points, and ADR decreased 1.8%. Total Americas management and franchising adjusted revenues increased 29.6% (29.9% increase in constant currency) including revenue from the residential management operations acquired as part of Two Roads.
Transient rooms revenue at comparable U.S. full service hotels increased 1.0%, room nights increased 2.3%, and ADR decreased 1.3%. Group rooms revenue at comparable U.S. full service hotels decreased 0.2%, room nights decreased 2.3%, and ADR increased 2.2%.
Americas net rooms increased 11.5% compared to the third quarter of 2018, or 5.2% excluding Two Roads.
Southeast Asia, Greater China, Australia, South Korea, Japan and Micronesia (ASPAC) Management and Franchising Segment
ASPAC management and franchising segment Adjusted EBITDA increased 0.9% (2.5% increase in constant currency). RevPAR for comparable ASPAC full service hotels decreased 2.0%, reflecting weakness in Hong Kong. Excluding Hong Kong, RevPAR for comparable ASPAC full service hotels would have increased 0.8%. Occupancy decreased 50 basis points and ADR decreased 1.3% for ASPAC full service hotels. Revenue from management, franchise, and other fees increased 4.2% (5.4% increase in constant currency).
ASPAC net rooms increased 17.7% compared to the third quarter of 2018, or 13.7% excluding Two Roads.
Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.
Europe, Africa, Middle East and Southwest Asia (EAME/SW Asia) Management and Franchising Segment
EAME/SW Asia management and franchising segment Adjusted EBITDA increased 4.8% (7.8% increase in constant currency). RevPAR for comparable EAME/SW Asia full service hotels increased 1.6%, driven by strong growth in certain European markets, including France and the United Kingdom, and Southwest Asia, offset partially by weaker performance in Russia which lapped the FIFA World Cup in 2018.
Occupancy increased 290 basis points and ADR decreased 2.6% for EAME/SWA full service hotels. Revenue from management, franchise, and other fees increased 2.2% (4.3% increase in constant currency).
EAME/SW Asia net rooms increased 15.6% compared to the third quarter of 2018, or 14.4% excluding Two Roads.
Owned and Leased Hotels Segment
Total owned and leased hotels segment Adjusted EBITDA decreased 17.6% (16.9% decrease in constant currency), including a decrease of 12.0% (11.4% decrease in constant currency) in pro rata share of unconsolidated hospitality ventures Adjusted EBITDA. Refer to the table on page 11 of the schedules for a detailed list of portfolio changes and the year-over-year net impact to total owned and leased hotels segment Adjusted EBITDA.
Owned and leased hotels segment revenues decreased 3.9% (3.0% decrease in constant currency), and was negatively impacted by non-comparable hotels. RevPAR for comparable owned and leased hotels decreased 0.1%. Occupancy and ADR were both flat.
Corporate and Other
Corporate and other Adjusted EBITDA decreased 22.4% (22.5% decrease in constant currency), inclusive of $6 million of expenses from the Two Roads acquisition.
Corporate and other adjusted revenues increased 19.1% (consistent in constant currency).
Selling, General, and Administrative Expenses
Selling, general, and administrative expenses increased 1.0%, inclusive of rabbi trust impact and stock- based compensation. Adjusted selling, general, and administrative expenses increased 13.8%, or $10 million, including $8 million of integration costs related to the acquisition of Two Roads. Refer to the table on page 17 of the schedules for a reconciliation of selling, general, and administrative expenses to Adjusted selling, general, and administrative expenses.
OPENINGS AND FUTURE EXPANSION
Twenty hotels (or 4,422 rooms) opened in the third quarter of 2019, contributing to a 13.2% increase in net rooms compared to the third quarter of 2018. Excluding the impact of the Two Roads acquisition, net rooms increased 7.9% compared to the third quarter of 2018.
As of September 30, 2019, the Company had executed management or franchise contracts for approximately 460 hotels, or approximately 92,000 rooms. The Company is expected to open approximately 85 hotels in the 2019 fiscal year.
Note: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.
SHARE REPURCHASE/DIVIDEND
During the third quarter of 2019, the Company repurchased a total of 1,776,891 (1,099,507 Class A shares and 677,384 Class B shares) for approximately $133 million. The Company ended the third quarter with 36,811,374 Class A and 66,438,444 Class B shares issued and outstanding. From October 1 through October 25, 2019, the Company repurchased 523,499 shares of Class A common stock for an aggregate purchase price of approximately $37 million. As of October 25, 2019, the Company had approximately $351 million remaining under its share repurchase authorization.
The Company’s board of directors has declared a cash dividend of $0.19 per share for the fourth quarter of 2019. The dividend is payable on December 9, 2019 to Class A and Class B stockholders of record as of November 26, 2019.
CAPITAL STRATEGY UPDATE
In a Form 8-K filed on September 16, 2019, the Company announced the sale of the 1,260-room Hyatt Regency Atlanta for approximately $355 million to an unrelated third party and the entry into a long-term management agreement for the property upon sale.
The Company is in the process of pursuing the sale of one of its wholly-owned hotels and will provide further details as appropriate.
BALANCE SHEET / OTHER ITEMS As of September 30, 2019, the Company reported the following:
Total debt of $1,623 million.
Pro rata share of unconsolidated hospitality venture debt of approximately $564 million, substantially all of which is non-recourse to Hyatt and a portion of which Hyatt guarantees pursuant to separate agreements.
Cash and cash equivalents, including investments in highly-rated money market funds and similar investments, of $660 million, restricted cash of $140 million, and short-term investments of $63 million.
Undrawn borrowing availability of $1.5 billion under Hyatt’s revolving credit facility.2019 OUTLOOK The Company is revising the following expectations for the 2019 fiscal year:
Comparable system-wide RevPAR is expected to increase approximately 0.5%, as compared to fiscal year 2018.
Net income is expected to be approximately $431 million to $470 million. Please refer to the table on page 13 of the schedules for revised ranges impacting net income.
Other income (loss), net is expected to be approximately $98 million to $103 million, reflecting increased interest income and unrealized gains on marketable securities. The estimated $40 million negative impact related to performance guarantee expense for the four managed hotels in France is unchanged.
Adjusted EBITDA is expected to be approximately $730 million to $745 million, primarily reflecting a one point reduction in expected comparable system-wide RevPAR and the sale ofNote: All RevPAR and ADR percentage changes are in constant dollars. This release includes references to non-GAAP financial measures. Refer to the non-GAAP reconciliations included in the schedules and the definitions of the non-GAAP measures presented beginning on page 12.
Hyatt Regency Atlanta (as previously reported in a Form 8-K filed on September 16, 2019). Refer to the table on page 13 of the schedules for a reconciliation of Net Income to Adjusted EBITDA.
Depreciation and amortization expense is expected to be approximately $329 million to $334 million.
Interest expense is expected to be approximately $77 million.
Adjusted selling, general, and administrative expenses are expected to be approximately $335 million. This is inclusive of approximately $25 million of expenses related to non-recurring integration costs for Two Roads. Adjusted selling, general, and administrative expenses exclude approximately $33 million of stock-based compensation expense and any potential impact related to benefit programs funded through rabbi trusts.The Company is reaffirming the following information for the 2019 fiscal year:
The Company expects to grow units, on a net rooms basis, by approximately 7.25% to 7.75%, reflecting approximately 85 new hotel openings.
Capital expenditures are expected to be approximately $375 million.
As previously reported in an 8-K filed on September 16, 2019, the Company expects to return approximately $500 million to shareholders through a combination of cash dividends on its common stock and share repurchases.
The effective tax rate is expected to be approximately 25% to 27%.
No additional disposition or acquisition activity beyond what has been completed as of the date of this release has been included in the outlook. The Company’s outlook is based on a number of assumptions that are subject to change and many of which are outside the control of the Company. If actual results vary from these assumptions, the Company’s expectations may change. There can be no assurance that Hyatt will achieve these results.
Canopy by Hilton Madrid Castellana, first for Spain;
El Metropol Madrid, Curio Collection by Hilton, first for Madrid;
Atocha Hotel Madrid, Tapestry Collection by Hilton, first for Spain and first outside Americas
MADRID and MCLEAN, Va. – Hilton (NYSE: HLT) today announced the signing of three hotel franchise agreements with strategic investor partners, bringing three new brands to Madrid, of which two mark brand entries to the country. The addition of Canopy by Hilton Madrid Castellana; El Metropol Madrid, Curio Collection by Hilton; and Atocha Hotel Madrid, Tapestry Collection by Hilton represents a significant milestone for the global hospitality company, illustrating Hilton’s continued investment in Madrid as a premier tourist destination and its ambitions to further expand across Spain.
Patrick Fitzgibbon, senior vice president, development, EMEA, Hilton, said: “Spain has seen a surge in popularity, and Madrid is a particularly strong tourist market that has so much to offer. In 2018 the city welcomed a record-breaking 10 million visitors, making Madrid one of Europe’s most dynamic destinations for both business and leisure travellers. Responding to the increasing demand for great hotels combined with opportunities from world-class infrastructure investment and regeneration programmes, Hilton has expanded its portfolio to bring some of our most popular brands to Spain. Our new Madrid hotels will offer fantastic guest experiences and enrich communities.”
Canopy by Hilton Madrid Castellana
In partnership with Hotel Investment Partners (HIP), Hilton introduces its upper-upscale lifestyle brand, Canopy by Hilton, to Spain. HIP, Blackstone’s hotel investment platform, own the property and intend to invest €34 million in the hotel’s transformation, which will offer 311 guest rooms and multiple dining outlets, including a terrace restaurant overlooking Carlos Trias Bertran Square and a signature lobby café, Canopy Central. Expected to open in 2021, Canopy by Hilton Madrid Castellana is a perfect venue for guests looking to explore the capital. Situated close to the Paseo de la Castellana, one of the longest and widest avenues of Madrid, the hotel is near vibrant neighbourhood bars and restaurants, commercial buildings and international company headquarters, as well as Madrid’s world-famous Santiago Bernabéu Stadium, home of Real Madrid Football Club.
El Metropol Madrid, Curio Collection by Hilton
Joining a global portfolio of more than 70 one-of-a-kind hotels and resorts and located at the corner of Calle de la Montera and Gran Via, El Metropol Madrid, Curio Collection by Hilton is in the heart of Madrid’s historical town centre and close to the lively Puerta del Sol neighbourhood. With many rooms facing Gran Via, one of the city’s bustling streets with theatres, cinemas, shopping, restaurants and bars, guests can enjoy a stunning view of Madrid city life. Guests at the 93-room upper-upscale hotel will enjoy a range of facilities and amenities, including a rooftop bar with unbeatable city views. Its central location means many tourist attractions are within walking distance with easy access to Madrid’s metro network and connections to its business district. In partnership with owning company Montera 47, El Metropol Madrid is slated to make its debut in January 2021, joining existing Curio Collection hotels in Barcelona, Alicante, Malaga and Ibiza.
Atocha Hotel Madrid, Tapestry Collection by Hilton
Atocha Hotel Madrid, Tapestry Collection by Hilton joins a portfolio of hotels that offer guests unique style and an authentic connection to their destination. Brought to market by hotel operator Panoram Hotel Management, the 46-room hotel on Calle Atocha is just metres from Madrid Atocha railway station, the busiest in Spain, and is within walking distance of popular tourist attractions, including the Museo Reina Sofia, Prado Museum and the El Reitro Park. The first Tapestry Collection hotel to open in Spain and the brand’s first outside the Americas, Atocha Hotel Madrid will introduce the Tapestry Collection experience to Madrid locals and visitors alike. Amongst the amenities available, guests can select to stay in one of four Five Feet to Fitness rooms, a revolutionary in-room wellness concept created by Hilton allowing guests to work out in their guest room, with more than 11 pieces of fitness equipment and accessory options to choose from. The hotel is anticipated to open in the first quarter of 2020.
Hilton opened its first hotel in Madrid in 1953 and has since continued its commitment to investing in the city and supporting its growth as a leading tourist destination. Other Madrid properties include Hilton Madrid Airport (284 rooms), DoubleTree by Hilton Madrid Prado (61 rooms) and the 138-room Hampton by Hilton Madrid Alcobendas, located on Avenida de Fernando Alonso, which is set to open in January 2020.
Expansion on the Iberian Peninsula is a strategic focus for Hilton, and the company is growing faster in the region than ever before. It has signed a new Franchise or Management Agreement for a hotel in Spain every two months for the past two years, which represents more than 1,800 new keys. Hilton’s current Spanish portfolio of 12 hotels and resorts offers more than 2,000 hotel guest rooms and suites.
(Bloomberg) — MGM Resorts International, pressured by investors to unload its remaining company-owned casinos, agreed to sell the Bellagio resort in Las Vegas to Blackstone Group for $4.25 billion and will continue to operate the property under a lease arrangement.
The Las Vegas-based casino company also agreed to sell the Circus Circus property on the Strip, along with 47 adjoining acres, to real estate mogul Phil Ruffin for $825 million, according to a statement Tuesday.
With the sales, MGM Resorts moves a step closer to becoming a landless casino company, marking a new era for the largest operator of casinos on the Las Vegas Strip. When all of its deals close, the company will have just two wholly owned properties, including the flagship MGM Grand, remaining under its ownership. The company is keeping a 5% stake in the Blackstone-led venture that’s buying Bellagio.
“The casino industry is evolving and we figured the best use of our intellectual capital was to focus on sports, live entertainment and reduce leverage,” Jim Murren, MGM’s chairman and chief executive officer, said in an interview. “It’s very historic for a variety of reasons.”
MGM has been restructuring under pressure from activist investors. The company has cut and reorganized management, and previously sold all but four of its wholly owned casinos to MGM Growth Properties Inc., a real estate investment trust it created three years ago. The REIT has an option to buy the MGM Springfield in Massachusetts.
The price for Bellagio represents 17.3 times the initial annual rent of $245 million, MGM said. Bloomberg News previously reported Blackstone was in talks to buy and lease back the Bellagio and MGM Grand. The property is being purchased by the Blackstone Real Estate Investment Trust.
MGM will use the proceeds to bolster its balance sheet and return capital to shareholders. Murren said the transactions will help the company target new growth opportunities, including one of the new integrated resource licenses in Japan and sports betting in the U.S. MGM has no plans to develop any more casinos in Las Vegas, he said.
Earlier Deals
Ruffin, a real estate mogul raised in Wichita, Kansas, will pay $662.5 million in cash for Circus Circus. The $162.5 million balance will be in a note that’s due in 2024. The parties expected to deal to close in the fourth quarter. The resort has 2,300 employees and includes a 20-acre RV park and 37-acre festival grounds.
Ruffin bought the Treasure Island casino from MGM for $746 million in 2009. The company then was trying to raise cash following the financial crisis and complete construction of its CityCenter project.
He fixed up Treasure Island, once known for its daily pirate battles outside, adding a western-themed barbecue restaurant and other amenities aimed at Middle American guests. Earlier, he partnered with Donald Trump on the Trump International Hotel, a non-casino hotel and condo development on the Strip.
Circus Circus, now more than 50 years old, was once a flagship property of publicly traded Circus Circus Enterprises. MGM ultimately acquired that company. The resort itself is located at the less-trafficked north end of the Strip.
The sale of Bellagio will provide a benchmark value to attract bidders for MGM’s remaining real estate interests, Murren said, including the CityCenter properties that are co-owned with Dubai World, and the flagship MGM Grand.
Murren also said he wasn’t concerned that Penn National Gaming Corp., another casino operator that had moved to a similar asset-light strategy, trades at a lower multiple of earnings than other casino companies. He said MGM’s assets make it unique.
MGM Resorts enlisted Weil, Gotshal & Manges as its legal counsel, while PJT Partners and JPMorgan Chase & Co. served as financial advisers. Blackstone’s REIT used Citigroup Inc. and Morgan Stanley as its financial advisers. Simpson Thacher & Bartlett LLP, meanwhile, was its legal counsel.
Story by Christopher Palmeri,Bloomberg•October 15, 2019
