FRANKFURT (Reuters) – Daimler said on Friday it will cut at least 10,000 jobs worldwide over the next three years, following others in the industry as they cut costs to invest in electric vehicles while grappling with weakening sales.
It marks the third announcement on cost cuts this week by a major German car company as automakers seek to fund huge investments into cleaner and self-driving technologies while demand in China, their biggest market, is falling and a trade war between Washington and Beijing is curbing economic growth.
“The automotive industry is in the middle of the biggest transformation in its history,” Daimler said in a statement.
Daimler, the owner of Mercedes-Benz, revealed the 3% cut in its workforce after reaching an agreement on its plans with labor unions.
They have agreed on a variety of measures to cut costs and jobs, including expanding part-time retirement and a severance program to be offered in Germany. The company is also cutting 10% of worldwide management positions.
Staff reductions would be in the low five-digits, or at least 10,000 people, according to Wilfried Porth, a board member in charge of human resources. The company employed 304,680 staff at the end of the third quarter.
Plans laid out by Daimler in November showed the company aimed to cut staff costs by around 1.4 billion euros ($1.54 billion) by the end of 2022.
The announcement comes days after Volkswagen’s <VOWG_p.DE> luxury car unit Audi said it would cut up to 9,500 jobs or one in ten staff by 2025, freeing up billions of euros to fund its shift toward electric vehicle production.
Also this week, BMW said that its management and labor had reached an agreement on measures to reduce bonus and other pay schemes for staff to cut costs.
Car suppliers Continental and Osram have also announced staff and cost cuts.
Daimler has repeatedly cut its profit outlook over recent months, partly to cover a regulatory crackdown on diesel emissions but also because of a slowing auto market.
Group operating profit will be “significantly lower” than a year ago, the company said last month.
Other measures to reduce staffing costs include offering shorter working weeks.
Agreements in place to prevent forced redundancies in Germany until 2029 will remain in place, Daimler said.
The workforce needs a clear strategy for the future, said Michael Brecht, chairman of Daimler’s works council. “A reduction in capacity must not be carried out on the backs of the employees,” he said.
(Editing by Elaine Hardcastle)
The Daimler logo is seen before the Daimler annual shareholder meeting in Berlin
Melbourne, Florida, November 25, 2019 – Embraer Services & Support announces the expansion of its Executive Jets Service Center at Fort Lauderdale-Hollywood International Airport (KFLL). As of November 1, Embraer has expanded its service capacity through a lease agreement with Jetscape Services for a dedicated hangar.
“We are thrilled with the added capacity to better serve our customers, whether they are based in the region or just traveling through Florida,” said Frank Stevens, Vice President, Global MRO Centers, Embraer Services & Support. “Our expansion in South Florida allows us to further elevate the customer experience for aircraft owners and fleet operators alike, in addition to creating 40 new high-tech jobs for the community.”
Embraer’s presence in Florida is strategic to its Executive Jets customers throughout the Southern United States, the Caribbean and Central America as well as to those whose travel frequently brings them through South Florida.
“We are proud to offer Embraer the infrastructure for their customer support expansion in Florida,” said Troy Menken, Jetscape President. “Since 2002 we have served customers from around the world with aircraft of all sizes, and we are confident that our ground support expertise will ensure that Embraer customers will enjoy a premium experience.”
Embraer’s owned service center in South Florida is also the base for the Embraer Airworthiness Management program, where customers can meet with the team to learn how the program can be customized to deliver peace of mind and drive aircraft value retention. The program provides customers with a dedicated Certified Airworthiness Manager to plan, coordinate, and monitor all maintenance and airworthiness requirements throughout the aircraft’s lifecycle.
The Embraer Airworthiness Management program ensures the full regulatory compliance of aircraft maintenance and records through MyEmbraer.com, in addition to providing negotiation and dispute resolution services with suppliers to maximize cost savings for the customer. Smoother operations are a key benefit of the program’s advanced planning service, especially for customers with a tight operational schedule.
About Jetscape
Jetscape is a full-service, boutique fixed based operator (FBO) at Fort Lauderdale-Hollywood International Airport (KFLL). We provide a private terminal for general aviation traffic, aircraft fueling services, and aircraft storage facilities. Founded in 2002, Jetscape has over 17 years of demonstrated success in providing customer service, aircraft ground support, and property management.
Jetscape operates on more than 21+ acres at FLL with more than 100,000+ square feet of combined hangar space. We serve a broad spectrum of aircraft ranging from small single-engine piston aircraft to the world’s largest cargo carriers and we are the exclusive U.S. Military and Federal Government contractor at FLL.
Our mission is to create an unforgettable customer experience that is second to none. We aim to provide a bespoke, state-of-the-art gateway for business and tourism, to be an employer of choice, and a model of efficiency. We are excited to be your provider of aviation services, to support your business needs, and to share in your vision for customer and employee experience. We look forward to your arrival.
22 November 2019 – The Northwest Rapid Transit Consortium (NRT) has reached contractual close for the extension to the existing NRT Public Private Partnership (PPP) contract on Sydney Metro.
The contract, which was awarded in 2014, has been extended to deliver a seamless customer experience on the new metro, with NRT to operate and maintain the full metro line from Rouse Hill to Bankstown – in total 66 kilometres of rail and 31 metro stations by 2024.
Alstom has signed a contract with NRT to supply the rolling stock and signalling system for the next stage of Sydney Metro, Sydney Metro City and Southwest. The project is an extension of the Metro North West Line, which successfully opened to customers in May 2019.
Under the contract, valued at approx. €350 million, Alstom will be responsible for the project management, design, supply, manufacturing, testing and commissioning of 23 six-car fully-automated Metropolis trains and the Urbalis 400 Communication Based Train Control (CBTC) signalling system. The trains will be manufactured in Alstom’s manufacturing centre in Sri City, India which successfully delivered 22 Metropolis trains for the Metro North West Line. The contract also includes an option to purchase further trains if required.
“Sydney Metro has been a game changer for the travelling public of Sydney and Alstom is delighted to continue to be a part of this iconic project. It strengthens Alstom’s position as the market leader for the supply of railway technologies in Australia.” said Ling Fang, Senior Vice President of Alstom Asia-Pacific.
As an extension of the existing Metro North West Line, the NRT PPP will provide a fully integrated turn-up and go service along a dedicated 66-kilometre metro network with a total of 31 stations from Rouse Hill through the City and to Bankstown. The Metro North West Line operator, Metro Trains Sydney, will be responsible for the operations and maintenance of the entire line.
The City and Southwest extension includes a 15km greenfield line with seven new stations plus the conversion of the existing suburban rail line to metro rail standards, covering a further 13km of track and 11 existing stations. The project also includes expansion of the current Sydney Metro Trains Facility at Rouse Hill and a new trains facility at Sydenham. Construction of the new line is currently underway with revenue service expected to start in 2024.
The Metropolis trains and digital signalling systems for the City & Southwest project will include the same design and features as the North West Line, designed to meet the specific needs of Sydney. According to the specifications, the new trains will meet strict sustainability criteria; a robust lightweight structure, low energy consumption, high levels of recoverability and recyclability, technical reliability and ease of maintenance. The trains will also be equipped with remote sensors for optimal maintenance planning.
Alstom has put sustainability and the passenger at the heart of its design process. The trains for Sydney will be built with the safety and comfort of passengers in mind, offering accessibility, wide doors and spaces to facilitate passenger flow, acoustic comfort, vibration mitigation and passenger information in real time.
Alstom’s metro trains are a world-leading, proven, safe and reliable train that serve many of the world’s great cities, including Paris, London, Amsterdam, Barcelona and Singapore. Alstom has more than 65 years’ experience in the production of metros, having sold over 17,000 metro cars that operate in 55 cities around the world and carry 30 million passengers every day.
Rouse Hill Station is on Sydney’s first metro line, Metro Northwest, which opened on 26 May, 2019. Services at the 13 metro stations operate every four minutes in the peak in each direction on Australia’s first driverless railway.
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.”
Dubai, UAE, November 19, 2019 – Embraer announced today, at the Dubai Airshow, that Falcon Aviation’s newest facility located at Al Maktoum International Airport (DWC), Dubai’s new airport, has been approved as an Embraer Authorized Service Center (EASC) to expand their support for Legacy 600/650 and Lineage customers in the region.
Falcon Aviation, the UAE’s leading business aviation services, charter, MRO and aircraft management company, may perform scheduled and non-scheduled maintenance, component and part exchange, types of inspections at different levels of complexity for those aircraft platforms.
“We are humbled to extend our partnership with Falcon Aviation and offer owners and operators the best maintenance solutions at Dubai’s newest airport, a strategic hub for our customers in the region,” said Frank Stevens, Embraer’s MRO Global Vice President Services & Support.
“Being part of Embraer’s global network of Authorized Service Centers is a strong endorsement for our services, and we are proud to extend our capabilities by offering support to customers at Dubai’s Al Maktoum International Airport”, said Capt. Raman Oberoi, the COO of Falcon Aviation Services.
Embraer Services & Support has more than 2,300 people positioned in the world to support the customer with all their needs and an award-winning network of more than 80 owned and authorized service centers, field support representatives, flight simulators, as well as two 24-hour Customer Care Centers.
MONTREAL/WINNIPEG, Nov 18 (Reuters) – Canada’s Liberal government sent two ministers on Monday to meet with representatives of Canadian National Railway Ltd and its largest union, as already hard-hit shippers pleaded for government intervention to avert a strike planned for early on Tuesday.
The threatened strike by 3,000 workers with Teamsters Canada comes after CN, the country’s largest railroad operator, said on Friday it would cut management and union jobs, as it grapples with softer economic conditions.
Labor Minister Patty Hajdu and Transportation Minister Marc Garneau were to meet with representatives from CN and the union in Montreal, Hajdu’s press secretary Veronique Simard said, following a stalemate in contract talks.
CN said it believes a strike can be averted “with the assistance of federal mediators,” after Teamsters declined to submit to binding interest arbitration. “We expect talks to continue up to Nov. 19,” CN said. Teamsters and CN reached a last-minute deal in 2017 that averted a planned strike. Canada, one of the world’s biggest exporters of farm products, relies on its two main railways to move canola and wheat over the vast distances from western farms to ports. Crude oil shippers in Alberta have also used trains in the past two years to reach U.S. refineries as an alternative to congested pipelines.
Alberta wheat and barley commissions, representing farmers, urged Ottawa to intervene, as they are already facing difficult harvest conditions because of weather. “There are a lot of farmers who already have a significant amount of their income trapped under snow,” said Gary Stanford, Alberta Wheat Commission chair. “Now adding insult to injury, we’re looking at possible CN rail strike action too.”
CN was expecting slightly lower fourth-quarter crude shipments from the third quarter, officials said on an Oct. 22 conference call.
Slumping commodity prices, congested oil pipelines and a dispute with China that has hampered Canadian agriculture exports have pressured the economies of resource-rich western provinces.
Teamsters Canada spokesman Christopher Monette said the planned strike by its conductors, train personnel and yard workers comes because workers are “hitting a wall on issues related to health and safety.”
“While we continue to negotiate in good faith and in hopes of avoiding a labor dispute, we have every intention of striking at 00:01 a.m. ET tonight (0501 GMT) unless an agreement can be reached before then,” Monette said by email.
CN shares were trading down 0.5% in early afternoon Toronto trading.
(Reporting By Allison Lampert in Montreal and Rod Nickel in Winnipeg; Additional reporting by Kelsey Johnson in Ottawa; Editing by Tom Brown and Marguerita Choy)
Etihad’s ‘Greenliner’ to serve as platform for testing ways to reduce fuel use and emissions
Multiple services agreements would support even more efficient 787 operations at Etihad
DUBAI, United Arab Emirates, Nov. 18, 2019 /PRNewswire/ — Boeing (NYSE: BA) and Etihad Airways announced today that one of the airline’s 787 Dreamliner airplanes will serve as a flying laboratory for testing procedures and initiatives that could further reduce fuel consumption and carbon emissions, as a part of a growing partnership to advance the sustainable growth of aviation.
“Innovation, productivity and sustainability are core values and objectives of Etihad Airways and of Abu Dhabi said Tony Douglas, Group Chief Executive of Etihad Aviation Group, at the 2019 Dubai Airshow. “The Boeing 787 Dreamliner is a key enabler of all three.”
The specially-themed 787 will enter service early next year and operate regular flights in Etihad Airways’ network, while periodically serving as a test bed for assessing environmental sustainability initiatives. The project builds on Etihad’s ample experience with the super-efficient airplane.
“The 787 Dreamliner and its track record of environmental performance makes it the perfect platform to advance our industry’s commitment to sustainable growth,” said Stan Deal, president and chief executive officer of Boeing Commercial Airplanes. “We look forward to continuing our collaboration with Etihad Airways to identify more opportunities to improve efficiency across commercial aviation.”
Beyond the environmental testing on the airplane, the two companies will build on the technical capabilities that Etihad Airways has developed while maintaining its own Dreamliner fleet and that of other operators. As part of the strategic partnership, the companies are discussing several areas where they can work together to improve operational efficiency.
Boeing and Etihad Airways also announced that Boeing will provide multiple services for the airline’s Dreamliner fleet, including the Component Services Program, Landing Gear Exchange, and High-Value Components Exchange, programs that help an airline simplify asset and maintenance management, reduce spare parts costs while improving parts availability. The agreements also include a customized material parts package and three Quick Engine Change (QEC) kits that enable Etihad to quickly return an airplane to service if an engine needs to be repaired or replaced.
“Boeing’s global supply chain footprint will allow ready access to parts, support and services, when and where it’s needed,” said Ted Colbert, president and chief executive officer of Boeing Global Services. “We are proud to partner with Etihad Airways to increase maintenance efficiency and maintain aircraft operability.”
These agreements build upon a history of partnership between the two companies. Both are members of a research consortium to encourage the development of sustainable aviation fuels in the region.
Nov 15 (Reuters) – Canadian National Railway said on Friday it would cut management and union jobs, as the largest Canadian railroad operator grapples with an economic slowdown.
The announcement comes amid declining freight volumes as trade tensions have weighed on the North American economy.
The number of people to be laid off could rise if demand from rail customers continues to decline, the Canadian newspaper said, citing a person familiar with the matter.
Canadian National Railway spokesman said the action, which includes sending some of its employees on temporary leave, has already begun across its network.
(Reporting by Dominic Roshan K.L. in Bengaluru; Editing by Amy Caren Daniel)
SEPANG, 13 November 2019 – AirAsia has unveiled a special ‘Save our Malayan Tiger’ aircraft livery in support of the government’s campaign to save the fast-disappearing Malayan tiger.
The ‘Save Our Malayan Tiger’ livery forms part of AirAsia’s ongoing sustainability efforts to support conservation and environmental programs, and would encourage millions of people to pledge their support for the cause.
The Airbus A320 aircraft livery was unveiled by the Minister of Water, Land and Natural Resources Yang Berhormat Dato’ Dr Xavier Jayakumar alongside AirAsia Group CEO Tony Fernandes, AirAsia Group President (Airlines) Bo Lingam and AirAsia Malaysia CEO Riad Asmat here in Sepang today.
AirAsia Group Head of Global Affairs & Sustainability, Shasha Ridzam said, “Malayan tigers are a majestic symbol of strength and part of our national identity. We would never want our children to grow up in a world where the Malayan tiger exists only as an image on the coat of arms. That is why we must play our part in protecting them. I hope this new livery helps to bring the government’s wildlife conservation campaign to life.”
AirAsia Group CEO Tony Fernandes also added, saying, “Congratulations to the Ministry of Water, Land and Natural Resources for taking proactive measures in protecting our Malayan tigers, and we’re proud to be able to do our part in helping this campaign.”
Minister of Water, Land and Natural Resources YB Dato’ Dr Xavier Jayakumar said, “We are proud to take the Save Our Malayan Tiger and Hutan Kita campaigns to new heights with AirAsia. The alarming decline of our national symbol is clear evidence that we need to do more when it comes to conserving our tigers. Our Hutan Kita campaign is an important cause as well, as without our forests, there will be no tigers and wildlife. We hope with AirAsia’s support, we will further raise the awareness on these important messages not just in Malaysia but in the region as well and be the vehicle of change for our tigers.”
AirAsia has also extended its support to the Ministry of Water, Land and Natural Resources’ environmental campaigns by sponsoring return flights for 10 orang asli to attend the Hutan Kita Exhibition Launch in August 2019, in addition to supporting a visit to the National Wildlife Rescue Center (NWRC) in Sungkai, Perak for its Allstars in October 2019.
AirAsia’s sustainability efforts include guest education, carbon reduction and waste management, the collection and separation of recyclable items on board and community-based tourism programmes such as JourneyD. AirAsia also fosters social enterprise initiatives across Asean through its philanthropy arm, AirAsia Foundation.
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.
