Singapore Airlines Limited (SI: C6L) today launched the Singapore Showcase, an initiative to support and collaborate with leading Singaporean brands to offer unique on ground and in-flight experiences for its global customer base.
Under the initiative, SIA has worked with renowned Singapore-based hawker brands to enhance the Airline’s popular local fare options by presenting their distinctive dishes to customers. As a result, the Airline will be able to offer an even wider range of Singapore’s iconic hawker cuisine on board flights out of Singapore. This is also a celebration of Singapore’s Hawker Culture, which was added to the UNESCO Representative List of the Intangible Cultural Heritage of Humanity in 2021.
The carrier has also partnered local media production and distribution companies to offer more Singaporean content in its KrisWorld in-flight entertainment system. This will result in an even larger selection of Singaporean movies, documentaries, television series, music, and podcasts for our customers, and introduce some of Singapore’s leading talents to the world.
SIA has also worked with Scent by SIX, a Singapore-based artisanal perfume label, to develop a unique signature scent for the airline. This scent includes floral notes from flowers in SIA’s new batik motif. It will be introduced at key customer-facing locations, helping to create a unique sensory experience for passengers during their journey with us which will elevate their overall customer experience.
Wednesday 24 February, 2021 – British Airways has today launched two new fare brands for its trade customers, which offer refundable options and enhanced flexibility. Select and Select Pro are both refundable fares, which will give customers the flexibility to cancel a flight and claim a full or partial refund should their travel plans change. There will also be no change fee payable for Select and Select Pro bookings.
The Select and Select Pro fares are available to book from today, exclusively for agents, via both the GDS or NDC. They will sit alongside the current Basic, Standard/Plus and Fully Flexible fares, and will enhance the suite of fare options available to suit the different budgets and flexibility needs of customers. In the UK, Select fares will be available on short-haul routes and long-haul routes, and Select Pro available on long-haul routes.*
The table below shows the differences between each available fare brand:
These new fare products will also be available to book through British Airways’ Atlantic Joint Business partners American Airlines, Iberia and Finnair.
Fares will cost from £50 extra on a short-haul return ticket and from £100 extra on a long-haul return ticket, compared with Standard/Plus fares. The refund fee for Select products is similar.**
British Airways’ book with confidence commitment for free changes or the ability to take a voucher will continue to apply to all Basic, Standard/Plus, Fully Flexible, Select and Select Pro bookings. As always, if a flight is cancelled the customer is entitled to a full refund.
More information for trade partners is available through the BA Travel Trade website. Partners can also contact their Account Manager.
Qantas Frequent Flyers can now earn and use points on premium train trips around Australia including The Ghan, Indian Pacific and the Great Southern – marking the first time Classic Reward Seats have been offered on the ground.
From today, members can use points to book Classic Rail Reward seats or earn 1 point per $1 spent on Journey Beyond Rail Expeditions journeys.
Journey Beyond offers extended overnight rail holidays that traverse some of Australia’s most picturesque and iconic landscapes such as the Red Centre, Blue Mountains and east coast. The all-inclusive high-end expeditions include bespoke menus inspired by the places the trains travel through and the opportunity for guests to explore beyond the tracks with immersive Off Train Excursions before returning to their onboard accommodation and world-class hospitality.
Qantas Loyalty CEO, Olivia Wirth said at a time when Australians are planning domestic holidays more than ever the partnership with Journey Beyond Rail Expeditions provides even more choice for frequent flyers to use their Qantas Points.
“Ninety per cent of our members want to use their points for travel so the ability to explore the country by rail is an exciting alternative for frequent flyers and a real drawcard for our program,” Ms Wirth said.
“Whether members are redeeming points on flights, hotel bookings, holiday packages or now rail travel, we’re always evolving and innovating to meet the needs of our 13 million members and help bring them closer to their next dream trip.”
Journey Beyond Chief Executive Officer, Chris Tallent said the announcement reflected a coming together of two great Australian brands.
“We’re thrilled to partner with Qantas Frequent Flyer and provide people who love to travel with greater value when they choose a premium rail holiday experience,” Mr Tallent said.
“Like Qantas, Journey Beyond is in the business of taking people to incredible places across the country and curating unique experiences that forge lasting memories.
“As the first travel partner to offer Classic Reward Seats outside of flights, with the launch of our ‘Classic Rail’ Rewards, we look forward to growing our partnership with Qantas and sharing the joy of travel with our guests.”
Bookings are now available for rail travel next year with the Great Southern’s second season being extended by two weeks into February and the once-a-week Ghan service becoming a twice-weekly service from May to August. Work is currently underway to see the Indian Pacific return with its weekly journeys from mid-February.
Qantas Frequent Flyers can earn 1 Qantas Point per $1 spent on all Journey Beyond Rail Expeditions or use points to book twin and single Gold Cabins on The Ghan, Indian Pacific and Great Southern starting from 100,000 Qantas Points.
(Reuters) – The coronavirus outbreak has virtually shut down corporate Australia and New Zealand, forcing companies to throw out their strategic plans and resulting in thousands of layoffs or staff suspensions.
Listed companies in both the countries have already laid off or began considering laying off more than 100,000 people, temporarily or permanently, highlighting the toll on livelihoods as virtual shutdowns take hold.
Ultimately, economists forecast the crisis will more than double unemployment to more than 11%, the highest in three decades.
AIRLINES
* Qantas Airways to place 20,000 workers on leave until at least the end of May.
* Virgin Australia to stand down 8,000 employees until the end of May.
* Air New Zealand to lay off nearly a third of its employees, about 3,500, in the coming months, and said that was a “conservative” assumption.
CASINOS
* Star Entertainment Group says 90% of its workforce, or 9,000 people, will be placed on leave due to mandated casino closures.
* Crown Resorts Ltd stood down about 95% or more than 11,500 of its employees on a full or temporary basis as gaming and other non-essential services at its resorts in Melbourne and Perth were suspended.
* SkyCity Entertainment Group has laid off or furloughed at least 1,100 of its staff across Australia and New Zealand.
RETAIL
* Department store operator Myer Holdings will temporarily lay off 10,000 of its staff without pay.
* Kathmandu Holdings Ltd, the outdoor apparel retailer that owns Rip Curl, said most of its global stores were closed and almost all its staff in Australia will be stood down for four weeks without pay. It has around 4,000 employees globally.
* Home ware retailer Smiths City Group Ltd stands down almost all of its 465 employees on 80% of their salary.
* Retail Food Group will stand down or reduce the working hours of the majority of its 500 employees.
* Premier Investments, owner of Smiggle, Just Jeans and chains, is standing down 9,000 employees, most without pay
* Jeweller Michael Hill International is putting staff on leave in Australia, New Zealand and Canada. The company employs about 2,500.
* Fashion retailer Mosaic Brands is standing down 6,800 due to store closures.
* Footwear retailer Accent Group stands down all its retail employees and most support staff for four weeks without pay. The company reportedly employs 5,700.
HOSPITALITY
* Pub and hotel operator Redcape Hotel Group will cut most permanent staff. It employs 800.
* ALH Group, the pubs and hotels group majority-owned by Woolworths, will stand down about 8,000 staff.
TRAVEL AGENTS
* Flight Centre is cutting or putting on leave a third of its 20,000 staff.
* Helloworld Travel lays off 275 people and temporarily stands two-thirds of its 1,800 workforce until the end of May.
HEALTH AND EXERCISE
* Viva Leisure lays off more than 90% of its 2,200 workforce.
* Dental group Abano Healthcare will stand down majority of its 2,300 employees at its operations in Australia and New Zealand.
HIRING:
On the other hand, some companies are hiring under the new circumstances.
* Australia’s biggest supermarket chain Woolworths to hire 20,000 in the next month. Some of the new hires will be those re-deployed from its the pubs and hotels business, ALH Group. Woolworths also plans to offer short-term roles to 5,000 Qantas employees put on leave.
* Coles has added 7,000 people to its ranks, and said it plans to hire another 5,000 to meet increasing demand at its supermarkets and liquor stores.
* Australia’s biggest telecom company Telstra will freeze a 6,000-employee cull and hire 1,000 due to growing volumes at call centres.
* BHP Group, the world’s biggest miner, says it will hire 1,500 temporary workers, some to be offered permanent roles after six months.
(Reporting by Nikhil Kurian Nainan and Anushka Trivedi in Bengaluru; Editing by Byron Kaye, Shounak Dasgupta and Sherry Jacob-Phillips)
Delta Air Lines has successfully acquired a 20 percent equity stake in LATAM Airlines Group S.A for approximately $1.9 billion.
Delta Air Lines has successfully completed its previously announced tender offer and has acquired a 20 percent equity stake in LATAM Airlines Group S.A for approximately $1.9 billion, an important milestone toward bringing together the leading airlines in North and South America. This investment continues Delta’s strategy of making equity investments in key airline partners around the globe.
“We look forward to working with LATAM to create a truly world-class partnership that will give our customers unparalleled access throughout the Americas,” said Steve Sear, Delta President — International and Executive Vice President — Global Sales. “Equity investments like this help create alignment within our partnerships as we bring together our brands, enabling us to provide the very best service and reliability for our shared customers.”
In September, Delta and LATAM announced a strategic partnership, including the now completed 20 percent equity investment and also a commercial joint venture. Once fully implemented, this partnership will unlock growth opportunities for both airlines and offer significantly expanded travel options for customers, with access to 435 destinations worldwide.
Most recently, the carriers announced that they will initially launch codesharing for flights operated by certain LATAM affiliates in Colombia, Ecuador and Peru beginning in the first quarter of 2020. The codeshare will offer customers increased connectivity between up to 74 onward destinations in the United States and up to 51 onward destinations in South America.
The enhanced cooperation and codeshare agreements are subject to governmental and regulatory approvals.
JetBlue Founder David Neeleman Selects Salt Lake City as Headquarters for New Airline
America’s newest and perhaps most innovative airline does not yet have a name, or any airplanes. But it now has a headquarters.
David Neeleman’s startup will be based in Salt Lake City, where it plans to spend a capital investment of $3.2 million and create nearly 400 jobs over the next five years, according to local authorities. In return, the state offered tax rebates worth as much as about $1.1 million over five years.
“There’s a super strong technology base, and lower cost of living than California and some of the coastal areas,” Lukas Johnson, the airline’s chief commericial said in an interview. “We want to focus more on the technology aspect of the transportation side, and it makes a lot of sense. The tech sector is booming out here.”
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.
DETROIT (Reuters) – Tesla Inc’s <TSLA> Model 3 and S sedans both regained “recommended” status in Consumer Reports magazine’s annual reliability survey, allowing the electric carmaker’s overall standing to rise slightly.
Tesla’s ranking improved four spots to No. 23 out of 30 brands in the U.S. market as it worked to resolve production problems with the Model 3, said Jake Fisher, senior director of auto testing at Consumer Reports. Both the Model 3 and S raised their reliability ratings to “average.”
“People really like their cars,” he said of Tesla owners. “Hopefully, if that frantic rate of change can slow down a bit, they can maintain reliability.”
Tesla has touted the popularity of the Model S, listed in the top ranks of a different Consumer Reports survey, on owner satisfaction, every year since 2013 when the carmaker was first included.
Fisher cautioned he expected Tesla’s reliability to remain fluid given its inconsistent track record.
Tesla’s Model X SUV still ranks among the least reliable models, according to the annual survey released on Thursday.
The poll predicts which new cars will give owners fewer or more problems, based on data collected for more than 400,000 vehicles. Its scorecard is influential among consumers and industry executives.
Reliability rankings tend to suffer when automakers offer new or redesigned models, which dragged down Volkswagen AG’s <VWAGY> namesake and Audi brands. The VW brand slid nine spots to No. 27, while Audi fell seven spots to No. 14.
Brands with no major changes to their lineups, such as Fiat Chrysler Automobiles’ <FCAU> Dodge and Chrysler, made significant gains. Dodge was the highest ranked U.S. brand at No. 8, making the biggest gain of 13 spots. Chrysler rose seven spots to No. 19, while Jeep finished at No. 26.
Ford Motor Co’s <F> Lincoln and Ford brands were No. 15 and 16, while General Motors Co’s <GM> Buick, GMC, Chevrolet and Cadillac brands ranked No. 18, 22, 25 and last at 30, respectively.
The reliability of full-sized pickups, the most popular vehicles in the U.S. market, was weak. Ford’s F-150 and FCA’s Ram trucks were rated “well below average,” while GM’s pickups – the Chevrolet Silverado and GMC Sierra – both had “below average” reliability.
Toyota Motor Corp’s <TM> Lexus luxury brand finished atop the survey, followed by Mazda Motor Corp <MZDAY> and the Toyota brand.
(Reporting by Ben Klayman in Detroit; Editing by Richard Chang)
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.
