FAIRFAX,
Va., Aug. 3, 2023 /PRNewswire/ -- Playa Hotels
& Resorts
N.V. (the "Company" or "Playa") (NASDAQ:
PLYA) today announced results of operations for the three and
six months ended June 30, 2023.
Three Months Ended June 30, 2023 Results
- Net Income was $20.6
million compared to $30.5
million in 2022
- Adjusted Net Income(1) was $21.0 million compared to $24.9 million in 2022
- Net Package RevPAR increased 13.6% over 2022 to
$312.64, driven by a 16.1% increase
in Net Package ADR, partially offset by a 1.6 percentage point
decrease in Occupancy
- Owned Resort EBITDA(1) increased 14.2% versus
2022 to $83.1 million
- Owned Resort EBITDA Margin(1) increased 1.0
percentage points versus 2022 to 35.3%
- Adjusted EBITDA(1) increased 16.9% versus
2022 to $72.1 million, inclusive of a
$4.3 million benefit from business
interruption insurance related to Hurricane Fiona that impacted the
Dominican Republic in the second
half of 2022
- Adjusted EBITDA Margin(1) increased 1.4
percentage points versus 2022 to 30.2%
Six Months Ended June 30,
2023 Results
- Net Income was $63.4
million compared to $73.3
million in 2022
- Adjusted Net Income(1) was $70.0 million compared to $56.7 million in 2022
- Net Package RevPAR increased 19.2% over 2022 to
$333.84, driven by a 21.8% increase
in Net Package ADR, partially offset by a 1.5% percentage point
decrease in Occupancy
- Comparable Net Package RevPAR increased 22.6% over 2022
to $355.71, driven by a 1.6%
percentage point increase in Occupancy and a 20.1% increase in Net
Package ADR
- Owned Resort EBITDA(1) increased 20.1% versus
2022 to $192.5 million
- Owned Resort EBITDA Margin(1) increased 1.0
percentage points versus 2022 to 38.8%
- Adjusted EBITDA(1) increased 23.1% versus
2022 to $170.6 million, inclusive of
a $4.3 million benefit from business
interruption insurance related to Hurricane Fiona that impacted the
Dominican Republic in the second
half of 2022
- Adjusted EBITDA Margin(1) increased 1.5%
percentage points versus 2022 to 33.9%
- Comparable Adjusted EBITDA(1) increased 29.7%
versus 2022 to $175.2 million
- Comparable Adjusted EBITDA Margin(1)
increased 2.3% percentage points versus 2022 to 35.1%
(1) See "Definitions of Non-U.S. GAAP Measures
and Operating Statistics" for a description of how we compute
Adjusted Net Income/(Loss), Owned Resort EBITDA, Owned Resort
EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Comparable
Adjusted EBITDA, Comparable Adjusted
EBITDA Margin and other non-GAAP
financial figures included
in this press release, as well as reconciliations of such non-GAAP
financial figures to the most directly comparable
financial measures calculated in accordance with GAAP.
"We continued to execute at a high level during
the second quarter, with our legacy
portfolio (excluding Jewel Punta Cana and Jewel Palm Beach) growing occupancy, ADR and
Owned Resort EBITDA Margins year over year. The fundamental
strength was led by performance in our Jamaican segment, as the
segment reported record second quarter occupancy and year over year
ADR gains of 26%. As a reminder, Jamaica removed COVID-related travel
restrictions during the second quarter of 2022, making it the last
of our major geographic segments
to do so. We remain
optimistic about the runway for the recovery
in Jamaica given the strength of that market prior to the
pandemic and the major infrastructure efforts under way to help
further increase tourism.
Our teams in Mexico also delivered another quarter of
excellent results on a currency-adjusted basis, though the
significant appreciation of the Mexican Peso was a material drag on
our reported second quarter results. We remain focused on
operational execution and tactical expense control, resulting in
100bps of constant currency Owned Resort EBITDA Margin expansion
year over year in the Yucatan
segment on mid-single-digit ADR growth. We will continue to adjust
costs and drive further savings from our procurement efficiency
efforts to lower the ADR gains needed to hold margins as we head
into the second half of the year and beyond. In the Dominican Republic, our Hyatt and Hilton
properties had another phenomenal quarter but
performance in the segment was once again negatively impacted by
the two properties we assumed control of earlier this year.
With half of the year behind us and factoring
in the recent changes in foreign currency exchange rates, we now
expect full-year Adjusted EBITDA to be in the range of $260-275 million, roughly in line with our
original expectation at the beginning of the year. On the capital
allocation front, we continue to believe our stock presents an
attractive value given our strong fundamentals. During the second
quarter, we repurchased over 3.7 million
shares for $34.2 million."
– Bruce D. Wardinski, Chairman
and CEO of Playa Hotels & Resorts
Financial and Operating Results
The following tables set forth
information with respect
to the operating results of our total
portfolio and comparable portfolio for the three and six
months ended June 30, 2023 and 2022
($ in thousands):
Total Portfolio
|
|
|
Three Months Ended
June 30,
|
|
Six Months
Ended June 30,
|
|
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
Occupancy
|
73.5 %
|
75.1 %
|
(1.6)
|
pts
|
72.2 %
|
73.7 %
|
(1.5)
|
pts
|
Net Package
ADR (1)
|
$
425.52
|
$
366.53
|
16.1
|
%
|
$
462.67
|
$
379.88
|
21.8
|
%
|
Net Package RevPAR
|
$
312.64
|
$
275.33
|
13.6
|
%
|
$
333.84
|
$
280.14
|
19.2
|
%
|
Total Net
Revenue (2)
|
$
238,764
|
$
214,089
|
11.5
|
%
|
$
502,992
|
$
427,314
|
17.7
|
%
|
Owned Net Revenue (3)
|
$
235,212
|
$
212,091
|
10.9
|
%
|
$
496,221
|
$
423,752
|
17.1
|
%
|
Owned Resort
EBITDA
|
$
83,112
|
$
72,773
|
14.2
|
%
|
$
192,501
|
$
160,310
|
20.1
|
%
|
Owned Resort
EBITDA Margin
|
35.3 %
|
34.3 %
|
1.0
|
pts
|
38.8 %
|
37.8 %
|
1.0
|
pts
|
Other corporate
|
$
13,940
|
$
12,810
|
8.8
|
%
|
$
27,495
|
$
24,757
|
11.1
|
%
|
The Playa
Collection Revenue
|
$
828
|
$
398
|
108.0
|
%
|
$
1,554
|
$
694
|
123.9
|
%
|
Management Fee
Revenue
|
$
2,122
|
$
1,343
|
58.0
|
%
|
$
4,051
|
$
2,400
|
68.8
|
%
|
Adjusted EBITDA
|
$
72,122
|
$
61,704
|
16.9
|
%
|
$
170,611
|
$
138,647
|
23.1
|
%
|
Adjusted EBITDA Margin
|
30.2 %
|
28.8 %
|
1.4
|
pts
|
33.9 %
|
32.4 %
|
1.5
|
pts
|
|
Comparable Portfolio (4)
|
|
|
Three Months
Ended June 30,
|
|
Six Months
Ended June 30,
|
|
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
Occupancy
|
73.5 %
|
75.1 %
|
(1.6)
|
pts
|
75.0 %
|
73.4 %
|
1.6
|
pts
|
Net Package ADR
|
$
425.52
|
$
366.53
|
16.1
|
%
|
$
474.38
|
$
395.10
|
20.1
|
%
|
Net Package RevPAR
|
$
312.64
|
$
275.33
|
13.6
|
%
|
$
355.71
|
$
290.18
|
22.6
|
%
|
Total Net
Revenue (2)
|
$
238,764
|
$
214,089
|
11.5
|
%
|
$
498,455
|
$
411,496
|
21.1
|
%
|
Owned Net Revenue (3)
|
$
235,212
|
$
212,091
|
10.9
|
%
|
$
491,684
|
$
407,934
|
20.5
|
%
|
Owned Resort
EBITDA
|
$
83,112
|
$
72,773
|
14.2
|
%
|
$
197,060
|
$
156,688
|
25.8
|
%
|
Owned Resort
EBITDA Margin
|
35.3 %
|
34.3 %
|
1.0
|
pts
|
40.1 %
|
38.4 %
|
1.7
|
pts
|
Other corporate
|
$
13,940
|
$
12,810
|
8.8
|
%
|
$
27,495
|
$
24,757
|
11.1
|
%
|
The Playa
Collection Revenue
|
$
828
|
$
398
|
108.0
|
%
|
1,554
|
694
|
123.9
|
%
|
Management Fee
Revenue
|
$
2,122
|
$
1,343
|
58.0
|
%
|
$
4,051
|
$
2,400
|
68.8
|
%
|
Adjusted EBITDA
|
$
72,122
|
$
61,704
|
16.9
|
%
|
$
175,170
|
$
135,025
|
29.7
|
%
|
Adjusted EBITDA Margin
|
30.2 %
|
28.8 %
|
1.4
|
pts
|
35.1 %
|
32.8 %
|
2.3
|
pts
|
(1)
For the three and six months
ended June 30, 2022, Net Package ADR
includes $2.6 million and
$5.3 million, respectively, of
on-property room upgrade revenue that was reclassified from
non-package revenue to package revenue to conform with current
period presentation.
(2) Total Net Revenue represents revenue
from the sale of all-inclusive packages, which include room
accommodations, food and beverage services and entertainment
activities, net of compulsory tips paid to employees, as well as
revenue from other goods, services and amenities not included in
the all- inclusive package. Government mandated compulsory tips in
the Dominican Republic are not
included in this adjustment as they are already excluded from
revenue in accordance with U.S. GAAP. A description of how we
compute Total Net Revenue and a reconciliation of Total Net Revenue
to total revenue can be found in the section "Definitions of
Non-U.S. GAAP Measures and Operating Statistics" below. Total Net
Revenue also includes all Management Fee Revenue.
(3) Owned Net Revenue excludes
Management Fee Revenue, other corporate revenue and The Playa
Collection revenue (which is a third-party owned and operated
membership program).
(4)
For the six months
ended June 30, 2023, our comparable portfolio
excludes Jewel Palm Beach, which was closed
for a majority of the first quarter
of 2023 as we transitioned the management of the
resort to us from a third-party.
Balance Sheet
As of June 30, 2023, we held
$268.8 million in cash and cash
equivalents, with no restricted cash. Total interest- bearing debt
was $1,094.5 million, comprised of
our Term Loan due 2029 (the "Term Loan due 2029"). As of
June 30, 2023, there
was no balance outstanding on our $225.0
million Revolving Credit
Facility. Effective April 15, 2023, we entered into
two interest rate swaps to mitigate the floating interest rate risk
on our Term Loan due 2029, which incurs interest based on SOFR. The
interest rate swaps each have a fixed notional amount
of $275.0 million and are not for trading purposes. The fixed
rates paid by us on the interest rate swaps are 4.05% and
3.71%, and the variable rate received resets monthly to the
one-month SOFR rate. The interest rate swaps mature on April
15, 2025 and April 15, 2026,
respectively.
Earnings Call
The Company
will host a conference call to discuss
its second quarter
results on Friday, August 4, 2023 at 8:00 a.m.
(Eastern Daylight Time). The conference call can be accessed by
dialing (888) 317-6003 for domestic participants and
(412) 317-6061 for international participants. The
conference ID number is 5071660. Additionally, interested
parties may listen to a taped replay of the entire conference call
commencing two hours after the call's completion on Friday, August 4, 2023. This replay will run
through Friday, August 11, 2023. The
access number for a taped replay of the conference call
is (877) 344-7529 or (412) 317-0088 using the
following conference ID number: 7836389.
There will also be a webcast of the conference call accessible
on the Company's investor relations website at
investors.playaresorts.com.
About the Company
Playa is a leading owner, operator and developer of
all-inclusive resorts in prime beachfront locations in popular
vacation destinations in Mexico
and the Caribbean. As of
June 30, 2023, Playa owned and/or
managed a total portfolio consisting of 26 resorts (9,756 rooms)
located in Mexico, Jamaica, and the Dominican Republic. In Mexico, Playa owns and manages Hyatt Zilara
Cancún, Hyatt Ziva Cancún, Wyndham Alltra Cancún, Wyndham Alltra
Playa del Carmen, Hilton Playa del Carmen All-Inclusive Resort,
Hyatt Ziva Puerto Vallarta and Hyatt Ziva
Los Cabos. In Jamaica,
Playa owns and manages Hyatt Zilara Rose Hall, Hyatt Ziva Rose Hall, Hilton Rose Hall Resort
& Spa, Jewel Grande Montego Bay Resort & Spa and Jewel
Paradise Cove Beach Resort & Spa. In the Dominican Republic, Playa owns and manages the
Hilton La Romana All-Inclusive Family Resort, the Hilton La Romana
All-Inclusive Adult Resort, Jewel Palm
Beach, Jewel Punta Cana, Hyatt Zilara Cap Cana and
Hyatt Ziva Cap Cana. Playa also
manages nine resorts on behalf of third-party owners. Playa's
strategy is to leverage its globally recognized brand partnerships
and proprietary in-house direct booking capabilities to capitalize
on the growing popularity of the all-inclusive resort model and
reach first-time all-inclusive resort consumers in a cost-effective
manner. We believe that this strategy should position us to
generate attractive returns for our shareholders, build lasting
relationships with our guests, and enhance the lives of our
associates and the communities in which we operate.
Forward-Looking Statements
This press release contains "forward-looking statements," as
defined by federal securities laws. Forward-looking statements
reflect our current expectations and projections about future
events at the time, and thus involve uncertainty and risk. The
words "believe," "expect," "anticipate," "will," "could," "would,"
"should," "may," "plan," "estimate," "intend," "predict,"
"potential," "continue," and the negatives of these words and other
similar expressions generally identify forward looking statements.
Such forward-looking statements are subject to various risks and
uncertainties, including those described under the section entitled
"Risk Factors" in Playa's Annual Report on Form 10-K, filed with
the SEC on February 23, 2023, as such
factors may be updated from time to time in our periodic filings
with the SEC, which are accessible on the SEC's website
at www.sec.gov. Accordingly, there are or will be important
factors that could cause actual outcomes or results to differ
materially from those indicated in these statements. These factors
should not be construed as exhaustive and should be read in
conjunction with the other cautionary statements that are included
in this release and in Playa's filings with the SEC. While
forward-looking statements reflect our good faith beliefs, they are
not guarantees of future performance. The Company disclaims any
obligation to publicly update or revise any forward-looking
statement to reflect changes in underlying assumptions or factors,
new information, data or methods, future events or other changes
after the date of this press release, except as required by
applicable law. You should not place undue reliance on any
forward-looking statements, which are based only on information
currently available to us (or to third parties making the
forward-looking statements).
Definitions of Non-U.S.
GAAP Measures and Operating Statistics
Occupancy
"Occupancy" represents the total number of rooms sold for a period divided by the total number of rooms available
during such period. The total number of rooms available excludes
any rooms considered "Out of Order" due to renovation or a
temporary problem rendering them inadequate for occupancy for an
extended period of time.
Occupancy is a useful measure of the utilization of a resort's
total available capacity and can be used to gauge demand at a
specific resort or group of properties during a given period.
Occupancy levels also enable us to optimize Net Package ADR
(as defined below) by increasing or decreasing the stated rate for
our all-inclusive packages as demand for a resort increases or
decreases.
Net Package Average Daily Rate ("Net
Package ADR")
"Net Package
ADR" represents total Net Package
Revenue for a period divided
by the total number of rooms sold
during such period. Net Package ADR trends and patterns provide
useful information concerning the pricing environment and the
nature of the guest base of our portfolio or comparable portfolio,
as applicable. Net Package ADR is a commonly used performance
measure in the all-inclusive segment of the lodging industry and is
commonly used to assess the stated rates that guests are willing to
pay through various distribution channels.
Net Package Revenue
per Available Room ("Net Package
RevPAR")
"Net Package RevPAR" is the product of Net Package ADR and the
average daily occupancy percentage. Net Package RevPAR does not
reflect the impact of Net Non-package Revenue. Although Net Package
RevPAR does not include this additional revenue, it generally is
considered the key performance statistic in the all-inclusive
segment of the lodging industry to identify trend information with
respect to Net Package Revenue produced by our portfolio or
comparable portfolio, as applicable, and to evaluate operating
performance on a consolidated basis or a regional basis, as
applicable.
Net Package Revenue,
Net Non-package Revenue, Owned Net Revenue,
Management Fee Revenue, Cost Reimbursements and Total Net
Revenue
"Net Package Revenue" is derived from the sale of all-inclusive
packages, which include room accommodations and premium room
upgrades, food and beverage services, and entertainment activities,
net of compulsory tips paid to employees. Government mandated
compulsory tips in the Dominican
Republic are not included in this adjustment, as they are
already excluded from revenue. Revenue is recognized, net of
discounts and rebates, when the rooms are occupied and/or the
relevant services have been rendered. Advance deposits received
from guests are deferred and included in trade and other payables
until the rooms are occupied and/or the relevant services have been
rendered, at which point the revenue is recognized.
"Net Non-package Revenue" includes revenue associated with
premium services and amenities that are not included in net package
revenue, such as dining experiences, wines and spirits, and spa
packages, net of compulsory tips paid to employees. Government
mandated compulsory tips in the Dominican
Republic are not included in this adjustment, as they are
already excluded from revenue. Net Non-package Revenue is
recognized after the completion of the sale when the product
or service is transferred to the customer. Food and beverage
revenue not included in a guest's all- inclusive package is
recognized when the goods are consumed.
"Owned Net Revenue" represents Net Package Revenue and Net
Non-package Revenue. Owned Net Revenue represents a key indicator
to assess the overall performance of our business and analyze
trends, such as consumer demand, brand preference and competition.
In analyzing our Owned Net Revenues, our management differentiates
between Net Package Revenue and Net Non-package Revenue. Guests at
our resorts purchase packages at stated rates, which include room
accommodations, food and beverage services and entertainment
activities, in contrast to other lodging business models, which
typically only include the room accommodations in the stated rate.
The amenities at all-inclusive resorts typically include a variety
of buffet and á la carte restaurants, bars, activities, and
shows and entertainment throughout the day.
"Management Fee Revenue" is derived from fees earned for
managing resorts owned by third-parties. The fees earned are
typically composed of a base fee, which is computed as a percentage
of resort revenue, and an incentive fee, which is computed as a
percentage of resort profitability. Management Fee Revenue was a
minor contributor to our operating results for the three and six
months ended June 30, 2023 and 2022,
but we expect Management Fee Revenue to be a more relevant
indicator to assess the overall performance of our business in the
future to the extent we are successful in entering into more
management contracts.
"Total Net Revenue" represents Net Package Revenue, Net
Non-package Revenue, Management Fee Revenue, The Playa Collection
revenue and Other revenues. "Cost Reimbursements" is excluded from
Total Net Revenue as it is not considered a key indicator of
financial and operating performance. Cost Reimbursements is derived
from the reimbursement of certain costs incurred by Playa on behalf
of resorts managed by Playa and owned by third parties. This
revenue is fully offset by reimbursable costs and has no net impact
on operating income or net income.
The following table shows a reconciliation of Net Package
Revenue and Net Non-package Revenue
to total revenue for the three and six months ended
June 30, 2023 and 2022 ($ in
thousands):
Total Portfolio
|
|
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|
2023
|
2022
|
2023
|
2022
|
Net Package Revenue
|
|
|
|
|
Comparable Net
Package Revenue
|
$
202,678
|
$
178,492
|
$
426,474
|
$
347,899
|
Non-comparable Net
Package Revenue
|
—
|
—
|
3,990
|
13,323
|
Net Package Revenue
|
202,678
|
178,492
|
430,464
|
361,222
|
|
|
|
|
|
Net Non-package Revenue
|
|
|
|
|
Comparable Net
Non-package Revenue
|
32,534
|
33,599
|
65,210
|
60,035
|
Non-comparable Net Non-package Revenue
|
—
|
—
|
547
|
2,495
|
Net Non-package Revenue
|
32,534
|
33,599
|
65,757
|
62,530
|
|
|
|
|
|
Playa Collection Revenue
|
|
|
|
|
Comparable Playa
Collection Revenue
|
828
|
398
|
1,554
|
694
|
Non-Comparable Playa Collection Revenue
|
—
|
—
|
—
|
—
|
Total Playa
Collection Revenue
|
828
|
398
|
1,554
|
694
|
|
|
|
|
|
Management Fee
Revenue
|
|
|
|
|
Comparable Management Fee
Revenue
|
2,122
|
1,343
|
4,051
|
2,400
|
Non-comparable Management Fee Revenue
|
—
|
—
|
—
|
—
|
Management Fee
Revenue
|
2,122
|
1,343
|
4,051
|
2,400
|
|
|
|
|
|
Other Revenues
|
|
|
|
|
Comparable Other
Revenues
|
602
|
257
|
1,166
|
468
|
Non-comparable Other Revenues
|
—
|
—
|
—
|
—
|
Other Revenues
|
602
|
257
|
1,166
|
468
|
|
|
|
|
|
Total Net
Revenue
|
|
|
|
|
Comparable Total
Net Revenue
|
238,764
|
214,089
|
498,455
|
411,496
|
Non-comparable Total Net Revenue
|
—
|
—
|
4,537
|
15,818
|
Total Net
Revenue
|
238,764
|
214,089
|
502,992
|
427,314
|
Compulsory tips
|
6,268
|
5,098
|
12,308
|
9,495
|
Cost Reimbursements
|
3,008
|
2,080
|
6,542
|
4,032
|
Total revenue
|
$
248,040
|
$
221,267
|
$
521,842
|
$
440,841
|
EBITDA, Adjusted EBITDA, Adjusted
EBITDA Margin, Owned Resort EBITDA,
and Owned Resort EBITDA Margin
We define EBITDA, a non-U.S. GAAP financial measure, as net
income or loss, determined in accordance with U.S. GAAP, for the
period presented before interest expense, income tax and
depreciation and amortization expense.
EBITDA and Adjusted EBITDA
(as defined below)
include corporate expenses, which are overhead
costs that are essential to support the operation of the
Company, including the operations and development of our resorts.
We define Adjusted EBITDA, a non-U.S. GAAP financial measure, as
EBITDA further adjusted to exclude the following items:
- Other miscellaneous non-operating income or expense
- Pre-opening expense
- Losses or gains on sales of assets
- Share-based compensation
- Other tax expense
- Transaction expenses
- Severance expense for employee terminations resulting from
non-recurring or unusual events, such as the departure of an
executive officer or the disposition of a resort
- Gains from property damage insurance proceeds (i.e., property
damage insurance proceeds in excess of repair and clean up costs
incurred)
- Repairs from hurricanes and tropical storms (i.e., significant
repair and clean up costs incurred which are not offset by property
damage insurance proceeds)
- Loss on extinguishment of debt
- Other items which may include, but are not limited to the
following: contract termination fees; gains or losses from legal
settlements; and impairment losses.
We include the non-service cost components of net periodic
pension cost or benefit recorded within other income or
expense in the Condensed Consolidated Statements of Operations in our calculation of Adjusted EBITDA
as they are considered part of our ongoing resort
operations.
"Adjusted EBITDA Margin" represents Adjusted EBITDA as a
percentage of Total Net Revenue.
"Owned Resort EBITDA" represents Adjusted
EBITDA before corporate expenses, The Playa
Collection revenue and Management Fee Revenue.
"Owned Resort EBITDA Margin"
represents Owned Resort
EBITDA as a percentage of Owned Net
Revenue.
Adjusted Net Income
"Adjusted Net Income" represents net income or loss attributable to Playa, determined in accordance with U.S.
GAAP, excluding special items which are not reflective of our core
operating performance, such as one-time expenses related to
transaction expenses.
Usefulness and Limitation of Non-U.S. GAAP Measures
We believe that each of Net Package
Revenue, Net Non-package Revenue, Owned Net Revenue, Total
Net Revenue, and Net Direct Expenses are all useful to
investors as they more accurately reflect our operating
results by excluding compulsory tips. These tips have a margin of
zero and do not represent our operating results.
We also believe that Adjusted EBITDA is useful to investors for
two principal reasons. First, we believe Adjusted EBITDA assists
investors in comparing our performance over various reporting
periods on a consistent basis by removing from our operating
results the impact of items that do not reflect our core operating
performance. For example, changes in foreign exchange rates (which
are the principal driver of changes in other income or expense),
and expenses related to capital raising, strategic initiatives and
other corporate initiatives, such as expansion into new markets
(which are the principal drivers of changes in transaction
expenses), are not indicative of the operating performance of our
resorts. The other adjustments included in our definition of
Adjusted EBITDA relate to items that occur infrequently and
therefore would obstruct the comparability of our operating results
over reporting periods. For example, revenue from insurance
policies, other than business interruption insurance policies, is
infrequent in nature, and we believe excluding these expense and
revenue items permits investors to better evaluate the core
operating performance of our resorts over time. We believe Adjusted
EBITDA Margin provides our investors a useful measurement of
operating profitability for the same reasons we find Adjusted
EBITDA useful.
The second principal reason that we believe Adjusted EBITDA is
useful to investors is that it is considered a key performance
indicator by our board of directors (our "Board") and management.
In addition, the compensation committee of our Board determines a
portion of the annual variable compensation for certain members of
our management, including our executive officers, based, in part,
on consolidated Adjusted EBITDA. We believe that Adjusted EBITDA is
useful to investors because it provides investors with information
utilized by our Board and management to assess our performance and
may (subject to the limitations described below) enable investors
to compare the performance of our portfolio to our competitors.
We believe that Owned Resort EBITDA and Owned Resort EBITDA
Margin are useful to investors as they allow investors to measure
resort-level performance and profitability by excluding expenses
not directly tied to our resorts, such as corporate expenses, and
excluding ancillary revenues not derived from our resorts, such as
management fee revenue. We believe Owned Resort EBITDA is also
helpful to investors that use it in estimating the value of our
resort portfolio. Management uses these measures to monitor
property-level performance and profitability.
A reconciliation of EBITDA, Adjusted
EBITDA and Owned Resort EBITDA to net income or loss as computed
under U.S. GAAP is presented below.
Adjusted Net Income is non-GAAP performance measure that
provides meaningful comparisons of ongoing operating results by
removing from net income or loss the impact of items that do not
reflect our normalized operations. A reconciliation of net income
or loss as computed under U.S. GAAP to Adjusted Net Income is
presented below.
Our non-U.S. GAAP financial measures
are not substitutes for revenue, net income or any other
measure determined in accordance with U.S. GAAP. There are
limitations to the utility of non-U.S. GAAP financial measures,
such as Adjusted EBITDA. For example, other
companies in our industry may define Adjusted
EBITDA differently than we do. As a result, it may
be difficult to use Adjusted EBITDA or similarly named non-U.S.
GAAP financial measures that other companies publish to compare the
performance of those companies to our performance. Because of these
limitations, our non-U.S. GAAP financial measures should not be
considered as a measure of the income or loss generated by our
business or discretionary cash available for investment in our
business, and investors should carefully consider our U.S. GAAP
results presented.
Comparable Non-U.S. GAAP Measures
We believe that presenting Adjusted EBITDA, Owned Resort EBITDA,
Total Net Revenue, Net Package Revenue and Net Non-package Revenue
on a comparable basis is useful to investors because these measures
include only the results of resorts owned and in operation for the
entirety of the periods presented and thereby eliminate disparities
in results due to the acquisition or disposition of resorts or the
impact of resort closures or re-openings in connection with
redevelopment or renovation projects. As a result, we believe these
measures provide more consistent metrics for comparing the
performance of our operating resorts. We calculate Comparable
Adjusted EBITDA, Comparable Owned Resort EBITDA, Comparable Total
Net Revenue, Comparable Net Package Revenue and Comparable Net
Non-package Revenue as the total amount of each respective measure
less amounts attributable to non-comparable resorts, by which we
mean resorts that were not owned or in operation during some or all
of the relevant reporting period.
Our comparable portfolio for the six months
ended June 30, 2023 excludes
Jewel Palm Beach, which was closed for a
majority of the first quarter of 2023 as we transitioned the
management of the resort to us from a third-party.
A reconciliation of net income or loss as computed under U.S.
GAAP to comparable Adjusted EBITDA is presented below. For a
reconciliation of Comparable Net Package Revenue, Comparable Net
Non-package Revenue, Comparable Management Fee Revenue and
Comparable Total Net Revenue to total revenue as computed under
U.S. GAAP, see "Net Package Revenue, Net Non-package Revenue, Owned
Net Revenue, Management Fee Revenue, Cost Reimbursements and Total
Net Revenue" in this section.
Playa Hotels &
Resorts N.V.
Reconciliation of Net Income
to EBITDA, Adjusted
EBITDA and Owned Resort EBITDA
($ in thousands)
The following is a reconciliation of our U.S. GAAP net income to
EBITDA, Adjusted EBITDA, Owned Resort EBITDA and Comparable Owned
Resort EBITDA for the three and six months ended June 30, 2023 and 2022 ($ in
thousands):
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|
2023
|
2022
|
2023
|
2022
|
Net income
|
$
20,633
|
$
30,525
|
$
63,352
|
$
73,272
|
Interest expense
|
26,119
|
12,892
|
55,785
|
22,060
|
Income tax
provision
|
2,832
|
1,286
|
7,648
|
2,900
|
Depreciation and amortization
|
19,316
|
19,628
|
38,507
|
39,128
|
EBITDA
|
68,900
|
64,331
|
165,292
|
137,360
|
Other expense
(income) (a)
|
203
|
(5,756)
|
(29)
|
(5,242)
|
Share-based compensation
|
3,442
|
2,910
|
6,608
|
6,266
|
Transaction expense (b)
|
502
|
611
|
1,365
|
802
|
Other tax
income (c)
|
—
|
(240)
|
—
|
—
|
Repairs from hurricanes and
tropical storms (d)
|
(31)
|
—
|
(892)
|
—
|
(Gain) loss
on sale of assets
|
(2)
|
9
|
11
|
9
|
Non-service cost components of net periodic cost
|
(892)
|
(161)
|
(1,744)
|
(548)
|
Adjusted EBITDA
|
72,122
|
61,704
|
170,611
|
138,647
|
Other corporate (e)(f)
|
13,940
|
12,810
|
27,495
|
24,757
|
The Playa
Collection
|
(828)
|
(398)
|
(1,554)
|
(694)
|
Management fees
|
(2,122)
|
(1,343)
|
(4,051)
|
(2,400)
|
Owned Resort EBITDA
|
83,112
|
72,773
|
192,501
|
160,310
|
Less: Non-comparable Owned
Resort EBITDA
|
—
|
—
|
(4,559)
|
3,622
|
Comparable Owned Resort
EBITDA(g)
|
$
83,112
|
$
72,773
|
$
197,060
|
$
156,688
|
(a) Represents changes in foreign exchange and other
miscellaneous non-operating expenses or income.
(b) Represents expenses incurred in connection with corporate initiatives, such as: system implementations, debt refinancing costs; other capital
raising efforts; and strategic initiatives, such as the
launch of a new resort or possible expansion into new
markets.
(c) Relates primarily to a Dominican Republic
asset tax, which
is an alternative tax to income tax in the Dominican Republic. We eliminate this expense from Adjusted
EBITDA because it is substantially similar to the income tax
provision or benefit we eliminate from EBITDA.
(d) Includes significant repair and clean-up expenses
incurred from natural
events which are not expected
to be offset by property
damage insurance proceeds. It does not include
repair and clean-up costs from natural events that are not
considered significant. For the three and six months ended
June 30, 2023, represents a
decrease in the expected repair and clean-up expenses for the Jewel
Punta Cana related to the impact of Hurricane Fiona.
(e) For the three months ended June 30, 2023 and 2022, represents corporate
salaries and benefits of $10.0
million for 2023 and $8.8
million for
2022, professional fees of $1.9 million for 2023 and $2.0 million
for 2022, corporate rent and insurance
of $0.9 million
for 2023 and $1.0 million
for 2022, and corporate travel, software licenses,
board fees and other miscellaneous corporate expenses of
$1.1 million for 2023 and
$1.0 million for 2022.
(f) For the six months ended June 30, 2023 and 2022, represents corporate
salaries and benefits of $19.7
million for 2023 and $17.1
million for
2022, professional fees of $3.8 million for 2023 and $3.9 million
for 2022, corporate rent and insurance
of $1.9 million
for 2023 and $2.0 million
for 2022, and corporate travel, software licenses,
board fees and other miscellaneous corporate expenses of
$2.1 million for 2023 and
$1.8 million for 2022.
(g) Our
comparable portfolio for the six months ended June 30, 2023 excludes
the Jewel Palm Beach, which
was closed for a majority
of the first quarter of 2023 as we
transitioned the management of the resort to us from a
third-party.
Playa Hotels &
Resorts N.V.
Reconciliation of Net Income to Adjusted
Net Income
($ in thousands)
The following
table reconciles our net income to Adjusted
Net Income for the three and six months ended June 30,
2023 and 2022 ($ in thousands):
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|
2023
|
2022
|
2023
|
2022
|
Net income
|
$
20,633
|
$
30,525
|
$
63,352
|
$
73,272
|
Reconciling items
|
|
|
|
|
Transaction
expense
|
502
|
611
|
1,365
|
802
|
Change in fair
value of interest rate swaps (a)
|
—
|
(6,266)
|
6,335
|
(17,393)
|
Repairs from
hurricanes and tropical storms
|
(31)
|
—
|
(892)
|
—
|
Total reconciling items
before tax
|
471
|
(5,655)
|
6,808
|
(16,591)
|
Income
tax provision for reconciling items
|
(95)
|
—
|
(131)
|
—
|
Total reconciling items
after tax
|
376
|
(5,655)
|
6,677
|
(16,591)
|
Adjusted net income
|
$
21,009
|
$
24,870
|
$
70,029
|
$
56,681
|
(a)
Represents the change in fair value, excluding interest
paid and accrued,
of our prior LIBOR-based interest
rate swaps recognized as interest expense
in our Condensed Consolidated Statements of
Operations.
The following
table presents the impact of Adjusted Net Income on our diluted
earnings per share for the three and
six months ended June 30, 2023 and
2022 ($ in thousands):
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|
2023
|
2022
|
2023
|
2022
|
Adjusted net income
|
$
21,009
|
$
24,870
|
$
70,029
|
$
56,681
|
|
|
|
|
|
Earnings per share
- Diluted
|
$
0.13
|
$
0.18
|
$
0.40
|
$
0.44
|
Total reconciling items
impact per diluted share
|
—
|
(0.03)
|
0.04
|
(0.10)
|
Adjusted earnings per share -
Diluted
|
$
0.13
|
$
0.15
|
$
0.44
|
$
0.34
|
Playa Hotels &
Resorts N.V.
Condensed Consolidated Balance Sheet
($ in thousands, except share data)
(unaudited)
|
|
|
As of June 30,
|
As of December 31,
|
2023
|
2022
|
ASSETS
|
|
|
Cash and cash equivalents
|
$
268,845
|
$
283,945
|
Trade and
other receivables, net
|
73,360
|
62,946
|
Insurance recoverable
|
9,750
|
34,191
|
Accounts receivable from related parties
|
8,189
|
8,806
|
Inventories
|
20,426
|
20,046
|
Prepayments and other assets
|
56,896
|
44,177
|
Property and
equipment, net
|
1,517,130
|
1,536,567
|
Derivative financial instruments
|
8,850
|
3,510
|
Goodwill, net
|
61,654
|
61,654
|
Other intangible assets
|
6,003
|
6,556
|
Deferred tax assets
|
7,092
|
7,422
|
Total assets
|
$
2,038,195
|
$
2,069,820
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
Trade and other payables
|
$
183,270
|
$
231,652
|
Payables to related parties
|
13,209
|
6,852
|
Income tax
payable
|
554
|
990
|
Debt
|
1,063,210
|
1,065,453
|
Other liabilities
|
32,152
|
30,685
|
Deferred tax liabilities
|
74,997
|
69,326
|
Total liabilities
|
1,367,392
|
1,404,958
|
Commitments and contingencies
|
|
|
Shareholders' equity
|
|
|
Ordinary shares (par value
€0.10; 500,000,000 shares
authorized, 169,423,980 shares
issued and 150,650,437
shares outstanding as of June 30, 2023 and 168,275,504
shares issued and
158,228,508 shares outstanding as of December 31, 2022)
|
18,822
|
18,700
|
Treasury shares (at cost,
18,773,543 shares as of June
30, 2023 and 10,046,996 shares
as of December 31,
2022)
|
(138,002)
|
(62,953)
|
Paid-in capital
|
1,195,576
|
1,189,090
|
Accumulated other
comprehensive income (loss)
|
4,045
|
(6,985)
|
Accumulated deficit
|
(409,638)
|
(472,990)
|
Total shareholders' equity
|
670,803
|
664,862
|
Total liabilities and shareholders' equity
|
$
2,038,195
|
$
2,069,820
|
Playa Hotels
& Resorts N.V.
Condensed Consolidated Statements of Operations
($ in thousands, except share data)
(unaudited)
|
|
|
Three Months
Ended June 30,
|
Six Months
Ended June 30,
|
|
2023
|
2022
|
2023
|
2022
|
Revenue
|
|
|
|
|
Package
|
$
208,356
|
$
183,232
|
$
441,924
|
$
370,047
|
Non-package
|
33,124
|
33,957
|
66,605
|
63,200
|
The Playa
Collection
|
828
|
398
|
1,554
|
694
|
Management
fees
|
2,122
|
1,343
|
4,051
|
2,400
|
Cost
reimbursements
|
3,008
|
2,080
|
6,542
|
4,032
|
Other
revenues
|
602
|
257
|
1,166
|
468
|
Total revenue
|
248,040
|
221,267
|
521,842
|
440,841
|
Direct and
selling, general and
administrative expenses
|
|
|
|
|
Direct
|
132,606
|
119,125
|
261,574
|
225,965
|
Selling,
general and administrative
|
47,614
|
41,478
|
92,741
|
78,717
|
Depreciation
and amortization
|
19,316
|
19,628
|
38,507
|
39,128
|
Reimbursed
costs
|
3,008
|
2,080
|
6,542
|
4,032
|
(Gain) loss on
sale of assets
|
(2)
|
9
|
11
|
9
|
Business
interruption insurance recoveries
|
(495)
|
—
|
(495)
|
—
|
Gain on
insurance proceeds
|
(3,794)
|
—
|
(3,794)
|
—
|
Direct and selling, general and administrative expenses
|
198,253
|
182,320
|
395,086
|
347,851
|
Operating income
|
49,787
|
38,947
|
126,756
|
92,990
|
Interest expense
|
(26,119)
|
(12,892)
|
(55,785)
|
(22,060)
|
Other (expense) income
|
(203)
|
5,756
|
29
|
5,242
|
Net income before tax
|
23,465
|
31,811
|
71,000
|
76,172
|
Income tax provision
|
(2,832)
|
(1,286)
|
(7,648)
|
(2,900)
|
Net income
|
$
20,633
|
$
30,525
|
$
63,352
|
$
73,272
|
|
|
|
|
|
Earnings per share
|
|
|
|
|
Basic
|
$
0.14
|
$
0.18
|
$
0.41
|
$
0.44
|
Diluted
|
$
0.13
|
$
0.18
|
$
0.40
|
$
0.44
|
Weighted average number of shares outstanding during the
period - Basic
|
151,955,076
|
165,894,797
|
154,619,822
|
165,819,508
|
Weighted average number of shares outstanding during the
period - Diluted
|
154,192,223
|
167,249,294
|
156,511,568
|
167,088,771
|
Playa Hotels &
Resorts N.V. Consolidated Debt Summary - As of June 30, 2023
($ in millions)
|
|
|
Maturity
|
|
Applicable
|
LTM
|
Debt
|
Date
|
# of Years
|
Balance
|
Rate
|
Interest (6)
|
Revolving Credit
Facility (1)
|
Jan-28
|
4.5
|
$
—
|
— %
|
$
0.8
|
Term Loan
(2)(3)
|
Jan-29
|
5.5
|
1,094.5
|
9.34 %
|
70.1
|
Term Loan (Additional
$93.3 million)
|
—
|
—
|
—
|
— %
|
7.0
|
Property
Loan
|
—
|
—
|
—
|
— %
|
7.7
|
Total debt (4)
|
|
|
$
1,094.5
|
9.34 %
|
$
85.6
|
Less: cash and cash
equivalents (5)
|
|
|
(268.8)
|
|
|
Net debt
|
|
|
$
825.7
|
|
|
(1)
Undrawn balances bear interest
between 0.25% and 0.50% depending on certain leverage
ratios. We had $225.0 million
and $85.0 million available as of June 30,
2023 and 2022, respectively.
(2)
Prior to our debt refinancing in December 2022, we incurred
interest based on LIBOR + 275 bps (where LIBOR was subject
to a 1.0% floor). Our Term Loan due
2029 incurs interest based on SOFR + 425 bps (where SOFR is subject
to a 0.50% floor). The effective interest rate for the Term Loan
due 2029 was 9.34% as of June 30,
2023.
(3)
Effective April 15, 2023, we entered
into two interest
rate swaps to mitigate the floating interest
rate risk on our Term Loan due 2029. The interest rate swaps each
have a fixed notional amount of $275.0
million and are not for trading purposes. The fixed rates
paid by us on the interest rate swaps are 4.05% and 3.71%, and
the variable rate received resets monthly to the one-month SOFR
rate. The interest rate swaps mature on April 15, 2025 and April
15, 2026, respectively.
(4)
Excludes $29.6 million of unamortized discounts, $7.1 million of unamortized deferred
financing costs, and a $5.4 million financing lease obligation as of June
30, 2023.
(5) Represents cash
balances on hand as of June 30, 2023.
(6) Represents last twelve months'
cash paid for interest on the outstanding balance of our Term Loan
due 2029 as well as our prior term loans and property loan that
were outstanding prior to our 2022 debt refinancing. It also
includes call premiums incurred as a result of the repayment of the
prior term loan and property loan in December 2022. The impact of amortization of
deferred financing costs and discounts, capitalized interest and
the change in fair market value of our interest rate swaps is
excluded.
Playa Hotels
& Resorts N.V.
Reportable Segment
Operating Statistics - Three Months Ended June 30, 2023 and
2022
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
Net Package ADR
|
|
Net Package RevPAR
|
|
Owned Net Revenue
|
|
Owned Resort EBITDA
|
|
Owned Resort EBITDA Margin
|
|
|
|
|
Pts
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
|
%
|
|
|
|
Pts
|
Total
Portfolio
|
Rooms
|
2023
|
2022
|
Change
|
|
2023
|
2022
|
Change
|
|
2023
|
2022
|
Change
|
|
2023
|
2022
|
Change
|
|
2023
|
2022
|
Change
|
|
2023
|
2022
|
Change
|
Yucatán
Peninsula
|
2,126
|
76.7 %
|
75.0 %
|
1.7 pts
|
|
$
441.82
|
$
415.13
|
6.4 %
|
|
$
338.95
|
$
311.28
|
8.9 %
|
|
$
74,891
|
$
69,977
|
7.0 %
|
|
$
24,327
|
$
25,974
|
(6.3) %
|
|
32.5 %
|
37.1 %
|
(4.6)
pts
|
Pacific
Coast
|
926
|
71.8 %
|
75.4 %
|
(3.6)
pts
|
|
$
543.17
|
$
458.95
|
18.4 %
|
|
$
389.86
|
$
345.89
|
12.7 %
|
|
37,776
|
33,496
|
12.8 %
|
|
14,883
|
13,910
|
7.0 %
|
|
39.4 %
|
41.5 %
|
(2.1)
pts
|
Dominican
Republic
|
2,644
|
66.6 %
|
74.5 %
|
(7.9)
pts
|
|
$
346.62
|
$
298.37
|
16.2 %
|
|
$
230.90
|
$
222.43
|
3.8 %
|
|
65,127
|
64,860
|
0.4 %
|
|
21,979
|
20,747
|
5.9 %
|
|
33.7 %
|
32.0 %
|
1.7 pts
|
Jamaica
|
1,428
|
82.4 %
|
76.2 %
|
6.2 pts
|
|
$
454.59
|
$
359.51
|
26.4 %
|
|
$
374.72
|
$
273.99
|
36.8 %
|
|
57,418
|
43,758
|
31.2 %
|
|
21,923
|
12,142
|
80.6 %
|
|
38.2 %
|
27.7 %
|
10.5 pts
|
Total Portfolio
|
7,124
|
73.5 %
|
75.1 %
|
(1.6)pts
|
|
$
425.52
|
$
366.53
|
16.1 %
|
|
$
312.64
|
$
275.33
|
13.6 %
|
|
$
235,212
|
$
212,091
|
10.9 %
|
|
$
83,112
|
$
72,773
|
14.2 %
|
|
35.3 %
|
34.3 %
|
1.0 pts
|
Highlights
Yucatán Peninsula
- Owned Net Revenue for the three months ended
June 30, 2023 increased $4.9 million, or 7.0%, compared to the three
months ended June 30, 2022 and was
driven by:
-
- an increase in Occupancy of 1.7 percentage points driven by
higher demand from Mexican and European sourced guests, partially
offset by a decrease in guests sourced from the United States;
- an increase in Net Package ADR of 6.4%; and
- a decrease in Net Non-package Revenue of $0.4 million, or 4.5%, compared to the three
months ended June 30, 2022. Net
Non-package Revenue per sold room decreased 6.8%, primarily from a
decrease of $0.4 million due to the
expiration of our Extended Stay Program late in the second quarter
of 2022 as COVID-19-related travel restrictions were no longer in
effect. Excluding this impact, Net Non-package Revenue per sold
room decreased 3.0% due to a decrease in the number of weddings
compared to the three months ended June 30,
2022.
- Owned Resort EBITDA for the three months ended
June 30, 2023 decreased $1.6 million, or 6.3%, compared to the three
months ended June 30, 2022. The
decrease was largely due to the appreciation of the Mexican Peso,
union negotiated and government mandated wage and benefit
increases, and Occupancy-related increases in resort operating
expenses compared to the three months ended June 30, 2022.
-
- Owned Resort EBITDA Margin for the three months ended
June 30, 2023 was 32.5%, a decrease
of 4.6 percentage points compared to the three months ended
June 30, 2022. Owned Resort EBITDA
Margin was negatively impacted by 570 basis points due to the
appreciation of the Mexican Peso and by 240 basis points from
increases in labor and related expenses, which are partially due to
union negotiated and government mandated wage and benefit increases
compared to the three months ended June 30,
2022. Excluding the impact from the appreciation of the
Mexican Peso, Owned Resort EBITDA Margin for the three months ended
June 30, 2023 would have been 38.1%,
an increase of 1.0 percentage points compared to the three months
ended June 30, 2022.
Pacific Coast
- Owned Net Revenue for the three months ended
June 30, 2023 increased $4.3 million, or 12.8%, compared to the three
months ended June 30, 2022. The
increase was due to the following:
-
- an increase in Net Package ADR of 18.4%; and
- an increase in Net Non-package Revenue of $0.6 million, or 13.2%, compared to the three
months ended June 30, 2022. Net
Non-package Revenue per sold room increased 18.9% despite a
decrease of $0.3 million due to the
expiration of our Extended Stay Program at the end of the second
quarter of 2022 as COVID-19-related travel restrictions were no
longer in effect. Excluding this impact, Net Non-package Revenue
per sold room increased 28.6% compared to the three months ended
June 30, 2022 as a result of a higher
meetings, incentives, conventions and events ("MICE") group
contribution to our guest mix; partially offset by
- a decrease in Occupancy of 3.6 percentage points, driven by a
decrease in guests sourced from the
United States.
- Owned Resort EBITDA for the three months ended
June 30, 2023 increased $1.0 million, or 7.0%, compared to the three
months ended June 30, 2022. Owned
Resort EBITDA was negatively impacted by the appreciation of the
Mexican Peso and increases in labor and related expenses, which are
partially due to union-negotiated and government mandated wage and
benefit increases compared to the three months ended June 30, 2022.
-
- Owned Resort EBITDA Margin for the three months ended
June 30, 2023 was 39.4%, a decrease
of 2.1 percentage points compared to three months ended
June 30, 2022. Owned Resort EBITDA
Margin was negatively impacted by 490 basis points due to the
appreciation of the Mexican Peso and by 220 basis points from
increases in labor and related expenses, which are partially due to
union negotiated and government mandated wage and benefit increases
compared to the three months ended June 30,
2022. Excluding the impact from the appreciation of the
Mexican Peso, Owned Resort EBITDA Margin would have been 44.3%, an
increase of 2.8 percentage points compared to the three months
ended June 30, 2022.
Dominican Republic
- Owned Net Revenue for the three months ended
June 30, 2023 increased $0.3 million, or 0.4%, compared to the three
months ended June 30, 2022. The
increase was due to the following:
-
- an increase in Net Package ADR of 16.2% due to a lower mix of
sold rooms at Jewel Punta Cana and Jewel
Palm Beach, which had significantly lower ADRs compared to
the other resorts in this segment during the three months ended
June 30, 2023. Excluding these
resorts, Net Package ADR increased 18.5%; partially offset by
- a decrease in Occupancy of 7.9 percentage points as a result of
reduced Occupancy at Jewel Punta Cana and Jewel Palm Beach due to the transition of
management. Excluding these resorts, Occupancy increased 0.8
percentage points; and
- a decrease in Net Non-package Revenue of $1.8 million, or 15.6%, compared to the three
months ended June 30, 2022. Net
Non-package Revenue per sold room decreased 5.6% compared to the
three months ended June 30, 2022. The
decrease was primarily due to:
-
- a decrease in Net Non-package Revenue as a result of reduced
Occupancy at Jewel Punta Cana and Jewel
Palm Beach during the three months ended June 30, 2023. Excluding these resorts, Net
Non-package Revenue increased 6.4%.
- a decrease of $0.4 million due to
the expiration of our Extended Stay Program at the end of the
second quarter of 2022 as COVID-19-related travel restrictions were
no longer in effect. Excluding this impact and the drag from Jewel
Punta Cana and Jewel Palm Beach, Net
Non-package Revenue per sold room increased 10.4% compared to the
three months ended June 30,
2022.
- Owned Resort EBITDA for the three months ended
June 30, 2023 increased $1.2 million, or 5.9%, compared to the three
months ended June 30, 2022. The
increase was primarily due to a $4.3
million benefit from business interruption proceeds and
recoverable expenses related to Hurricane Fiona that impacted the
Dominican Republic in the second
half of 2022, partially offset by lower Occupancy at Jewel Punta
Cana and Jewel Palm Beach. Excluding
the aforementioned business interruption benefit and the drag from
the two Jewel properties, Owned Resort EBITDA for three months
ended June 30, 2023 increased 23.0%
compared to the three months ended June 30,
2022.
-
- Owned Resort EBITDA Margin for the three months ended
June 30, 2023 was 33.7%, an increase
of 1.7 percentage points compared to the three months ended
June 30, 2022, due to a favorable
impact of 660 basis points from business interruption proceeds and
recoverable expenses related to Hurricane Fiona, partially offset
by a negative impact of 1,190 basis points due to reduced Occupancy
at Jewel Punta Cana and Jewel Palm
Beach. Excluding the aforementioned business interruption
benefit and the drag from the two Jewel properties, Owned Resort
EBITDA Margin for the three months ended June 30, 2023 was 38.1%, an increase of 1.7
percentage points compared to the three months ended June 30, 2022.
Jamaica
- Owned Net Revenue for the three months ended
June 30, 2023 increased $13.7 million, or 31.2%, compared to the three
months ended June 30, 2022. The
increase was due to the following:
-
- an increase in Occupancy of 6.2 percentage points, driven by
increased demand from guests sourced from the United States and Jamaica;
- an increase in Net Package ADR of 26.4%; and
- an increase in Net Non-package Revenue of $0.6 million, or 7.0%, compared to the three
months ended June 30, 2022. Net
Non-package Revenue per sold room decreased 1.1% due to a decrease
of $0.4 million due to the expiration
of our Extended Stay Program late in the second quarter of 2022 as
COVID-19-related travel restrictions were no longer in effect.
Excluding this impact, Net Non-package Revenue per sold room
increased 4.5% compared to the three months ended June 30, 2022.
- Owned Resort EBITDA for the three months ended
June 30, 2023 increased $9.8 million, or 80.6%, compared to the three
months ended June 30, 2022. The
increase was a result of ADR and Occupancy growth that enabled the
segment to expand margins and offset pressure on wages and benefit
related expenses compared to the three months ended June 30, 2022.
-
- Owned Resort EBITDA Margin for the three months ended
June 30, 2023 increased 10.5
percentage points, or 37.9%, compared to the three months ended
June 30, 2022. Owned Resort EBITDA
Margin was positively impacted by 90 basis points due to a decline
in utilities expenses and energy prices compared to the three
months ended June 30, 2022.
Playa Hotels
& Resorts N.V.
Reportable Segment
Operating Statistics - Six Months Ended June 30, 2023 and
2022
|
|
|
|
Occupancy
|
Net Package ADR
|
Net Package RevPAR
|
Owned Net
Revenue
|
Owned Resort
EBITDA
|
Owned Resort EBITDA
Margin
|
|
|
|
|
Pts
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
Pts
|
Total Portfolio
|
Rooms
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
Yucatán Peninsula
|
2,126
|
80.3 %
|
73.4 %
|
6.9 pts
|
$
468.96
|
$
425.54
|
10.2 %
|
$
376.37
|
$
312.55
|
20.4 %
|
$ 163,639
|
$ 138,606
|
18.1 %
|
$ 62,263
|
$
55,432
|
12.3 %
|
38.0 %
|
40.0 %
|
(2.0)
pts
|
Pacific Coast
|
926
|
75.5 %
|
71.0 %
|
4.5 pts
|
$
542.42
|
$
459.39
|
18.1 %
|
$
409.72
|
$
326.26
|
25.6 %
|
78,291
|
62,600
|
25.1 %
|
32,406
|
26,454
|
22.5 %
|
41.4 %
|
42.3 %
|
(0.9)
pts
|
Dominican Republic
|
2,644
|
58.9 %
|
75.9 %
|
(17.0)
pts
|
$
408.68
|
$
314.69
|
29.9 %
|
$
240.63
|
$
238.91
|
0.7 %
|
133,896
|
134,524
|
(0.5) %
|
48,828
|
49,124
|
(0.6) %
|
36.5 %
|
36.5 %
|
— pts
|
Jamaica
|
1,428
|
82.5 %
|
71.9 %
|
10.6 pts
|
$
477.57
|
$
386.96
|
23.4 %
|
$
393.87
|
$
278.30
|
41.5 %
|
120,395
|
88,022
|
36.8 %
|
49,004
|
29,300
|
67.2 %
|
40.7 %
|
33.3 %
|
7.4 pts
|
Total Portfolio
|
7,124
|
72.2 %
|
73.7 %
|
(1.5)pts
|
$
462.67
|
$
379.88
|
21.8 %
|
$
333.84
|
$
280.14
|
19.2 %
|
$ 496,221
|
$ 423,752
|
17.1 %
|
$
192,501
|
$ 160,310
|
20.1 %
|
38.8 %
|
37.8 %
|
1.0
pts
|
|
|
Occupancy
|
Net Package ADR
|
Net Package RevPAR
|
Owned Net
Revenue
|
Owned Resort
EBITDA
|
Owned Resort EBITDA
Margin
|
|
|
|
|
Pts
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
%
|
|
|
Pts
|
Comparable
Portfolio
|
Rooms
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
Yucatán
Peninsula
|
2,126
|
80.3 %
|
73.4 %
|
6.9 pts
|
$
468.96
|
$
425.54
|
10.2 %
|
$
376.37
|
$
312.55
|
20.4 %
|
$ 163,639
|
$ 138,606
|
18.1 %
|
$ 62,263
|
$
55,432
|
12.3 %
|
38.0 %
|
40.0 %
|
(2.0)
pts
|
Pacific
Coast
|
926
|
75.5 %
|
71.0 %
|
4.5 pts
|
$
542.42
|
$
459.39
|
18.1 %
|
$
409.72
|
$
326.26
|
25.6 %
|
78,291
|
62,600
|
25.1 %
|
32,406
|
26,454
|
22.5 %
|
41.4 %
|
42.3 %
|
(0.9)
pts
|
Dominican
Republic
|
2,144
|
64.5 %
|
75.5 %
|
(11.0)
pts
|
$
443.95
|
$
344.77
|
28.8 %
|
$
286.47
|
$
260.30
|
10.1 %
|
129,359
|
118,706
|
9.0 %
|
53,387
|
45,502
|
17.3 %
|
41.3 %
|
38.3 %
|
3.0 pts
|
Jamaica
|
1,428
|
82.5 %
|
71.9 %
|
10.6 pts
|
$
477.57
|
$
386.96
|
23.4 %
|
$
393.87
|
$
278.30
|
41.5 %
|
120,395
|
88,022
|
36.8 %
|
49,004
|
29,300
|
67.2 %
|
40.7 %
|
33.3 %
|
7.4 pts
|
Total Comparable
Portfolio
|
6,624
|
75.0 %
|
73.4 %
|
1.6
pts
|
$
474.38
|
$
395.10
|
20.1 %
|
$
355.71
|
$
290.18
|
22.6 %
|
$ 491,684
|
$ 407,934
|
20.5 %
|
$
197,060
|
$ 156,688
|
25.8 %
|
40.1 %
|
38.4 %
|
1.7
pts
|
Highlights
Yucatán Peninsula
- Owned Net Revenue for the six months ended June 30, 2023 increased $25.0 million, or 18.1%, compared to the six
months ended June 30, 2022. The
increase was due to the following:
-
- an increase in Occupancy of 6.9 percentage points compared to
the six months ended June 30, 2022,
driven by an increase in guests sourced from Mexico and Canada;
- an increase in Net Package ADR of 10.2%; and
- an increase in Net Non-package Revenue of $0.5 million, or 2.6%, compared to the six months
ended June 30, 2022. Net Non-package
Revenue per sold room decreased 6.1% due to a decrease of
$1.0 million due to the expiration of
our Extended Stay Program late in the second quarter of 2022 as
COVID-19-related travel restrictions were no longer in effect.
Excluding this impact, Net Non-package Revenue per sold room
decreased 0.5% due to a decrease in the number of weddings compared
to the six months ended June 30,
2022.
- Owned Resort EBITDA for the six months ended
June 30, 2023 increased $6.8 million, or 12.3%, compared to the six
months ended June 30, 2022. The
increase was a result of leveraging a majority of our direct
expenses given the Net Package ADR growth, which was partially
offset by the appreciation of the Mexican Peso and increases in
labor and related expenses, which are partially due to union
negotiated and government mandated wage and benefit increases, and
Occupancy-related increases in resort operating expenses compared
to the six months ended June 30,
2022.
-
- Owned Resort EBITDA Margin for the six months ended
June 30, 2023 was 38.0%, a decrease
of 2.0 percentage points compared to the six months ended
June 30, 2022. Owned Resort EBITDA
Margin was negatively impacted by 460 basis points due to the
appreciation of the Mexican Peso and by 330 basis points from
increases in labor and related expenses, which are partially due to
union negotiated and government mandated wage and benefit increases
compared to the six months ended June 30,
2022. Excluding the impact from the appreciation of the
Mexican Peso, Owned Resort EBITDA Margin would have been 42.6%, an
increase of 2.6 percentage points compared to the six months ended
June 30, 2022.
Pacific Coast
- Owned Net Revenue for the six months ended June 30, 2023 increased $15.7 million, or 25.1%, compared to the six
months ended June 30, 2022. The
increase was due to the following:
-
- an increase in Occupancy of 4.5 percentage points compared to
the six months ended June 30, 2022,
driven by an increase in guests sourced from Mexico;
- an increase in Net Package ADR of 18.1%; and
- an increase in Net Non-package Revenue of $1.7 million, or 21.5%, compared to the six
months ended June 30, 2022. Net
Non-package Revenue per sold room increased 14.2% despite a
decrease of $0.7 million due to the
expiration of our Extended Stay Program late in the second quarter
of 2022 as COVID-19-related travel restrictions were no longer in
effect. Excluding this impact, Net Non-package Revenue per sold
room increased 25.2% compared to the six months ended June 30, 2022 as a result of a higher MICE group
contribution to our guest mix.
- Owned Resort EBITDA for the six months ended
June 30, 2023 increased $6.0 million, or 22.5%, compared to the six
months ended June 30, 2022. Owned
Resort EBITDA was negatively impacted by the appreciation of the
Mexican Peso and increases in labor and related expenses, which are
partially due to union-negotiated and government mandated wage and
benefit increases compared to the six months ended June 30, 2022.
-
- Owned Resort EBITDA Margin for the six months ended
June 30, 2023 was 41.4%, a decrease
of 0.9 percentage points compared to six months ended June 30, 2022. Owned Resort EBITDA Margin was
negatively impacted by 420 basis points due to the appreciation of
the Mexican Peso and by 320 basis points from increases in labor
and related expenses, which are partially due to union negotiated
and government mandated wage and benefit increases compared to the
six months ended June 30, 2022.
Excluding the impact from the appreciation of the Mexican Peso,
Owned Resort EBITDA Margin would have been 45.5%, an increase of
3.2 percentage points compared to the six months ended June 30, 2022.
Dominican Republic
- Comparable Owned Net Revenue for the six months ended
June 30, 2023 increased $10.7 million, or 9.0%, compared to the six
months ended June 30, 2022. The
increase was due to the following:
-
- an increase in Comparable Net Package ADR of 28.8% due to a
lower mix of sold rooms at Jewel Punta Cana, which had
significantly lower ADRs compared to the other comparable resorts
in the segment during the six months ended June 30, 2023. Excluding this resort, Comparable
Net Package ADR increased 19.5%;
- an increase in Comparable Net Non-package Revenue of
$0.5 million, or 2.8%, compared to
the six months ended June 30, 2022.
Comparable Net Non-package Revenue per sold room increased 20.3%,
which includes:
-
- a decrease in Comparable Net Non-package Revenue as a result of
reduced Occupancy at Jewel Punta Cana during the six months ended
June 30, 2023. Excluding this resort,
Net Non-package Revenue increased 21.2%; and
- a decrease of $0.8 million due to
the expiration of our Extended Stay Program at the end of the
second quarter of 2022 as COVID-19-related travel restrictions were
no longer in effect. Excluding this impact and the drag from Jewel
Punta Cana, Net Non-package Revenue per sold room increased 23.2%
compared to the six months ended June 30,
2022.
- the above increases were partially offset by a decrease in
Occupancy of 11.0 percentage points compared to the six months
ended June 30, 2022 as a result of
reduced Occupancy at Jewel Punta Cana. Excluding this resort,
Occupancy increased 3.2 percentage points.
- Comparable Owned Resort EBITDA for the six months ended
June 30, 2023 increased $7.9 million, or 17.3%, compared to the six
months ended June 30, 2022. The
increase was a result of a $4.3
million benefit from business interruption proceeds and
recoverable expenses related to Hurricane Fiona that impacted the
Dominican Republic in the second
half of 2022 and leveraging a majority of our direct expenses given
the Net Package ADR growth as compared to the six months ended
June 30, 2022, partially offset by
lower occupancy at Jewel Punta Cana. Excluding the aforementioned
business interruption benefit and the drag from Jewel Punta Cana,
Owned Resort EBITDA increased 31.7% compared to the six months
ended June 30, 2022.
-
- Comparable Owned Resort EBITDA Margin for the six months
ended June 30, 2023 was 41.3%, an
increase of 3.0 percentage points compared to the six months ended
June 30, 2022, which includes a
favorable impact of 330 basis points from business interruption
proceeds and hurricane expense recovery and a negative impact of
570 basis points due to reduced occupancy at Jewel Punta Cana.
Excluding the aforementioned business interruption benefit and the
drag from Jewel Punta Cana, Owned Resort EBITDA Margin for the six
months ended June 30, 2023 was 43.6%,
an increase of 2.5 percentage points compared to the six months
ended June 30, 2022.
Jamaica
- Owned Net Revenue for the six months ended June 30, 2023 increased $32.4 million, or 36.8%, compared to the six
months ended June 30, 2022. The
increase was due to the following:
-
- an increase in Occupancy of 10.6 percentage points compared to
the six months ended June 30, 2022,
driven by an increase in guests sourced from the United States and Jamaica;
- an increase in Net Package ADR of 23.4%; and
- an increase in Net Non-package Revenue of $2.5 million, or 15.6%, compared to the six
months ended June 30, 2022. Net
Non-package Revenue per sold room increased 0.8% despite a decrease
of $1.0 million due to the expiration
of our Extended Stay Program late in the second quarter of 2022 as
COVID-19-related travel restrictions were no longer in effect.
Excluding this impact, Net Non-package Revenue increased 23.1%,
representing a 7.4% increase per sold room compared to the six
months ended June 30, 2022.
- Owned Resort EBITDA for the six months ended
June 30, 2023 increased $19.7 million, or 67.2%, compared to the six
months ended June 30, 2022. The
increase was a result of Net Package ADR and Occupancy growth that
enabled the segment to expand margins and offset pressure on wages
and benefit related expenses compared to the six months ended
June 30, 2022.
-
- Owned Resort EBITDA Margin for the six months ended
June 30, 2023 increased 7.4
percentage points, or 22.2%, compared to the six months ended
June 30, 2022. Owned Resort EBITDA
Margin was positively impacted by 40 basis points due to a decline
in utilities expenses and energy prices compared to the six months
ended June 30, 2022.
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SOURCE Playa Management USA,
LLC