FAIRFAX,
Va., Nov. 2, 2023 /PRNewswire/ -- Playa Hotels
& Resorts N.V. (the "Company" or "Playa") (NASDAQ: PLYA) today
announced results of operations for the three and nine months ended
September 30, 2023.
Three Months Ended September 30,
2023 Results
- Net Loss was $10.5 million
compared to $2.2 million in 2022
- Adjusted Net Loss(1) was $9.7 million compared to Adjusted Net Income of
$5.9 million in 2022
- Net Package RevPAR increased 4.8% over 2022 to
$269.50, driven by a 9.4% increase in
Net Package ADR, partially offset by a 3.1 percentage point
decrease in Occupancy
- Comparable Net Package RevPAR increased 0.4% over 2022
to $262.12, driven by an 8.1%
increase in Net Package ADR, partially offset by a 5.4 percentage
point decrease in Occupancy
- Owned Resort EBITDA(1) decreased 8.0% versus
2022 to $52.8 million
- Owned Resort EBITDA Margin(1) decreased 3.3
percentage points versus 2022 to 26.2%, negatively impacted by
approximately 390 basis points due to the appreciation of the
Mexican Peso and positively impacted by 50 basis points from
business interruption insurance proceeds and recoverable expenses.
Excluding these impacts, Owned Resort EBITDA Margin would have been
29.6%, an increase of 0.1 percentage points compared to 2022
- Adjusted EBITDA(1) decreased 9.7% versus 2022
to $40.5 million, negatively impacted
by approximately $7.8 million due to
the appreciation of the Mexican Peso and positively impacted by a
$1.0 million benefit from business
interruption insurance related to the disruption caused by
Hurricane Fiona in our Dominican
Republic segment in the second half of 2022
- Adjusted EBITDA Margin(1)decreased 3.1
percentage points versus 2022 to 19.8%, negatively impacted by
approximately 390 basis points due to the appreciation of the
Mexican Peso and positively impacted by 50 basis points from
business interruption insurance proceeds and recoverable expenses.
Excluding these impacts, Adjusted EBITDA Margin would have been
23.2%, an increase of 0.3 percentage points compared to 2022
- Comparable Adjusted EBITDA(1) decreased 27.1%
versus 2022 to $24.5 million
- Comparable Adjusted EBITDA Margin(1)
decreased 5.8 percentage points versus 2022 to 15.6%
(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.
Nine Months Ended September 30,
2023 Results
- Net Income was $52.8
million compared to $71.0
million in 2022
- Adjusted Net Income(1) was $60.3 million compared to $62.6 million in 2022
- Net Package RevPAR increased 14.6% over 2022 to
$312.16, driven by an 18.0% increase
in Net Package ADR, partially offset by a 2.0 percentage point
decrease in Occupancy
- Comparable Net Package RevPAR increased 15.4% over 2022
to $324.62, driven by a 16.7%
increase in Net Package ADR, partially offset by an 0.8 percentage
point decrease in Occupancy
- Owned Resort EBITDA(1) increased 12.7% versus
2022 to $245.3 million
- Owned Resort EBITDA Margin(1)was flat versus
2022 at 35.2%, negatively impacted by approximately 270 basis
points due to the appreciation of the Mexican Peso and positively
impacted by 80 basis points from business interruption insurance
proceeds and recoverable expenses. Excluding these impacts, our
Owned Resort EBITDA Margin would have been 37.1%, an increase of
1.9 percentage points compared to 2022
- Adjusted EBITDA(1) increased 15.0% versus
2022 to $211.1 million, negatively
impacted by approximately
- $18.8 million due to the
appreciation of the Mexican Peso and inclusive of a $5.3 million benefit from business interruption
insurance related to the disruption caused by Hurricane Fiona in
our Dominican Republic segment in
the second half of 2022
- Adjusted EBITDA Margin(1)increased 0.4
percentage points versus 2022 to 29.8%, negatively impacted by
approximately 270 basis points due to the appreciation of the
Mexican Peso and positively impacted by 80 basis points from
business interruption insurance proceeds and recoverable expenses.
Excluding these impacts, our Adjusted EBITDA Margin would have been
31.8%, an increase of 2.4 percentage points compared to 2022
- Comparable Adjusted EBITDA(1) increased 12.7%
versus 2022 to $143.0 million
- Comparable Adjusted EBITDA Margin(1)
decreased 0.4 percentage points versus 2022 to 27.1%
(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.
"Our core portfolio delivered another strong underlying quarter, once again
led by our resorts in Jamaica.
While Jamaica
had the highest rate of ADR growth and Occupancy in the third
quarter, our resorts in Mexico
were able to deliver foreign currency adjusted year-over-year Owned
Resort Margin expansion despite a slight decline
in revenues compared to last year.
With new regional management in Mexico, we are
thoughtfully reevaluating our expenses and efficiency and are
optimistic that we will continue to improve our operations in
Mexico.
On the booking
front, demand improved throughout the summer,
building momentum as we approach the high
season. With our MICE group segment pacing up significantly and
momentum on the transient side, we are entering 2024 on solid
footing.
With one quarter left in the year and
factoring in the recent changes in foreign currency exchange rates,
we now expect full-year Adjusted EBITDA to be in the range of
$260-265 million, in line with our
original expectation at the beginning of the year and inclusive of
an approximate -$25 million impact
from foreign currency exchange rates. On the capital allocation
front, we continue to believe our stock presents an
attractive
value given our strong fundamentals. During the third
quarter, we repurchased over 10 million
shares for $76.6 million."
– Bruce D. Wardinski, Chairman
and CEO of Playa Hotels & Resorts
Financial and Operating Results
The following tables set forth
information with respect
to the operating results of our total
portfolio and comparable portfolio for the three and nine
months ended September 30, 2023 and
2022 ($ in thousands):
Total Portfolio
|
|
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|
2023
|
|
2022
|
|
Change
|
2023
|
2022
|
Change
|
Occupancy
|
|
70.7 %
|
|
73.8 %
|
(3.1)pts
|
71.7 %
|
73.7 %
|
(2.0)pts
|
Net Package
ADR (1)
|
$
381.41
|
$
348.58
|
9.4
|
%
|
$
435.67
|
$
369.33
|
18.0
|
%
|
Net Package RevPAR
|
$
269.50
|
$
257.08
|
4.8
|
%
|
$
312.16
|
$
272.37
|
14.6
|
%
|
Total Net
Revenue (2)
|
$
204,305
|
$
196,346
|
4.1
|
%
|
$
707,297
|
$
623,660
|
13.4
|
%
|
Owned Net Revenue (3)
|
$
201,354
|
$
194,844
|
3.3
|
%
|
$
697,575
|
$
618,596
|
12.8
|
%
|
Owned Resort
EBITDA
|
$
52,797
|
$
57,410
|
(8.0)
|
%
|
$
245,298
|
$
217,720
|
12.7
|
%
|
Owned Resort
EBITDA Margin
|
26.2 %
|
29.5 %
|
(3.3)pts
|
35.2 %
|
35.2 %
|
— pts
|
Other corporate
|
$
14,706
|
$
13,839
|
6.3
|
%
|
$
42,201
|
$
38,596
|
9.3
|
%
|
The Playa
Collection Revenue
|
$
1,051
|
$
517
|
103.3
|
%
|
$
2,605
|
$
1,211
|
115.1
|
%
|
Management Fee
Revenue
|
$
1,369
|
$
786
|
74.2
|
%
|
$
5,420
|
$
3,186
|
70.1
|
%
|
Adjusted EBITDA
|
$
40,511
|
$
44,874
|
(9.7)
|
%
|
$
211,122
|
$
183,521
|
15.0
|
%
|
Adjusted EBITDA Margin
|
19.8 %
|
22.9 %
|
(3.1)pts
|
29.8 %
|
29.4 %
|
0.4 pts
|
Comparable Portfolio (4)
|
|
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|
2023
|
|
2022
|
|
Change
|
2023
|
2022
|
Change
|
Occupancy
|
|
71.2 %
|
|
76.6 %
|
(5.4)pts
|
73.3 %
|
74.1 %
|
(0.8)pts
|
Net Package ADR
|
$
368.29
|
$
340.61
|
8.1
|
%
|
$
442.99
|
$
379.59
|
16.7
|
%
|
Net Package RevPAR
|
$
262.12
|
$
261.01
|
0.4
|
%
|
$
324.62
|
$
281.35
|
15.4
|
%
|
Total Net
Revenue (2)
|
$
156,570
|
$
156,627
|
—
|
%
|
$
527,323
|
$
462,086
|
14.1
|
%
|
Owned Net Revenue (3)
|
$
153,619
|
$
155,125
|
(1.0)
|
%
|
$
517,601
|
$
457,022
|
13.3
|
%
|
Owned Resort
EBITDA
|
$
36,754
|
$
46,106
|
(20.3)
|
%
|
$
177,170
|
$
161,045
|
10.0
|
%
|
Owned Resort
EBITDA Margin
|
23.9 %
|
29.7 %
|
(5.8)pts
|
34.2 %
|
35.2 %
|
(1.0)pts
|
Other corporate
|
$
14,706
|
$
13,839
|
6.3
|
%
|
$
42,201
|
$
38,596
|
9.3
|
%
|
The Playa
Collection Revenue
|
$
1,051
|
$
517
|
103.3
|
%
|
2,605
|
1,211
|
115.1
|
%
|
Management Fee
Revenue
|
$
1,369
|
$
786
|
74.2
|
%
|
$
5,420
|
$
3,186
|
70.1
|
%
|
Adjusted EBITDA
|
$
24,468
|
$
33,570
|
(27.1)
|
%
|
$
142,994
|
$
126,846
|
12.7
|
%
|
Adjusted EBITDA Margin
|
15.6 %
|
21.4 %
|
(5.8)pts
|
27.1 %
|
27.5 %
|
(0.4)pts
|
(1) For the three and nine months
ended September 30, 2022, Net Package ADR includes $2.5 million and $7.8 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 three months
ended September 30, 2023, our comparable portfolio
excludes the Hilton La Romana All-Inclusive Resort and the Hyatt Ziva and Hyatt Zilara Cap Cana which were closed
the last 12 days of the three
months ended September 30, 2022 to expedite necessary clean up and repair work as a result of
Hurricane Fiona. For the nine months ended September 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, and the Hilton La Romana
All-Inclusive Resort and the Hyatt Ziva and Hyatt Zilara Cap
Cana.
Balance Sheet
As of September 30, 2023, we held
$184.4 million in cash and cash
equivalents, with no restricted cash. Total interest-bearing debt
was $1,091.8 million, comprised of our Term Loan due 2029. As
of September 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 third quarter
results on Friday, November
3, 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 5466202. Additionally, interested
parties may listen to a taped replay of the entire conference call
commencing two hours after the call's completion on Friday, November 3, 2023. This replay will run
through Friday, November 10, 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: 7811216. 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
September 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 nine
months ended September 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 (loss) income.
The following table shows a reconciliation of Net Package
Revenue and Net Non-package Revenue
to total revenue for the three and nine months ended
September 30, 2023 and 2022 ($ in
thousands):
Total Portfolio
|
|
|
Three Months
Ended September 30,
|
Nine Months
Ended September 30,
|
|
2023
|
2022
|
2023
|
2022
|
Net Package Revenue
|
|
|
|
|
Comparable Net
Package Revenue
|
$
135,046
|
$
134,473
|
$
451,966
|
$
391,715
|
Non-comparable Net
Package Revenue
|
41,588
|
34,021
|
155,132
|
138,001
|
Net Package Revenue
|
176,634
|
168,494
|
607,098
|
529,716
|
|
|
|
|
|
Net Non-package Revenue
|
|
|
|
|
Comparable Net
Non-package Revenue
|
18,573
|
20,652
|
65,635
|
65,307
|
Non-comparable Net
Non-package Revenue
|
6,147
|
5,698
|
24,842
|
23,573
|
Net Non-package Revenue
|
24,720
|
26,350
|
90,477
|
88,880
|
|
|
|
|
|
Playa Collection Revenue
|
1,051
|
517
|
2,605
|
1,211
|
Management Fee
Revenue
|
1,369
|
786
|
5,420
|
3,186
|
Other Revenues
|
531
|
199
|
1,697
|
667
|
|
|
|
|
|
Total Net
Revenue
|
|
|
|
|
Comparable Total
Net Revenue
|
156,570
|
156,627
|
527,323
|
462,086
|
Non-comparable Total Net Revenue
|
47,735
|
39,719
|
179,974
|
161,574
|
Total Net
Revenue
|
204,305
|
196,346
|
707,297
|
623,660
|
Compulsory tips
|
6,055
|
5,440
|
18,363
|
14,935
|
Cost Reimbursements
|
2,785
|
2,836
|
9,327
|
6,868
|
Total revenue
|
$
213,145
|
$
204,622
|
$
734,987
|
$
645,463
|
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 (Loss) Income
"Adjusted Net (Loss) 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 (Loss) 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 three months ended September 30, 2023 excludes the Hilton La Romana
All- Inclusive Resort and the Hyatt Ziva and Hyatt Zilara Cap Cana
which were closed the last 12 days of the three months ended
September 30, 2022 to expedite
necessary clean up and repair work as a result of Hurricane
Fiona.
Our comparable portfolio for the nine months ended September 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, and the Hilton La Romana All-Inclusive Resort and the Hyatt
Ziva and Hyatt Zilara Cap Cana which were closed the last 12 days
of the nine months ended September 30,
2022 to expedite necessary clean up and repair work as a
result of Hurricane Fiona.
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, 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 (loss)
income to EBITDA, Adjusted EBITDA, Owned
Resort EBITDA and Comparable Owned
Resort EBITDA for the three and nine months ended September 30, 2023
and 2022 ($ in thousands):
|
|
Three
Months Ended September 30,
|
Nine Months
Ended September 30,
|
|
2023
|
2022
|
2023
|
2022
|
Net (loss) income
|
$
(10,504)
|
$
(2,229)
|
$
52,848
|
$
71,043
|
Interest expense
|
26,552
|
17,832
|
82,337
|
39,892
|
Income tax (benefit) provision
|
(2,808)
|
268
|
4,840
|
3,168
|
Depreciation and amortization
|
22,548
|
19,502
|
61,055
|
58,630
|
EBITDA
|
35,788
|
35,373
|
201,080
|
172,733
|
Other expense
(income) (a)
|
350
|
(2,608)
|
321
|
(7,850)
|
Share-based compensation
|
3,343
|
2,777
|
9,951
|
9,043
|
Transaction expense (b)
|
742
|
582
|
2,107
|
1,384
|
Repairs from hurricanes and
tropical storms (c)
|
77
|
8,850
|
(815)
|
8,850
|
Loss on sale of assets
|
6
|
2
|
17
|
11
|
Non-service cost components of net periodic pension benefit
(cost)
|
205
|
(102)
|
(1,539)
|
(650)
|
Adjusted EBITDA
|
40,511
|
44,874
|
211,122
|
183,521
|
Other corporate (d)(e)
|
14,706
|
13,839
|
42,201
|
38,596
|
The Playa
Collection
|
(1,051)
|
(517)
|
(2,605)
|
(1,211)
|
Management fees
|
(1,369)
|
(786)
|
(5,420)
|
(3,186)
|
Owned Resort EBITDA
|
52,797
|
57,410
|
245,298
|
217,720
|
Less: Non-comparable Owned
Resort EBITDA
|
16,043
|
11,304
|
68,128
|
56,675
|
Comparable Owned Resort
EBITDA(f)(g)
|
$
36,754
|
$
46,106
|
$
177,170
|
$
161,045
|
(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) 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 nine months ended
September 30, 2023, represents changes in the expected repair
and clean-up expenses for the Jewel Punta Cana related to the
impact of Hurricane Fiona.
(d) For the three months
ended September 30, 2023 and 2022, represents corporate salaries and benefits of $10.3 million
for 2023 and $8.8 million
for 2022, professional fees of $2.4 million for 2023 and $2.8 million
for 2022, corporate rent and insurance
of $1.0 million
for 2023 and $1.0 million
for 2022, and corporate travel, software licenses,
board fees and other miscellaneous corporate expenses of
$1.0 million for 2023 and
$1.2 million for 2022.
(e) For the nine months
ended September 30, 2023 and 2022, represents corporate salaries and benefits of $30.0 million
for 2023 and $25.9 million
for 2022, professional fees of $6.2 million for 2023 and $6.7 million
for 2022, corporate rent and insurance of $2.9 million
for 2023 and $3.0 million
for 2022, and corporate travel, software licenses,
board fees and other miscellaneous corporate expenses of
$3.1 million for 2023 and
$3.0 million for 2022.
(f) Our comparable portfolio for the three
months ended September 30,
2023 excludes the Hilton La Romana All-Inclusive
Resort and the Hyatt Ziva and
Hyatt Zilara Cap Cana which were closed the last 12 days of the three months ended September 30, 2022 to expedite necessary
clean up and repair work as a result of
Hurricane Fiona.
(g) Our
comparable portfolio for the nine months ended September 30, 2023 excludes
the Jewel Palm Beach, which
was closed for a majority
of the first quarter of 2023 as we transitioned
the management of the resort to us from a third-party, and the
Hilton La Romana All-Inclusive Resort and the Hyatt Ziva
and Hyatt Zilara Cap Cana which were closed the last 12
days of the nine months ended September 30, 2022 to expedite necessary
clean up and repair work as a result of Hurricane
Fiona.
Playa Hotels & Resorts
N.V.
Reconciliation of Net Income to Adjusted Net
Income
($ in thousands)
The following
table reconciles our net (loss) income to Adjusted Net (Loss) Income
for the three and nine months ended
September 30, 2023 and 2022 ($ in
thousands):
|
|
Three Months
Ended September 30,
|
Nine Months Ended September 30,
|
|
2023
|
2022
|
2023
|
2022
|
Net (loss) income
|
$
(10,504)
|
$
(2,229)
|
$
52,848
|
$
71,043
|
Reconciling items
|
|
|
|
|
Transaction expense
|
742
|
582
|
2,107
|
1,384
|
Change
in fair value of interest rate
swaps (a)
|
—
|
(1,284)
|
6,335
|
(18,677)
|
Repairs from hurricanes and
tropical storms
|
77
|
8,850
|
(815)
|
8,850
|
Total reconciling items
before tax
|
819
|
8,148
|
7,627
|
(8,443)
|
Income tax provision for reconciling items
|
(57)
|
—
|
(188)
|
—
|
Total reconciling items
after tax
|
762
|
8,148
|
7,439
|
(8,443)
|
Adjusted net (loss)
income
|
$
(9,742)
|
$
5,919
|
$
60,287
|
$
62,600
|
(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 (Loss) Income
on our diluted (loss) earnings
per share for the three and nine months ended
September 30, 2023 and 2022 ($ in
thousands, except share data):
|
Three Months
Ended September 30,
|
Nine Months Ended September 30,
|
|
2023
|
2022
|
2023
|
2022
|
Adjusted net (loss)
income
|
$
(9,742)
|
$
5,919
|
$
60,287
|
$
62,600
|
|
|
|
|
|
(Loss) earnings per share -
Diluted
|
$
(0.07)
|
$
(0.01)
|
$
0.34
|
$
0.43
|
Total reconciling items
impact per diluted share
|
0.01
|
0.05
|
0.05
|
(0.05)
|
Adjusted (loss) earnings per share -
Diluted
|
$
(0.06)
|
$
0.04
|
$
0.39
|
$
0.38
|
Playa Hotels &
Resorts N.V.
Condensed Consolidated Balance Sheet
($ in thousands, except share data)
(unaudited)
|
|
|
As of September 30,
|
As of December 31,
|
2023
|
2022
|
ASSETS
|
|
|
Cash and cash equivalents
|
$
184,408
|
$
283,945
|
Trade and
other receivables, net
|
66,554
|
62,946
|
Insurance recoverable
|
10,110
|
34,191
|
Accounts receivable from related parties
|
7,597
|
8,806
|
Inventories
|
20,370
|
20,046
|
Prepayments and other assets
|
59,620
|
44,177
|
Property and
equipment, net
|
1,507,068
|
1,536,567
|
Derivative financial instruments
|
11,026
|
3,510
|
Goodwill, net
|
61,654
|
61,654
|
Other intangible assets
|
5,675
|
6,556
|
Deferred tax assets
|
6,862
|
7,422
|
Total assets
|
$
1,940,944
|
$
2,069,820
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
Trade and other payables
|
$
172,492
|
$
231,652
|
Payables to related parties
|
10,482
|
6,852
|
Income tax
payable
|
601
|
990
|
Debt
|
1,062,046
|
1,065,453
|
Other liabilities
|
34,380
|
30,685
|
Deferred tax liabilities
|
71,765
|
69,326
|
Total liabilities
|
1,351,766
|
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 140,637,412
shares outstanding as of September 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, 28,786,568 shares
as of September 30, 2023 and 10,046,996
shares as of December 31,
2022)
|
(214,572)
|
(62,953)
|
Paid-in capital
|
1,198,919
|
1,189,090
|
Accumulated other
comprehensive income (loss)
|
6,151
|
(6,985)
|
Accumulated deficit
|
(420,142)
|
(472,990)
|
Total shareholders' equity
|
589,178
|
664,862
|
Total liabilities and shareholders' equity
|
$
1,940,944
|
$
2,069,820
|
Playa Hotels &
Resorts N.V. Condensed Consolidated Statements of
Operations
($ in thousands, except share
data) (unaudited)
|
|
|
Three Months
Ended September 30,
|
Nine Months Ended
September 30,
|
|
2023
|
2022
|
2023
|
2022
|
Revenue
|
|
|
|
|
Package
|
$
182,425
|
$
173,691
|
$
624,349
|
$
543,738
|
Non-package
|
24,984
|
26,593
|
91,589
|
89,793
|
The Playa
Collection
|
1,051
|
517
|
2,605
|
1,211
|
Management fees
|
1,369
|
786
|
5,420
|
3,186
|
Cost reimbursements
|
2,785
|
2,836
|
9,327
|
6,868
|
Other revenues
|
531
|
199
|
1,697
|
667
|
Total revenue
|
213,145
|
204,622
|
734,987
|
645,463
|
Direct and
selling, general and
administrative expenses
|
|
|
|
|
Direct
|
126,356
|
117,333
|
387,930
|
343,298
|
Selling, general
and administrative
|
48,826
|
51,686
|
141,567
|
130,403
|
Depreciation and amortization
|
22,548
|
19,502
|
61,055
|
58,630
|
Reimbursed costs
|
2,785
|
2,836
|
9,327
|
6,868
|
Loss on sale of assets
|
6
|
2
|
17
|
11
|
Business interruption insurance recoveries
|
(47)
|
—
|
(542)
|
—
|
Gain on insurance proceeds
|
(919)
|
—
|
(4,713)
|
—
|
Direct and selling, general and administrative expenses
|
199,555
|
191,359
|
594,641
|
539,210
|
Operating income
|
13,590
|
13,263
|
140,346
|
106,253
|
Interest expense
|
(26,552)
|
(17,832)
|
(82,337)
|
(39,892)
|
Other (expense) income
|
(350)
|
2,608
|
(321)
|
7,850
|
Net (loss) income
before tax
|
(13,312)
|
(1,961)
|
57,688
|
74,211
|
Income tax benefit (provision)
|
2,808
|
(268)
|
(4,840)
|
(3,168)
|
Net (loss) income
|
$
(10,504)
|
$
(2,229)
|
$
52,848
|
$
71,043
|
|
|
|
|
|
(Loss) earnings per share
|
|
|
|
|
Basic
|
$
(0.07)
|
$
(0.01)
|
$
0.35
|
$
0.43
|
Diluted
|
$
(0.07)
|
$
(0.01)
|
$
0.34
|
$
0.43
|
Weighted average number of shares outstanding during the
period - Basic
|
145,469,906
|
165,979,839
|
151,536,334
|
165,873,539
|
Weighted average number of shares outstanding during the
period - Diluted
|
145,469,906
|
165,979,839
|
153,606,281
|
167,124,242
|
Playa Hotels
& Resorts N.V.
Consolidated Debt Summary - As of September 30, 2023
($ in millions)
|
|
|
|
Maturity
|
|
|
|
Applicable
Rate
|
|
LTM
Interest
(6)
|
Debt
|
|
Date
|
|
# of Years
|
|
Balance
|
|
|
Revolving Credit
Facility (1)
|
|
Jan-28
|
|
4.25
|
|
$
—
|
|
— %
|
|
$
0.8
|
Term Loan
(2)(3)
|
|
Jan-29
|
|
5.25
|
|
1,091.8
|
|
9.58 %
|
|
81.3
|
Term Loan (Additional
$93.3 million)
|
|
—
|
|
—
|
|
—
|
|
— %
|
|
4.7
|
Property
Loan
|
|
—
|
|
—
|
|
—
|
|
— %
|
|
5.0
|
Total debt (4)
|
|
|
|
|
|
$
1,091.8
|
|
9.58 %
|
|
$
91.8
|
Less: cash and cash
equivalents (5)
|
|
|
|
|
|
(184.4)
|
|
|
|
|
Net debt
|
|
|
|
|
|
$
907.4
|
|
|
|
|
(1) Undrawn balances bear interest
between 0.25% and 0.50% depending on certain leverage
ratios. We had $225.0 million
and $68.0 million
available as of September 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 9.58% as of September 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 $28.2 million of unamortized discounts, $6.8 million of unamortized deferred
financing costs, and a $5.3 million financing lease obligation as of September
30, 2023.
(5) Represents cash balances on hand
as of September 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 September 30, 2023 and 2022
|
|
|
|
Occupancy
|
Net Package ADR
|
Net Package RevPAR
|
Owned Net
Revenue
|
Owned Resort
EBITDA
|
Owned Resort
EBITDA Margin
|
Total Portfolio
|
Rooms
|
2023
|
2022
|
Pts
Change
|
2023
|
2022
|
%
Change
|
2023
|
2022
|
%
Change
|
2023
|
2022
|
%
Change
|
2023
|
2022
|
%
Change
|
2023
|
2022
|
Pts
Change
|
Yucatán Peninsula
|
2,126
|
73.9 %
|
77.0 %
|
(3.1)pts
|
$
399.10
|
$
383.56
|
4.1 %
|
$
294.84
|
$
295.38
|
(0.2) %
|
$
65,138
|
$
65,594
|
(0.7) %
|
$
16,844
|
$
21,617
|
(22.1) %
|
25.9 %
|
33.0 %
|
(7.1)pts
|
Pacific Coast
|
926
|
64.5 %
|
72.3 %
|
(7.8)pts
|
$
478.83
|
$
442.88
|
8.1 %
|
$
309.05
|
$
320.10
|
(3.5) %
|
29,236
|
30,301
|
(3.5) %
|
7,947
|
10,512
|
(24.4) %
|
27.2 %
|
34.7 %
|
(7.5)pts
|
Dominican Republic
|
2,644
|
66.4 %
|
70.7 %
|
(4.3)pts
|
$
306.69
|
$
272.53
|
12.5 %
|
$
203.76
|
$
192.69
|
5.7 %
|
57,142
|
55,190
|
3.5 %
|
12,673
|
14,014
|
(9.6) %
|
22.2 %
|
25.4 %
|
(3.2)pts
|
Jamaica
|
1,428
|
77.6 %
|
75.5 %
|
2.1 pts
|
$
422.23
|
$
368.81
|
14.5 %
|
$
327.86
|
$
278.43
|
17.8 %
|
49,838
|
43,759
|
13.9 %
|
15,333
|
11,267
|
36.1 %
|
30.8 %
|
25.7 %
|
5.1 pts
|
Total Portfolio
|
7,124
|
70.7 %
|
73.8 %
|
(3.1)pts
|
$
381.41
|
$
348.58
|
9.4 %
|
$
269.50
|
$
257.08
|
4.8 %
|
$ 201,354
|
$ 194,844
|
3.3 %
|
$
52,797
|
$
57,410
|
(8.0) %
|
26.2 %
|
29.5 %
|
(3.3)pts
|
|
|
|
Occupancy
|
Net Package ADR
|
Net Package RevPAR
|
Owned Net Revenue
|
Owned Resort EBITDA
|
Owned Resort EBITDA Margin
|
Comparable
Portfolio
|
Rooms
|
2023
|
2022
|
Pts
Change
|
2023
|
2022
|
Change
|
2023
|
2022
|
Change
|
2023
|
2022
|
%
Change
|
2023
|
2022
|
%
Change
|
2023
|
2022
|
Pts
Change
|
Yucatán
Peninsula
|
2,126
|
73.9 %
|
77.0 %
|
(3.1)pts
|
$
399.10
|
$
383.56
|
4.1 %
|
$
294.84
|
$
295.38
|
(0.2) %
|
$
65,138
|
$
65,594
|
(0.7) %
|
$
16,844 $
|
21,617
|
(22.1) %
|
25.9 %
|
33.0 %
|
(7.1)pts
|
Pacific
Coast
|
926
|
64.5 %
|
72.3 %
|
(7.8)pts
|
$
478.83
|
$
442.88
|
8.1 %
|
$
309.05
|
$
320.10
|
(3.5) %
|
29,236
|
30,301
|
(3.5) %
|
7,947
|
10,512
|
(24.4) %
|
27.2 %
|
34.7 %
|
(7.5)pts
|
Dominican
Republic
|
1,120
|
63.3 %
|
81.0 %
|
(17.7)pts
|
$
122.36
|
$
154.05
|
(20.6) %
|
$
77.41
|
$
124.71
|
(37.9) %
|
9,407
|
15,471
|
(39.2) %
|
(3,370)
|
2,710
|
(224.4) %
|
(35.8) %
|
17.5 %
|
(53.3)pts
|
Jamaica
|
1,428
|
77.6 %
|
75.5 %
|
2.1 pts
|
$
422.23
|
$
368.81
|
14.5 %
|
$
327.86
|
$
278.43
|
17.8 %
|
49,838
|
43,759
|
13.9 %
|
15,333
|
11,267
|
36.1 %
|
30.8 %
|
25.7 %
|
5.1 pts
|
Total Comparable
Portfolio
|
5,600
|
71.2 %
|
76.6 %
|
(5.4)pts
|
$
368.29
|
$
340.61
|
8.1 %
|
$
262.12
|
$
261.01
|
0.4 %
|
$ 153,619
|
$ 155,125
|
(1.0) %
|
$
36,754 $
|
46,106
|
(20.3) %
|
23.9 %
|
29.7 %
|
(5.8)pts
|
Highlights
Yucatán Peninsula
- Owned Net Revenue for the three months ended
September 30, 2023 decreased
$0.5 million, or 0.7%, compared to
the three months ended September 30,
2022 and was driven by:
- a decrease in Occupancy of 3.1 percentage points driven by a
lower meetings, incentives, conventions and events ("MICE") group
contribution to our guest mix and demand for European travel
destinations from American sourced guests;
- a decrease in Net Non-package Revenue of $0.4 million, or 4.5%, primarily driven by a
lower MICE group contribution to our guest mix;
- Net Non-package Revenue per sold room decreased 0.4%; partially
offset by
- an increase in Net Package ADR of 4.1%.
- Owned Resort EBITDA for the three months ended
September 30, 2023 decreased
$4.8 million, or 22.1%, compared to
the three months ended September 30,
2022. The decrease was largely due to a $5.5 million impact as a result of the
appreciation of the Mexican Peso, union-negotiated and
government-mandated wage and benefit increases and increases in
insurance premiums compared to the three months ended September 30, 2022.
- Owned Resort EBITDA Margin for the three months ended
September 30, 2023 was 25.9%, a
decrease of 7.1 percentage points compared to the three months
ended September 30, 2022. Owned
Resort EBITDA Margin was negatively impacted by 840 basis points
due to the appreciation of the Mexican Peso and by 230 basis points
from increases in labor and related expenses, which were partially
due to union-negotiated and government-mandated wage and benefit
increases compared to the three months ended September 30, 2022. Excluding the impact from the
appreciation of the Mexican Peso, Owned Resort EBITDA Margin for
the three months ended September 30,
2023 would have been 34.3%, an increase of 1.3 percentage
points compared to the three months ended September 30, 2022.
Pacific Coast
- Owned Net Revenue for the three months ended
September 30, 2023 decreased
$1.1 million, or 3.5%, compared to
the three months ended September 30,
2022. The decrease was due to the following:
- a decrease in Occupancy of 7.8 percentage points, driven by
ongoing renovations at the two resorts in this segment and an
increase in demand for European travel destinations from American
sourced guests;
- a decrease in Net Non-package Revenue of $0.1 million, or 4.1%, primarily driven by a
lower MICE group contribution to our guest mix;
- Net Non-package Revenue per sold room increased 7.4%;
- an increase in Net Package ADR of 8.1%.
- Owned Resort EBITDA for the three months ended
September 30, 2023 decreased
$2.6 million, or 24.4%, compared to
the three months ended September 30,
2022. Owned Resort EBITDA compared to the three months ended
September 30, 2022 was negatively
impacted by $2.4 million due to the
appreciation of the Mexican Peso, increases in labor and related
expenses, which were due to union-negotiated and
government-mandated wage and benefit increases, and increases in
insurance premiums and energy costs.
- Owned Resort EBITDA Margin for the three months ended
September 30, 2023 was 27.2%, a
decrease of 7.5 percentage points compared to the three months
ended September 30, 2022. Owned
Resort EBITDA Margin was negatively impacted by 800 basis points
due to the appreciation of the Mexican Peso and by 250 basis points
from increases in labor and related expenses, which were partially
due to union-negotiated and government-mandated wage and benefit
increases compared to the three months ended September 30, 2022. Excluding the impact from the
appreciation of the Mexican Peso, Owned Resort EBITDA Margin would
have been 35.2%, an increase of 0.5 percentage points compared to
the three months ended September 30,
2022.
Dominican Republic
- Owned Net Revenue for the three months ended
September 30, 2023 increased
$2.0 million, or 3.5%, compared to
the three months ended September 30,
2022. The increase was due to the following:
- an increase in Net Package ADR of 12.5%; partially offset
by
- a decrease in Occupancy of 4.3 percentage points as a result of
lower occupancies at the Jewel Punta Cana and Jewel Palm Beach due
to the transition of management. Excluding these resorts, Occupancy
increased 5.6 percentage points compared to the three months ended
September 30, 2022, when we
experienced reduced occupancy as a result of Hurricane Fiona. The
increase was partially offset by higher demand for European travel
destinations from American sourced guests; and
- a decrease in Net Non-package Revenue of $0.7 million, or 8.9%;
- Net Non-package Revenue per sold room decreased 3.1% compared
to the three months ended September 30,
2022, which was primarily due to a decrease in Net
Non-package Revenue at Jewel Punta Cana and Jewel Palm Beach during
the three months ended September 30,
2023. Excluding these resorts, Net Non-package Revenue
increased 7.9%, and Net Non-package Revenue per sold room decreased
0.9%.
- Comparable Owned Net Revenue for the three months ended
September 30, 2023 decreased
$6.1 million due to the transition of
management of the Jewel Punta Cana and Jewel Palm Beach that
resulted in lower occupancies compared to the three months ended
September 30, 2022.
- Owned Resort EBITDA for the three months ended
September 30, 2023 decreased
$1.3 million, or 9.6%, compared to
the three months ended September 30,
2022.
- Excluding Jewel Punta Cana and Jewel Palm Beach, Owned Resort
EBITDA increased $4.7 million
compared to the three months ended September
30, 2022, and includes a $1.0
million benefit from business interruption insurance
proceeds and recoverable expenses related to Hurricane Fiona in the
Dominican Republic during the
second half of 2022. This increase was partially offset by
increased insurance premiums and utilities expenses compared to the
three months ended September 30,
2022.
- Owned Resort EBITDA Margin for the three months ended
September 30, 2023 was 22.2%, a
decrease of 3.2 percentage points compared to the three months
ended September 30, 2022, and
includes a negative impact of 1,140 basis points due to reduced
Occupancy at Jewel Punta Cana and Jewel Palm Beach, partially
offset by a favorable impact of 170 basis points from business
interruption proceeds and recoverable expenses related to Hurricane
Fiona. Excluding the aforementioned business interruption benefit
and the drag from the two Jewel properties, Owned Resort EBITDA
Margin for the three months ended September
30, 2023 was 31.6%, an increase of 3.1 percentage points
compared to the three months ended September
30, 2022.
Jamaica
- Owned Net Revenue for the three months ended
September 30, 2023 increased
$6.1 million, or 13.9%, compared to
the three months ended September 30,
2022. The increase was due to the following:
- ongoing recovery in this segment during the third quarter of
2023, which resulted in a 2.1 percentage point increase in
Occupancy and a 14.5% increase in Net Package ADR despite a lower
MICE group contribution to our guest mix; partially offset by
- a decrease in Net Non-package Revenue of $0.4 million, or 5.8%.
- Net Non-package Revenue per sold room decreased 8.4% as a
result of a lower MICE group contribution to our guest mix.
- Owned Resort EBITDA for the three months ended
September 30, 2023 increased
$4.1 million, or 36.1%, compared to
the three months ended September 30,
2022. The increase was a result of Net Package ADR and
Occupancy growth and a decrease in energy prices, which offset
pressure on wages and benefit related expenses and increased
insurance premiums compared to the three months ended September 30, 2022.
- Owned Resort EBITDA Margin for the three months ended
September 30, 2023 increased 5.1
percentage points, or 19.8%, compared to the three months ended
September 30, 2022. Owned Resort
EBITDA Margin was positively impacted by 160 basis points due to a
decline in utilities expenses and energy prices compared to the
three months ended September 30,
2022.
Playa Hotels
& Resorts N.V.
Reportable Segment Operating
Statistics - Nine Months Ended September 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
|
78.1 %
|
74.6 %
|
3.5 pts
|
$
446.69
|
$
410.94
|
8.7 %
|
$
348.89
|
$
306.76
|
13.7 %
|
$ 228,777
|
$ 204,200
|
12.0 %
|
$ 79,107
|
$
77,049
|
2.7 %
|
34.6 %
|
37.7 %
|
(3.1)pts
|
Pacific Coast
|
926
|
71.8 %
|
71.4 %
|
0.4 pts
|
$
523.16
|
$
453.76
|
15.3 %
|
$
375.80
|
$
324.18
|
15.9 %
|
107,527
|
92,901
|
15.7 %
|
40,353
|
36,966
|
9.2 %
|
37.5 %
|
39.8 %
|
(2.3)pts
|
Dominican Republic
|
2,644
|
61.4 %
|
74.2 %
|
(12.8)pts
|
$
371.51
|
$
301.15
|
23.4 %
|
$
228.21
|
$
223.34
|
2.2 %
|
191,038
|
189,714
|
0.7 %
|
61,501
|
63,138
|
(2.6) %
|
32.2 %
|
33.3 %
|
(1.1)pts
|
Jamaica
|
1,428
|
80.8 %
|
73.1 %
|
7.7 pts
|
$
459.66
|
$
380.64
|
20.8 %
|
$
371.63
|
$
278.35
|
33.5 %
|
170,233
|
131,781
|
29.2 %
|
64,337
|
40,567
|
58.6 %
|
37.8 %
|
30.8 %
|
7.0 pts
|
Total Portfolio
|
7,124
|
71.7 %
|
73.7 %
|
(2.0)pts
|
$
435.67
|
$
369.33
|
18.0 %
|
$
312.16
|
$
272.37
|
14.6 %
|
$ 697,575
|
$ 618,596
|
12.8 %
|
$
245,298
|
$ 217,720
|
12.7 %
|
35.2 %
|
35.2 %
|
— 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
|
78.1 %
|
74.6 %
|
3.5 pts
|
$
446.69
|
$
410.94
|
8.7 %
|
$
348.89
|
$
306.76
|
13.7 %
|
$ 228,777
|
$ 204,200
|
12.0 %
|
$ 79,107
$
|
77,049
|
2.7 %
|
34.6 %
|
37.7 %
|
(3.1)pts
|
Pacific
Coast
|
926
|
71.8 %
|
71.4 %
|
0.4 pts
|
$
523.16
|
$
453.76
|
15.3 %
|
$
375.80
|
$
324.18
|
15.9 %
|
107,527
|
92,901
|
15.7 %
|
40,353
|
36,966
|
9.2 %
|
37.5 %
|
39.8 %
|
(2.3)pts
|
Dominican
Republic
|
620
|
41.5 %
|
78.6 %
|
(37.1)pts
|
$
136.66
|
$
174.45
|
(21.7) %
|
$
56.66
|
$
137.10
|
(58.7) %
|
11,064
|
28,140
|
(60.7) %
|
(6,627)
|
6,463
|
(202.5) %
|
(59.9) %
|
23.0 %
|
(82.9)pts
|
Jamaica
|
1,428
|
80.8 %
|
73.1 %
|
7.7 pts
|
$
459.66
|
$
380.64
|
20.8 %
|
$
371.63
|
$
278.35
|
33.5 %
|
170,233
|
131,781
|
29.2 %
|
64,337
|
40,567
|
58.6 %
|
37.8 %
|
30.8 %
|
7.0 pts
|
Total Comparable
Portfolio
|
5,100
|
73.3 %
|
74.1 %
|
(0.8)pts
|
$
442.99
|
$
379.59
|
16.7 %
|
$
324.62
|
$
281.35
|
15.4 %
|
$ 517,601
|
$ 457,022
|
13.3 %
|
$ 177,170 $
|
161,045
|
10.0 %
|
34.2 %
|
35.2 %
|
(1.0)pts
|
Highlights
Yucatán Peninsula
- Owned Net Revenue for the nine months ended September 30, 2023 increased $24.6 million, or 12.0%, compared to the nine
months ended September 30, 2022. The
increase was due to the following:
- an increase in Occupancy of 3.5 percentage points, driven by an
increase in guests sourced from Mexico and Canada;
- an increase in Net Package ADR of 8.7%, which is partially
driven by a higher MICE group contribution to our guest mix;
and
- an increase in Net Non-package Revenue of $0.1 million, or 0.5%.
- Net Non-package Revenue per sold room decreased 4.0% due to a
decrease of $1.0 million from 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 was flat compared to the nine months ended September 30, 2022.
- Owned Resort EBITDA for the nine months ended
September 30, 2023 increased
$2.1 million, or 2.7%, compared to
the nine months ended September 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 a negative impact of $13.0 million due to the appreciation of the
Mexican Peso as well as increases in labor and related expenses,
which were partially due to union-negotiated and
government-mandated wage and benefit increases, as well as
increases in insurance premiums and utilities expenses compared to
the nine months ended September 30,
2022.
- Owned Resort EBITDA Margin for the nine months ended
September 30, 2023 was 34.6%, a
decrease of 3.1 percentage points compared to the nine months ended
September 30, 2022. Owned Resort
EBITDA Margin was negatively impacted by 570 basis points due to
the appreciation of the Mexican Peso and by 270 basis points due to
increases in labor and related expenses, which were partially due
to union-negotiated and government-mandated wage and benefit
increases compared to the nine months ended September 30, 2022. Excluding the impact from the
appreciation of the Mexican Peso, Owned Resort EBITDA Margin would
have been 40.3%, an increase of 2.6 percentage points compared to
the nine months ended September 30,
2022.
Pacific Coast
- Owned Net Revenue for the nine months ended September 30, 2023 increased $14.6 million, or 15.7%, compared to the nine
months ended September 30, 2022. The
increase was due to the following:
- an increase in Occupancy of 0.4 percentage points, driven by an
increase in guests sourced from Mexico, partially offset by a decrease in
guests sourced from the United
States;
- an increase in Net Package ADR of 15.3%; and
- an increase in Net Non-package Revenue of $1.6 million, or 14.4%.
- Net Non-package Revenue per sold room increased 13.8% 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 21.6% compared to the nine months ended September 30, 2022 as a result of a higher MICE
group contribution to our guest mix.
- Owned Resort EBITDA for the nine months ended
September 30, 2023 increased
$3.4 million, or 9.2%, compared to
the nine months ended September 30,
2022. Owned Resort EBITDA compared to the nine months ended
September 30, 2022 was negatively
impacted by $5.6 million due to the
appreciation of the Mexican Peso, increases in labor and related
expenses, partially due to union-negotiated and government-mandated
wage and benefit increases, and increases in insurance premiums and
energy costs.
- Owned Resort EBITDA Margin for the nine months ended
September 30, 2023 was 37.5%, a
decrease of 2.3 percentage points compared to the nine months ended
September 30, 2022. Owned Resort
EBITDA Margin was negatively impacted by 520 basis points due to
the appreciation of the Mexican Peso and by 280 basis points due to
increases in labor and related expenses, which were partially due
to union-negotiated and government-mandated wage and benefit
increases compared to the nine months ended September 30, 2022. Excluding the impact from the
appreciation of the Mexican Peso, Owned Resort EBITDA Margin would
have been 42.7%, an increase of 2.9 percentage points compared to
the nine months ended September 30,
2022.
Dominican Republic
- Owned Net Revenue for the nine months ended September 30, 2023 increased $1.3 million, or 0.7%, compared to the nine
months ended September 30, 2022. The
increase was due to the following:
- an increase in Net Package ADR of 23.4% which was partially 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 the segment during the nine months ended September 30, 2023. Excluding these resorts, Net
Package ADR increased 17.3%; partially offset by
- a decrease in Occupancy of 12.8 percentage points as a result
of significantly reduced Occupancy at Jewel Punta Cana and Jewel
Palm Beach. Excluding these resorts, Occupancy increased 4.0
percentage points;
- a decrease in Net Non-package Revenue of $2.2 million, or 7.7%, compared to the nine
months ended September 30, 2022.
- Net Non-package Revenue per sold room increased 11.4%, which
includes:
- a decrease as a result of reduced Occupancy at Jewel Punta Cana
and Jewel Palm Beach during the nine months ended September 30, 2023 due to the transition of
management. Excluding these resorts, Net Non-package Revenue
increased 17.4%; 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 the
two Jewel properties, Net Non-package Revenue per sold room
increased 15.9% compared to the nine months ended September 30, 2022, driven by a higher MICE group
contribution to our guest mix.
- Comparable Owned Net Revenue for the nine months ended
September 30, 2023 decreased
$17.1 million due to the transition
of management of the Jewel Punta Cana that resulted in lower
occupancies compared to the nine months ended September 30, 2022.
- Owned Resort EBITDA for the nine months ended
September 30, 2023 decreased
$1.6 million, or 2.6%, compared to
the nine months ended September 30,
2022.
- Excluding Jewel Punta Cana and Jewel Palm Beach, Owned Resort
EBITDA increased $22.0 million
compared to the nine months ended September
30, 2022 due to lower energy prices that were partially
offset by increased insurance premiums. Owned Resort EBITDA
includes a $5.3 million benefit from
business interruption proceeds and recoverable expenses received
during the nine months ended September 30,
2023 related to Hurricane Fiona that impacted the
Dominican Republic in the second
half of 2022. Excluding the aforementioned business interruption
benefit and the drag from the two Jewel properties, Owned Resort
EBITDA increased $16.7 million, or
32.1%, compared to the nine months ended September 30, 2022.
- Owned Resort EBITDA Margin for the nine months ended
September 30, 2023 was 32.2%, a
decrease of 1.1 percentage points compared to the nine months ended
September 30, 2022. Excluding the
aforementioned business interruption benefit and the drag from the
two Jewel properties, Owned Resort EBITDA Margin for the nine
months ended September 30, 2023 was
40.2%, an increase of 2.7 percentage points compared to the nine
months ended September 30, 2022.
Jamaica
- Owned Net Revenue for the nine months ended September 30, 2023 increased $38.5 million, or 29.2%, compared to the nine
months ended September 30, 2022. The
increase was due to the following:
- an increase in Occupancy of 7.7 percentage points, driven by an
increase in guests sourced from the
United States following the ongoing recovery in the
segment;
- an increase in Net Package ADR of 20.8%; and
- an increase in Net Non-package Revenue of $2.1 million, or 9.0%, compared to the nine
months ended September 30, 2022,
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 13.8%, a 3.0% increase per sold room compared to the nine
months ended September 30, 2022,
partially driven by an increase in group sales compared to the nine
months ended September 30, 2022.
- Owned Resort EBITDA for the nine months ended
September 30, 2023 increased
$23.8 million, or 58.6%, compared to
the nine months ended September 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 and a decline
in energy prices, partially offset by increases in insurance
premiums compared to the nine months ended September 30, 2022.
- Owned Resort EBITDA Margin for the nine months ended
September 30, 2023 increased 7.0
percentage points, or 22.7%, compared to the nine months ended
September 30, 2022. Owned Resort
EBITDA Margin was positively impacted by 80 basis points due to a
decline in utilities expenses and energy prices compared to the
nine months ended September 30,
2022.
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SOURCE Playa Management USA,
LLC