FAIRFAX,
Va., Feb. 22, 2024 /PRNewswire/ -- Playa
Hotels & Resorts N.V. (the "Company") (NASDAQ: PLYA) today
announced results of operations for the three months and year ended
December 31, 2023.
Three Months Ended December 31,
2023 Results
- Net Income was $1.0
million compared to a Net Loss of $14.3 million in 2022
- Adjusted Net Income(1) was
$6.0 million compared to $20.6 million in 2022
- Net Package RevPAR increased 13.2% versus 2022 to
$301.47, driven by a 4.8% increase in
Net Package ADR and a 5.5 percentage point increase in
Occupancy
- Owned Resort EBITDA(1)
increased 2.3% versus 2022 to $73.6
million
- Owned Resort EBITDA Margin(1)
decreased 2.9 percentage points versus 2022 to 32.9%,
inclusive of:
- a negative impact of approximately 250 basis points due to the
appreciation of the Mexican Peso; and
- a positive impact of 40 basis points for the three months ended
December 31, 2023 and 360 basis
points for the three months ended December
31, 2022 from business interruption insurance proceeds and
recoverable expenses
- Excluding these impacts, Owned Resort EBITDA Margin would have
been 34.9%, an increase of 2.7 percentage points compared to
2022
- Adjusted EBITDA(1) increased 2.9%
versus 2022 to $60.8 million,
inclusive of:
- a negative impact of approximately $5.6
million due to the appreciation of the Mexican Peso;
and
- a positive impact of $0.9 million
from business interruption insurance proceeds and recoverable
expenses related to the disruption caused by Hurricane Fiona in our
Dominican Republic segment in the
second half of 2022
- Adjusted EBITDA Margin(1) decreased
2.4 percentage points versus 2022 to 26.8%, inclusive of:
- a negative impact of approximately 240 basis points due to the
appreciation of the Mexican Peso; and
- a positive impact of 40 basis points for the three months ended
December 31, 2023 and 350 basis
points for the three months ended December
31, 2022 from business interruption insurance proceeds and
recoverable expenses
- Excluding these impacts, Adjusted EBITDA Margin would have been
28.8%, an increase of 3.2 percentage points compared to 2022
Year Ended December 31, 2023
Results
- Net Income was $53.9
million compared to $56.7
million in 2022
- Adjusted Net Income(1) was
$66.3 million compared to
$83.2 million in 2022
- Net Package RevPAR increased 14.3% versus 2022 to
$309.50, driven by a 14.6% increase
in Net Package ADR, partially offset by a 0.2 percentage point
decrease in Occupancy
- Owned Resort
EBITDA(1) increased 10.1% versus
2022 to $318.9 million
- Owned Resort EBITDA
Margin(1) decreased 0.7 percentage
points versus 2022 to 34.6%, inclusive of:
- a negative impact of approximately 260 basis points due to the
appreciation of the Mexican Peso; and
- a positive impact of 70 basis points for the year ended
December 31, 2023 and 90 basis points
for the year ended December 31, 2022
from business interruption insurance proceeds and recoverable
expenses
- Excluding these impacts, Owned Resort EBITDA Margin would have
been 36.6%, an increase of 2.1 percentage points compared to
2022
- Adjusted EBITDA(1) increased
12.1% versus 2022 to $271.9 million,
inclusive of:
- a negative impact of approximately $24.7 million due to the appreciation of the
Mexican Peso; and
- a positive impact of $6.1 million from business interruption
insurance proceeds and recoverable expenses related to the
disruption caused by Hurricane Fiona in our Dominican Republic segment in the second half
of 2022.
- Adjusted EBITDA
Margin(1) decreased 0.3 percentage
points versus 2022 to 29.1%, inclusive of:
- a negative impact of 260 basis points due to the appreciation
of the Mexican Peso; and
- a positive impact of 70 basis points for the year ended
December 31, 2023 and 80 basis points
for the year ended December 31, 2022
from business interruption insurance proceeds and recoverable
expenses
- Excluding these impacts, Adjusted EBITDA Margin would have been
31.0%, an increase of 2.6 percentage points compared to the year
ended December 31, 2022.
(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.
"The fourth quarter capped off a record year
for Playa. Our fourth quarter results exceeded our expectations, as
demand accelerated through the quarter, with December Occupancy in
the Yucatán and Jamaica exceeding
the December 2018 and 2019 average.
We were effectively able to drive ADR as demand accelerated,
leading to higher than anticipated Adjusted EBITDA for the fourth
quarter. While foreign exchange rate headwinds persisted, our
operations teams continued to improve our efficiency efforts in
procurement and staffing. Excluding the impact of foreign exchange
rates, the Jewel resorts in the Dominican
Republic, business interruption proceeds and other
hurricane-related expenses, fourth quarter Owned Resort EBITDA grew
year-over-year in all of our segments.
The Yucatán segment led the way on Occupancy
in the fourth quarter and was able to expand margins by
approximately 100 basis points year-over-year on a currency neutral
basis despite ongoing inflationary pressure and normalizing ADR
growth. Our legacy Dominican
Republic resorts continue to be the preeminent leaders in
the market, delivering double digit underlying Owned Resort EBITDA
growth, adjusted for hurricane-related impacts on the financials,
in the fourth quarter.
The high season momentum has carried into
2024, with our pacing remaining steady as we begin the new year
driven by strength in MICE groups. For FY 2024, we are anticipating
Adjusted EBITDA to be $250-275
million with continued growth in ADR and Occupancy year-over-year
but we expect ongoing headwinds from foreign exchange rates as well
as higher construction disruption related to our renovation work we
began in 2023. With our net leverage at a modest 3x and our
expectation of continuing to generate a meaningful amount of free
cash flow in 2024, we remain committed to returning cash to
shareholders via share repurchases while pursuing growth
opportunities within our footprint."
– Bruce D.
Wardinski, Chairman and CEO of Playa Hotels &
Resorts
Financial and Operating Results
The following table sets forth information with respect to the
operating results of our total portfolio and comparable portfolio
for the three months and years ended December 31, 2023 and 2022 ($ in
thousands):
Total Portfolio
|
Three Months Ended
December 31,
|
|
|
|
Year Ended December
31,
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
Occupancy
|
72.9 %
|
|
67.4 %
|
|
5.5 pts
|
|
72.0 %
|
|
72.2 %
|
|
(0.2) pts
|
Net Package ADR
(1)
|
$
413.66
|
|
$
394.77
|
|
4.8 %
|
|
$
430.12
|
|
$
375.33
|
|
14.6 %
|
Net Package
RevPAR
|
$
301.47
|
|
$
266.27
|
|
13.2 %
|
|
$
309.50
|
|
$
270.83
|
|
14.3 %
|
Total Net Revenue
(2)
|
$
227,147
|
|
$
202,581
|
|
12.1 %
|
|
$
934,444
|
|
$
826,241
|
|
13.1 %
|
Owned Net Revenue
(3)
|
$
223,869
|
|
$
201,065
|
|
11.3 %
|
|
$
921,444
|
|
$
819,661
|
|
12.4 %
|
Owned Resort EBITDA
(4)
|
$
73,630
|
|
$
71,977
|
|
2.3 %
|
|
$
318,928
|
|
$
289,697
|
|
10.1 %
|
Owned Resort EBITDA
Margin
|
32.9 %
|
|
35.8 %
|
|
(2.9) pts
|
|
34.6 %
|
|
35.3 %
|
|
(0.7) pts
|
Other
corporate
|
$
15,452
|
|
$
14,062
|
|
9.9 %
|
|
$
57,653
|
|
$
52,658
|
|
9.5 %
|
The Playa Collection
Revenue
|
$
1,037
|
|
541
|
|
91.7 %
|
|
$
3,642
|
|
1,752
|
|
107.9 %
|
Management Fee
Revenue
|
1,610
|
|
$
642
|
|
150.8 %
|
|
7,030
|
|
$
3,828
|
|
83.6 %
|
Adjusted
EBITDA
|
$
60,825
|
|
$
59,098
|
|
2.9 %
|
|
$
271,947
|
|
$
242,619
|
|
12.1 %
|
Adjusted EBITDA
Margin
|
26.8 %
|
|
29.2 %
|
|
(2.4) pts
|
|
29.1 %
|
|
29.4 %
|
|
(0.3) pts
|
Comparable
Portfolio (5)
|
Three Months Ended
December 31,
|
|
|
|
Year Ended December
31,
|
|
|
|
2023
|
|
2022
|
|
Change
|
|
2023
|
|
2022
|
|
Change
|
Occupancy
|
75.6 %
|
|
77.7 %
|
|
(2.1) pts
|
|
77.6 %
|
|
74.5 %
|
|
3.1 pts
|
Net Package
ADR
|
$
418.10
|
|
$
405.33
|
|
3.2 %
|
|
$
459.81
|
|
$
415.86
|
|
10.6 %
|
Net Package
RevPAR
|
$
316.25
|
|
$
315.11
|
|
0.4 %
|
|
$
356.65
|
|
$
310.02
|
|
15.0 %
|
Total Net Revenue
(2)
|
$
169,457
|
|
$
168,251
|
|
0.7 %
|
|
$
680,744
|
|
$
595,269
|
|
14.4 %
|
Owned Net Revenue
(3)
|
$
166,179
|
|
$
166,735
|
|
(0.3) %
|
|
$
667,744
|
|
$
588,689
|
|
13.4 %
|
Owned Resort
EBITDA
|
$
54,127
|
|
$
58,847
|
|
(8.0) %
|
|
$
238,850
|
|
$
212,843
|
|
12.2 %
|
Owned Resort EBITDA
Margin
|
32.6 %
|
|
35.3 %
|
|
(2.7) pts
|
|
35.8 %
|
|
36.2 %
|
|
(0.4) pts
|
Other
corporate
|
$
15,452
|
|
$
14,062
|
|
9.9 %
|
|
$
57,653
|
|
$
52,658
|
|
9.5 %
|
The Playa Collection
Revenue
|
$
1,037
|
|
541
|
|
91.7 %
|
|
3,642
|
|
1,752
|
|
107.9 %
|
Management Fee
Revenue
|
$
1,610
|
|
$
642
|
|
150.8 %
|
|
$
7,030
|
|
$
3,828
|
|
83.6 %
|
Adjusted
EBITDA
|
$
41,322
|
|
$
45,968
|
|
(10.1) %
|
|
$
191,869
|
|
$
165,765
|
|
15.7 %
|
Adjusted EBITDA
Margin
|
24.4 %
|
|
27.3 %
|
|
(2.9) pts
|
|
28.2 %
|
|
27.8 %
|
|
0.4 pts
|
(1) For the three months and year ended December 31, 2022, Net Package ADR includes
$2.3 million and $10.1 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) Owned Resort EBITDA for the years ended
December 31, 2023 and 2022 includes
$6.1 million and $7.2 million, respectively, of business
interruption insurance proceeds and recoverable expenses due to the
impact of Hurricane Fiona in 2022.
(5) For the three months ended December 31, 2023, our comparable portfolio
excludes the Jewel Punta Cana, which was sold in December 2023, the Hilton La Romana All-Inclusive
Resort and Hyatt Ziva and Hyatt
Zilara Cap Cana, which were closed for a portion of the third and
fourth quarters of 2022 for necessary clean up and repair work as a
result of Hurricane Fiona. For the year ended December 31, 2023, the comparable portfolio also
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.
Balance Sheet
As of December 31, 2023, the Company held $272.5 million in cash and cash equivalents, with
no restricted cash. Total interest-bearing debt was $1,089.0 million, comprised of our Term Loan due
2029. As of December 31, 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. On December 22, 2023, we
entered into the First Amendment to our Second Amended and Restated
Credit Agreement (the "First Amendment") to decrease the interest
rate applicable to the Term Loan due 2029 by 0.75% or 1.00% to, at
our option, either a base rate plus a margin of either 2.25% to
2.50% or SOFR plus a margin of either 3.25% or 3.50%, in each case,
depending on the level of our consolidated net leverage ratio in
effect from time to time. All other terms of our Credit Facility
remain in effect.
Earnings Call
The Company will host a conference call to discuss its fourth
quarter and annual results on Friday,
February 23, 2024 at 8:30 a.m.
(Eastern Standard 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 4865148. Additionally, interested
parties may listen to a taped replay of the entire conference call
commencing two hours after the call's completion on Friday, February 23, 2024. This replay will run
through Friday, March 1, 2024. 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:
6105801. 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 December 31, 2023, Playa
owned and/or managed a total portfolio consisting of 24 resorts
(9,027 rooms) located in Mexico,
Jamaica, and the Dominican Republic. In Mexico, we own and manage 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, we own
and manage 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, we own and manage the Hilton La Romana
All-Inclusive Family Resort, the Hilton La Romana All-Inclusive
Adult Resort, Hyatt Zilara Cap Cana, Hyatt
Ziva Cap Cana and Jewel Palm Beach. We also manage seven
resorts on behalf of third-party owners. Playa's strategy is to
leverage our 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 Playa's 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," "optimistic," 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 22,
2024, as such factors may be updated from time to time in Playa's
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 Playa's good
faith beliefs, they are not guarantees of future performance. Playa
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 Playa (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 room 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 months and
years ended December 31, 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 certain 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.
Contract termination fees, which are recorded as Other revenues,
are also excluded from Total Net Revenue as they are not an
indicator of the performance of our ongoing business.
The following table shows a reconciliation of Total Net Revenue,
Net Package Revenue, Net Non-Package Revenue, Management Fee
Revenue and Total Net Revenue to total revenue for the three months
and years ended December 31, 2023 and
2022 ($ in thousands):
Total Portfolio
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net Package
Revenue
|
|
|
|
|
|
|
|
Comparable Net Package
Revenue
|
$
144,895
|
|
$
144,371
|
|
$
583,198
|
|
$
506,947
|
Non-comparable Net
Package Revenue
|
49,514
|
|
30,143
|
|
218,309
|
|
197,283
|
Net Package
Revenue
|
194,409
|
|
174,514
|
|
801,507
|
|
704,230
|
|
|
|
|
|
|
|
|
Net Non-package
Revenue
|
|
|
|
|
|
|
|
Comparable Net
Non-package Revenue
|
21,284
|
|
22,364
|
|
84,546
|
|
81,742
|
Non-comparable Net
Non-package Revenue
|
8,176
|
|
4,187
|
|
35,391
|
|
33,689
|
Net Non-package
Revenue
|
29,460
|
|
26,551
|
|
119,937
|
|
115,431
|
|
|
|
|
|
|
|
|
The Playa Collection
Revenue
|
1,037
|
|
541
|
|
3,642
|
|
1,752
|
Management Fee
Revenue
|
1,610
|
|
642
|
|
7,030
|
|
3,828
|
Other
Revenues
|
631
|
|
333
|
|
2,328
|
|
1,000
|
|
|
|
|
|
|
|
|
Total Net
Revenue
|
|
|
|
|
|
|
|
Comparable Total Net
Revenue
|
169,457
|
|
168,251
|
|
680,744
|
|
595,269
|
Non-comparable Total
Net Revenue
|
57,690
|
|
34,330
|
|
253,700
|
|
230,972
|
Total Net
Revenue
|
227,147
|
|
202,581
|
|
934,444
|
|
826,241
|
Compulsory
tips
|
5,737
|
|
5,381
|
|
24,100
|
|
20,316
|
Cost
Reimbursements
|
3,148
|
|
2,838
|
|
12,475
|
|
9,706
|
Contract termination
fees
|
6,485
|
|
—
|
|
6,485
|
|
—
|
Total
revenue
|
$
242,517
|
|
$
210,800
|
|
$
977,504
|
|
$
856,263
|
For the three months ended December 31,
2023, our comparable portfolio excludes the Jewel Punta
Cana, which was sold in December
2023, the Hilton La Romana All-Inclusive Resort and
Hyatt Ziva and Hyatt Zilara Cap
Cana, which were closed for a portion of the third and fourth
quarters of 2022 for necessary clean up and repair work as a result
of Hurricane Fiona. For the year ended December 31, 2023, the comparable portfolio also
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.
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
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 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 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" is a non-GAAP performance measure. We
define Adjusted Net Income as net income attributable to Playa
Hotels & Resorts, 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 debt
extinguishment and transaction expenses.
Adjusted Net Income is not a substitute for 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 Net Income. For example, other companies in our
industry may define Adjusted Net Income differently than we do. As
a result, it may be difficult to use Adjusted Net Income 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 and other limitations, Adjusted
Net Income 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 in this release.
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, Net
Package ADR and Net Package RevPAR 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.
For the three months ended December 31,
2023, our comparable portfolio excludes the Jewel Punta
Cana, which was sold in December
2023, the Hilton La Romana All-Inclusive Resort and
Hyatt Ziva and Hyatt Zilara Cap
Cana, which were closed for a portion of the third and fourth
quarters of 2022 for necessary clean up and repair work as a result
of Hurricane Fiona. For the year ended December 31, 2023, the comparable portfolio also
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.
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 and Owned Resort EBITDA for the three months and years ended
December 31, 2023 and 2022:
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
(loss)
|
$
1,004
|
|
$
(14,337)
|
|
$
53,852
|
|
$
56,706
|
Interest
expense
|
25,847
|
|
24,272
|
|
108,184
|
|
64,164
|
Income tax provision
(benefit)
|
6,874
|
|
(8,721)
|
|
11,714
|
|
(5,553)
|
Depreciation and
amortization
|
20,772
|
|
19,742
|
|
81,827
|
|
78,372
|
EBITDA
|
$
54,497
|
|
$
20,956
|
|
$
255,577
|
|
$
193,689
|
Other expense (income)
(a)
|
32
|
|
3,993
|
|
353
|
|
(3,857)
|
Share-based
compensation
|
3,256
|
|
2,849
|
|
13,207
|
|
11,892
|
Transaction expense
(b)
|
2,598
|
|
13,726
|
|
4,705
|
|
15,110
|
Severance expense
(c)
|
1,655
|
|
—
|
|
1,655
|
|
—
|
Other tax (income)
expense (d)
|
(34)
|
|
502
|
|
(34)
|
|
502
|
Contract termination
fees
|
(6,485)
|
|
—
|
|
(6,485)
|
|
—
|
Loss on extinguishment
of debt
|
894
|
|
18,307
|
|
894
|
|
18,307
|
Repairs from
hurricanes and tropical storms (e)
|
(8)
|
|
(776)
|
|
(823)
|
|
8,074
|
Loss (gain) on sale of
assets
|
5,052
|
|
(5)
|
|
5,069
|
|
6
|
Non-service cost
components of net periodic pension cost
|
(632)
|
|
(454)
|
|
(2,171)
|
|
(1,104)
|
Adjusted
EBITDA
|
60,825
|
|
59,098
|
|
271,947
|
|
242,619
|
Other corporate
(f)(g)
|
15,452
|
|
14,062
|
|
57,653
|
|
52,658
|
The Playa Collection
Revenue
|
(1,037)
|
|
(541)
|
|
(3,642)
|
|
(1,752)
|
Management Fee
Revenue
|
(1,610)
|
|
(642)
|
|
(7,030)
|
|
(3,828)
|
Owned Resort
EBITDA(h)
|
73,630
|
|
71,977
|
|
318,928
|
|
289,697
|
Less: Non-comparable
Owned Resort EBITDA (i)
|
19,503
|
|
13,130
|
|
80,078
|
|
76,854
|
Comparable Owned
Resort EBITDA
|
$
54,127
|
|
$
58,847
|
|
$
238,850
|
|
$
212,843
|
(a) Represents changes in foreign exchange rates 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, like the launch of a new resort or possible expansion
into new markets. For the three months and year ended December 31, 2022, our transaction expenses
included $12.9 million of costs
specifically related to our debt refinancing in December 2022.
(c) Includes severance expenses for employee
terminations resulting from non-recurring or unusual events, such
as the departure of an executive officer or the disposition of a
resort. It does not include severance expenses for employee
terminations resulting from our ongoing resort operations. For the
year ended December 31, 2023, represents severance expenses for
terminated employees related to the sale of the Jewel Punta
Cana.
(d) Relates primarily to a Dominican Republic asset tax, which is an
alternative tax that is similar to income tax in the Dominican Republic. We eliminate this expense
from Adjusted EBITDA because it is similar to the income tax
provision or benefit we eliminate from our calculation of
EBITDA.
(e) 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 months and year ended December 31, 2023, represents changes in the
expected repair and clean-up expenses for the Jewel Punta Cana
related to the impact of Hurricane Fiona.
(f) For the three months ended December 31, 2023 and 2022, represents corporate
salaries and benefits of $10.1
million for 2023 and $9.2
million for 2022, professional fees of $3.5 million for 2023 and $2.8 million for 2022, corporate rent and
insurance of $1.0 million for 2023
and $0.9 million for 2022, and
corporate travel, software licenses, board fees and other
miscellaneous corporate expenses of $0.9
million for 2023 and $1.1
million for 2022.
(g) For the years ended December 31, 2023 and 2022, represents corporate
salaries and benefits of $40.1
million for 2023 and $35.9
million for 2022, professional fees of $9.7 million for 2023 and $9.1 million for 2022, corporate rent and
insurance of $3.9 million for 2023
and $3.9 million for 2022, and
corporate travel, software licenses, board fees and other
miscellaneous corporate expenses of $4.0
million for 2023 and $3.8
million for 2022.
(h) Owned Resort EBITDA for the three months ended
December 31, 2023 and 2022 includes
$0.9 million and $7.2 million, respectively, and for the years
ended December 31, 2023 and 2022
includes $6.1 million and
$7.2 million, respectively, of
business interruption insurance proceeds and recoverable expenses
due to the impact of Hurricane Fiona in 2022.
(i) For the three months ended December 31, 2023, our comparable portfolio
excludes the Jewel Punta Cana, which was sold in December 2023, the Hilton La Romana All-Inclusive
Resort and Hyatt Ziva and Hyatt
Zilara Cap Cana, which were closed for a portion of the third and
fourth quarters of 2022 for necessary clean up and repair work as a
result of Hurricane Fiona. For the year ended December 31, 2023, the comparable portfolio also
excludes the Jewel Palm Beach, which was closed for a majority of
the first quarter of 2023 as we transitioned the management of the
resort to us from a third-party.
Playa Hotels &
Resorts N.V.
|
Reconciliation of
Net Income to Adjusted Net Income
|
($ in
thousands)
|
|
The following table
reconciles our U.S. GAAP net income to Adjusted Net Income for the
three months and years ended December 31, 2023 and 2022:
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Net income
(loss)
|
$
1,004
|
|
$
(14,337)
|
|
$
53,852
|
|
$
56,706
|
Reconciling
items
|
|
|
|
|
|
|
|
Transaction
expense
|
2,598
|
|
13,726
|
|
4,705
|
|
15,110
|
Loss on extinguishment
of debt
|
894
|
|
18,307
|
|
894
|
|
18,307
|
Change in fair value
of interest rate swaps (a)
|
—
|
|
4,490
|
|
6,335
|
|
(14,187)
|
Repairs from
hurricanes and tropical storms
|
(8)
|
|
(776)
|
|
(823)
|
|
8,074
|
Severance
expense
|
1,655
|
|
—
|
|
1,655
|
|
—
|
Total reconciling
items before tax
|
5,139
|
|
35,747
|
|
12,766
|
|
27,304
|
Income tax provision
for reconciling items
|
(95)
|
|
(825)
|
|
(283)
|
|
(825)
|
Total reconciling
items after tax
|
5,044
|
|
34,922
|
|
12,483
|
|
26,479
|
Adjusted Net
Income
|
$
6,048
|
|
$
20,585
|
|
$
66,335
|
|
$
83,185
|
(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 Consolidated Statements
of Operations.
The following table presents the impact of Adjusted Net Income
on diluted earnings (loss) per share for the three months and years
ended December 31, 2023 and 2022:
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Adjusted Net
Income
|
$
6,048
|
|
$
20,585
|
|
$
66,335
|
|
$
83,185
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share - Diluted
|
$
0.01
|
|
$
(0.09)
|
|
$
0.36
|
|
$
0.34
|
Total reconciling
items impact per diluted share
|
0.03
|
|
0.22
|
|
0.08
|
|
0.16
|
Adjusted earnings
per share - Diluted
|
$
0.04
|
|
$
0.13
|
|
$
0.44
|
|
$
0.50
|
Playa Hotels &
Resorts N.V.
|
Consolidated Balance
Sheets
|
($ in thousands,
except share data)
|
|
|
As of December
31,
|
|
2023
|
|
2022
|
ASSETS
|
|
|
|
Cash and cash
equivalents
|
$
272,520
|
|
$
283,945
|
Trade and other
receivables, net
|
74,762
|
|
62,946
|
Insurance
recoverable
|
9,821
|
|
34,191
|
Accounts receivable
from related parties
|
5,861
|
|
8,806
|
Inventories
|
19,963
|
|
20,046
|
Prepayments and other
assets
|
54,294
|
|
44,177
|
Property and equipment,
net
|
1,415,572
|
|
1,536,567
|
Derivative financial
instruments
|
2,966
|
|
3,510
|
Goodwill,
net
|
60,642
|
|
61,654
|
Other intangible
assets
|
4,357
|
|
6,556
|
Deferred tax
assets
|
12,967
|
|
7,422
|
Total
assets
|
$
1,933,725
|
|
$
2,069,820
|
LIABILITIES AND
SHAREHOLDERS' EQUITY
|
|
|
|
Trade and other
payables
|
$
196,432
|
|
$
231,652
|
Payables to related
parties
|
10,743
|
|
6,852
|
Income tax
payable
|
11,592
|
|
990
|
Debt
|
1,061,376
|
|
1,065,453
|
Other
liabilities
|
33,970
|
|
30,685
|
Deferred tax
liabilities
|
64,815
|
|
69,326
|
Total
liabilities
|
1,378,928
|
|
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 136,081,891 shares outstanding as of December 31,
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, 33,342,089 shares as of December 31, 2023 and 10,046,996
shares as of December 31, 2022)
|
(248,174)
|
|
(62,953)
|
Paid-in
capital
|
1,202,175
|
|
1,189,090
|
Accumulated other
comprehensive income (loss)
|
1,112
|
|
(6,985)
|
Accumulated
deficit
|
(419,138)
|
|
(472,990)
|
Total shareholders'
equity
|
554,797
|
|
664,862
|
Total liabilities
and shareholders' equity
|
$
1,933,725
|
|
$
2,069,820
|
Playa Hotels &
Resorts N.V.
|
Consolidated
Statements of Operations
|
($ in thousands,
except share data)
|
|
|
Three Months Ended
December 31,
|
|
Year Ended December
31,
|
|
2023
|
|
2022
|
|
2023
|
|
2022
|
Revenue
|
|
|
|
|
|
|
|
Package
|
$
199,773
|
|
$
179,637
|
|
$
824,122
|
|
$
723,375
|
Non-package
|
29,833
|
|
26,809
|
|
121,422
|
|
116,602
|
The Playa
Collection
|
1,037
|
|
541
|
|
3,642
|
|
1,752
|
Management
fees
|
1,610
|
|
642
|
|
7,030
|
|
3,828
|
Cost
reimbursements
|
3,148
|
|
2,838
|
|
12,475
|
|
9,706
|
Other
revenues
|
7,116
|
|
333
|
|
8,813
|
|
1,000
|
Total
revenue
|
242,517
|
|
210,800
|
|
977,504
|
|
856,263
|
Direct and selling,
general and administrative expenses
|
|
|
|
|
|
|
|
Direct
|
128,519
|
|
115,732
|
|
516,449
|
|
459,030
|
Selling, general and
administrative
|
51,255
|
|
56,205
|
|
192,822
|
|
186,608
|
Depreciation and
amortization
|
20,772
|
|
19,742
|
|
81,827
|
|
78,372
|
Reimbursed
costs
|
3,148
|
|
2,838
|
|
12,475
|
|
9,706
|
Loss (gain) on sale of
assets
|
5,052
|
|
(5)
|
|
5,069
|
|
6
|
Gain on insurance
proceeds
|
(867)
|
|
—
|
|
(5,580)
|
|
—
|
Business interruption
insurance recoveries
|
(13)
|
|
(7,226)
|
|
(555)
|
|
(7,226)
|
Direct and selling,
general and administrative expenses
|
207,866
|
|
187,286
|
|
802,507
|
|
726,496
|
Operating
income
|
34,651
|
|
23,514
|
|
174,997
|
|
129,767
|
Interest
expense
|
(25,847)
|
|
(24,272)
|
|
(108,184)
|
|
(64,164)
|
Loss on extinguishment
of debt
|
(894)
|
|
(18,307)
|
|
(894)
|
|
(18,307)
|
Other (expense)
income
|
(32)
|
|
(3,993)
|
|
(353)
|
|
3,857
|
Net income (loss)
before tax
|
7,878
|
|
(23,058)
|
|
65,566
|
|
51,153
|
Income tax (provision)
benefit
|
(6,874)
|
|
8,721
|
|
(11,714)
|
|
5,553
|
Net income
(loss)
|
$
1,004
|
|
$
(14,337)
|
|
$
53,852
|
|
$
56,706
|
|
|
|
|
|
|
|
|
Earnings (loss) per
share
|
|
|
|
|
|
|
|
Basic
|
$
0.01
|
|
$
(0.09)
|
|
$
0.36
|
|
$
0.34
|
Diluted
|
$
0.01
|
|
$
(0.09)
|
|
$
0.36
|
|
$
0.34
|
Weighted average number
of shares outstanding during the period - Basic
|
137,757,679
|
|
161,546,492
|
|
148,063,358
|
|
164,782,886
|
Weighted average number
of shares outstanding during the period - Diluted
|
140,477,293
|
|
161,546,492
|
|
150,309,674
|
|
166,077,802
|
Playa Hotels &
Resorts N.V.
|
Consolidated Debt
Summary - As of December 31, 2023
|
($ in
millions)
|
|
|
|
Maturity
|
|
|
|
Applicable
Rate
|
|
LTM Cash
Interest (6)
|
Debt
|
|
Date
|
|
# of
Years
|
|
Balance
|
|
|
Revolving Credit
Facility (1)
|
|
Jan-28
|
|
4.0
|
|
$
—
|
|
— %
|
|
$
1.0
|
Term Loan
(2)(3)
|
|
Jan-29
|
|
5.0
|
|
1,089.0
|
|
8.59 %
|
|
96.2
|
Total debt
(4)
|
|
|
|
|
|
$
1,089.0
|
|
8.59 %
|
|
$
97.2
|
Less: cash and cash
equivalents (5)
|
|
|
|
|
|
(272.5)
|
|
|
|
|
Net
debt
|
|
|
|
|
|
$
816.5
|
|
|
|
|
(1) Undrawn balances bear interest between 0.25% and
0.50% depending on certain leverage ratios. We had $225.0 million available as of December 31, 2023 and 2022.
(2) Our Term Loan currently incurs interest based on
SOFR + 325 bps (where SOFR is subject to a 0.50% floor). The
effective interest rate was 8.59% as of December 31, 2023.
(3) Effective April 15, 2023,
we entered into two interest rate swaps to mitigate the floating
interest rate risk on out 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 $26.5
million of unamortized discounts, $6.4 million of unamortized deferred financing
costs, and a $5.2 million financing
lease obligation as of December 31,
2023.
(5) Represents cash balances on hand as of
December 31, 2023.
(6) Represents last twelve months' cash paid for
interest on the outstanding balance of our Term Loan and commitment
fees on the unused balance of our Revolving Credit Facility. The
impact of amortization of deferred financing costs and discounts,
capitalized interest, and the change in fair market value of our
prior LIBOR-based interest rate swaps is excluded.
Playa Hotels &
Resorts N.V.
|
Reportable Segment
Operating Statistics - Three Months Ended December 31, 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
|
|
83.7 %
|
81.2 %
|
2.5 pts
|
|
$
421.94
|
$
420.41
|
0.4 %
|
|
$
353.24
|
$
341.54
|
3.4 %
|
|
$
77,482
|
$
75,961
|
2.0 %
|
|
$
25,734
|
$
28,367
|
(9.3) %
|
|
33.2 %
|
37.3 %
|
(4.1) pts
|
Pacific
Coast
|
926
|
|
65.5 %
|
73.4 %
|
(7.9) pts
|
|
522.20
|
496.15
|
5.3 %
|
|
341.82
|
363.93
|
(6.1) %
|
|
34,055
|
35,309
|
(3.6) %
|
|
13,156
|
14,182
|
(7.2) %
|
|
38.6 %
|
40.2 %
|
(1.6) pts
|
Dominican Republic
(1)
|
2,529
|
|
65.2 %
|
50.1 %
|
15.1 pts
|
|
353.15
|
295.77
|
19.4 %
|
|
230.27
|
148.31
|
55.3 %
|
|
62,662
|
41,258
|
51.9 %
|
|
18,577
|
13,716
|
35.4 %
|
|
29.6 %
|
33.2 %
|
(3.6) pts
|
Jamaica
|
1,428
|
|
75.2 %
|
75.1 %
|
0.1 pts
|
|
431.59
|
411.63
|
4.8 %
|
|
324.35
|
309.27
|
4.9 %
|
|
49,670
|
48,537
|
2.3 %
|
|
16,163
|
15,712
|
2.9 %
|
|
32.5 %
|
32.4 %
|
0.1 pts
|
Total
Portfolio
|
7,009
|
|
72.9 %
|
67.4 %
|
5.5 pts
|
|
$
413.66
|
$
394.77
|
4.8 %
|
|
$
301.47
|
$
266.27
|
13.2 %
|
|
$
223,869
|
$
201,065
|
11.3 %
|
|
$
73,630
|
$
71,977
|
2.3 %
|
|
32.9 %
|
35.8 %
|
(2.9) pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Owned Net Revenue for the three months ended
December 31, 2022 includes a
$2.1 million adjustment due to a
reduction in accrued non-income based taxes and gratuities based on
a change in the expected Advanced Pricing Agreements ("APA") rates
for our Dominican Republic
entities. Without this adjustment, Owned Net Revenue for the three
months ended December 31, 2023 would
have increased $23.6 million, or
60.2%, Net Package ADR would have increased $74.98, or 27.0%, Owned Resort EBITDA would have
increased $7.0 million, or 60.6%, and
Owned Resort EBITDA margin would have been flat compared to the
three months ended December 31,
2022.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
Net Package
ADR
|
|
Net Package
RevPAR
|
|
Owned Net
Revenue
|
|
Owned Resort
EBITDA
|
|
Owned Resort
EBITDA
Margin
|
Comparable
Portfolio (1)
|
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
|
|
83.7 %
|
81.2 %
|
2.5 pts
|
|
$
421.94
|
$
420.41
|
0.4 %
|
|
$
353.24
|
$
341.54
|
3.4 %
|
|
$
77,482
|
$
75,961
|
2.0 %
|
|
$
25,734
|
$
28,367
|
(9.3) %
|
|
33.2 %
|
37.3 %
|
(4.1) pts
|
Pacific
Coast
|
926
|
|
65.5 %
|
73.4 %
|
(7.9) pts
|
|
522.20
|
496.15
|
5.3 %
|
|
341.82
|
363.93
|
(6.1) %
|
|
34,055
|
35,309
|
(3.6) %
|
|
13,156
|
14,182
|
(7.2) %
|
|
38.6 %
|
40.2 %
|
(1.6) pts
|
Dominican
Republic
|
500
|
|
61.6 %
|
78.4 %
|
(16.8) pts
|
|
143.81
|
164.44
|
(12.5) %
|
|
88.53
|
129.00
|
(31.4) %
|
|
4,972
|
6,928
|
(28.2) %
|
|
(926)
|
586
|
(258.0) %
|
|
(18.6) %
|
8.5 %
|
(27.1) pts
|
Jamaica
|
1,428
|
|
75.2 %
|
75.1 %
|
0.1 pts
|
|
431.59
|
411.63
|
4.8 %
|
|
324.35
|
309.27
|
4.9 %
|
|
49,670
|
48,537
|
2.3 %
|
|
16,163
|
15,712
|
2.9 %
|
|
32.5 %
|
32.4 %
|
0.1 pts
|
Total Comparable
Portfolio
|
4,980
|
|
75.6 %
|
77.7 %
|
(2.1) pts
|
|
$
418.10
|
$
405.33
|
3.2 %
|
|
$
316.25
|
$
315.11
|
0.4 %
|
|
$
166,179
|
$
166,735
|
(0.3) %
|
|
$
54,127
|
$
58,847
|
(8.0) %
|
|
32.6 %
|
35.3 %
|
(2.7) pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Comparable portfolio for the three months ended
December 31, 2023 excludes the
following resorts: Hilton La Romana All-Inclusive Resort and
Hyatt Ziva and Hyatt Zilara Cap
Cana, which were closed for a portion of the third and fourth
quarters of 2022 for necessary clean up and repair work as a result
of Hurricane Fiona, and Jewel Punta Cana, which was sold in
December 2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
Net Package
ADR
|
|
Net Package
RevPAR
|
|
Owned Net
Revenue
|
|
Owned Resort
EBITDA
|
|
Owned Resort
EBITDA
Margin
|
Excluding DR
Jewels (1)
|
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
|
|
83.7 %
|
81.2 %
|
2.5 pts
|
|
$
421.94
|
$
420.41
|
0.4 %
|
|
$
353.24
|
$
341.54
|
3.4 %
|
|
$
77,482
|
$
75,961
|
2.0 %
|
|
$
25,734
|
$
28,367
|
(9.3) %
|
|
33.2 %
|
37.3 %
|
(4.1) pts
|
Pacific
Coast
|
926
|
|
65.5 %
|
73.4 %
|
(7.9) pts
|
|
522.20
|
496.15
|
5.3 %
|
|
341.82
|
363.93
|
(6.1) %
|
|
34,055
|
35,309
|
(3.6) %
|
|
13,156
|
14,182
|
(7.2) %
|
|
38.6 %
|
40.2 %
|
(1.6) pts
|
Dominican
Republic
|
1,524
|
|
71.7 %
|
36.9 %
|
34.8 pts
|
|
463.78
|
494.47
|
(6.2) %
|
|
332.32
|
182.60
|
82.0 %
|
|
54,182
|
28,778
|
88.3 %
|
|
21,427
|
12,845
|
66.8 %
|
|
39.5 %
|
44.6 %
|
(5.1) pts
|
Jamaica
|
1,428
|
|
75.2 %
|
75.1 %
|
0.1 pts
|
|
431.59
|
411.63
|
4.8 %
|
|
324.35
|
309.27
|
4.9 %
|
|
49,670
|
48,537
|
2.3 %
|
|
16,163
|
15,712
|
2.9 %
|
|
32.5 %
|
32.4 %
|
0.1 pts
|
Total Portfolio
Excluding DR Jewels
|
6,004
|
|
75.8 %
|
67.3 %
|
8.5 pts
|
|
$
447.61
|
$
441.12
|
1.5 %
|
|
$
339.30
|
$
296.97
|
14.3 %
|
|
$
215,389
|
$
188,585
|
14.2 %
|
|
$
76,480
|
$
71,106
|
7.6 %
|
|
35.5 %
|
37.7 %
|
(2.2) pts
|
(1) Portfolio for the three months ended December 31, 2023 excludes the following resorts:
Jewel Punta Cana, which was sold in December
2023, and Jewel Palm Beach.
Highlights
Yucatán Peninsula
- Owned Net Revenue for the three months ended
December 31, 2023 increased
$1.5 million, or 2.0%, compared to
the three months ended December 31,
2022. The increase was driven by:
- an increase in Occupancy of 2.5 percentage points compared
to the three months ended December 31,
2022;
- an increase in Net Package ADR of 0.4%; partially offset
by
- a decrease in Net Non-package Revenue of $0.8 million.
- Net Non-package Revenue per sold room decreased 11.1%,
partially as a result of a lower meetings, incentives, conventions
and events ("MICE") group contribution to our guest mix.
- Owned Resort EBITDA for the three months ended
December 31, 2023 decreased
$2.6 million, or 9.3%, compared to
the three months ended December 31,
2022. The decrease was driven by:
- an unfavorable impact of $4.0 million due to the
appreciation of the Mexican Peso;
- an increase in labor and related expenses, which were partially
due to union-negotiated and government-mandated wage benefit
increases; and
- an increase in insurance premiums.
- Owned Resort EBITDA Margin for the three months ended
December 31, 2023 was 33.2%, a
decrease of 4.1 percentage points compared to the three months
ended December 31, 2022. Owned Resort
EBITDA Margin was negatively impacted by 510 basis points due to
the appreciation of the Mexican Peso and by 30 basis points due to
increases in labor and related expenses, excluding the
aforementioned impact due to the change in exchange rates.
Excluding the impact from the appreciation of the Mexican Peso,
Owned Resort EBITDA Margin would have been 38.3%, an increase of
1.0 percentage point compared to the three months ended
December 31, 2022.
Pacific Coast
- Owned Net Revenue for the three months ended
December 31, 2023 decreased
$1.3 million, or 3.6%, compared to
the three months ended December 31,
2022. The decrease was driven by:
- a decrease in Occupancy of 7.9 percentage points for the
three months ended December 31, 2023
due to renovations at the two resorts in this segment; partially
offset by:
- an increase in Net Package ADR of 5.3%; and
- an increase in Net Non-package Revenue of $0.6 million.
- Net Non-package Revenue per sold room increased 28.4%,
primarily driven by an increase in cancellation revenue as a result
of Hurricane Norma and Hurricane Lidia in the Pacific during the
three months ended December 31,
2023.
- Owned Resort EBITDA for the three months ended
December 31, 2023 decreased
$1.0 million, or 7.2%, compared to
the three months ended December 31,
2022 and was driven by:
- an unfavorable impact of $1.5 million due to the
appreciation of the Mexican Peso;
- an increase in labor and related expenses, which were partially
due to union-negotiated and government-mandated wage and benefit
increases; and
- an increase in insurance premiums and energy costs.
- Owned Resort EBITDA Margin for the three months ended
December 31, 2023 was 38.6%, a
decrease of 1.6 percentage points compared to the three months
ended December 31, 2022. Owned Resort
EBITDA Margin was negatively impacted by 450 basis points due to
the appreciation of the Mexican Peso. Excluding the impact from the
appreciation of the Mexican Peso, Owned Resort EBITDA Margin would
have been 43.1%, an increase of 2.9 percentage points compared to
the three months ended December 31,
2022.
Dominican Republic
excluding Jewel Punta Cana and Jewel Palm Beach
- Owned Net Revenue for the three months ended
December 31, 2023 increased
$25.4 million, or 88.3%, compared to
the three months ended December 31,
2022. The comparability of the segment for the three months
ended December 31, 2023 was heavily
impacted by the temporary closure of Hilton La Romana All-Inclusive
Resort and Hyatt Ziva and Hyatt
Zilara Cap Cana for a portion of the fourth quarter of 2022 to
expedite necessary clean up and repair work as a result of
Hurricane Fiona. The increase was driven by:
- an increase in Occupancy of 34.8 percentage points;
and
- an increase in Net Non-package Revenue of $4.4 million, or 138.8%.
- Net Non-package Revenue per sold room increased 23.1%, as
a result of a higher MICE group contribution to our guest mix.;
partially offset by:
- a decrease in Net Package ADR of 6.2%.
- Owned Resort EBITDA for the three months ended
December 31, 2023 increased
$8.6 million, or 66.8%, compared to
the three months ended December 31,
2022. As previously mentioned, results were heavily impacted
by the temporary closure of Hilton La Romana All-Inclusive Resort
and Hyatt Ziva and Hyatt Zilara Cap
Cana in 2022.
- Owned Resort EBITDA Margin for the three months ended
December 31, 2023 was 39.5%, a
decrease of 5.1 percentage points compared to the three months
ended December 31, 2022.
- Owned Resort EBITDA and Owned Resort EBITDA Margin for the
three months ended December 31, 2023
and 2022 include $0.9 million and
$7.2 million, respectively, from
business interruption proceeds and recoverable expenses related to
Hurricane Fiona that impacted the Dominican Republic in the second half of 2022.
Excluding these benefits, Owned Resort EBITDA increased
$14.9 million, or 265.7%, compared to
the three months ended December 31,
2022, and Owned Resort EBITDA Margin was 37.9%, an increase
of 18.4 percentage points compared to the three months ended
December 31, 2022.
Jamaica
- Owned Net Revenue for the three months ended
December 31, 2023 increased
$1.1 million, or 2.3%, compared to
the three months ended December 31,
2022 and was driven by:
- an increase in Occupancy of 0.1 percentage points;
and
- an increase in Net Package ADR of 4.8%; partially offset
by
- a decrease in Net Non-package Revenue of $0.8 million.
- Net Non-package Revenue per sold room decreased 10.7% as a
result of a lower MICE group contribution to our guest mix.
- Owned Resort EBITDA for the three months ended
December 31, 2023 increased
$0.5 million, or 2.9%, compared to
the three months ended December 31,
2022. The increase was a result of Net Package ADR growth,
partially offset by increases in insurance premiums compared to the
three months ended December 31, 2022.
- Owned Resort EBITDA Margin for the three months ended
December 31, 2023 increased 0.1
percentage points compared to the three months ended December 31, 2022.
Playa Hotels &
Resorts N.V.
|
Reportable Segment
Operating Statistics - Years Ended December 31, 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
|
|
79.5 %
|
76.3 %
|
3.2 pts
|
|
$
440.13
|
$
413.49
|
6.4 %
|
|
$
349.99
|
$
315.53
|
10.9 %
|
|
$ 306,259
|
$ 280,161
|
9.3 %
|
|
$ 104,841
|
$ 105,416
|
(0.5) %
|
|
34.2 %
|
37.6 %
|
(3.4) pts
|
Pacific
Coast
|
926
|
|
70.2 %
|
71.9 %
|
(1.7) pts
|
|
522.94
|
464.66
|
12.5 %
|
|
367.23
|
334.20
|
9.9 %
|
|
141,582
|
128,210
|
10.4 %
|
|
53,509
|
51,148
|
4.6 %
|
|
37.8 %
|
39.9 %
|
(2.1) pts
|
Dominican Republic
(1)
|
2,615
|
|
62.3 %
|
68.1 %
|
(5.8) pts
|
|
366.83
|
300.15
|
22.2 %
|
|
228.71
|
204.43
|
11.9 %
|
|
253,700
|
230,972
|
9.8 %
|
|
80,078
|
76,854
|
4.2 %
|
|
31.6 %
|
33.3 %
|
(1.7) pts
|
Jamaica
|
1,428
|
|
79.4 %
|
73.6 %
|
5.8 pts
|
|
452.96
|
388.61
|
16.6 %
|
|
359.71
|
286.14
|
25.7 %
|
|
219,903
|
180,318
|
22.0 %
|
|
80,500
|
56,279
|
43.0 %
|
|
36.6 %
|
31.2 %
|
5.4 pts
|
Total
Portfolio
|
7,095
|
|
72.0 %
|
72.2 %
|
(0.2)
pts
|
|
$
430.12
|
$
375.33
|
14.6 %
|
|
$
309.50
|
$
270.83
|
14.3 %
|
|
$
921,444
|
$
819,661
|
12.4 %
|
|
$
318,928
|
$
289,697
|
10.1 %
|
|
34.6 %
|
35.3 %
|
(0.7)
pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
Net Package
ADR
|
|
Net Package
RevPAR
|
|
Owned Net
Revenue
|
|
Owned Resort
EBITDA
|
|
Owned Resort
EBITDA
Margin
|
Comparable
Portfolio (1)
|
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
|
|
79.5 %
|
76.3 %
|
3.2 pts
|
|
$
440.13
|
$
413.49
|
6.4 %
|
|
$
349.99
|
$
315.53
|
10.9 %
|
|
$ 306,259
|
$ 280,161
|
9.3 %
|
|
$ 104,841
|
$ 105,416
|
(0.5) %
|
|
34.2 %
|
37.6 %
|
(3.4) pts
|
Pacific
Coast
|
926
|
|
70.2 %
|
71.9 %
|
(1.7) pts
|
|
522.94
|
464.66
|
12.5 %
|
|
367.23
|
334.20
|
9.9 %
|
|
141,582
|
128,210
|
10.4 %
|
|
53,509
|
51,148
|
4.6 %
|
|
37.8 %
|
39.9 %
|
(2.1) pts
|
Dominican
Republic
|
—
|
|
— %
|
— %
|
— pts
|
|
—
|
—
|
— %
|
|
—
|
—
|
— %
|
|
—
|
—
|
— %
|
|
—
|
—
|
— %
|
|
— %
|
— %
|
— pts
|
Jamaica
|
1,428
|
|
79.4 %
|
73.6 %
|
5.8 pts
|
|
452.96
|
388.61
|
16.6 %
|
|
359.71
|
286.14
|
25.7 %
|
|
219,903
|
180,318
|
22.0 %
|
|
80,500
|
56,279
|
43.0 %
|
|
36.6 %
|
31.2 %
|
5.4 pts
|
Total Comparable
Portfolio
|
4,480
|
|
77.6 %
|
74.5 %
|
3.1
pts
|
|
$
459.81
|
$
415.86
|
10.6 %
|
|
$
356.65
|
$
310.02
|
15.0 %
|
|
$
667,744
|
$
588,689
|
13.4 %
|
|
$
238,850
|
$
212,843
|
12.2 %
|
|
35.8 %
|
36.2 %
|
(0.4)
pts
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Comparable portfolio for the year ended December 31, 2023 excludes the following resorts:
Hilton La Romana All-Inclusive Resort and Hyatt Ziva and Hyatt Zilara Cap Cana, which were
closed for a portion of the third and fourth quarters of 2022 for
necessary clean up and repair work as a result of Hurricane Fiona,
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 Jewel Punta Cana, which was sold in
December 2023.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy
|
|
Net Package
ADR
|
|
Net Package
RevPAR
|
|
Owned Net
Revenue
|
|
Owned Resort
EBITDA
|
|
Owned Resort
EBITDA
Margin
|
Excluding DR
Jewels (1)
|
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
|
|
79.5 %
|
76.3 %
|
3.2 pts
|
|
$
440.13
|
$
413.49
|
6.4 %
|
|
$
349.99
|
$
315.53
|
10.9 %
|
|
$ 306,259
|
$ 280,161
|
9.3 %
|
|
$ 104,841
|
$ 105,416
|
(0.5) %
|
|
34.2 %
|
37.6 %
|
(3.4) pts
|
Pacific
Coast
|
926
|
|
70.2 %
|
71.9 %
|
(1.7) pts
|
|
522.94
|
464.66
|
12.5 %
|
|
367.23
|
334.20
|
9.9 %
|
|
141,582
|
128,210
|
10.4 %
|
|
53,509
|
51,148
|
4.6 %
|
|
37.8 %
|
39.9 %
|
(2.1) pts
|
Dominican
Republic
|
1,524
|
|
73.9 %
|
62.1 %
|
11.8 pts
|
|
471.83
|
417.98
|
12.9 %
|
|
348.73
|
259.73
|
34.3 %
|
|
225,207
|
167,784
|
34.2 %
|
|
95,468
|
64,918
|
47.1 %
|
|
42.4 %
|
38.7 %
|
3.7 pts
|
Jamaica
|
1,428
|
|
79.4 %
|
73.6 %
|
5.8 pts
|
|
452.96
|
388.61
|
16.6 %
|
|
359.71
|
286.14
|
25.7 %
|
|
219,903
|
180,318
|
22.0 %
|
|
80,500
|
56,279
|
43.0 %
|
|
36.6 %
|
31.2 %
|
5.4 pts
|
Total Portfolio
Excluding DR Jewels
|
6,004
|
|
76.6 %
|
71.4 %
|
5.2
pts
|
|
$
462.75
|
$
416.33
|
11.1 %
|
|
$
354.64
|
$
297.26
|
19.3 %
|
|
$
892,951
|
$
756,473
|
18.0 %
|
|
$
334,318
|
$
277,761
|
20.4 %
|
|
37.4 %
|
36.7 %
|
0.7
pts
|
(1) Portfolio for the year ended December 31, 2023 excludes the following resorts:
Jewel Punta Cana, which was sold in December
2023, and Jewel Palm Beach.
Highlights
Yucatán Peninsula
- Owned Net Revenue for the year ended December 31, 2023 increased $26.1 million, or 9.3%, compared to the year
ended December 31, 2022 and was
driven by:
- an increase in Occupancy of 3.2 percentage points;
and
- an increase in Net Package ADR of 6.4%; partially offset
by
- a decrease in Net Non-package Revenue of $0.6 million.
- Net Non-package Revenue per sold room decreased 5.8% 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.
- Owned Resort EBITDA for the year ended December 31, 2023 decreased $0.6 million, or 0.5%, compared to the year ended
December 31, 2022, and was driven by:
- an unfavorable impact of $17.0 million due to the
appreciation of the Mexican Peso;
- an increase in labor and related expenses, which were partially
due to union-negotiated and government-mandated wage benefit
increases; and
- an increase in insurance premiums.
- These increases were partially offset due to us leveraging a
majority of our direct expenses given the Net Package ADR growth
compared to the year ended December 31,
2022.
- Owned Resort EBITDA Margin for the year ended
December 31, 2023 was 34.2%, a
decrease of 3.4 percentage points compared to the year ended
December 31, 2022. Owned Resort
EBITDA Margin was negatively impacted by 560 basis points due to
the appreciation of the Mexican Peso and by 220 basis points due to
increases in labor and related expenses. Excluding the impact from
the appreciation of the Mexican Peso, Owned Resort EBITDA Margin
would have been 39.8%, an increase of 2.2 percentage points
compared to the year ended December 31,
2022.
Pacific Coast
- Owned Net Revenue for the year ended December 31, 2023 increased $13.4 million, or 10.4%, compared to the year
ended December 31, 2022 and was
driven by:
- an increase in Net Package ADR of 12.5%; and
- an increase in Net Non-package Revenue of $2.2 million, or 14.5%.
- Net Non-package Revenue per sold room increased 17.2%
despite a decrease of $0.7 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 increased 22.9% compared to the year ended
December 31, 2022 as a result of a
higher MICE group contribution to our guest mix; partially offset
by
- a decrease in Occupancy of 1.7 percentage points compared
to the year ended December 31, 2022
driven by renovations at the two resorts in this segment and higher
demand for European travel destinations from American sourced
guests, which were partially offset by an increase in guests
sourced from Mexico.
- Owned Resort EBITDA for the year ended December 31, 2023 increased $2.4 million, or 4.6%, compared to the year ended
December 31, 2022. The increase in
Owned Resort EBITDA compared to the year ended December 31, 2022 was driven by
- an unfavorable impact of $7.1 million due to the appreciation of the
Mexican Peso;
- an increase in labor and related expenses, which were partially
due to union-negotiated and government-mandated wage and benefit
increases; and
- an increase in insurance premiums and energy costs compared to
the year ended December 31, 2022.
- These increases were partially offset due to us leveraging a
majority of our direct expenses given the Net Package ADR growth
compared to the year ended December 31,
2022.
- Owned Resort EBITDA Margin for the year ended
December 31, 2023 was 37.8%, a
decrease of 2.1 percentage points compared to the year ended
December 31, 2022. Owned Resort
EBITDA Margin was negatively impacted by 500 basis points due to
the appreciation of the Mexican Peso and by 160 basis points due to
increases in labor and related expenses. Excluding the impact from
the appreciation of the Mexican Peso, Owned Resort EBITDA Margin
would have been 42.8%, an increase of 2.9 percentage points
compared to the year ended December 31,
2022.
Dominican Republic
excluding Jewel Punta Cana and Jewel Palm Beach
- Owned Net Revenue for the year ended December 31, 2023 increased $57.4 million, or 34.2%, compared to the year
ended December 31, 2022. The
comparability of the segment for the year ended December 31, 2023 is heavily impacted by the
temporary closure of Hilton La Romana All-Inclusive Resort and
Hyatt Ziva and Hyatt Zilara Cap Cana
for a portion of the fourth quarter of 2022 to expedite necessary
clean up and repair work as a result of Hurricane Fiona. The
increase was due to the following:
- an increase in Occupancy of 11.8 percentage points;
- an increase in Net Package ADR of 12.9%; and
- an increase in Net Non-package Revenue of $7.9 million, or 34.0%.
- Net Non-package Revenue per sold room increased 12.6%,
which includes:
- a decrease of $0.8 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 increased 16.8% compared to the year ended
December 31, 2022, driven by a higher
MICE group contribution to our guest mix.
- Owned Resort EBITDA for the year ended December 31, 2023 increased $30.6 million, or 47.1%, compared to the year
ended December 31, 2022, As
previously mentioned, results were heavily impacted by the
temporary closure of Hilton La Romana All-Inclusive Resort and
Hyatt Ziva and Hyatt Zilara Cap
Cana.
- Owned Resort EBITDA Margin for the year ended
December 31, 2023 was 42.4%, an
increase of 3.7 percentage points compared to the year ended
December 31, 2022.
- Owned Resort EBITDA and Owned Resort EBITDA Margin for the
years ended December 31, 2023 and
2022 include a benefit of $6.1
million and $7.2 million,
respectively, from business interruption proceeds and
recoverable expenses related to Hurricane Fiona that impacted the
Dominican Republic in the second
half of 2022. Excluding these benefits, Owned Resort EBITDA
increased $31.6 million, or 54.8%,
compared to the year ended December 31,
2022, and Owned Resort EBITDA Margin was 39.7%, an increase
of 5.3 percentage points compared to the year ended December 31, 2022.
Jamaica
- Owned Net Revenue for the year ended December 31, 2023 increased $39.6 million, or 22.0%, compared to the year
ended December 31, 2022. The increase
was due to the following:
- an increase in Occupancy of 5.8 percentage points;
- an increase in Net Package ADR of 16.6%; and
- an increase in Net Non-package Revenue of $1.2 million, or 4.0%, which includes 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
7.4%.
- Owned Resort EBITDA for the year ended December 31, 2023 increased $24.2 million, or 43.0%, compared to the year
ended December 31, 2022. The increase
was a result of Net Package ADR and Occupancy growth that enabled
the segment to expand margins and offset pressures on wages and
benefit related expenses and a decline in energy prices, partially
offset by increases in insurance premiums compared to the year
ended December 31, 2022.
- Owned Resort EBITDA Margin for the year ended
December 31, 2023 increased 5.4
percentage points, or 17.3%, compared to the year ended
December 31, 2022. Owned Resort
EBITDA Margin was positively impacted by 60 basis points due to a
decline in utilities expenses and energy prices compared to the
year ended December 31, 2022.
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SOURCE Playa Management USA,
LLC