Playa Hotels & Resorts N.V. (NASDAQ:PLYA) Q3 2023 Earnings Call Transcript November 3, 2023 8:00 AM ET Company Participants Ryan Hymel - Executive Vice President and Chief Financial Officer Bruce Wardinski - Chairman & Chief Executive Officer Conference Call Participants Chad Beynon - Macquarie Patrick Scholes - Truist Securities Chris Woronka - Deutsche Bank Smedes Rose - Citi Tyler Batory - Oppenheimer Operator Good day, and welcome to the Playa Hotels & Resorts Third Quarter 2023 Conference Call. All par ...

FORM 10-Q _______________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period ended September 30, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. COMMISSION FILE NO. 1-38012 UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________ Playa Hotels & Resorts N.V. (Exact name of registrant as specified in i ...

Playa Hotels & Resorts N.V. (NASDAQ:PLYA) Q2 2023 Earnings Conference Call August 4, 2023 8:00 AM ET Company Participants Ryan Hymel - Executive Vice President and Chief Financial Officer Bruce Wardinski - President and Chief Executive Officer Conference Call Participants Shaun Kelley - Bank of America Patrick Scholes - Truist Chris Woronka - Deutsche Bank Chad Beynon - Macquarie Tyler Batory - Oppenheimer Operator Good morning and welcome to the Playa Hotels & Resorts Second Quarter 2023 Earnings Call. All ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________ FORM 10-Q _______________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period ended June 30, 2023 +31 6 82 55 84 30 (Registrant's Telephone Number, Including Area Code) Securities registered pursuant to Section 12(b) of the Act: | Title of each Class | Trading Symbol(s) | Name of Each Exchange on ...

Financial Data and Key Metrics Changes - Playa Hotels & Resorts reported an EBITDA of $109.4 million in Q1 2023, the highest in the company's history, despite challenges from two dual resorts in the Dominican Republic and foreign currency headwinds [14] - Year-over-year ADR growth for the legacy portfolio was nearly 17%, contributing to a total reported ADR growth of approximately 27.4% for the quarter [14][18] - The company expects full-year adjusted EBITDA to be between $265 million and $285 million, reflecting an increase from previous guidance [22] Business Line Data and Key Metrics Changes - In the Dominican Republic, legacy resorts achieved a 20% year-over-year ADR growth with occupancy nearing 82% [2][33] - Jamaica reported the highest year-over-year ADR and resort margin expansion among segments, driven by increased MICE revenue [15] - The Pacific Coast segment experienced a 19% ADR improvement year-over-year, aided by a higher MICE Group mix [20] Market Data and Key Metrics Changes - Approximately 36% of Playa's room night stays came from direct channels, a decrease of 100 basis points year-over-year, while the group mix improved significantly by 460 basis points [1] - The Canadian guest mix increased by approximately 400 basis points year-over-year, while the Mexican source guest mix rose by 300 basis points [34] - The European source guest mix decreased significantly year-over-year but aligned with pre-pandemic levels [34] Company Strategy and Development Direction - The company plans to expand into new markets over the next 1 to 5 years, capitalizing on the strong consumer demand for all-inclusive resorts [46][47] - Playa continues to focus on share repurchases as a compelling use of capital, having repurchased approximately $107 million worth of stock since resuming the program in September 2022 [17][40] - The company is also exploring opportunities for renovations and expansions in existing properties to maintain competitive advantage [79] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the strength of the legacy portfolio and the ability to maintain or grow resort margins despite challenges from foreign exchange and the two Jewel properties [50][72] - The company remains focused on monitoring macroeconomic conditions while emphasizing the value proposition of its all-inclusive resorts [56] - Management noted that the booking window remains at just over three months, which is critical for planning and revenue forecasting [34] Other Important Information - The company has entered into interest rate swaps to mitigate floating rate risk in its new term loan [53] - Playa anticipates a better inflation rate for its cost basket compared to 2022, with stabilization in food and beverage and utilities costs [55] Q&A Session Summary Question: What is the impact of the $20 million negative FX on guidance? - Management confirmed that the prior EBITDA guidance did not account for this impact, making the $20 million fully included in the current guidance [58] Question: How is the company managing the seasonal occurrence of seaweed? - Management stated that while seaweed is a seasonal issue, they have mechanisms in place to manage it effectively, and it does not significantly deter travel [58] Question: What are the long-term intentions for geographic diversification? - The company is interested in expanding into all-inclusive markets in Europe, the Mediterranean, North Africa, and other Caribbean countries [60] Question: What is the outlook for ADR in Q2? - Management indicated that the baseline fundamentals of the legacy portfolio continue to improve, with no signs of consumer resistance to current rates [63] Question: How is the competitive landscape regarding new supply? - Management noted that new projects are occurring but at a modest level, with no significant impact on market dynamics [83] Question: What is the status of the sale of the two Jewel properties? - The sale process is ongoing, but management could not provide a definitive timeline, expressing confidence in concluding transactions [85]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ___________________________________________________ FORM 10-Q _______________________________________________ ☒ QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For quarterly period ended March 31, 2023 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934. COMMISSION FILE NO. 1-38012 Playa Hotels & Resorts N.V. (Exact name of registrant as specified in its c ...

Playa Hotels & Resorts N.V. (NASDAQ:PLYA) Q4 2022 Earnings Conference Call February 24, 2023 11:00 AM ET Company Participants Ryan Hymel - Chief Financial Officer Bruce Wardinski - Chairman and Chief Executive Officer Conference Call Participants Patrick Scholes - Truist Securities Dany Asad - Bank of America Chad Beynon - Macquarie Smedes Rose - Citi Tyler Batory - Oppenheimer Chris Woronka - Deutsche Bank Operator Good morning, everyone, and welcome to the Playa Hotels & Resorts Q4 2022 Earnings Conferenc ...

Revenue and Financial Performance - Total revenue for the year ended December 31, 2022, was $856.3 million, a 60.2% increase from $534.6 million in 2021[320]. - Net income for 2022 was $56.7 million, compared to a net loss of $89.7 million in 2021, marking a significant turnaround[323]. - Earnings per share (EPS) for 2022 was $0.34, compared to a loss per share of $0.55 in 2021[320]. - Operating income for 2022 was $129.8 million, a substantial improvement from an operating loss of $24.2 million in 2021[320]. - Cash provided by operating activities increased to $158.2 million in 2022, up from $29.6 million in 2021[329]. - Comprehensive income for 2022 was $68.4 million, compared to a comprehensive loss of $77.4 million in 2021[323]. - Package revenue for 2022 was $713.2 million, up from $438.0 million in 2021, indicating a growth of about 63%[370]. - Non-package revenue increased to $129.5 million in 2022 from $88.6 million in 2021, reflecting a growth of approximately 46%[370]. - Management fees for 2022 totaled $3.8 million, compared to $2.3 million in 2021, marking an increase of about 65%[370]. Operational Highlights - For the year ended December 31, 2022, $724.5 million, or 87.7%, of total net revenue was generated from resorts under the Hyatt, Hilton, and Wyndham brands[31]. - Direct bookings through playaresorts.com accounted for $116.3 million, or 14.2% of owned net revenue in 2022, a significant increase from $16.9 million in 2018[33]. - Approximately 38% of total Playa-managed room nights were direct stays in 2022, with direct bookings, including future stays, making up about 43%[36]. - The company operates a diversified portfolio of resorts across four main geographic markets, featuring a range of price points to foster guest loyalty and drive repeat business[31]. - The company has successfully converted two resorts into Wyndham Alltra all-inclusive resorts and began managing another Wyndham Alltra resort[33]. - The all-inclusive resort model is increasingly popular, providing guests with pre-purchased vacation packages and opportunities for incremental revenue through upgrades and premium services[31]. Debt and Financial Obligations - The Company’s 2022 Term Loan incurs interest based on SOFR plus a margin of 4.25%, with 100% of outstanding indebtedness bearing interest at floating rates as of December 31, 2022[290]. - The total debt as of December 31, 2022, was $1,065,453,000, which includes $1,059,796,000 in senior secured credit facilities and $5,657,000 in finance lease obligations[448]. - The effective interest rate for the 2022 Term Loan was 8.58% as of December 31, 2022[448]. - Aggregate debt maturities for the 2022 Term Loan total $1,100,000,000, with $11,000,000 due annually from 2023 to 2027 and $1,045,000,000 due thereafter[450]. - The company repaid $941.9 million in debt during 2022, compared to $34.5 million in 2021[329]. Employee and Community Engagement - The company employed approximately 14,100 employees worldwide, with 2,900 in Jamaica, 6,600 in Mexico, and 4,500 in the Dominican Republic[53]. - The company’s comprehensive benefits package is designed to attract and retain top talent, emphasizing employee training and development[45]. - The company has a proactive approach to community engagement, including partnerships with local organizations and initiatives like sponsoring a local school in Jamaica[46]. - The company established the Ernesto Oliver Lopez Memorial Fund to provide emergency financial aid to employees in need, reflecting its commitment to employee welfare[52]. Environmental, Social, and Governance (ESG) - The company’s ESG Committee focuses on incorporating sustainability and social responsibility into operations, reporting directly to the Board on these activities[39]. - The company has 14 resorts currently Green Globe certified, with five more in the certification process[43]. Currency and Foreign Exchange Impact - Approximately 75% of the company's resort-level operating expenses for the year ended December 31, 2022, were denominated in local currencies, primarily the Mexican Peso, Dominican Peso, and Jamaican Dollar[293]. - An immediate 5.0% adverse change in foreign exchange rates on Mexican Peso-denominated expenses would have impacted Owned Resort EBITDA by approximately $9.5 million year-to-date as of December 31, 2022[295]. - An immediate 5.0% adverse change in foreign exchange rates on Dominican Peso-denominated expenses would have impacted Owned Resort EBITDA by approximately $6.4 million year-to-date as of December 31, 2022[295]. - An immediate 5.0% adverse change in foreign exchange rates on Jamaican Dollar-denominated expenses would have impacted Owned Resort EBITDA by approximately $5.2 million year-to-date as of December 31, 2022[295]. Tax and Deferred Tax Assets - The effective tax rate for 2022 was (10.8)%, with an income tax benefit of $5.6 million driven by $10.1 million in inflation adjustments and $31.5 million from rate-favorable jurisdictions[4]. - As of December 31, 2022, total deferred tax assets amounted to $211.5 million, an increase from $188.2 million in 2021, while the valuation allowance increased to $177.8 million from $160.1 million[404]. - The net deferred tax asset as of December 31, 2022, was $33.7 million, compared to $28.1 million in 2021, indicating a positive trend in realizable tax assets[404]. Shareholder and Stock Information - The company repurchased 7,838,992 ordinary shares in 2022 at an average price of $5.90 per share, with approximately $53.7 million remaining under the share repurchase program as of December 31, 2022[426]. - The weighted-average number of shares outstanding during 2022 was 164.8 million, an increase from 163.4 million in 2021[320]. - The company had no anti-dilutive unvested restricted share awards for the year ended December 31, 2022[445].

Financial Data and Key Metrics Changes - Playa Hotels & Resorts achieved the highest third quarter adjusted EBITDA in the company's history, with ADR growth accelerating to approximately 53% on a reported basis compared to 2019, or approximately 33% on a like-for-like basis [8][12] - As of October 23, revenue for the fourth quarter is pacing up nearly 16% year-over-year and 52% versus 2019, primarily driven by ADR gains [9][10] - The company finished the quarter with a total cash balance of approximately $372 million and no outstanding borrowings on its revolving credit facility, with total outstanding interest-bearing debt at $1.1 billion [28] Business Line Data and Key Metrics Changes - The Dominican Republic segment had a strong start to the quarter, with July and August ADR up mid-single digits year-over-year and occupancy over 80%, but faced disruptions due to Hurricane Fiona [17][20] - Jamaica's recovery progressed, with Q3 international passenger arrivals exceeding 2019 levels, and bookings remained strong following the removal of COVID testing entry requirements [21] - The Mexico segment led the recovery with the highest occupancy and double-digit underlying year-over-year ADR growth [22] Market Data and Key Metrics Changes - U.S. and South American customer sourcing remained steady, while European and Canadian business improved year-over-year, with Canadian customer mix still only two-thirds recovered [25] - The booking window has expanded significantly, allowing for better visibility and planning for future quarters [88] Company Strategy and Development Direction - The company believes that seeding some occupancy in favor of ADR, particularly at Hyatt resorts, is the best path forward to establish rate leadership in competitive markets [15] - Playa is focused on increasing direct bookings to at least 50% by 2023, with 43.5% of managed room nights booked directly in Q3 2022, up 2.2 percentage points year-over-year [23] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the recovery of leisure travel, noting that consumer awareness of the all-inclusive experience has a long runway for growth [12][13] - Despite inflationary pressures, the company's value proposition remains compelling, reflected in strong guest satisfaction scores and booking pace [13][15] - Management is prepared to adjust costs and staffing in response to any potential pullback in consumer demand, although no significant changes have been observed [11][12] Other Important Information - The company anticipates a $13 million to $15 million impact to Q4 EBITDA due to hurricane-related closures, with an estimated $3 million negative hit to Q3 EBITDA [20][44] - The company plans to take over management of two third-party managed resorts in the Dominican Republic during Q4 2022 and early Q1 2023 [47] Q&A Session Summary Question: Competitive environment in markets - Management noted that supply growth is expected to be muted due to rising interest rates, but the strong demand in the lodging industry is a positive sign for the company [55][56] Question: Medium-term impact of Hurricane Fiona - Management indicated that the hurricane's impact was significant but manageable, with no lingering effects on bookings and a quick recovery plan in place [58][62] Question: Bookings from European customers - Management reported that European demand is recovering, with bookings returning to pre-pandemic levels, particularly in the Dominican Republic [67] Question: Direct bookings and their financial impact - Management explained that increasing direct bookings can lead to significant revenue gains, depending on the channel shift and associated costs [70][71] Question: Labor situation in new markets - Management provided insights on wage growth and labor conditions, noting that labor costs have remained stable compared to food and beverage and utility costs [78][82] Question: Expanded booking window - Management discussed that the longer booking window allows for better planning and responsiveness to market changes, driven by consumer behavior shifts [87][88] Question: Progress of Wyndham Alltra brand - Management highlighted that the Wyndham Alltra brand is performing well and presents opportunities for further growth in the market [93]

Company Overview - Playa Hotels & Resorts has a premier collection of all-inclusive resorts on desirable beachfronts, with 9,352 rooms[8] - The company boasts 25 all-inclusive resorts, with 61% being Hyatt/Hilton branded and 81% rated 4.5 stars or higher[10] - Playa Hotels & Resorts operates in multiple geographic locations, including Cancún/Riviera Maya (39%), Pacific Coast (12%), Dominican Republic (32%), and Jamaica (17%)[21] Branding Benefits - Playa leverages Hyatt's, Hilton's, and Wyndham's brands in the all-inclusive market, which provides a unique opportunity[32] - Branding provides immediate access to over 400 million loyalty members[45] - Direct booking is targeted to reach 50% by the end of 2023[49] Capital Allocation Strategy - Playa's historical fully stabilized conversion and expansion projects have generated an average 34% cash on cash return[54] - Recent discretionary capex spend includes projects like Hyatt Ziva & Zilara Cap Cana (~$265 million), Hilton Playa del Carmen (~$15 million), and Hilton La Romana (~$50 million)[57, 58, 59] - A case study of Hyatt Ziva and Hyatt Zilara Rose Hall shows a ~$106 million project cost with an approximate 21% cash-on-cash return[62]