Playa Hotels & Resorts(US:PLYA)2022-11-04 17:31Company 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]