Playa Hotels & Resorts N.V. Reports Fourth Quarter and Full Year 2023 Results
Three Months Ended
-
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 endedDecember 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 ourDominican Republic segment in the second half of 2022
- a negative impact of approximately
-
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 endedDecember 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
-
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 endedDecember 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 ourDominican Republic segment in the second half of 2022.
- a negative impact of approximately
-
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 endedDecember 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 .
- Excluding these impacts, Adjusted EBITDA Margin would have been 31.0%, an increase of 2.6 percentage points compared to the year ended
(1) See "Definitions of Non-
"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
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
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
–
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
Total Portfolio
|
Three Months Ended |
|
|
|
Year Ended |
|
|
||||
|
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 |
|
|
|
Year Ended |
|
|
||||
|
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
(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
(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
(5) For the three months ended
Balance Sheet
As of
Earnings Call
The Company will host a conference call to discuss its fourth quarter and annual results on
About the Company
Playa is a leading owner, operator and developer of all-inclusive resorts in prime beachfront locations in popular vacation destinations in
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
Definitions of Non-
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
"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 Package 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
"
"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
"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
"Total Net Revenue" represents Net Package Revenue,
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
Total Portfolio
|
Three Months Ended |
|
Year Ended |
||||
|
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 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Comparable |
21,284 |
|
22,364 |
|
84,546 |
|
81,742 |
Non-comparable |
8,176 |
|
4,187 |
|
35,391 |
|
33,689 |
|
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
EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Owned Resort EBITDA and Owned Resort EBITDA Margin
We define EBITDA, a non-
- 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
Adjusted Net Income is not a substitute for net income or any other measure determined in accordance with
Usefulness and Limitation of Non-
We believe that each of Net Package Revenue,
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
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
Our non-
Comparable Non-
We believe that presenting Adjusted EBITDA, Owned Resort EBITDA, Total Net Revenue, Net Package Revenue, and
For the three months ended
A reconciliation of net income or loss as computed under
|
|||||||
Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Owned Resort EBITDA |
|||||||
($ in thousands) |
|||||||
|
|||||||
The following is a reconciliation of our |
|||||||
|
|||||||
|
Three Months Ended |
|
Year Ended |
||||
|
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
(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
(d) Relates primarily to a
(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
(f) For the three months ended
(g) For the years ended
(h) Owned Resort EBITDA for the three months ended
(i) For the three months ended
|
|||||||
Reconciliation of Net Income to Adjusted Net Income |
|||||||
($ in thousands) |
|||||||
|
|||||||
The following table reconciles our |
|||||||
|
|||||||
|
Three Months Ended |
|
Year Ended |
||||
|
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
|
Three Months Ended |
|
Year Ended |
||||
|
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 |
|
|||
Consolidated Balance Sheets |
|||
($ in thousands, except share data) |
|||
|
|||
|
As of |
||
|
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 |
|
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 |
18,822 |
|
18,700 |
|
(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 |
|
|||||||
Consolidated Statements of Operations |
|||||||
($ in thousands, except share data) |
|||||||
|
|||||||
|
Three Months Ended |
|
Year Ended |
||||
|
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 |
|
||||||||||
Consolidated Debt Summary - As of |
||||||||||
($ in millions) |
||||||||||
|
||||||||||
|
|
Maturity |
|
|
|
Applicable Rate |
|
LTM Cash |
||
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
(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
(3) Effective
(4) Excludes
(5) Represents cash balances on hand as of
(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.
|
|||||||||||||||||||||||||
Reportable Segment Operating Statistics - Three Months Ended |
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||
|
|
Occupancy |
|
Net Package ADR |
|
Net Package RevPAR |
|
Owned Net Revenue |
|
Owned Resort EBITDA |
|
Owned Resort EBITDA |
|||||||||||||
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 |
|
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 |
|
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 |
|
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 % |
|
|
|
11.3 % |
|
$ 73,630 |
$ 71,977 |
2.3 % |
|
32.9 % |
35.8 % |
(2.9) pts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Owned Net Revenue for the three months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
Net Package ADR |
|
Net Package RevPAR |
|
Owned Net Revenue |
|
Owned Resort EBITDA |
|
Owned Resort EBITDA |
|||||||||||||
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 |
|
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 |
|
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 |
|
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 % |
|
|
|
(0.3) % |
|
$ 54,127 |
$ 58,847 |
(8.0) % |
|
32.6 % |
35.3 % |
(2.7) pts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Comparable portfolio for the three months ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
Net Package ADR |
|
Net Package RevPAR |
|
Owned Net Revenue |
|
Owned Resort EBITDA |
|
Owned Resort EBITDA |
|||||||||||||
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 |
|
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 |
|
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 |
|
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 |
6,004 |
|
75.8 % |
67.3 % |
8.5 pts |
|
$ 447.61 |
$ 441.12 |
1.5 % |
|
$ 339.30 |
$ 296.97 |
14.3 % |
|
|
|
14.2 % |
|
$ 76,480 |
$ 71,106 |
7.6 % |
|
35.5 % |
37.7 % |
(2.2) pts |
(1) Portfolio for the three months ended
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 endedDecember 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.
- an increase in Occupancy of 2.5 percentage points compared to the three months ended
-
Owned Resort EBITDA for the three months ended
December 31, 2023 decreased$2.6 million , or 9.3%, compared to the three months endedDecember 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 endedDecember 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 endedDecember 31, 2022 .
- Owned Resort EBITDA Margin for the three months ended
-
Owned Net Revenue for the three months ended
December 31, 2023 decreased$1.3 million , or 3.6%, compared to the three months endedDecember 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 endedDecember 31, 2023 .
- a decrease in Occupancy of 7.9 percentage points for the three months ended
-
Owned Resort EBITDA for the three months ended
December 31, 2023 decreased$1.0 million , or 7.2%, compared to the three months endedDecember 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 endedDecember 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 endedDecember 31, 2022 .
- Owned Resort EBITDA Margin for the three months ended
-
Owned Net Revenue for the three months ended
December 31, 2023 increased$25.4 million , or 88.3%, compared to the three months endedDecember 31, 2022 . The comparability of the segment for the three months endedDecember 31, 2023 was heavily impacted by the temporary closure ofHilton 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 endedDecember 31, 2022 . As previously mentioned, results were heavily impacted by the temporary closure ofHilton 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 endedDecember 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 theDominican 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 endedDecember 31, 2022 , and Owned Resort EBITDA Margin was 37.9%, an increase of 18.4 percentage points compared to the three months endedDecember 31, 2022 .
- Owned Resort EBITDA and Owned Resort EBITDA Margin for the three months ended
- Owned Resort EBITDA Margin for the three months ended
-
Owned Net Revenue for the three months ended
December 31, 2023 increased$1.1 million , or 2.3%, compared to the three months endedDecember 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 endedDecember 31, 2022 . The increase was a result of Net Package ADR growth, partially offset by increases in insurance premiums compared to the three months endedDecember 31, 2022 .- Owned Resort EBITDA Margin for the three months ended
December 31, 2023 increased 0.1 percentage points compared to the three months endedDecember 31, 2022 .
- Owned Resort EBITDA Margin for the three months ended
|
|||||||||||||||||||||||||
Reportable Segment Operating Statistics - Years Ended |
|||||||||||||||||||||||||
|
|||||||||||||||||||||||||
|
|
Occupancy |
|
Net Package ADR |
|
Net Package RevPAR |
|
Owned Net Revenue |
|
Owned Resort EBITDA |
|
Owned Resort EBITDA |
|||||||||||||
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 % |
|
|
|
9.3 % |
|
|
|
(0.5) % |
|
34.2 % |
37.6 % |
(3.4) pts |
|
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 |
|
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 |
|
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 % |
|
|
|
12.4 % |
|
|
|
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 |
|||||||||||||
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 % |
|
|
|
9.3 % |
|
|
|
(0.5) % |
|
34.2 % |
37.6 % |
(3.4) pts |
|
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 |
|
— |
|
— % |
— % |
— pts |
|
— |
— |
— % |
|
— |
— |
— % |
|
— |
— |
— % |
|
— |
— |
— % |
|
— % |
— % |
— pts |
|
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 % |
|
|
|
13.4 % |
|
|
|
12.2 % |
|
35.8 % |
36.2 % |
(0.4) pts |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(1) Comparable portfolio for the year ended
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Occupancy |
|
Net Package ADR |
|
Net Package RevPAR |
|
Owned Net Revenue |
|
Owned Resort EBITDA |
|
Owned Resort EBITDA |
|||||||||||||
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 % |
|
|
|
9.3 % |
|
|
|
(0.5) % |
|
34.2 % |
37.6 % |
(3.4) pts |
|
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 |
|
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 |
|
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 % |
|
|
|
18.0 % |
|
|
|
20.4 % |
|
37.4 % |
36.7 % |
0.7 pts |
(1) Portfolio for the year ended
Highlights
Yucatán Peninsula
-
Owned Net Revenue for the year ended
December 31, 2023 increased$26.1 million , or 9.3%, compared to the year endedDecember 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 endedDecember 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 .
- 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
-
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 endedDecember 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 endedDecember 31, 2022 .
-
Owned Net Revenue for the year ended
December 31, 2023 increased$13.4 million , or 10.4%, compared to the year endedDecember 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 endedDecember 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 fromMexico .
-
Owned Resort EBITDA for the year ended
December 31, 2023 increased$2.4 million , or 4.6%, compared to the year endedDecember 31, 2022 . The increase in Owned Resort EBITDA compared to the year endedDecember 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 .
- 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
- an unfavorable impact of
-
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 endedDecember 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 endedDecember 31, 2022 .
-
Owned Net Revenue for the year ended
December 31, 2023 increased$57.4 million , or 34.2%, compared to the year endedDecember 31, 2022 . The comparability of the segment for the year endedDecember 31, 2023 is heavily impacted by the temporary closure ofHilton 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 endedDecember 31, 2022 , driven by a higher MICE group contribution to our guest mix.
- a decrease of
-
Owned Resort EBITDA for the year ended
December 31, 2023 increased$30.6 million , or 47.1%, compared to the year endedDecember 31, 2022 , As previously mentioned, results were heavily impacted by the temporary closure ofHilton 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 endedDecember 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 theDominican Republic in the second half of 2022. Excluding these benefits, Owned Resort EBITDA increased$31.6 million , or 54.8%, compared to the year endedDecember 31, 2022 , and Owned Resort EBITDA Margin was 39.7%, an increase of 5.3 percentage points compared to the year endedDecember 31, 2022 .
- Owned Resort EBITDA and Owned Resort EBITDA Margin for the years ended
- Owned Resort EBITDA Margin for the year ended
-
Owned Net Revenue for the year ended
December 31, 2023 increased$39.6 million , or 22.0%, compared to the year endedDecember 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 endedDecember 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 endedDecember 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 endedDecember 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 endedDecember 31, 2022 .
- Owned Resort EBITDA Margin for the year ended
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