Playa Hotels & Resorts N.V. (NASDAQ: PLYA) yesterday announced results of operations for the three months ended March 31, 2023.

Three Months Ended March 31, 2023 Results

  • Net Income was $42.7 million compared to $42.7 million in 2022
  • Adjusted Net Income(1) was $49.0 million compared to $31.8 million in 2022
  • Net Package RevPAR increased 24.7% over 2022 to $355.27, driven by a 27.4% increase in Net Package ADR, partially offset by a 1.6 percentage point decrease in Occupancy
  • Comparable Net Package RevPAR increased 29.5% over 2022 to $381.06, driven by a 3.9 percentage point increase in Occupancy and a 22.8% increase in Net Package ADR
  • Owned Resort EBITDA(1) increased 25.0% versus 2022 to $109.4 million
  • Owned Resort EBITDA Margin(1) increased 0.5 percentage points versus 2022 to 41.9%
  • Adjusted EBITDA(1) increased 28.0% versus 2022 to $98.5 million
  • Adjusted EBITDA Margin(1) increased 1.2 percentage points versus 2022 to 37.3%
  • Comparable Adjusted EBITDA(1) increased 35.2% versus 2022 to $100.9 million
  • Comparable Adjusted EBITDA Margin(1) increased 1.9 percentage points versus 2022 to 38.3%

(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.

"Momentum carried through our high season, as broad based strength across our markets led to Occupancy rates hitting new post-pandemic highs in Mexico and Jamaica. With COVID-related travel restrictions largely relaxed, robust demand in the MICE segment, and commodity-related expense pressure subsiding year over year, we were able to exceed our first quarter expectations and deliver record quarterly Adjusted EBITDA. The quarter was not without challenges however, as the sudden appreciation of the Mexican Peso and the decline in profits from the two Dominican Republic properties we recently assumed control of were significant headwinds. We remain optimistic that these challenges will ease through the year and are focused on executing on areas within our control.

We continue to expect double digit year-over-year ADR growth in the second quarter, as demand for the remainder of the year has remained steady despite macroeconomic concerns. Our MICE business for 2024 is pacing well ahead compared to the same time last year, providing a strong base of business for the coming high season.

We believe Playa's stock remains a compelling value given the strong fundamentals. Accordingly, we repurchased over $40 million of our stock during the first quarter of 2023 and nearly another $20 million in April. This brings the total amount of share repurchases to over $107 million following the re-authorization of our buyback program in September of 2022."

– Bruce D. Wardinski, Chairman and CEO of Playa Hotels & Resorts

Financial and Operating Results

The following tables set forth information with respect to the operating results of our total portfolio and comparable portfolio for the three months ended March 31, 2023 and 2022 ($ in thousands):

Total Portfolio

Three Months Ended March 31,

2023

2022

Change

Occupancy

70.8 %

72.4 %

        (1.6) pts

Net Package ADR (1)

$                501.64

$                393.90

27.4 %

Net Package RevPAR

$                355.27

$                285.00

24.7 %

Total Net Revenue (2)

$              264,228

$              213,225

23.9 %

Owned Net Revenue (3)

$              261,009

$              211,661

23.3 %

Owned Resort EBITDA

$              109,389

$                87,537

25.0 %

Owned Resort EBITDA Margin

41.9 %

41.4 %

      0.5 pts

Other corporate

$                13,555

$                11,947

13.5 %

The Playa Collection Revenue

$                     726

$                     296

145.3 %

Management Fee Revenue

$                  1,929

$                  1,057

82.5 %

Adjusted EBITDA

$                98,489

$                76,943

28.0 %

Adjusted EBITDA Margin

37.3 %

36.1 %

      1.2 pts

Comparable Portfolio (4)

Three Months Ended March 31,

2023

2022

Change

Occupancy

75.8 %

71.9 %

      3.9 pts

Net Package ADR

$                502.68

$                409.48

22.8 %

Net Package RevPAR

$                381.06

$                294.23

29.5 %

Total Net Revenue (2)

$              263,544

$              204,867

28.6 %

Owned Net Revenue (3)

$              260,325

$              203,303

28.0 %

Owned Resort EBITDA

$              111,817

$                85,247

31.2 %

Owned Resort EBITDA Margin

43.0 %

41.9 %

      1.1 pts

Other corporate

$                13,555

$                11,947

13.5 %

The Playa Collection Revenue

$                     726

$                     296

145.3 %

Management Fee Revenue

$                  1,929

$                  1,057

82.5 %

Adjusted EBITDA

$              100,917

$                74,653

35.2 %

Adjusted EBITDA Margin

38.3 %

36.4 %

      1.9 pts

(1)  For the three months ended March 31, 2022, Net Package ADR includes $2.7 million of on-property room upgrade revenue that was reclassified from non-package revenue to package revenue to conform with current period presentation.

(2)  Total Net Revenue represents revenue from the sale of all-inclusive packages, which include room accommodations, food and beverage services and entertainment activities, net of compulsory tips paid to employees, as well as revenue from other goods, services and amenities not included in the all-inclusive package. Government mandated compulsory tips in the Dominican Republic are not included in this adjustment as they are already excluded from revenue in accordance with U.S. GAAP. A description of how we compute Total Net Revenue and a reconciliation of Total Net Revenue to total revenue can be found in the section "Definitions of Non-U.S. GAAP Measures and Operating Statistics" below. Total Net Revenue also includes all Management Fee Revenue.

(3)  Owned Net Revenue excludes Management Fee Revenue, other corporate revenue and The Playa Collection revenue (which is a third-party owned and operated membership program).

(4)  For the three months ended March 31, 2023, our comparable portfolio excludes Jewel Palm Beach, which was closed for a majority of the first quarter of 2023 as we transitioned the management of the resort to us from a third-party.

Balance Sheet

As of March 31, 2023, we held $281.5 million in cash and cash equivalents, with no restricted cash. Total interest-bearing debt was $1,097.3 million, comprised of our Term Loan due 2029 (the "2022 Term Loan"). As of March 31, 2023, there was no balance outstanding on our $225.0 million Revolving Credit Facility. Our interest rate swaps, which previously mitigated risk related to LIBOR, matured on March 31, 2023. Effective April 15, 2023, we entered into two interest rate swaps to mitigate the floating interest rate risk on our 2022 Term Loan, 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.

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 March 31, 2023, Playa owned and/or managed a total portfolio consisting of 26 resorts (9,756 rooms) located in Mexico, Jamaica, and the Dominican Republic. In Mexico, Playa owns and manages Hyatt Zilara Cancún, Hyatt Ziva Cancún, Wyndham Alltra Cancún, Wyndham Alltra Playa del Carmen, Hilton Playa del Carmen All-Inclusive Resort, Hyatt Ziva Puerto Vallarta and Hyatt Ziva Los Cabos. In Jamaica, Playa owns and manages Hyatt Zilara Rose Hall, Hyatt Ziva Rose Hall, Hilton Rose Hall Resort & Spa, Jewel Grande Montego Bay Resort & Spa and Jewel Paradise Cove Beach Resort & Spa. In the Dominican Republic, Playa owns and manages the Hilton La Romana All-Inclusive Family Resort, the Hilton La Romana All-Inclusive Adult Resort, Jewel Palm Beach, Jewel Punta Cana, Hyatt Zilara Cap Cana and Hyatt Ziva Cap Cana. Playa also manages nine resorts on behalf of third-party owners.

The following table shows a reconciliation of Net Package Revenue, Net Non-package Revenue, Management Fee Revenue and Total Net Revenue to total revenue for the three months ended March 31, 2023 and 2022 ($ in thousands):

Total Portfolio

Three Months Ended March 31,

2023

2022

Net Package Revenue

Comparable Net Package Revenue

$                      227,174

$                      175,412

Non-comparable Net Package Revenue

612

7,318

Net Package Revenue

227,786

182,730

Net Non-package Revenue

Comparable Net Non-package Revenue

33,715

28,102

Non-comparable Net Non-package Revenue

72

1,040

Net Non-package Revenue

33,787

29,142

Playa Collection Revenue:

Comparable Playa Collection Revenue

726

.

296

Non-Comparable Playa Collection Revenue

—

.

—

Total Playa Collection Revenue

726

296

Management Fee Revenue

Comparable Management Fee Revenue

1,929

1,057

Non-comparable Management Fee Revenue

—

—

Management Fee Revenue

1,929

1,057

Total Net Revenue

Comparable Total Net Revenue

263,544

204,867

Non-comparable Total Net Revenue

684

8,358

Total Net Revenue

264,228

213,225

Compulsory tips

6,040

4,397

Cost Reimbursements

3,534

1,952

Total revenue

$                      273,802

$                      219,574

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, Owned Resort EBITDA and Comparable Owned Resort EBITDA for the three months ended March 31, 2023 and 2022 ($ in thousands):

Three Months Ended March 31,

2023

2022

Net income

$                         42,719

$                         42,747

Interest expense

29,666

9,168

Income tax provision

4,816

1,614

Depreciation and amortization

19,191

19,500

EBITDA

96,392

73,029

Other (income) expense (a)

(232)

514

Share-based compensation

3,166

3,356

Transaction expense (b)

863

191

Other tax expense (c)

—

240

Repairs from hurricanes and tropical storms (d)

(861)

—

Loss on sale of assets

13

—

Non-service cost components of net periodic benefit

(852)

(387)

Adjusted EBITDA

98,489

76,943

Other corporate (e)

13,555

11,947

The Playa Collection

(726)

(296)

Management fees

(1,929)

(1,057)

Owned Resort EBITDA

109,389

87,537

Less: Non-comparable Owned Resort EBITDA

(2,428)

2,290

Comparable Owned Resort EBITDA(f)

$                       111,817

$                         85,247

(a)  Represents changes in foreign exchange and other miscellaneous non-operating expenses or income. 

(b)  Represents expenses incurred in connection with corporate initiatives, such as: system implementations, debt refinancing costs; other capital raising efforts; and strategic initiatives, such as the launch of a new resort or possible expansion into new markets.

(c)  Relates primarily to a Dominican Republic asset tax, which is an alternative tax to income tax in the Dominican Republic. We eliminate this expense from Adjusted EBITDA because it is substantially similar to the income tax provision or benefit we eliminate from EBITDA.

(d)  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 ended March 31, 2023, represents a decrease in the expected repair and clean-up expenses for the Jewel Punta Cana related to the impact of Hurricane Fiona.

(e)  For the three months ended March 31, 2023 and 2022, represents corporate salaries and benefits of $9.7 million for 2023 and $8.3 million for 2022, professional fees of $1.9 million for 2023 and $1.9 million for 2022, corporate rent and insurance of $1.0 million for 2023 and $1.0 million for 2022, and corporate travel, software licenses, board fees and other miscellaneous corporate expenses of $1.0 million for 2023 and $0.7 million for 2022.

(f)  Our comparable portfolio for the three months ended March 31, 2023 excludes the Jewel Palm Beach, which was closed for a majority of the first quarter of 2023 as we transitioned the management of the resort to us from a third-party.

 

Playa Hotels & Resorts N.V. 

Reconciliation of Net Income to Adjusted Net Income 

($ in thousands)

The following table reconciles our net income to Adjusted Net Income for the three months ended March 31, 2023 and 2022 ($ in thousands):

Three Months Ended March 31,

2023

2022

Net income

$                         42,719

$                         42,747

Reconciling items

Transaction expense

863

191

Change in fair value of interest rate swaps (a)

6,335

(11,127)

Repairs from hurricanes and tropical storms

(861)

—

Total reconciling items before tax

6,337

(10,936)

Income tax provision for reconciling items

(36)

—

Total reconciling items after tax

6,301

(10,936)

Adjusted net income

$                         49,020

$                         31,811

(a)  Represents the change in fair value, excluding interest paid and accrued, of our interest rate swaps recognized as interest expense in our Condensed Consolidated Statements of Operations.

The following table presents the impact of Adjusted Net Income on our diluted earnings or loss per share for the three months ended March 31, 2023 and 2022 ($ in thousands):

Three Months Ended March 31,

2023

2022

Adjusted net income

$                          49,020

$                          31,811

Earnings per share - Diluted

$                               0.27

$                               0.26

Total reconciling items impact per diluted share

0.04

(0.07)

Adjusted earnings per share  - Diluted

$                               0.31

$                               0.19

Playa Hotels & Resorts N.V.

Condensed Consolidated Balance Sheet

($ in thousands, except share data)

(unaudited)

As of March 31,

As of December 31,

2023

2022

ASSETS

Cash and cash equivalents

$                     281,465

$                     283,945

Trade and other receivables, net

74,268

62,946

Insurance recoverable

20,586

34,191

Accounts receivable from related parties

11,408

8,806

Inventories

20,607

20,046

Prepayments and other assets

40,958

44,177

Property and equipment, net

1,527,188

1,536,567

Derivative financial instruments

—

3,510

Goodwill, net

61,654

61,654

Other intangible assets

6,293

6,556

Deferred tax assets

7,334

7,422

Total assets

$                  2,051,761

$                  2,069,820

LIABILITIES AND SHAREHOLDERS' EQUITY

Trade and other payables

$                     200,694

$                     231,652

Payables to related parties

9,144

6,852

Income tax payable

785

990

Debt

1,064,391

1,065,453

Other liabilities

31,149

30,685

Deferred tax liabilities

73,064

69,326

Total liabilities

1,379,227

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 154,402,852 shares outstanding as of March 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, 15,021,128 shares as of March 31, 2023 and 10,046,996

shares as of December 31, 2022)

(103,843)

(62,953)

Paid-in capital

1,192,134

1,189,090

Accumulated other comprehensive loss

(4,308)

(6,985)

Accumulated deficit

(430,271)

(472,990)

Total shareholders' equity

672,534

664,862

Total liabilities and shareholders' equity

$                  2,051,761

$                  2,069,820

Playa Hotels & Resorts N.V.

Condensed Consolidated Statements of Operations

($ in thousands, except share data)

(unaudited)

Three Months Ended March 31,

2023

2022

Revenue

Package

$                       233,568

$                       186,815

Non-package

34,045

29,454

The Playa Collection

726

296

Management fees

1,929

1,057

Cost reimbursements

3,534

1,952

Total revenue

273,802

219,574

Direct and selling, general and administrative expenses

Direct

128,968

106,840

Selling, general and administrative

45,127

37,239

Depreciation and amortization

19,191

19,500

Reimbursed costs

3,534

1,952

Loss on sale of assets

13

—

Direct and selling, general and administrative expenses

196,833

165,531

Operating income

76,969

54,043

Interest expense

(29,666)

(9,168)

Other income (expense)

232

(514)

Net income before tax

47,535

44,361

Income tax provision

(4,816)

(1,614)

Net income

$                         42,719

$                         42,747

Earnings per share

Basic

$                              0.27

$                              0.26

Diluted

$                              0.27

$                              0.26

Weighted average number of shares outstanding during the period - Basic

157,314,177

165,743,382

Weighted average number of shares outstanding during the period - Diluted

158,772,453

166,888,129

Playa Hotels & Resorts N.V.

Consolidated Debt Summary - As of March 31, 2023

($ in millions)

Maturity

Applicable

Rate

LTM

   Interest (6)

Debt

Date

# of Years

Balance

Revolving Credit Facility (1)

Jan-28

4.8

$                 —

— %

$               0.6

Term Loan (2)(3)

Jan-29

5.8

1,097.3

8.99 %

57.7

Term Loan (Additional $93.3 million)

—

—

—

— %

9.2

Property Loan

—

—

—

— %

11.2

Total debt (4)

$        1,097.3

8.99 %

$             78.7

Less: cash and cash equivalents (5)

(281.5)

Net debt

$           815.8

(1)  Undrawn balances bear interest between 0.25% and 0.50% depending on certain leverage ratios. We had $225.0 million and $85.0 million available as of March 31, 2023 and 2022, respectively.

(2)  Prior to our debt refinancing in December 2022, we incurred interest based on LIBOR + 275 bps (where LIBOR was subject to a 1.0% floor). Our 2022 Term Loan incurs interest based on SOFR + 425 bps (where SOFR is subject to a 0.50% floor). The effective interest rate for the 2022 Term Loan was 8.99% as of March 31, 2023.

(3)  Effective April 15, 2023, we entered into two interest rate swaps to mitigate the floating interest rate risk on our 2022 Term Loan. 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 $31.0 million of unamortized discounts, $7.5 million of unamortized deferred financing costs, and a $5.6 million financing lease obligation as of March 31, 2023.

(5)  Represents cash balances on hand as of March 31, 2023.

(6)  Represents last twelve months' cash paid for interest on the outstanding balance of our 2022 Term Loan as well as our prior term loans and property loan that were outstanding prior to our 2022 debt refinancing. It also includes call premiums incurred as a result of the repayment of the prior term loan and property loan in December 2022. The impact of amortization of deferred financing costs and discounts, capitalized interest and the change in fair market value of our interest rate swaps is excluded.

Playa Hotels & Resorts N.V.

Reportable Segment Operating Statistics - Three Months Ended March 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

83.8 %

71.9 %

         11.9 pts

$      494.08

$      436.51

13.2 %

$      414.21

$      313.83

32.0 %

$      88,748

$      68,629

29.3 %

$      37,936

$      29,458

28.8 %

42.7 %

42.9 %

        (0.2) pts

Pacific Coast

926

79.3 %

66.6 %

         12.7 pts

$      541.73

$      459.90

17.8 %

$      429.80

$      306.41

40.3 %

40,515

29,104

39.2 %

17,523

12,544

39.7 %

43.3 %

43.1 %

       0.2 pts

Dominican Republic

2,644

51.1 %

77.3 %

          (26.2) pts

$      490.55

$      330.61

48.4 %

$      250.47

$      255.58

(2.0) %

68,769

69,664

(1.3) %

26,849

28,377

(5.4) %

39.0 %

40.7 %

        (1.7) pts

Jamaica

1,428

82.5 %

67.6 %

         14.9 pts

$      500.78

$      418.26

19.7 %

$      413.24

$      282.67

46.2 %

62,977

44,264

42.3 %

27,081

17,158

57.8 %

43.0 %

38.8 %

       4.2 pts

Total Portfolio

7,124

70.8 %

72.4 %

        (1.6) pts

$      501.64

$      393.90

27.4 %

$      355.27

$      285.00

24.7 %

$    261,009

$    211,661

23.3 %

$    109,389

$      87,537

25.0 %

41.9 %

41.4 %

       0.5 pts

Occupancy

Net Package ADR

Net Package RevPAR

Owned Net Revenue

Owned Resort EBITDA

Owned Resort EBITDA Margin

Comparable Portfolio

Rooms

2023

2022

Pts

Change

2023

2022

%

Change

2023

2022

%

Change

2023

2022

%

Change

2023

2022

%

Change

2023

2022

Pts

Change

Yucatán Peninsula

2,126

83.8 %

71.9 %

         11.9 pts

$      494.08

$      436.51

13.2 %

$      414.21

$      313.83

32.0 %

$      88,748

$      68,629

29.3 %

$      37,936

$      29,458

28.8 %

42.7 %

42.9 %

        (0.2) pts

Pacific Coast

926

79.3 %

66.6 %

         12.7 pts

$      541.73

$      459.90

17.8 %

$      429.80

$      306.41

40.3 %

40,515

29,104

39.2 %

17,523

12,544

39.7 %

43.3 %

43.1 %

       0.2 pts

Dominican Republic

2,144

61.8 %

76.9 %

          (15.1) pts

$      494.31

$      360.44

37.1 %

$      305.71

$      277.26

10.3 %

68,085

61,306

11.1 %

29,277

26,087

12.2 %

43.0 %

42.6 %

       0.4 pts

Jamaica

1,428

82.5 %

67.6 %

         14.9 pts

$      500.78

$      418.26

19.7 %

$      413.24

$      282.67

46.2 %

62,977

44,264

42.3 %

27,081

17,158

57.8 %

43.0 %

38.8 %

       4.2 pts

Total Comparable Portfolio

6,624

75.8 %

71.9 %

       3.9 pts

$      502.68

$      409.48

22.8 %

$      381.06

$      294.23

29.5 %

$    260,325

$    203,303

28.0 %

$    111,817

$      85,247

31.2 %

43.0 %

41.9 %

       1.1 pts

Highlights

Yucatán Peninsula

  • Owned Net Revenue for the three months ended March 31, 2023 increased $20.1 million, or 29.3%, compared to the three months ended March 31, 2022. The increase was due to the following:
    • an increase in Occupancy of 11.9 percentage points compared to the three months ended March 31, 2022, driven by an increase in demand from Canadian, Mexican and United States sourced guests;
    • a 13.2% increase in Net Package ADR as a result of a higher meetings, incentives, conventions and events ("MICE") group contribution to our guest mix; and
    • an increase in Net Non-package Revenue of $0.9 million, or 10.6%, compared to the three months ended March 31, 2022. Net Non-package Revenue includes a decrease of $0.7 million due to the expiration of our Extended Stay Program in late 2022 as COVID-19-related travel restrictions were no longer in effect. Excluding this impact, Net Non-package Revenue per sold room increased 2.7% compared to the three months ended March 31, 2022.
  • Owned Resort EBITDA for the three months ended March 31, 2023 increased $8.5 million, or 28.8%, compared to the three months ended March 31, 2022. The increase was a result of leveraging a majority of our direct expenses given the Net Package ADR growth, which was partially offset by Occupancy-related increases in resort operating expenses, union-negotiated wage and benefit increases, and a negative impact from the appreciation of the Mexican Peso compared to the three months ended March 31, 2022.
    • Owned Resort EBITDA Margin for the three months ended March 31, 2023 was 42.7%, a decrease of 0.2 percentage points compared to the three months ended March 31, 2022. Owned Resort EBITDA Margin was negatively impacted by 370 basis points due to the appreciation of the Mexican Peso compared to the three months ended March 31, 2022. Excluding the impact of foreign exchange rate appreciation, Owned Resort EBITDA Margin would have been 46.4%, an increase of 3.5 percentage points compared to the three months ended March 31, 2022.

Pacific Coast

  • Owned Net Revenue for the three months ended March 31, 2023 increased $11.4 million, or 39.2%, compared to the three months ended March 31, 2022. The increase was due to the following:
    • an increase in Occupancy of 12.7 percentage points compared to the three months ended March 31, 2022, driven by an increase in demand from Mexican and Canadian sourced guests;
    • a 17.8% increase in Net Package ADR as a result of a higher MICE group contribution to our guest mix; and
    • an increase in Net Non-package Revenue of $1.1 million, or 31.5%, compared to the three months ended March 31, 2022. Net Non-package Revenue includes a decrease of $0.4 million due to the expiration of our Extended Stay Program in late 2022 as COVID-19-related travel restrictions were no longer in effect. Excluding this impact, Net Non-package Revenue per sold room increased 23.2% compared to the three months ended March 31, 2022.
  • Owned Resort EBITDA for the three months ended March 31, 2023 increased $5.0 million, or 39.7%, compared to the three months ended March 31, 2022. The increase was a result of leveraging a majority of our direct expenses given the Net Package ADR growth, which was partially offset by Occupancy-related increases in resort operating expenses, union-negotiated wage and benefit increases, and a negative impact from the appreciation of the Mexican Peso compared to the three months ended March 31, 2022.
    • Owned Resort EBITDA Margin for the three months ended March 31, 2023  was 43.3%, an increase of 0.2 percentage points compared to three months ended March 31, 2022. Owned Resort EBITDA Margin was negatively impacted by 350 basis points due to the appreciation of the Mexican Peso compared to the three months ended March 31, 2022. Excluding the impact of foreign exchange rate appreciation, Owned Resort EBITDA Margin would have been 46.8%, an increase of 3.7 percentage points compared to the three months ended March 31, 2022.

Dominican Republic

  • Comparable Owned Net Revenue for the three months ended March 31, 2023 increased $6.8 million, or 11.1%, compared to the three months ended March 31, 2022. The increase was due to the following:
    • a 37.1% increase in Comparable Net Package ADR due to a lower mix of sold rooms at the Jewel Punta Cana during the three months ended March 31, 2023, when we transitioned management to us from a third-party. Excluding this resort, Net Package ADR increased 20.1%;
    • a decrease in Occupancy of 15.1 percentage points compared to the three months ended March 31, 2022 as a result of reduced Occupancy at the Jewel Punta Cana, as we transitioned the management of the resort to us from a third-party; and
    • an increase in Comparable Net Non-package Revenue of $1.3 million, or 16.5%, compared to the three months ended March 31, 2022. Comparable Net Non-package Revenue includes:
      • a decrease of $0.5 million due to the expiration of our Extended Stay Program in late 2022 as COVID-19-related travel restrictions were no longer in effect.
      • a decrease in Net Non-package Revenue as a result of reduced Occupancy at the Jewel Punta Cana during the three months ended March 31, 2023. Excluding this resort, Net Non-package Revenue increased 39.6%.
  • Comparable Owned Resort EBITDA for the three months ended March 31, 2023 increased $3.2 million, or 12.2%, compared to the three months ended March 31, 2022. The increase was a result of leveraging a majority of our direct expenses given the Net Package ADR growth as compared to the three months ended March 31, 2022. Excluding Jewel Punta Cana, Comparable Owned Resort EBITDA for the three months ended March 31, 2023 increased 38.4% compared to the three months ended March 31, 2022.
    • Comparable Owned Resort EBITDA Margin for the three months ended March 31, 2023 was 43.0%, an increase of 0.4 percentage points compared to the three months ended March 31, 2022. Comparable Owned Resort EBITDA Margin was negatively impacted by 530 basis points due to reduced occupancies at the Jewel Punta Cana. Excluding this resort, Comparable Owned Resort EBITDA Margin for the three months ended March 31, 2023 was 48.3%, an increase of 2.8 percentage points compared to the three months ended March 31, 2022.

Jamaica

  • Owned Net Revenue for the three months ended March 31, 2023 increased $18.7 million, or 42.3%, compared to the three months ended March 31, 2022. The increase was due to the following:
    • an increase in Occupancy of 14.9 percentage points compared to the three months ended March 31, 2022, driven by an increase in demand from United States and Canadian sourced guests;
    • a 19.7% increase in Net Package ADR as a result of a higher MICE group contribution to our guest mix; and
    • an increase in Net Non-package Revenue of $1.9 million, or 24.3%, compared to the three months ended March 31, 2022. Net Non-package Revenue includes a decrease of $0.6 million due to the expiration of our Extended Stay Program in late 2022 as COVID-19-related travel restrictions were no longer in effect. Excluding this impact, Net Non-package Revenue per sold room increased 9.5% compared to the three months ended March 31, 2022.
  • Owned Resort EBITDA for the three months ended March 31, 2023 increased $9.9 million, or 57.8%, compared to the three months ended March 31, 2022. The increase was a result of leveraging a majority of our direct expenses given the Net Package ADR growth, partially offset by Occupancy-related increases in resort operating expenses compared to the three months ended March 31, 2022.
    • Owned Resort EBITDA Margin for the three months ended March 31, 2023 increased 4.2 percentage points, or 10.8%, compared to the three months ended March 31, 2022. Owned Resort EBITDA Margin was negatively impacted by 110 basis points due to the timing of sales and marketing expenses and franchise fees compared to the three months ended March 31, 2022.

SOURCE Playa Management USA, LLC