Playa Hotels & Resorts (PLYA) investor relations material

Executive summary

• Net income for Q1 2025 was $43.1 million, down from $54.3 million year-over-year; total revenue declined 11.1% to $267.3 million.

• Adjusted EBITDA fell 11.9% to $99.9 million, with margin decreasing 1.2 points to 37.9%.

• Results were impacted by a U.S. travel advisory for Jamaica, renovations at key properties, and the sale of Jewel Paradise Cove Beach Resort & Spa.

• Playa entered into a definitive agreement to be acquired by Hyatt Hotels Corporation for $13.50 per share; transaction expected to close in Q2 2025.

• Adjusted net income was $46.7 million, compared to $55.2 million in Q1 2024.

Financial highlights

• Revenue decreased $33.3 million year-over-year, primarily due to lower demand in Jamaica and property renovations.

• Net income dropped $11.2 million to $43.1 million; EPS was $0.35 basic and $0.34 diluted, down from $0.40 and $0.39.

• Adjusted EPS was $0.37, down from $0.40 in Q1 2024.

• Cash and cash equivalents rose to $265.4 million from $189.3 million at year-end 2024; net debt was $809.9 million as of March 31, 2025.

• Net cash from operating activities increased to $78.1 million from $56.8 million year-over-year.

Outlook and guidance

• Management expects continued inflationary pressures on labor, food, and utilities, with some improvement seen in 2024.

• Seasonality will drive higher occupancy and rates in Q1, with lower results expected in subsequent quarters.

• The Hyatt acquisition is expected to close in Q2 2025, after which Playa will cease to be publicly traded.