Playa Hotels & Resorts (PLYA) Q3 2024 earnings summary

Executive summary

• Q3 2024 results exceeded expectations despite headwinds from hurricanes, travel advisories, and renovations, with strong performance in Yucatan and Dominican Republic and improving demand in Jamaica and Pacific Coast.

• Net loss for Q3 2024 narrowed to $2.7M from $10.5M in Q3 2023; nine-month net income rose to $64.8M, up 22.6% year-over-year.

• Direct bookings increased, with 46.2% of transient revenues booked direct and PlayaResorts.com accounting for 13% of room night bookings.

• Over $140M in share repurchases YTD through October 2024.

• Operates 25 all-inclusive resorts with 9,127 rooms, primarily in Mexico, Jamaica, and the Dominican Republic, with 55% Hyatt/Hilton branded and 77% rated 4.5 stars or higher as of October 2024.

Financial highlights

• Q3 2024 owned resort EBITDA was $36.6M, including $700,000 in business interruption insurance proceeds; adjusted EBITDA was $25.1M, down 38% year-over-year.

• Q3 2024 total net revenue fell 13.7% YoY to $176.4M; owned net revenue down 14.1% to $173.0M.

• Q3 2024 occupancy fell to 63.4% from 70.7% in Q3 2023; Net Package ADR rose 4.3% to $397.69.

• Q3 net package RevPAR decreased 6.4% YoY to $252.12; nine-month net package RevPAR up 7.1% to $334.28.

• Interest expense decreased 17.3% in Q3 2024 due to repricing of the Term Loan due 2029.

Outlook and guidance

• FY 2024 adjusted EBITDA expected at $250–255M, reflecting improved demand in Jamaica and favorable FX outlook.

• Q4 underlying EBITDA growth expected to improve substantially versus Q3, with less hurricane and construction disruption and strong holiday demand.

• Q4 occupancy expected in the low to mid-70s, with package ADR up mid-single digits year-over-year.

• Q4 Adjusted EBITDA guidance is $48–$53M; FX expected to positively impact Q4 margins by 50 basis points.

• Liquidity is considered sufficient for the next twelve months, with $211.1M in cash and $225M available on the Revolving Credit Facility.