Playa Hotels & Resorts(PLYA) - 2024 Q4 - Earnings Call Transcript

Financial Data and Key Metrics Changes - Playa Hotels & Resorts reported owned resort EBITDA of $67.1 million in Q4 2024, benefiting from business interruption insurance proceeds of approximately$1.1 million compared to $900,000 in Q4 2023 [8] - Underlying owned resort EBITDA growth was down approximately 15$258 million, in line with the forecast shared at the beginning of the year [16] Business Line Data and Key Metrics Changes - In the Yucatan, occupancy declined 70 basis points year over year, with underlying EBITDA growth of approximately negative 4% [11] - The Dominican Republic segment saw both occupancy and ADR increase year over year in Q4, driving approximately positive 9% underlying profit growth after adjusting for business interruption proceeds [14] - Jamaica experienced a 16% RevPAR decline, improving from a negative 30% decline in Q3, resulting in a material 50% decline in resort EBITDA [15] Market Data and Key Metrics Changes - The guest segmentation showed that 47.6% of Playa owned and managed transient revenues were booked direct, up 30 basis points year over year [18] - The recovery of Canadian guest segmentation versus pre-pandemic levels remains near 80%, while the American guest mix is roughly back to pre-pandemic levels [20] Company Strategy and Development Direction - The company entered into an agreement with Hyatt Hotels Corporation for a cash acquisition of $13.50 per share, which the board recommended in favor of, recognizing the value creation efforts of Playa associates [7] - Direct sourcing mix has improved by over 20 percentage points compared to 2019, providing a competitive advantage in the post-pandemic era [20] Management Comments on Operating Environment and Future Outlook - Management noted that the fourth quarter results exceeded expectations due to strong demand across all segments, with a phenomenal holiday season as demand normalized post-Hurricane Barrel [8] - The company faced challenges from construction disruption in the Pacific Coast and a travel advisory on the Jamaican segment, impacting overall performance [11] Other Important Information - Capital expenditures in 2024 came in lower than anticipated, and the company repurchased approximately$25 million worth of Playa stock during Q4, totaling approximately $376 million since resuming the program in September 2022 [21] Summary of Q&A Session - There was no Q&A session during this earnings call due to the focus on the potential transaction with Hyatt [3]