Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2018 | May 02, 2018 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | Playa Hotels & Resorts N.V. | |
Entity Central Index Key | 1,692,412 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Accelerated Filer | |
Document Type | 10-Q | |
Document Period End Date | Mar. 31, 2018 | |
Document Fiscal Year Focus | 2,018 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false | |
Entity Common Stock, Shares Outstanding | 110,346,396 |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
ASSETS | ||
Cash and cash equivalents | $ 140,073 | $ 117,229 |
Trade and other receivables, net | 62,076 | 51,527 |
Accounts receivable from related parties | 2,428 | 1,495 |
Inventories | 11,255 | 11,309 |
Prepayments and other assets | 33,730 | 34,066 |
Property, plant and equipment, net | 1,472,424 | 1,466,326 |
Investments | 936 | 990 |
Goodwill | 51,731 | 51,731 |
Other intangible assets | 3,283 | 2,087 |
Deferred tax assets | 1,063 | 1,063 |
Total assets | 1,778,999 | 1,737,823 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Trade and other payables | 143,353 | 139,528 |
Accounts payable to related parties | 3,985 | 2,966 |
Income tax payable | 4,296 | 1,090 |
Debt | 896,267 | 898,215 |
Derivative financial instruments | 11,025 | 0 |
Other liabilities | 19,921 | 19,394 |
Deferred tax liabilities | 77,081 | 77,081 |
Total liabilities | 1,155,928 | 1,138,274 |
Commitments and contingencies | ||
Shareholders' equity | ||
Ordinary shares (par value €0.10; 500,000,000 shares authorized, 110,353,763 and 110,305,064 shares issued and 110,346,396 and 110,297,697 shares outstanding as of March 31, 2018 and December 31, 2017, respectively) | 11,809 | 11,803 |
Treasury shares (at cost, 7,367 shares as of March 31, 2018 and December 31, 2017) | (80) | (80) |
Paid-in capital | 774,974 | 773,194 |
Accumulated other comprehensive loss | (3,907) | (3,826) |
Accumulated deficit | (159,725) | (181,542) |
Total shareholders' equity | 623,071 | 599,549 |
Total liabilities and shareholders' equity | $ 1,778,999 | $ 1,737,823 |
Condensed Consolidated Balance3
Condensed Consolidated Balance Sheets (Parenthetical) - € / shares | Mar. 31, 2018 | Dec. 31, 2017 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in Euros per share) | € 0.10 | € 0.10 |
Ordinary shares, authorized (in shares) | 500,000,000 | 500,000,000 |
Ordinary shares, issued (in shares) | 110,353,763 | 110,305,064 |
Ordinary shares, outstanding (in shares) | 110,346,396 | 110,297,697 |
Treasury shares, at cost (in shares) | 7,367 | 7,367 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations and Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Revenue: | ||
Management fees | $ 296 | $ 0 |
Cost reimbursements | 44 | 0 |
Total revenue | 176,847 | 174,067 |
Direct and selling, general and administrative expenses: | ||
Direct | 81,056 | 76,677 |
Selling, general and administrative | 26,473 | 28,664 |
Depreciation and amortization | 15,689 | 12,410 |
Reimbursed costs | 44 | 0 |
Gain on insurance proceeds | (1,521) | 0 |
Direct and selling, general and administrative expenses | 121,741 | 117,751 |
Operating income | 55,106 | 56,316 |
Interest expense | (21,882) | (14,015) |
Other expense, net | (1,824) | (1,074) |
Net income before tax | 31,400 | 41,227 |
Income tax provision | (9,583) | (13,588) |
Net income | 21,817 | 27,639 |
Other comprehensive loss, net of taxes: | ||
Benefit obligation loss | (81) | (71) |
Other comprehensive loss | (81) | (71) |
Total comprehensive income | 21,736 | 27,568 |
Dividends of cumulative redeemable preferred shares | 0 | (7,922) |
Net income available to ordinary shareholders | $ 21,817 | $ 19,717 |
Earnings per share - Basic (in dollars per share) | $ 0.20 | $ 0.21 |
Earnings per share - Diluted (in dollars per share) | $ 0.20 | $ 0.21 |
Weighted average number of shares outstanding during the period - Basic (in shares) | 110,345,855 | 62,255,681 |
Weighted average number of shares outstanding during the period - Diluted (in shares) | 110,601,606 | 62,255,681 |
Package | ||
Revenue: | ||
Revenue | $ 154,708 | $ 152,956 |
Non-package | ||
Revenue: | ||
Revenue | $ 21,799 | $ 21,111 |
Condensed Consolidated Stateme5
Condensed Consolidated Statements of Cumulative Redeemable Preferred Shares, Shareholders' Equity and Accumulated Other Comprehensive Loss - USD ($) $ in Thousands | Total | Ordinary Shares | Treasury Shares | Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) (Previously Reported) at Dec. 31, 2016 | 60,249,330 | 5,373,884 | ||||
Beginning balance (in shares) (Retroactive application of recapitalization) | (9,767,508) | (5,373,884) | ||||
Beginning balance (in shares) at Dec. 31, 2016 | 50,481,822 | 0 | ||||
Beginning balance (Previously Reported) at Dec. 31, 2016 | $ 170,603 | $ 656 | $ (23,108) | $ 377,196 | $ (3,719) | $ (180,422) |
Beginning balance (Retroactive application of recapitalization) | 0 | 4,730 | 23,108 | (27,838) | ||
Beginning balance at Dec. 31, 2016 | 170,603 | $ 5,386 | $ 0 | 349,358 | (3,719) | (180,422) |
Shareholders' Equity | ||||||
Net income for the period | 27,639 | 27,639 | ||||
Benefit obligation loss, net of tax | (71) | (71) | ||||
Recapitalization transaction (in shares) | 52,982,364 | |||||
Recapitalization transaction | 433,531 | $ 5,653 | 427,878 | |||
Dividends on cumulative redeemable preferred shares | (7,922) | (7,922) | ||||
Ending balance (in shares) at Mar. 31, 2017 | 103,464,186 | 0 | ||||
Ending balance at Mar. 31, 2017 | $ 623,780 | $ 11,039 | $ 0 | 769,314 | (3,790) | (152,783) |
Beginning balance (in shares) (Previously Reported) at Dec. 31, 2016 | 28,510,994 | |||||
Beginning balance (in shares) at Dec. 31, 2016 | 28,510,994 | |||||
Beginning balance (Previously Reported) at Dec. 31, 2016 | $ 345,951 | |||||
Beginning balance at Dec. 31, 2016 | 345,951 | |||||
Cumulative Redeemable Preferred Shares | ||||||
Dividends on cumulative redeemable preferred shares | $ 7,922 | |||||
Purchase of cumulative redeemable preferred shares (in shares) | (28,510,994) | |||||
Purchase of cumulative redeemable preferred shares | $ (239,492) | |||||
Settlement of accrued dividends of cumulative redeemable preferred shares | $ (114,381) | |||||
Ending balance (in shares) at Mar. 31, 2017 | 0 | |||||
Ending balance at Mar. 31, 2017 | $ 0 | |||||
Beginning balance (in shares) at Dec. 31, 2017 | 110,297,697 | 7,367 | ||||
Beginning balance at Dec. 31, 2017 | 599,549 | $ 11,803 | $ (80) | 773,194 | (3,826) | (181,542) |
Shareholders' Equity | ||||||
Net income for the period | 21,817 | 21,817 | ||||
Benefit obligation loss, net of tax | (81) | (81) | ||||
Share-based compensation (in shares) | 48,699 | |||||
Share-based compensation | 1,786 | $ 6 | 1,780 | |||
Ending balance (in shares) at Mar. 31, 2018 | 110,346,396 | 7,367 | ||||
Ending balance at Mar. 31, 2018 | $ 623,071 | $ 11,809 | $ (80) | $ 774,974 | $ (3,907) | $ (159,725) |
Beginning balance (in shares) at Dec. 31, 2017 | 0 | |||||
Beginning balance at Dec. 31, 2017 | $ 0 | |||||
Cumulative Redeemable Preferred Shares | ||||||
Settlement of accrued dividends of cumulative redeemable preferred shares | $ 0 | |||||
Ending balance (in shares) at Mar. 31, 2018 | 0 | |||||
Ending balance at Mar. 31, 2018 | $ 0 |
Condensed Consolidated Stateme6
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
CASH FLOW FROM OPERATING ACTIVITIES: | ||
Net income | $ 21,817 | $ 27,639 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 15,689 | 12,410 |
Amortization of debt discount, premium and issuance costs | 327 | 777 |
Share-based compensation | 1,786 | 0 |
Loss on derivative financial instruments | 11,025 | 0 |
Other | 119 | (10) |
Changes in assets and liabilities: | ||
Trade and other receivables, net | (10,549) | (2,319) |
Accounts receivable from related parties | (933) | (769) |
Inventories | 59 | (915) |
Prepayments and other assets | 488 | (9,273) |
Trade and other payables | 2,076 | (11,647) |
Accounts payable to related parties | 1,019 | 354 |
Income tax payable | 3,206 | 9,323 |
Deferred consideration | 0 | (26) |
Other liabilities | 527 | 588 |
Net cash provided by operating activities | 46,656 | 26,132 |
INVESTING ACTIVITIES: | ||
Purchase of property, plant and equipment | (20,293) | (3,175) |
Purchase of intangibles | (1,246) | (10) |
Proceeds from disposal of property, plant and equipment | 2 | 4 |
Net cash used in investing activities | (21,537) | (3,181) |
FINANCING ACTIVITIES: | ||
Repayment of deferred consideration | 0 | (630) |
Repayment of Term Loan | (2,275) | (938) |
Recapitalization transaction | 0 | 79,658 |
Net cash (used in) provided by financing activities | (2,275) | 78,090 |
INCREASE IN CASH, CASH EQUIVALENTS AND RESTRICTED CASH | 22,844 | 101,041 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, BEGINNING OF THE PERIOD | 117,229 | 43,163 |
CASH, CASH EQUIVALENTS AND RESTRICTED CASH, END OF THE PERIOD | 140,073 | 144,204 |
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||
Cash and cash equivalents | 140,073 | 134,156 |
Restricted cash | 0 | 10,048 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest, net of interest capitalized | 7,836 | 22,777 |
Cash paid for income taxes | 5,014 | 6,045 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||
Capital expenditures incurred but not yet paid | 1,006 | 527 |
Intangible assets capitalized but not yet paid | 251 | 0 |
Interest capitalized but not yet paid | 540 | 0 |
Non-cash PIK dividends | 0 | 7,922 |
Purchase of cumulative redeemable preferred shares | 0 | (239,492) |
Settlement of accrued dividends of cumulative redeemable preferred shares | $ 0 | $ (114,381) |
Organization, operations and ba
Organization, operations and basis of presentation | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, operations and basis of presentation | Organization, operations and basis of presentation Background Playa Hotels & Resorts N.V. (“Playa” or the “Company”) is a leading owner, operator and developer of all-inclusive resorts in prime beachfront locations in popular vacation destinations. We own a portfolio of 14 resorts located in Mexico, the Dominican Republic and Jamaica. We currently manage nine of the 14 resorts we own, as well as one resort owned by a third party. Unless otherwise indicated or the context requires otherwise, references in our condensed consolidated financial statements (our “ Condensed Consolidated Financial Statements ”) to “we,” “our,” “us” and similar expressions refer to Playa and its subsidiaries. Basis of preparation, presentation and measurement Our Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Company’s Consolidated Financial Statements as of and for the year ended December 31, 2017, included in our Annual Report on Form 10-K for the year ended December 31, 2017, filed on March 1, 2018. In our opinion, the unaudited interim Condensed Consolidated Financial Statements have been prepared on the same basis as the annual Consolidated Financial Statements and include all adjustments, consisting of only normal recurring adjustments, necessary for fair presentation. Prior period presentation was updated to conform with current period presentation. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results of operations to be expected for the full year ended December 31, 2018 . All dollar amounts (other than per share amounts) in the following disclosures are in thousands of United States dollars, unless otherwise indicated. |
Significant accounting policies
Significant accounting policies | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Significant accounting policies Derivative financial instruments We may use derivative financial instruments, primarily interest rate swap contracts, to hedge our exposure to interest rate risk. Such derivative financial instruments are initially recorded at fair value on the date on which a derivative contract is entered into and are subsequently remeasured to fair value at period end. Any gains or losses arising from changes in fair value on derivative contracts not designated for hedge accounting are recorded in interest expense in our Condensed Consolidated Statements of Operations and Comprehensive Income . Standards Adopted Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as clarified and amended by ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 This standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. January 2018 We applied the modified retrospective transition method to all contracts upon the adoption of ASU 2014-09. We provided the additional required disclosures, but the cumulative adjustment from our comparative periods was zero in our Condensed Consolidated Financial Statements. See Note 3. ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities as clarified and amended by ASU 2018-03 This standard significantly revises the accounting related to the classification and measurement of investment in equity securities and the presentation of certain fair value changes of financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. January 2018 The adoption of ASU 2016-01 reduced our disclosure requirements, but did not impact our Condensed Consolidated Financial Statements. We are no longer required to disclose the method and significant assumptions used to estimate the fair value of our financial instruments measured at amortized cost on the Condensed Consolidated Balance Sheet. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force) This standard amends ASC 230 to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. ASC 230 lacks consistent principles for evaluating the classification of cash payments and receipts in the statement of cash flows. This has led to diversity in practice and, in certain circumstances, financial statement restatements. Therefore, the FASB issued ASU 2016-15 with the intent of reducing diversity in practice with respect to eight types of cash flows. January 2018 The adoption of ASU 2016-15 provided clarification to existing requirements and did not have a material effect on our Condensed Consolidated Financial Statements. ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory This standard requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Prior to this ASU, an entity was prohibited from recognizing the income tax consequences of an intra-entity asset transfer until the asset had been sold to an outside party. January 2018 The adoption of ASU 2016-16 did not have a material effect on our Condensed Consolidated Financial Statements. We have limited intra-entity asset transfers, or intercompany sales, other than inventory that would require income tax recognition. ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business This standard provides guidance that will enable more consistency in accounting for transactions when determining if they represent acquisitions or disposals of assets or of a business. Under the ASU, when determining whether an integrated set of assets and activities constitutes a business, entities must go through a “screen”. January 2018 The adoption of ASU 2017-01 simplified our decision making process of determining whether a purchase constitutes a business combination or an acquisition of assets. We will apply this guidance prospectively and anticipate that future acquisitions will likely be accounted for as asset acquisitions rather than business combinations, unless we acquire a substantive process. ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets The standard clarifies the scope and accounting of a financial asset that meets the definition of an in substance non-financial asset and the definition of an in substance non-financial asset. The ASU also adds guidance for partial sales of non-financial assets. January 2018 We utilized the modified retrospective transition method upon the adoption of ASU 2017-05 and the cumulative adjustment from our comparative periods was zero in our Condensed Consolidated Financial Statements, as we historically have not sold material non-financial assets in our normal course of business. Standards not yet adopted Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU No. 2016-02, Leases (Topic 842) This standard introduces a lessee model that brings most leases on the balance sheet. This will increase a lessee’s reported assets and liabilities—in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. January 2019 We are currently evaluating ASU 2016-02 noting that we have not determined the full impact of adoption of ASU 2016-02 on our Consolidated Financial Statements. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue On January 1, 2018, we adopted ASC 606, Revenue from Contracts with Customers, as described in Note 2, using the modified retrospective approach to all contracts resulting in no cumulative adjustment to accumulated deficit . The adoption of this standard did not impact the timing of our revenue recognition based on the short-term, day-to-day nature of our operations. The following tables present our revenues disaggregated by geographic segment ( $ in thousands): Three Months Ended March 31, 2018 Yucatán Peninsula Caribbean Basin Pacific Coast Other Total Package revenue $ 73,054 $ 56,287 $ 25,026 $ 341 $ 154,708 Non-package revenue 8,230 8,517 5,042 10 21,799 Management fees — — — 296 296 Cost reimbursements — — — 44 44 Total revenue $ 81,284 $ 64,804 $ 30,068 $ 691 $ 176,847 Three Months Ended March 31, 2017 Yucatán Peninsula Caribbean Basin Pacific Coast Other Total Package revenue $ 74,174 $ 54,073 $ 24,709 $ — $ 152,956 Non-package revenue 8,571 7,908 4,632 — 21,111 Total revenue $ 82,745 $ 61,981 $ 29,341 $ — $ 174,067 Performance obligations We recognize revenues when the performance obligations are satisfied by transferring control of the product or service to our customers as described in the table below: Revenue Description Timing of Revenue Recognition Package Sale of all-inclusive packages, which include room accommodations, food and beverage services and entertainment activities. All services offered as part of the all-inclusive experience are considered to be one performance obligation. Revenue is recognized, net of discounts and rebates, based on the agreed upon price after each stay when our performance obligation of all-inclusive services is considered transferred to the customer. Non-package All other revenues earned from the operations of our resorts other than package revenue. This includes, but is not limited to, the sale of upgrades, premium services and amenities, such as premium rooms, dining experiences, wines and spirits and spa packages. Revenue is recognized based on the agreed upon price after the completion of the sale when the product or service is transferred to the customer. Management fees Fees earned for managing hotels 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. Revenue is recognized over the term of the service period as the third-party owners benefit from our management services. Cost reimbursements Cash reimbursements for costs related to managing hotels owned by third-parties. Revenue is recognized when agreed upon reimbursable costs are incurred from managing hotels owned by third-parties. We do not disclose the value of unsatisfied performance obligations for contracts with an expected length of one year or less. Due to the nature of our business, our revenue is not significantly impacted by refunds. Cash payments received in advance of guests staying at our resorts are refunded to hotel guests if the guest cancels within the specified time period, before any services are rendered. Refunds related to service are generally recognized as an adjustment to the transaction price at the time the hotel stay occurs or services are rendered. Contract assets and liabilities We do not have any material contract assets as of March 31, 2018 and December 31, 2017 other than trade and other receivables, net on our Condensed Consolidated Balance Sheet . Our receivables are primarily the result of contracts with customers, which are reduced by an allowance for doubtful accounts that reflects our estimate of amounts that will not be collected. We record contract liabilities when cash payments are received or due in advance of guests staying at our resorts, which are presented within advance deposits (see Note 18) within trade and other payables on our Condensed Consolidated Balance Sheet . Contract liabilities decreased from $40.9 million as of December 31, 2017 to $38.6 million as of March 31, 2018 . The decrease for the three months ended March 31, 2018 was primarily driven by $28.7 million of package revenue recognized that was included in the advanced deposits balance as of December 31, 2017 , partially offset by additional cash payments received from guests prior to their stay. Contract costs We consider sales commissions earned to be incremental costs of obtaining a contract with our customers. As a practical expedient, we expense these costs as incurred when the period to be benefited is less than one year. |
Business combination
Business combination | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Business combination | Business combination At 12:00 a.m. Central European Time on March 12, 2017, we consummated a business combination (the “Business Combination”) pursuant to that certain transaction agreement by and among us, Playa Hotels & Resorts B.V. (our “Predecessor”), Pace Holdings Corp. (“Pace”) and New Pace Holdings Corp. (“New Pace”), the effects of which replicated the economics of a reverse merger between our Predecessor and Pace. In connection with the Business Combination, Pace formed Porto Holdco B.V., a Dutch private limited liability company ( besloten vennootschap met beperkte aansprakelijkheid ), as a wholly-owned subsidiary to facilitate the reverse merger with our Predecessor. Prior to the consummation of the Business Combination, Porto Holdco B.V. was converted to a Dutch public limited liability company ( naamloze vennootschap ) and changed its name to Porto Holdco N.V. Upon the consummation of the Business Combination, the Company's name was changed to Playa Hotels & Resorts N.V. For accounting and financial reporting purposes, the Business Combination was accounted for as a recapitalization of our Predecessor because Pace was incorporated as a special purpose acquisition company and considered a public shell company. Our Predecessor also maintained effective control of the combined entity because our Predecessor's operations comprise the ongoing operations of the combined entity, our Predecessor's senior management became the senior management of the combined entity and our Predecessor's directors were appointed to, and constitute the majority of, the combined entity's board of directors. Accordingly, no step-up in basis of assets or goodwill were recorded. The Condensed Consolidated Financial Statements presented herein are those of our Predecessor for all periods prior to the completion of the Business Combination and the recapitalization of the number of ordinary shares attributable to our Predecessor shareholders is reflected retroactively to the earliest period presented. Accordingly, the number of ordinary shares presented as outstanding as of December 31, 2016 totaled 50,481,822 and consisted of the number of ordinary shares issued to Predecessor shareholders. This number of shares was also used to calculate the Company’s earnings per share for all periods prior to the Business Combination. The consideration received as a result of the Business Combination is summarized as follows ($ in thousands) : Purchase of all of our Predecessor's cumulative redeemable preferred shares (1) $ 353,873 Net cash transferred from Pace 78,859 Playa Employee Offering (2) 799 Total Consideration Transferred $ 433,531 ________ (1) Balance consisted of the face value of our Predecessor's cumulative redeemable preferred shares (“Preferred Shares”) and their associated PIK dividends as of March 10, 2017, per the terms of the Business Combination. (2) In connection with the Business Combination, we entered into subscription agreements (the “Subscription Agreements”) with Playa employees, their family members and persons with business relationships with Playa, pursuant to which those persons agreed to purchase 82,751 ordinary shares for an aggregate purchase price of $0.8 million . |
Property, plant and equipment
Property, plant and equipment | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Property, plant and equipment | Property, plant and equipment The balance of property, plant and equipment is as follows ($ in thousands ): As of March 31, As of December 31, 2018 2017 Land, buildings and improvements $ 1,501,507 $ 1,493,407 Fixtures and machinery 54,597 53,188 Furniture and other fixed assets 178,371 173,912 Construction in progress 36,329 29,220 Total property, plant and equipment, gross 1,770,804 1,749,727 Accumulated depreciation (298,380 ) (283,401 ) Total property, plant and equipment, net $ 1,472,424 $ 1,466,326 Depreciation expense for property, plant and equipment was $15.4 million and $12.2 million for the three months ended March 31, 2018 and 2017 , respectively. For the three months ended March 31, 2018 and 2017 , $0.7 million and $0 of interest expense was capitalized on qualifying assets, respectively. Interest expense was capitalized at the weighted-average interest rate of our debt. Cap Cana Development On July 12, 2017, we acquired the land for the new Hyatt Zilara Cap Cana and Hyatt Ziva Cap Cana in Punta Cana, Dominican Republic for total consideration of $56.2 million . We paid $45.6 million of the consideration in cash upon closing of the acquisition. The remaining $10.6 million balance is due on the earlier of (i) two years from the beginning of construction of the resorts or (ii) the opening of the resorts and is recorded in other liabilities within the Condensed Consolidated Balance Sheet . |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2018 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes We are domiciled in The Netherlands and are taxed in The Netherlands with our other Dutch subsidiaries. Dutch companies are subject to Dutch corporate income tax at a general tax rate of 25% . For the three months ended March 31, 2018 , our income tax provision was $9.6 million , compared to a $13.6 million tax provision for the three months ended March 31, 2017 . The decreased income tax provision of $4.0 million was driven primarily by a decrease in pre-tax book income and a decrease in the discrete tax expense associated with foreign exchange rate fluctuations. On December 22, 2017, the U.S. government enacted comprehensive tax legislation, commonly referred to as U.S. Tax Reform. As noted in our Annual Report on Form 10-K for the year ended December 31, 2017, the Company completed its deferred tax accounting related to the reduction to the U.S. corporate income tax rate from 35% to 21%. We are not aware of any significant changes to this legislation for three months ended March 31, 2018 . Since we are a Dutch owned Company and do not have any controlled foreign corporations under U.S. tax law, we concluded that the new legislation related to global intangible low-taxed income (“GILTI”) and base erosion anti-abuse tax (“BEAT”) does not apply and therefore no policy decision is required. |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions The following summarizes transactions and arrangements that we have entered into with related parties. The details of the balances between us and related parties as of March 31, 2018 and December 31, 2017 are as follows ($ in thousands) : As of March 31, As of December 31, 2018 2017 Accounts receivable $ 2,428 $ 1,495 Accounts payable $ 3,985 $ 2,966 Relationship with Hyatt As described below, we pay Hyatt franchise fees for our resorts currently operating under the all-ages Hyatt Ziva and adults-only Hyatt Zilara brands. In addition, in connection with the Business Combination, all outstanding Preferred Shares of our Predecessor owned by HI Holdings Playa were purchased at a purchase price of $8.40 per share for $196.0 million in face value and $93.6 million of associated PIK dividends. Relationship with Real Shareholder In connection with the Business Combination, all outstanding Preferred Shares of our Predecessor owned by the selling shareholder of Real Resorts (“Real Shareholder”) were purchased at a purchase price of $8.40 per share for $43.5 million in face value and $20.8 million of associated PIK dividends. Upon the consummation of the Business Combination, the Real Shareholder was no longer considered a related party because the Preferred Shares were extinguished in connection with the Business Combination. Transactions with related parties Transactions between us and related parties during the three months ended March 31, 2018 and 2017 were as follows ( $ in thousands ): Three Months Ended March 31, 2018 2017 Dividends on the Preferred Shares (1) $ — $ 7,922 Deferred consideration accretion (2) — 36 Interest expense on related party debt (2) — 372 Hyatt franchise fees (3) 4,451 4,365 Lease payments (4) 217 309 Total transactions with related parties $ 4,668 $ 13,004 ________ (1) Included in dividends of cumulative redeemable preferred shares in the Condensed Consolidated Statements of Operations and Comprehensive Income . (2) Included in interest expense in the Condensed Consolidated Statements of Operations and Comprehensive Income . (3) Included in direct expense in the Condensed Consolidated Statements of Operations and Comprehensive Income . (4) Included in selling, general, and administrative expense in the Condensed Consolidated Statements of Operations and Comprehensive Income . One of our offices is owned by our Chief Executive Officer, and we sublease the space at that location from a third party. Lease payments related to this space were $0.2 million and $0.3 million for the three months ended March 31, 2018 and 2017 , respectively. One of our previous offices in Cancún, Mexico was owned by an affiliate of the Real Shareholder, and we subleased the space from a third party also affiliated with the Real Shareholder. We terminated this lease agreement effective July 1, 2017. Lease payments related to this space were less than $0.1 million for the three months ended March 31, 2017 . |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2018 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies Litigation, claims and assessments We are involved in various claims and lawsuits arising in the normal course of business, including proceedings involving tort and other general liability claims, workers' compensation and other employee claims, intellectual property claims and claims related to our management of certain hotel properties. Most occurrences involving liability and claims of negligence are covered by insurance with solvent insurance carriers. We recognize a liability when we believe the loss is probable and reasonably estimable. We currently believe that the ultimate outcome of such lawsuits and proceedings will not, individually or in the aggregate, have a material effect on our Condensed Consolidated Financial Statements . The Dutch corporate income tax act provides the option of a fiscal unity, which is a consolidated tax regime wherein the profits and losses of group companies can be offset against each other. Our Dutch companies file as a fiscal unity, with the exception of Playa Romana B.V., Playa Romana Mar B.V. and Playa Hotels & Resorts N.V. Playa Resorts Holding B.V. is the head of our Dutch fiscal unity and is jointly and severally liable for the tax liabilities of the fiscal unity as a whole. During the third quarter of 2015 , we identified and recorded a potential Dutch operating tax contingency resulting from allocations to be made of certain corporate expenses from 2014 and 2015. We have provided all requested documentation to the Dutch tax authorities for their review and are currently waiting for their final determination. We have an estimated amount of $1.6 million as a tax contingency at March 31, 2018 that is recorded in other liabilities within the Condensed Consolidated Balance Sheet . Electricity supply contract One of our subsidiaries entered into an electricity supply contract wherein we committed to purchase electricity from a provider over a five -year period ending December 2019 . In consideration for our commitment, we received certain rebates. Should this contract be terminated prior to the end of the five -year period, we will be obligated to refund to the supplier the undepreciated portion of (i) the capital investment it made to connect our facilities to the power grid (original amount approximately $1.4 million ) and (ii) the unearned rebates we received (total unearned rebates of $0.7 million and $0.8 million as of March 31, 2018 and December 31, 2017 , respectively), in each case using a 20% straight-line depreciation per annum. Leases and other commitments We lease certain equipment for the operations of our hotels under various lease agreements. The leases extend for varying periods through 2021 and contain fixed components and utility payments. In addition, several of our administrative offices are subject to leases of building facilities from third parties, which extend for varying periods through 2023 and contain fixed and variable components. Rental expense under non-cancelable operating leases, including contingent leases, consisted of $0.5 million and $0.5 million for the three months ended March 31, 2018 and 2017 , respectively. |
Ordinary shares
Ordinary shares | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Ordinary shares | Ordinary shares As of December 31, 2016 , the number of ordinary shares presented as outstanding totaled 50,481,822 , consisting of the number of ordinary shares issued to Predecessor shareholders after the retroactive application of the recapitalization. On March 12, 2017, 52,982,364 ordinary shares were issued as part of a recapitalization completed in the Business Combination (see Note 4 ). As of March 31, 2018 , our ordinary share capital consisted of 110,346,396 ordinary shares outstanding, which have a par value of €0.10 per share. In addition, there are 2,226,121 unvested restricted shares under the 2017 Plan (as defined in Note 11) that entitle holders thereof to vote, but not dispose of, such shares until they vest. On December 28, 2017, a member of our Board of Directors waived his previously granted share-based compensation for his services as a member of our Board, and transferred 7,367 ordinary shares back to us for no consideration. The shares are recorded as Treasury Shares on the Condensed Consolidated Balance Sheet as of March 31, 2018 . Warrants We issued 3,000,000 warrants to our Predecessor's former ordinary shareholders and TPG Pace Sponsor, LLC, a Cayman Islands limited liability company and an affiliate of TPG Global, LLC, as consideration in the Business Combination (the “Earnout Warrants”). The Earnout Warrants entitle such warrant holders to acquire one ordinary share for each Earnout Warrant for an exercise price of €0.10 per ordinary share in the event that the price per share underlying the Earnout Warrants on the NASDAQ is greater than $13.00 for a period of more than 20 days out of 30 consecutive trading days within the five years after the closing date of the Business Combination. The Earnout Warrants expire five years after the completion of the Business Combination or earlier upon redemption or liquidation in accordance with their term. As of March 31, 2018 , all 3,000,000 Earnout Warrants remained outstanding. |
Warrants
Warrants | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Warrants | Ordinary shares As of December 31, 2016 , the number of ordinary shares presented as outstanding totaled 50,481,822 , consisting of the number of ordinary shares issued to Predecessor shareholders after the retroactive application of the recapitalization. On March 12, 2017, 52,982,364 ordinary shares were issued as part of a recapitalization completed in the Business Combination (see Note 4 ). As of March 31, 2018 , our ordinary share capital consisted of 110,346,396 ordinary shares outstanding, which have a par value of €0.10 per share. In addition, there are 2,226,121 unvested restricted shares under the 2017 Plan (as defined in Note 11) that entitle holders thereof to vote, but not dispose of, such shares until they vest. On December 28, 2017, a member of our Board of Directors waived his previously granted share-based compensation for his services as a member of our Board, and transferred 7,367 ordinary shares back to us for no consideration. The shares are recorded as Treasury Shares on the Condensed Consolidated Balance Sheet as of March 31, 2018 . Warrants We issued 3,000,000 warrants to our Predecessor's former ordinary shareholders and TPG Pace Sponsor, LLC, a Cayman Islands limited liability company and an affiliate of TPG Global, LLC, as consideration in the Business Combination (the “Earnout Warrants”). The Earnout Warrants entitle such warrant holders to acquire one ordinary share for each Earnout Warrant for an exercise price of €0.10 per ordinary share in the event that the price per share underlying the Earnout Warrants on the NASDAQ is greater than $13.00 for a period of more than 20 days out of 30 consecutive trading days within the five years after the closing date of the Business Combination. The Earnout Warrants expire five years after the completion of the Business Combination or earlier upon redemption or liquidation in accordance with their term. As of March 31, 2018 , all 3,000,000 Earnout Warrants remained outstanding. |
Share-based compensation
Share-based compensation | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Share-based compensation | Share-based compensation The Company adopted the 2017 Omnibus Incentive Plan (the “2017 Plan”) to attract and retain independent directors, executive officers and other key employees and service providers. The 2017 Plan was approved by the Board of Directors and shareholders of the Company on March 10, 2017. The 2017 Plan is administered by the Compensation Committee of our Board of Directors, who may grant awards covering a maximum of 4,000,000 of our ordinary shares under the 2017 Plan. The Compensation Committee may award share options, share appreciation rights, restricted shares, share units, unrestricted shares, dividend equivalent rights, performance shares and other performance-based awards, other equity-based awards, and cash bonus awards. As of March 31, 2018 , there were 1,311,506 shares available for future grants under the 2017 Plan. Restricted Share Awards Restricted share awards are granted to eligible employees, executives, and board members. Restricted shares are ordinary shares that are subject to restrictions and to a risk of forfeiture. On May 16, 2017, the Compensation Committee of the Board approved the issuance of 994,115 restricted share awards to employees and executives of the Company. Each award granted vests over a five year period with 25% of the underlying award vesting on the third anniversary of the grant date of the award, 25% vesting on the fourth anniversary of the grant date of the award and 50% vesting on the fifth anniversary of the grant date of the award. On May 26, 2017, the Compensation Committee of the Board approved the issuance of 410,096 restricted share awards to employees and executives of the Company and 51,569 restricted share awards to directors of the Company for their services as directors. Each award granted to employees and executives vests pro rata over a three year period. Each award granted to a director was fully vested on the date of grant. On January 2, 2018, the Compensation Committee of the Board approved the issuance of 438,185 restricted share awards to employees and executives of the Company and 48,699 restricted share awards to directors of the Company for their services as directors. Each award granted to employees and executives vests pro rata over a three year period. Each award granted to a director was fully vested on the date of grant. The vesting of restricted share awards is subject to the holder's continued employment through the applicable vesting date. Unvested awards will be forfeited if the employee's or the executive's employment terminates during the vesting period, provided that unvested awards will accelerate upon certain terminations of employment as set forth in the applicable award agreements. The holders of these awards have the right to vote the restricted shares and receive all dividends declared and paid on such shares, provided that dividends paid on unvested restricted shares will be subject to the same conditions and restrictions applicable to the underlying restricted shares. Compensation expense for the restricted share awards is measured based upon the fair market value of our ordinary shares at the date of grant and compensation expense is recognized on a straight-line basis over the vesting period. A summary of our restricted share awards from January 1, 2018 to March 31, 2018 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Unvested balance at January 1, 2018 1,265,830 $ 10.19 Granted 486,884 10.78 Vested (48,699 ) 10.78 Forfeited (16,845 ) 10.19 Unvested balance at March 31, 2018 1,687,170 $ 10.35 The total fair value of vested restricted share awards during the three months ended March 31, 2018 and 2017 was $0.5 million and $0 , respectively. As of March 31, 2018 and 2017 , the unrecognized compensation cost related to restricted share awards was $14.4 million and $0 , respectively, and is expected to be recognized over a weighted average period of approximately 3.3 years and 0.0 years , respectively. Compensation expense related to the restricted share awards was $1.6 million and $0 for the three months ended March 31, 2018 and 2017 , respectively, and is recorded within selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income . Performance Share Awards Performance share awards consist of a grant of ordinary shares that may become earned and vested based on the achievement of performance targets adopted by our Compensation Committee. On May 26, 2017, the Compensation Committee of the Board approved a target award of 265,222 performance shares to executives of the Company. The actual number of ordinary shares that ultimately vest will range from 0% to 150% of the target award and will be determined in 2020 based on two performance criteria as defined in the award agreements for the period of performance from January 1, 2017 through December 31, 2019. On January 2, 2018, the Compensation Committee of the Board approved a target award of 273,729 performance shares to executives of the Company. The actual number of ordinary shares that ultimately vest will range from 0% to 150% of the target award and will be determined in 2021 based on two performance criteria as defined in the award agreements for the period of performance from January 2, 2018 through December 31, 2020. Any ordinary shares that ultimately vest based on the achievement of the applicable performance criteria will be deemed to be vested on the date on which our Compensation Committee certifies the level of achievement of such performance criteria. Except in connection with certain qualifying terminations of employment, as set forth in the applicable award agreements, t he awards require continued service through the certification date. The holders of these awards have the right to vote the ordinary shares granted to the holder and any dividends declared on such shares will be accumulated and will be subject to the same vesting conditions as the awards. The grant date fair value of the portion of the award based on the compounded annual growth rate of the Company's total shareholder return was estimated using a Monte-Carlo model. The table below summarizes the key inputs used in the Monte-Carlo simulation ($ in thousands) : Performance Award Grant Date Percentage of Total Award Grant Date Fair Value by Component Volatility (1) Interest Rate (2) Dividend Yield May 26, 2017 Total Shareholder Return 50 % $ 770 27.02 % 1.39 % — % Adjusted EBITDA Comparison 50 % $ 1,350 — % — % — % January 2, 2018 Total Shareholder Return 50 % $ 860 26.13 % 2.00 % — % Adjusted EBITDA Comparison 50 % $ 1,475 — % — % — % ________ (1) Expected volatility was determined based on the historical share prices in our industry. (2) The risk-free rate was based on U.S. Treasury zero coupon issues with a remaining term equal to the remaining term of the measurement period. In the table above, the total shareholder return component is a market condition as defined by ASC 718 and compensation expense related to this component is recognized on a straight-line basis over the vesting period. The grant date fair value of the portion of the awards based on the compounded annual growth rate of the Company's adjusted earnings before interest, taxes, depreciation and amortization (“Adjusted EBITDA”) was based on the closing stock price of our ordinary shares on such date. The Adjusted EBITDA component is a performance condition as defined by ASC 718, and, therefore, compensation expense related to this component will be reassessed at each reporting date based on the Company's estimate of the probable level of achievement, and the accrual of compensation expense will be adjusted as appropriate. As of March 31, 2018 and 2017 , the unrecognized compensation cost related to the performance share awards was $4.1 million and $0 , respectively, and is expected to be recognized over a weighted average period of 2.3 years and 0.0 years . Compensation expense related to the performance share awards was approximately $0.1 million and $0 for the three months ended March 31, 2018 and 2017, respectively, and is recorded within selling, general and administrative expenses in the Condensed Consolidated Statements of Operations and Comprehensive Income . |
Preferred Shares
Preferred Shares | 3 Months Ended |
Mar. 31, 2018 | |
Equity [Abstract] | |
Preferred Shares | Preferred Shares Prior to the consummation of the Business Combination, all of our Predecessor's Preferred Shares were purchased at a purchase price of $8.40 per share for an aggregate amount of $353.9 million , which consisted of $239.5 million in face value and $114.4 million of associated PIK dividends. The Preferred Shares issued by our Predecessor were eliminated and extinguished as part of the reverse merger in the Business Combination. The extinguishment is reflected as a non-cash financing activity in the Condensed Consolidated Statements of Cash Flows . |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Prior to the consummation of the Business Combination, our Preferred Shares and their related accumulated Non-cash PIK Dividends were participating securities. If a dividend was declared or paid on our Predecessor's ordinary shares, holders of our Predecessor's ordinary shares and Preferred Shares were entitled to proportionate shares of such dividend, with the holders of our Predecessor's Preferred Shares participating on an as-if converted basis. Under the two-class method, basic earnings per share (“EPS”) attributable to ordinary shareholders is computed by dividing the net income attributable to ordinary shareholders by the weighted-average number of ordinary shares outstanding during the period. Net income attributable to ordinary shareholders is determined by allocating undistributed earnings between ordinary and preferred shareholders. For periods in which there are undistributed losses, there is no allocation of undistributed earnings to preferred shareholders. Diluted EPS attributable to ordinary shareholders is computed by using the more dilutive result of the two-class method, the if-converted method or the treasury stock method. The if-converted method uses the weighted-average number of ordinary shares outstanding during the period, including potentially dilutive ordinary shares assuming the conversion of the outstanding Preferred Shares of our Predecessor, as of the first day of the reporting period. The dilutive effect of awards under our equity compensation plan is reflected in diluted earnings per share by application of the treasury stock method. Under the two-class method, the number of shares used in the computation of diluted earnings per share is the same as that used for the computation of basic earnings per share for participating securities, as the result would be anti-dilutive. The net income attributable to ordinary shareholders is not allocated to the Preferred Shares until all other reserves have been exhausted or such loss cannot be covered in any other way. The calculations of basic and diluted EPS are as follows ( $ in thousands ): Three Months Ended March 31, 2018 2017 Numerator: Net income $ 21,817 $ 27,639 Preferred Share dividends — (7,922 ) Allocation of undistributed earnings to preferred shareholders — (6,799 ) Numerator for basic EPS - income available to ordinary shareholders 21,817 12,918 Add back Preferred Share dividends (1) — — Add back of undistributed earnings to preferred shareholders (1) — — Numerator for diluted EPS - income available to ordinary shareholders after assumed conversions $ 21,817 $ 12,918 Denominator: Denominator for basic EPS - weighted-average shares 110,345,855 62,255,681 Effect of dilutive securities: Unvested restricted share awards 255,751 — Preferred Shares — — Denominator for diluted EPS - adjusted weighted-average shares 110,601,606 62,255,681 EPS - Basic $ 0.20 $ 0.21 EPS - Diluted $ 0.20 $ 0.21 ________ ( 1) For the three months ended March 31, 2017 , Preferred Share dividends of our Predecessor of $7.9 million and the preferred shareholders’ allocation of undistributed earnings of our Predecessor of $6.8 million were not added back for purposes of calculating diluted EPS because the effect of treating our Predecessor's Preferred Shares as if they had been converted to their 32,032,530 ordinary share equivalents as of January 1, 2017 was anti-dilutive. For the three months ended March 31, 2018 and 2017 , 538,951 and 0 shares of unvested performance-based equity awards, respectively, were not included in the computation of diluted EPS after assumed conversions as the performance criteria were not met as of the end of the reporting period. For the three months ended March 31, 2018 and 2017 , outstanding Earnout Warrants to acquire a total of 3,000,000 ordinary shares were not included in the computation of diluted EPS after assumed conversions because the warrants were not exercisable as of March 31, 2018 or March 31, 2017, respectively. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Debt | Debt Debt consists of the following ($ in thousands) : As of March 31, As of December 31, 2018 2017 Debt Obligations Term Loan (1) $ 904,123 $ 906,398 Revolving Credit Facility — — Total Debt Obligations 904,123 906,398 Unamortized discount Discount on Term Loan (2,495 ) (2,600 ) Total unamortized discount (2,495 ) (2,600 ) Unamortized debt issuance costs: Term Loan (5,361 ) (5,583 ) Total unamortized debt issuance costs (5,361 ) (5,583 ) Total Debt $ 896,267 $ 898,215 ________ (1) Borrowings under the Term Loan bear interest at floating rates equal to London Interbank Offered Rate (“LIBOR”) plus 3.25% (where the applicable LIBOR rate has a 1.0% floor). The interest rate was 5.00% and 4.62% as of March 31, 2018 and December 31, 2017 , respectively. Financial Maintenance Covenants Our refinanced Senior Secured Credit Facility also requires us to meet a springing leverage ratio financial maintenance covenant, but only if the aggregate amount outstanding on our Revolving Credit Facility exceeds 35% of the aggregate revolving credit commitments as defined in our Senior Secured Credit Facility. We were in compliance with all applicable covenants as of March 31, 2018 . |
Derivative financial instrument
Derivative financial instruments | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative financial instruments | Derivative financial instruments Interest rate swaps Effective March 29, 2018, we entered into two interest rate swaps to mitigate the interest rate risk inherent in our variable rate debt, including the Revolving Credit Facility and Term Loan. The interest rate swaps have fixed notional values of $200.0 million and $600.0 million . The fixed rate paid by us is 2.85% and the variable rate received resets monthly to the one-month LIBOR rate. The interest rate swaps are not for trading purposes and we have not designated the interest rate swaps for hedge accounting treatment. As a result, changes in fair value of the interest rate swaps are recognized in earnings immediately as interest expense in the Condensed Consolidated Statements of Operations and Comprehensive Income . As of March 31, 2018 , the aggregate notional amount of the interest rate swaps was $800.0 million . The interest rate swaps mature on March 31, 2023. The following table presents the location and effects of the derivative instruments in the Condensed Consolidated Statements of Operations and Comprehensive Income for three months ended March 31, 2018 and 2017 ($ in thousands) : For the three months ended March 31, Derivatives not Designated as Hedging Instruments Income Statement Classification 2018 2017 Interest rate swaps Interest expense $ 11,025 $ — The following table presents the location and fair value of the derivative instruments in the Condensed Consolidated Balance Sheet as of March 31, 2018 and December 31, 2017 ($ in thousands) : As of March 31, As of December 31, Derivatives not Designated as Hedging Instruments Balance Sheet Classification 2018 2017 Interest rate swaps Derivative financial instruments $ 11,025 $ — Derivative financial instruments expose the Company to credit risk in the event of non-performance by the counterparty under the terms of the interest rate swaps. The Company incorporates these counterparty credit risks in its fair value measurements (see Note 16). The Company believes it minimizes this credit risk by transacting with major creditworthy financial institutions. |
Fair value of financial instrum
Fair value of financial instruments | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair value of financial instruments Our financial instruments consist of cash and cash equivalents, trade and other receivables, accounts receivable from related parties, trade and other payables, accounts payable to related parties, derivatives and debt. We believe the carrying value of these assets and liabilities, excluding the interest rate swap and the Term Loan, approximate their fair values as of March 31, 2018 and December 31, 2017 . Fair value measurements The objective of a fair value measurement is to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. U.S. GAAP establishes a hierarchical disclosure framework, which prioritizes and ranks the level of observability of inputs used in measuring fair value as follows: • Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2: Unadjusted quoted prices for similar assets or liabilities in active markets, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. • Level 3: Inputs are unobservable and reflect our judgments about assumptions that market participants would use in pricing an asset or liability. We did not have any movements in and out of Level 3 for our fair valued instruments during any of the above periods. The following table presents our fair value hierarchy for our financial liabilities measured at fair value on a recurring basis as of March 31, 2018 ($ in thousands): March 31, 2018 Level 1 Level 2 Level 3 Fair value measurements on a recurring basis: Interest rate swap $ 11,025 $ — $ 11,025 $ — As of December 31, 2017 , there were no financial assets or liabilities measured at fair value on a recurring basis as our deferred consideration was settled during the third quarter of 2017. The following table presents the changes in our Level 3 fair valued instruments for the three months ended March 31, 2017 ($ in thousands) : Deferred Consideration Balance as of December 31, 2016 $ 1,836 Total gains included in earnings (or change in net assets) (1) (26 ) Settlements (630 ) Balance as of March 31, 2017 $ 1,180 ________ (1) All losses and gains (other than changes in net assets) were included in interest expense in the Condensed Consolidated Statements of Operations and Comprehensive Income . The following tables present our fair value hierarchy for our financial liabilities not measured at fair value as of March 31, 2018 and December 31, 2017 ($ in thousands) : Carrying Value Fair Value As of March 31, 2018 Level 1 Level 2 Level 3 Financial liabilities not recorded at fair value: Debt: Term Loan $ 896,267 $ — $ — $ 928,097 Revolving Credit Facility — — — — Total $ 896,267 $ — $ — $ 928,097 Carrying Value Fair Value As of December 31, 2017 Level 1 Level 2 Level 3 Financial liabilities not recorded at fair value: Debt: Term Loan $ 898,215 $ — $ — $ 916,369 Revolving Credit Facility — — — — Total $ 898,215 $ — $ — $ 916,369 The following table summarizes the valuation techniques used to estimate the fair value of our financial liabilities measured at fair value on a recurring basis and our financial liabilities not measured at fair value: Valuation Technique Financial liabilities recorded at fair value: Interest rate swaps The fair value of the interest rate swaps is estimated based on the expected future cash flows by incorporating the notional amount of the swaps, the contractual period to maturity, and observable market-based inputs, including interest rate curves. The fair value also incorporates credit valuation adjustments to appropriately reflect nonperformance risk. Financial liabilities not recorded at fair value: Term Loan The fair value of our Term Loan is estimated using cash flow projections over the remaining contractual period by applying market forward rates and discounting back at the appropriate discount rate. Revolving Credit Facility The valuation technique of our Revolving Credit Facility is consistent with our Term Loan. The fair value of the Revolving Credit Facility generally approximates its carrying value as the expected term is significantly shorter in duration. |
Employee benefit plan
Employee benefit plan | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Employee benefit plan | Employee benefit plan In accordance with labor law regulations in Mexico, certain employees are legally entitled to receive severance that is commensurate with the tenure they had with us at the time of termination without cause, which results in an unfunded benefit obligation. There were no plan assets as of March 31, 2018 or December 31, 2017 as contributions are made only to the extent benefits are paid. The following table presents the components of net periodic pension cost for the three months ended March 31, 2018 and 2017 ( $ in thousands ): Three Months Ended March 31, 2018 2017 Service cost $ 174 $ 158 Interest cost 87 68 Effect of foreign exchange rates 345 372 Amortization of prior service cost 25 — Amortization of gain (6 ) (8 ) Compensation-non-retirement post employment benefits 4 4 Settlement gain — (7 ) Net periodic pension cost $ 629 $ 587 The service cost component of net periodic pension cost is recorded within direct expense in the Condensed Consolidated Statements of Operations and Comprehensive Income . The non-service cost components of net periodic pension cost are recorded within other expense, net for all periods presented. |
Other balance sheet items
Other balance sheet items | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other balance sheet items | Other balance sheet items Trade and other receivables, net The following summarizes the balances of trade and other receivables, net as of March 31, 2018 and December 31, 2017 ($ in thousands): As of March 31, As of December 31, 2018 2017 Gross trade and other receivables $ 62,485 $ 52,312 Allowance for doubtful accounts (409 ) (785 ) Total trade and other receivables, net $ 62,076 $ 51,527 Our allowance for doubtful accounts as of March 31, 2018 and December 31, 2017 was approximately $0.4 million and $0.8 million , respectively. We have not experienced any significant write-offs to our accounts receivable. Prepayments and other assets The following summarizes the balances of prepayments and other assets as of March 31, 2018 and December 31, 2017 ($ in thousands) : As of March 31, As of December 31, 2018 2017 Advances to suppliers $ 6,587 $ 6,509 Prepaid income taxes 10,445 10,935 Prepaid other taxes (1) 11,207 10,737 Contract deposit (2) 2,700 2,700 Other assets 2,791 3,185 Total prepayments and other assets $ 33,730 $ 34,066 ________ (1) Includes recoverable value-added tax and general consumption tax accumulated by our Mexico and Jamaica entities, respectively. (2) Represents a cash deposit related to the Sanctuary Cap Cana management contract. We are in the process of negotiating final terms for the purchase of a 30% interest in the resort in the second half of 2018, and the deposit will be used towards this purchase if we are able to agree on terms. If the purchase is not completed, this amount, together with an additional $0.8 million due, will be treated as key money. Goodwill The gross carrying values and accumulated impairment losses of goodwill as of March 31, 2018 and December 31, 2017 are as follows ($ in thousands) : As of March 31, As of December 31, 2018 2017 Gross carrying value $ 51,731 $ 51,731 Accumulated impairment loss — — Carrying Value $ 51,731 $ 51,731 Other intangible assets Other intangible assets as of March 31, 2018 and December 31, 2017 consisted of the following ( $ in thousands ): As of March 31, As of December 31, 2018 2017 Strategic Alliance $ — $ 3,616 Licenses 981 981 Other 4,808 3,298 Acquisition Cost 5,789 7,895 Strategic Alliance — (3,616 ) Other (2,506 ) (2,192 ) Accumulated Amortization (2,506 ) (5,808 ) Strategic Alliance — — Licenses 981 981 Other 2,302 1,106 Carrying Value $ 3,283 $ 2,087 Amortization expense for intangibles was $0.3 million and $0.2 million for the three months ended March 31, 2018 and 2017 , respectively. Our licenses have indefinite lives. Accordingly, there is no associated amortization expense or accumulated amortization. As of March 31, 2018 and December 31, 2017 , such indefinite lived assets totaled $1.0 million . Trade and other payables The following summarizes the balances of trade and other payables as of March 31, 2018 and December 31, 2017 ($ in thousands) : As of March 31, As of December 31, 2018 2017 Trade payables $ 16,538 $ 18,160 Advance deposits 38,610 43,884 Withholding and other taxes payable 42,730 34,904 Accrued professional services 9,201 7,131 Interest payable 8,163 5,586 Payroll and related accruals 10,308 13,848 Other payables 17,803 16,015 Total trade and other payables $ 143,353 $ 139,528 Other liabilities The following summarizes the balances of other liabilities as of March 31, 2018 and December 31, 2017 ($ in thousands) : As of March 31, As of December 31, 2018 2017 Tax contingencies $ 2,329 $ 2,310 Pension obligations 5,122 4,456 Casino loan and license 953 975 Cap Cana land purchase obligation 10,625 10,625 Other 892 1,028 Total other liabilities $ 19,921 $ 19,394 |
Segment information
Segment information | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Segment information | Segment information We consider each one of our hotels to be an operating segment, none of which meets the threshold for a reportable segment. We also allocate resources and assess operating performance based on individual hotels. Our operating segments meet the aggregation criteria and thus, we report three separate segments by geography: (i) Yucatán Peninsula, (ii) Pacific Coast and (iii) Caribbean Basin. For the three months ended March 31, 2018 and 2017, we have excluded the immaterial amounts of management fees , cost reimbursements and other from our segment reporting. Our operating segments are components of the business which are managed discretely and for which discrete financial information is reviewed regularly by our Chief Executive Officer, Chief Financial Officer and Chief Operating Officer, all of whom represent our chief operating decision maker (“CODM”). Financial information for each reportable segment is reviewed by the CODM to assess performance and make decisions regarding the allocation of resources. We did not provide a reconciliation of reportable segments' assets to our consolidated assets as this information is not reviewed by the CODM to assess performance and make decisions regarding the allocation of resources. The performance of our operating segments is evaluated primarily on adjusted earnings before interest expense , income tax provision , and depreciation and amortization expense (“Adjusted EBITDA”), which should not be considered an alternative to net income or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. We define Adjusted EBITDA as net income , determined in accordance with U.S. GAAP, for the period presented, before interest expense , income tax provision , and depreciation and amortization expense, further adjusted to exclude the following items: (a) other expense, net ; (b) share-based compensation; (c) transaction expenses; (d) other tax expense; (e) Jamaica delayed opening accrual reversal and (f) non-service cost components of net periodic pension cost (benefit). There are limitations to using financial measures such as Adjusted EBITDA. For example, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA or similarly named financial measures that other companies publish to compare the performance of those companies to our performance. Because of these limitations, Adjusted EBITDA should not be considered as a measure of the income or loss generated by our business or discretionary cash available for investment in our business and investors should carefully consider our U.S. GAAP results presented in our Condensed Consolidated Financial Statements . The following tables present segment net revenue, a reconciliation to gross revenue and segment Adjusted EBITDA and a reconciliation to net income ( $ in thousands ): Three Months Ended March 31, 2018 2017 Revenue: Yucatàn Peninsula $ 79,271 $ 80,748 Pacific Coast 29,055 28,432 Caribbean Basin 64,178 61,330 Segment net revenue (1) 172,504 170,510 Other 352 — Management fees 296 — Cost reimbursements 44 — Compulsory tips 3,651 3,557 Total gross revenue $ 176,847 $ 174,067 ________ (1) Segment net revenue represents total gross revenue less compulsory tips paid to employees, cost reimbursements and other miscellaneous revenue not derived from segment operations. Three Months Ended March 31, 2018 2017 Adjusted EBITDA: Yucatàn Peninsula $ 39,604 $ 43,070 Pacific Coast 13,908 14,272 Caribbean Basin 29,071 24,940 Segment Adjusted EBITDA 82,583 82,282 Other corporate - unallocated (8,320 ) (7,809 ) Management fees 296 — Total consolidated Adjusted EBITDA 74,559 74,473 Less: Other expense, net 1,824 1,074 Share-based compensation 1,786 — Transaction expenses 2,344 6,000 Other tax expense 431 176 Jamaica delayed opening accrual reversal (342 ) — Non-service cost components of net periodic pension cost (455 ) (429 ) Add: Interest expense (21,882 ) (14,015 ) Depreciation and amortization (15,689 ) (12,410 ) Net income before tax 31,400 41,227 Income tax provision (9,583 ) (13,588 ) Net income $ 21,817 $ 27,639 |
Subsequent events
Subsequent events | 3 Months Ended |
Mar. 31, 2018 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events In preparing the interim Condensed Consolidated Financial Statements , we have evaluated subsequent events occurring after March 31, 2018 . Based on this evaluation, there were no subsequent events from March 31, 2018 through the date the Condensed Consolidated Financial Statements were issued. |
Significant accounting polici27
Significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Basis of preparation, presentation and measurement | Basis of preparation, presentation and measurement Our Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with the Company’s Consolidated Financial Statements as of and for the year ended December 31, 2017, included in our Annual Report on Form 10-K for the year ended December 31, 2017, filed on March 1, 2018. In our opinion, the unaudited interim Condensed Consolidated Financial Statements have been prepared on the same basis as the annual Consolidated Financial Statements and include all adjustments, consisting of only normal recurring adjustments, necessary for fair presentation. Prior period presentation was updated to conform with current period presentation. The results of operations for the three months ended March 31, 2018 are not necessarily indicative of the results of operations to be expected for the full year ended December 31, 2018 . All dollar amounts (other than per share amounts) in the following disclosures are in thousands of United States dollars, unless otherwise indicated. |
Derivative financial instruments | Derivative financial instruments We may use derivative financial instruments, primarily interest rate swap contracts, to hedge our exposure to interest rate risk. Such derivative financial instruments are initially recorded at fair value on the date on which a derivative contract is entered into and are subsequently remeasured to fair value at period end. Any gains or losses arising from changes in fair value on derivative contracts not designated for hedge accounting are recorded in interest expense in our Condensed Consolidated Statements of Operations and Comprehensive Income . |
Standards Adopted and Standards not yet adopted | Standards Adopted Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as clarified and amended by ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 This standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. January 2018 We applied the modified retrospective transition method to all contracts upon the adoption of ASU 2014-09. We provided the additional required disclosures, but the cumulative adjustment from our comparative periods was zero in our Condensed Consolidated Financial Statements. See Note 3. ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities as clarified and amended by ASU 2018-03 This standard significantly revises the accounting related to the classification and measurement of investment in equity securities and the presentation of certain fair value changes of financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. January 2018 The adoption of ASU 2016-01 reduced our disclosure requirements, but did not impact our Condensed Consolidated Financial Statements. We are no longer required to disclose the method and significant assumptions used to estimate the fair value of our financial instruments measured at amortized cost on the Condensed Consolidated Balance Sheet. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force) This standard amends ASC 230 to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. ASC 230 lacks consistent principles for evaluating the classification of cash payments and receipts in the statement of cash flows. This has led to diversity in practice and, in certain circumstances, financial statement restatements. Therefore, the FASB issued ASU 2016-15 with the intent of reducing diversity in practice with respect to eight types of cash flows. January 2018 The adoption of ASU 2016-15 provided clarification to existing requirements and did not have a material effect on our Condensed Consolidated Financial Statements. ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory This standard requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Prior to this ASU, an entity was prohibited from recognizing the income tax consequences of an intra-entity asset transfer until the asset had been sold to an outside party. January 2018 The adoption of ASU 2016-16 did not have a material effect on our Condensed Consolidated Financial Statements. We have limited intra-entity asset transfers, or intercompany sales, other than inventory that would require income tax recognition. ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business This standard provides guidance that will enable more consistency in accounting for transactions when determining if they represent acquisitions or disposals of assets or of a business. Under the ASU, when determining whether an integrated set of assets and activities constitutes a business, entities must go through a “screen”. January 2018 The adoption of ASU 2017-01 simplified our decision making process of determining whether a purchase constitutes a business combination or an acquisition of assets. We will apply this guidance prospectively and anticipate that future acquisitions will likely be accounted for as asset acquisitions rather than business combinations, unless we acquire a substantive process. ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets The standard clarifies the scope and accounting of a financial asset that meets the definition of an in substance non-financial asset and the definition of an in substance non-financial asset. The ASU also adds guidance for partial sales of non-financial assets. January 2018 We utilized the modified retrospective transition method upon the adoption of ASU 2017-05 and the cumulative adjustment from our comparative periods was zero in our Condensed Consolidated Financial Statements, as we historically have not sold material non-financial assets in our normal course of business. Standards not yet adopted Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU No. 2016-02, Leases (Topic 842) This standard introduces a lessee model that brings most leases on the balance sheet. This will increase a lessee’s reported assets and liabilities—in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. January 2019 We are currently evaluating ASU 2016-02 noting that we have not determined the full impact of adoption of ASU 2016-02 on our Consolidated Financial Statements. |
Significant accounting polici28
Significant accounting policies (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Accounting Policies [Abstract] | |
Schedule of Standards Adopted and Standards Not Yet Adopted | Standards Adopted Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU No. 2014-09, Revenue from Contracts with Customers (Topic 606), as clarified and amended by ASU 2016-08, ASU 2016-10, ASU 2016-12 and ASU 2016-20 This standard provides companies with a single model for use in accounting for revenue arising from contracts with customers and supersedes current revenue recognition guidance, including industry-specific revenue guidance. The core principle of the model is to recognize revenue when control of the goods or services transfers to the customer, as opposed to recognizing revenue when the risks and rewards transfer to the customer under the existing revenue guidance. January 2018 We applied the modified retrospective transition method to all contracts upon the adoption of ASU 2014-09. We provided the additional required disclosures, but the cumulative adjustment from our comparative periods was zero in our Condensed Consolidated Financial Statements. See Note 3. ASU No. 2016-01, Financial Instruments—Overall (Subtopic 825-10): Recognition and Measurement of Financial Assets and Financial Liabilities as clarified and amended by ASU 2018-03 This standard significantly revises the accounting related to the classification and measurement of investment in equity securities and the presentation of certain fair value changes of financial liabilities measured at fair value. It also amends certain disclosure requirements associated with the fair value of financial instruments. January 2018 The adoption of ASU 2016-01 reduced our disclosure requirements, but did not impact our Condensed Consolidated Financial Statements. We are no longer required to disclose the method and significant assumptions used to estimate the fair value of our financial instruments measured at amortized cost on the Condensed Consolidated Balance Sheet. ASU No. 2016-15, Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments (a consensus of the FASB Emerging Issues Task Force) This standard amends ASC 230 to add or clarify guidance on the classification of certain cash receipts and payments in the statement of cash flows. ASC 230 lacks consistent principles for evaluating the classification of cash payments and receipts in the statement of cash flows. This has led to diversity in practice and, in certain circumstances, financial statement restatements. Therefore, the FASB issued ASU 2016-15 with the intent of reducing diversity in practice with respect to eight types of cash flows. January 2018 The adoption of ASU 2016-15 provided clarification to existing requirements and did not have a material effect on our Condensed Consolidated Financial Statements. ASU No. 2016-16, Income Taxes (Topic 740): Intra-Entity Transfers of Assets Other than Inventory This standard requires that an entity recognize the income tax consequences of an intra-entity transfer of an asset other than inventory when the transfer occurs. Prior to this ASU, an entity was prohibited from recognizing the income tax consequences of an intra-entity asset transfer until the asset had been sold to an outside party. January 2018 The adoption of ASU 2016-16 did not have a material effect on our Condensed Consolidated Financial Statements. We have limited intra-entity asset transfers, or intercompany sales, other than inventory that would require income tax recognition. ASU No. 2017-01, Business Combinations (Topic 805): Clarifying the Definition of a Business This standard provides guidance that will enable more consistency in accounting for transactions when determining if they represent acquisitions or disposals of assets or of a business. Under the ASU, when determining whether an integrated set of assets and activities constitutes a business, entities must go through a “screen”. January 2018 The adoption of ASU 2017-01 simplified our decision making process of determining whether a purchase constitutes a business combination or an acquisition of assets. We will apply this guidance prospectively and anticipate that future acquisitions will likely be accounted for as asset acquisitions rather than business combinations, unless we acquire a substantive process. ASU No. 2017-05, Other Income—Gains and Losses from the Derecognition of Non-financial Assets (Subtopic 610-20): Clarifying the Scope of Asset Derecognition Guidance and Accounting for Partial Sales of Non-financial Assets The standard clarifies the scope and accounting of a financial asset that meets the definition of an in substance non-financial asset and the definition of an in substance non-financial asset. The ASU also adds guidance for partial sales of non-financial assets. January 2018 We utilized the modified retrospective transition method upon the adoption of ASU 2017-05 and the cumulative adjustment from our comparative periods was zero in our Condensed Consolidated Financial Statements, as we historically have not sold material non-financial assets in our normal course of business. Standards not yet adopted Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU No. 2016-02, Leases (Topic 842) This standard introduces a lessee model that brings most leases on the balance sheet. This will increase a lessee’s reported assets and liabilities—in some cases very significantly. Lessor accounting remains substantially similar to current U.S. GAAP. January 2019 We are currently evaluating ASU 2016-02 noting that we have not determined the full impact of adoption of ASU 2016-02 on our Consolidated Financial Statements. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our revenues disaggregated by geographic segment ( $ in thousands): Three Months Ended March 31, 2018 Yucatán Peninsula Caribbean Basin Pacific Coast Other Total Package revenue $ 73,054 $ 56,287 $ 25,026 $ 341 $ 154,708 Non-package revenue 8,230 8,517 5,042 10 21,799 Management fees — — — 296 296 Cost reimbursements — — — 44 44 Total revenue $ 81,284 $ 64,804 $ 30,068 $ 691 $ 176,847 Three Months Ended March 31, 2017 Yucatán Peninsula Caribbean Basin Pacific Coast Other Total Package revenue $ 74,174 $ 54,073 $ 24,709 $ — $ 152,956 Non-package revenue 8,571 7,908 4,632 — 21,111 Total revenue $ 82,745 $ 61,981 $ 29,341 $ — $ 174,067 |
Performance Obligations, Timing of Satisfaction | We recognize revenues when the performance obligations are satisfied by transferring control of the product or service to our customers as described in the table below: Revenue Description Timing of Revenue Recognition Package Sale of all-inclusive packages, which include room accommodations, food and beverage services and entertainment activities. All services offered as part of the all-inclusive experience are considered to be one performance obligation. Revenue is recognized, net of discounts and rebates, based on the agreed upon price after each stay when our performance obligation of all-inclusive services is considered transferred to the customer. Non-package All other revenues earned from the operations of our resorts other than package revenue. This includes, but is not limited to, the sale of upgrades, premium services and amenities, such as premium rooms, dining experiences, wines and spirits and spa packages. Revenue is recognized based on the agreed upon price after the completion of the sale when the product or service is transferred to the customer. Management fees Fees earned for managing hotels 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. Revenue is recognized over the term of the service period as the third-party owners benefit from our management services. Cost reimbursements Cash reimbursements for costs related to managing hotels owned by third-parties. Revenue is recognized when agreed upon reimbursable costs are incurred from managing hotels owned by third-parties. |
Business combination (Tables)
Business combination (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Business Combinations [Abstract] | |
Schedule of Consideration Transferred | The consideration received as a result of the Business Combination is summarized as follows ($ in thousands) : Purchase of all of our Predecessor's cumulative redeemable preferred shares (1) $ 353,873 Net cash transferred from Pace 78,859 Playa Employee Offering (2) 799 Total Consideration Transferred $ 433,531 ________ (1) Balance consisted of the face value of our Predecessor's cumulative redeemable preferred shares (“Preferred Shares”) and their associated PIK dividends as of March 10, 2017, per the terms of the Business Combination. (2) In connection with the Business Combination, we entered into subscription agreements (the “Subscription Agreements”) with Playa employees, their family members and persons with business relationships with Playa, pursuant to which those persons agreed to purchase 82,751 ordinary shares for an aggregate purchase price of $0.8 million . |
Property, plant and equipment (
Property, plant and equipment (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property, Plant and Equipment | The balance of property, plant and equipment is as follows ($ in thousands ): As of March 31, As of December 31, 2018 2017 Land, buildings and improvements $ 1,501,507 $ 1,493,407 Fixtures and machinery 54,597 53,188 Furniture and other fixed assets 178,371 173,912 Construction in progress 36,329 29,220 Total property, plant and equipment, gross 1,770,804 1,749,727 Accumulated depreciation (298,380 ) (283,401 ) Total property, plant and equipment, net $ 1,472,424 $ 1,466,326 |
Related party transactions (Tab
Related party transactions (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Transactions between us and related parties during the three months ended March 31, 2018 and 2017 were as follows ( $ in thousands ): Three Months Ended March 31, 2018 2017 Dividends on the Preferred Shares (1) $ — $ 7,922 Deferred consideration accretion (2) — 36 Interest expense on related party debt (2) — 372 Hyatt franchise fees (3) 4,451 4,365 Lease payments (4) 217 309 Total transactions with related parties $ 4,668 $ 13,004 ________ (1) Included in dividends of cumulative redeemable preferred shares in the Condensed Consolidated Statements of Operations and Comprehensive Income . (2) Included in interest expense in the Condensed Consolidated Statements of Operations and Comprehensive Income . (3) Included in direct expense in the Condensed Consolidated Statements of Operations and Comprehensive Income . (4) Included in selling, general, and administrative expense in the Condensed Consolidated Statements of Operations and Comprehensive Income The following summarizes transactions and arrangements that we have entered into with related parties. The details of the balances between us and related parties as of March 31, 2018 and December 31, 2017 are as follows ($ in thousands) : As of March 31, As of December 31, 2018 2017 Accounts receivable $ 2,428 $ 1,495 Accounts payable $ 3,985 $ 2,966 |
Share-based compensation (Table
Share-based compensation (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Summary of Restricted Share Awards | A summary of our restricted share awards from January 1, 2018 to March 31, 2018 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Unvested balance at January 1, 2018 1,265,830 $ 10.19 Granted 486,884 10.78 Vested (48,699 ) 10.78 Forfeited (16,845 ) 10.19 Unvested balance at March 31, 2018 1,687,170 $ 10.35 |
Summary of Key Inputs Used in Monte-Carlo Simulation | The table below summarizes the key inputs used in the Monte-Carlo simulation ($ in thousands) : Performance Award Grant Date Percentage of Total Award Grant Date Fair Value by Component Volatility (1) Interest Rate (2) Dividend Yield May 26, 2017 Total Shareholder Return 50 % $ 770 27.02 % 1.39 % — % Adjusted EBITDA Comparison 50 % $ 1,350 — % — % — % January 2, 2018 Total Shareholder Return 50 % $ 860 26.13 % 2.00 % — % Adjusted EBITDA Comparison 50 % $ 1,475 — % — % — % ________ (1) Expected volatility was determined based on the historical share prices in our industry. (2) The risk-free rate was based on U.S. Treasury zero coupon issues with a remaining term equal to the remaining term of the measurement period. |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Earnings Per Share [Abstract] | |
Schedule of Calculation of Basic and Diluted EPS | The calculations of basic and diluted EPS are as follows ( $ in thousands ): Three Months Ended March 31, 2018 2017 Numerator: Net income $ 21,817 $ 27,639 Preferred Share dividends — (7,922 ) Allocation of undistributed earnings to preferred shareholders — (6,799 ) Numerator for basic EPS - income available to ordinary shareholders 21,817 12,918 Add back Preferred Share dividends (1) — — Add back of undistributed earnings to preferred shareholders (1) — — Numerator for diluted EPS - income available to ordinary shareholders after assumed conversions $ 21,817 $ 12,918 Denominator: Denominator for basic EPS - weighted-average shares 110,345,855 62,255,681 Effect of dilutive securities: Unvested restricted share awards 255,751 — Preferred Shares — — Denominator for diluted EPS - adjusted weighted-average shares 110,601,606 62,255,681 EPS - Basic $ 0.20 $ 0.21 EPS - Diluted $ 0.20 $ 0.21 ________ ( 1) For the three months ended March 31, 2017 , Preferred Share dividends of our Predecessor of $7.9 million and the preferred shareholders’ allocation of undistributed earnings of our Predecessor of $6.8 million were not added back for purposes of calculating diluted EPS because the effect of treating our Predecessor's Preferred Shares as if they had been converted to their 32,032,530 ordinary share equivalents as of January 1, 2017 was anti-dilutive. |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Components | Debt consists of the following ($ in thousands) : As of March 31, As of December 31, 2018 2017 Debt Obligations Term Loan (1) $ 904,123 $ 906,398 Revolving Credit Facility — — Total Debt Obligations 904,123 906,398 Unamortized discount Discount on Term Loan (2,495 ) (2,600 ) Total unamortized discount (2,495 ) (2,600 ) Unamortized debt issuance costs: Term Loan (5,361 ) (5,583 ) Total unamortized debt issuance costs (5,361 ) (5,583 ) Total Debt $ 896,267 $ 898,215 ________ (1) Borrowings under the Term Loan bear interest at floating rates equal to London Interbank Offered Rate (“LIBOR”) plus 3.25% (where the applicable LIBOR rate has a 1.0% floor). The interest rate was 5.00% and 4.62% as of March 31, 2018 and December 31, 2017 , respectively. |
Derivative financial instrume36
Derivative financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Effects of Derivative Instruments on Condensed Consolidated Statements of Operations and Comprehensive Income | The following table presents the location and effects of the derivative instruments in the Condensed Consolidated Statements of Operations and Comprehensive Income for three months ended March 31, 2018 and 2017 ($ in thousands) : For the three months ended March 31, Derivatives not Designated as Hedging Instruments Income Statement Classification 2018 2017 Interest rate swaps Interest expense $ 11,025 $ — |
Schedule of Location and Fair Value of Derivative Instruments in Condensed Consolidated Balance Sheet | The following table presents the location and fair value of the derivative instruments in the Condensed Consolidated Balance Sheet as of March 31, 2018 and December 31, 2017 ($ in thousands) : As of March 31, As of December 31, Derivatives not Designated as Hedging Instruments Balance Sheet Classification 2018 2017 Interest rate swaps Derivative financial instruments $ 11,025 $ — |
Fair value of financial instr37
Fair value of financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis | The following table presents our fair value hierarchy for our financial liabilities measured at fair value on a recurring basis as of March 31, 2018 ($ in thousands): March 31, 2018 Level 1 Level 2 Level 3 Fair value measurements on a recurring basis: Interest rate swap $ 11,025 $ — $ 11,025 $ — |
Reconciliation of Level 3 Fair Valued Instruments | The following table presents the changes in our Level 3 fair valued instruments for the three months ended March 31, 2017 ($ in thousands) : Deferred Consideration Balance as of December 31, 2016 $ 1,836 Total gains included in earnings (or change in net assets) (1) (26 ) Settlements (630 ) Balance as of March 31, 2017 $ 1,180 ________ (1) All losses and gains (other than changes in net assets) were included in interest expense in the Condensed Consolidated Statements of Operations and Comprehensive Income . |
Schedule of Financial Liabilities Not Measured at Fair Value | The following tables present our fair value hierarchy for our financial liabilities not measured at fair value as of March 31, 2018 and December 31, 2017 ($ in thousands) : Carrying Value Fair Value As of March 31, 2018 Level 1 Level 2 Level 3 Financial liabilities not recorded at fair value: Debt: Term Loan $ 896,267 $ — $ — $ 928,097 Revolving Credit Facility — — — — Total $ 896,267 $ — $ — $ 928,097 Carrying Value Fair Value As of December 31, 2017 Level 1 Level 2 Level 3 Financial liabilities not recorded at fair value: Debt: Term Loan $ 898,215 $ — $ — $ 916,369 Revolving Credit Facility — — — — Total $ 898,215 $ — $ — $ 916,369 |
Summary of Valuation Techniques | The following table summarizes the valuation techniques used to estimate the fair value of our financial liabilities measured at fair value on a recurring basis and our financial liabilities not measured at fair value: Valuation Technique Financial liabilities recorded at fair value: Interest rate swaps The fair value of the interest rate swaps is estimated based on the expected future cash flows by incorporating the notional amount of the swaps, the contractual period to maturity, and observable market-based inputs, including interest rate curves. The fair value also incorporates credit valuation adjustments to appropriately reflect nonperformance risk. Financial liabilities not recorded at fair value: Term Loan The fair value of our Term Loan is estimated using cash flow projections over the remaining contractual period by applying market forward rates and discounting back at the appropriate discount rate. Revolving Credit Facility The valuation technique of our Revolving Credit Facility is consistent with our Term Loan. The fair value of the Revolving Credit Facility generally approximates its carrying value as the expected term is significantly shorter in duration. |
Employee benefit plan (Tables)
Employee benefit plan (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Retirement Benefits [Abstract] | |
Schedule of Net Periodic Pension Cost | The following table presents the components of net periodic pension cost for the three months ended March 31, 2018 and 2017 ( $ in thousands ): Three Months Ended March 31, 2018 2017 Service cost $ 174 $ 158 Interest cost 87 68 Effect of foreign exchange rates 345 372 Amortization of prior service cost 25 — Amortization of gain (6 ) (8 ) Compensation-non-retirement post employment benefits 4 4 Settlement gain — (7 ) Net periodic pension cost $ 629 $ 587 |
Other balance sheet items (Tabl
Other balance sheet items (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Trade and Other Receivables, Net | The following summarizes the balances of trade and other receivables, net as of March 31, 2018 and December 31, 2017 ($ in thousands): As of March 31, As of December 31, 2018 2017 Gross trade and other receivables $ 62,485 $ 52,312 Allowance for doubtful accounts (409 ) (785 ) Total trade and other receivables, net $ 62,076 $ 51,527 |
Schedule of Prepayments and Other Assets | The following summarizes the balances of prepayments and other assets as of March 31, 2018 and December 31, 2017 ($ in thousands) : As of March 31, As of December 31, 2018 2017 Advances to suppliers $ 6,587 $ 6,509 Prepaid income taxes 10,445 10,935 Prepaid other taxes (1) 11,207 10,737 Contract deposit (2) 2,700 2,700 Other assets 2,791 3,185 Total prepayments and other assets $ 33,730 $ 34,066 ________ (1) Includes recoverable value-added tax and general consumption tax accumulated by our Mexico and Jamaica entities, respectively. (2) Represents a cash deposit related to the Sanctuary Cap Cana management contract. We are in the process of negotiating final terms for the purchase of a 30% interest in the resort in the second half of 2018, and the deposit will be used towards this purchase if we are able to agree on terms. If the purchase is not completed, this amount, together with an additional $0.8 million due, will be treated as key money. |
Schedule of Goodwill | The gross carrying values and accumulated impairment losses of goodwill as of March 31, 2018 and December 31, 2017 are as follows ($ in thousands) : As of March 31, As of December 31, 2018 2017 Gross carrying value $ 51,731 $ 51,731 Accumulated impairment loss — — Carrying Value $ 51,731 $ 51,731 |
Schedule of Other Intangible Assets, Indefinite-Lived | Other intangible assets as of March 31, 2018 and December 31, 2017 consisted of the following ( $ in thousands ): As of March 31, As of December 31, 2018 2017 Strategic Alliance $ — $ 3,616 Licenses 981 981 Other 4,808 3,298 Acquisition Cost 5,789 7,895 Strategic Alliance — (3,616 ) Other (2,506 ) (2,192 ) Accumulated Amortization (2,506 ) (5,808 ) Strategic Alliance — — Licenses 981 981 Other 2,302 1,106 Carrying Value $ 3,283 $ 2,087 |
Schedule of Other Intangible Assets, Finite-Lived | Other intangible assets as of March 31, 2018 and December 31, 2017 consisted of the following ( $ in thousands ): As of March 31, As of December 31, 2018 2017 Strategic Alliance $ — $ 3,616 Licenses 981 981 Other 4,808 3,298 Acquisition Cost 5,789 7,895 Strategic Alliance — (3,616 ) Other (2,506 ) (2,192 ) Accumulated Amortization (2,506 ) (5,808 ) Strategic Alliance — — Licenses 981 981 Other 2,302 1,106 Carrying Value $ 3,283 $ 2,087 |
Schedule of Trade and Other Payables | The following summarizes the balances of trade and other payables as of March 31, 2018 and December 31, 2017 ($ in thousands) : As of March 31, As of December 31, 2018 2017 Trade payables $ 16,538 $ 18,160 Advance deposits 38,610 43,884 Withholding and other taxes payable 42,730 34,904 Accrued professional services 9,201 7,131 Interest payable 8,163 5,586 Payroll and related accruals 10,308 13,848 Other payables 17,803 16,015 Total trade and other payables $ 143,353 $ 139,528 |
Schedule of Other Liabilities | The following summarizes the balances of other liabilities as of March 31, 2018 and December 31, 2017 ($ in thousands) : As of March 31, As of December 31, 2018 2017 Tax contingencies $ 2,329 $ 2,310 Pension obligations 5,122 4,456 Casino loan and license 953 975 Cap Cana land purchase obligation 10,625 10,625 Other 892 1,028 Total other liabilities $ 19,921 $ 19,394 |
Segment information (Tables)
Segment information (Tables) | 3 Months Ended |
Mar. 31, 2018 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following tables present segment net revenue, a reconciliation to gross revenue and segment Adjusted EBITDA and a reconciliation to net income ( $ in thousands ): Three Months Ended March 31, 2018 2017 Revenue: Yucatàn Peninsula $ 79,271 $ 80,748 Pacific Coast 29,055 28,432 Caribbean Basin 64,178 61,330 Segment net revenue (1) 172,504 170,510 Other 352 — Management fees 296 — Cost reimbursements 44 — Compulsory tips 3,651 3,557 Total gross revenue $ 176,847 $ 174,067 ________ (1) Segment net revenue represents total gross revenue less compulsory tips paid to employees, cost reimbursements and other miscellaneous revenue not derived from segment operations. Three Months Ended March 31, 2018 2017 Adjusted EBITDA: Yucatàn Peninsula $ 39,604 $ 43,070 Pacific Coast 13,908 14,272 Caribbean Basin 29,071 24,940 Segment Adjusted EBITDA 82,583 82,282 Other corporate - unallocated (8,320 ) (7,809 ) Management fees 296 — Total consolidated Adjusted EBITDA 74,559 74,473 Less: Other expense, net 1,824 1,074 Share-based compensation 1,786 — Transaction expenses 2,344 6,000 Other tax expense 431 176 Jamaica delayed opening accrual reversal (342 ) — Non-service cost components of net periodic pension cost (455 ) (429 ) Add: Interest expense (21,882 ) (14,015 ) Depreciation and amortization (15,689 ) (12,410 ) Net income before tax 31,400 41,227 Income tax provision (9,583 ) (13,588 ) Net income $ 21,817 $ 27,639 |
Organization, operations and 41
Organization, operations and basis of presentation - Narrative (Details) | 3 Months Ended |
Mar. 31, 2018resort | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of resorts in portfolio | 14 |
Number of resorts managed | 9 |
Number of third-party owned resorts managed | 1 |
Significant accounting polici42
Significant accounting policies (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Cumulative adjustment from comparative periods | $ (159,725,000) | $ (181,542,000) |
Accounting Standards Update 2014-09 | Difference between Revenue Guidance in Effect before and after Topic 606 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Cumulative adjustment from comparative periods | $ 0 |
Revenue - Narrative (Details)
Revenue - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Cumulative adjustment from comparative periods | $ (159,725,000) | $ (181,542,000) |
Contract liabilities | 38,600,000 | 40,900,000 |
Package revenues recognized | $ 28,700,000 | |
Difference between Revenue Guidance in Effect before and after Topic 606 | Accounting Standards Update 2014-09 | ||
Revenue, Initial Application Period Cumulative Effect Transition [Line Items] | ||
Cumulative adjustment from comparative periods | $ 0 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 176,847 | $ 174,067 |
Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 154,708 | 152,956 |
Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 21,799 | 21,111 |
Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 296 | |
Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 44 | |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 691 | 0 |
Other | Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 341 | 0 |
Other | Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 10 | 0 |
Other | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 296 | |
Other | Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 44 | |
Yucatàn Peninsula | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 81,284 | 82,745 |
Yucatàn Peninsula | Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 73,054 | 74,174 |
Yucatàn Peninsula | Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 8,230 | 8,571 |
Yucatàn Peninsula | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | |
Yucatàn Peninsula | Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | |
Caribbean Basin | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 64,804 | 61,981 |
Caribbean Basin | Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 56,287 | 54,073 |
Caribbean Basin | Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 8,517 | 7,908 |
Caribbean Basin | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | |
Caribbean Basin | Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | |
Pacific Coast | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 30,068 | 29,341 |
Pacific Coast | Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 25,026 | 24,709 |
Pacific Coast | Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 5,042 | $ 4,632 |
Pacific Coast | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | |
Pacific Coast | Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 0 |
Business combination - Narrati
Business combination - Narrative (Details) - shares | Mar. 31, 2018 | Dec. 31, 2017 | Mar. 31, 2017 | Dec. 31, 2016 |
Ordinary Shares | ||||
Business Acquisition [Line Items] | ||||
Shares outstanding (in shares) | 110,346,396 | 110,297,697 | 103,464,186 | 50,481,822 |
Business combination - Schedule
Business combination - Schedule of Consideration Transferred (Details) - USD ($) $ in Thousands | Mar. 12, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Business Acquisition [Line Items] | |||
Purchase of all of our Predecessor's cumulative redeemable preferred shares | $ 0 | $ 239,492 | |
Recapitalization Merger | |||
Business Acquisition [Line Items] | |||
Purchase of all of our Predecessor's cumulative redeemable preferred shares | $ 353,873 | ||
Net cash transferred from Pace | 78,859 | ||
Playa Employee Offering | 799 | ||
Total Consideration Transferred | $ 433,531 | ||
Number of shares agreed to purchase in subscription agreements (in shares) | 82,751 |
Property, plant and equipment -
Property, plant and equipment - Schedule of Property, Plant and Equipment (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 1,770,804 | $ 1,749,727 |
Accumulated depreciation | (298,380) | (283,401) |
Total property, plant and equipment, net | 1,472,424 | 1,466,326 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 1,501,507 | 1,493,407 |
Fixtures and machinery | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 54,597 | 53,188 |
Furniture and other fixed assets | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | 178,371 | 173,912 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property, plant and equipment, gross | $ 36,329 | $ 29,220 |
Property, plant and equipment
Property, plant and equipment - Narrative (Details) - USD ($) | Jul. 12, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 15,400,000 | $ 12,200,000 | |
Interest expense capitalized on qualifying assets | 700,000 | 0 | |
Property, Plant and Equipment [Line Items] | |||
Consideration paid upon closing | 20,293,000 | 3,175,000 | |
Remaining balance due upon opening of resort | $ 1,006,000 | $ 527,000 | |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Total consideration | $ 56,200,000 | ||
Consideration paid upon closing | 45,600,000 | ||
Remaining balance due upon opening of resort | $ 10,600,000 | ||
Period post beginning of construction of resorts that payment may be due | 2 years |
Income taxes - Narrative (Deta
Income taxes - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Income Tax Disclosure [Abstract] | ||
Statutory income tax rate | 25.00% | |
Income tax provision | $ 9,583 | $ 13,588 |
Decrease in income tax provision | $ 4,000 |
Related party transactions - D
Related party transactions - Details of Balances with Related Parties (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Related Party Transactions [Abstract] | ||
Accounts receivable | $ 2,428 | $ 1,495 |
Accounts payable | $ 3,985 | $ 2,966 |
Related party transactions - Na
Related party transactions - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 12, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Related Party Transaction [Line Items] | |||
Associated PIK dividends | $ 0 | $ 114,381 | |
Amount of transaction with related party (less than $0.1 million for affiliate of the Real Shareholder) | 4,668 | 13,004 | |
Lease payments | |||
Related Party Transaction [Line Items] | |||
Amount of transaction with related party (less than $0.1 million for affiliate of the Real Shareholder) | 217 | 309 | |
Chief Executive Officer | Lease payments | |||
Related Party Transaction [Line Items] | |||
Amount of transaction with related party (less than $0.1 million for affiliate of the Real Shareholder) | $ 200 | 300 | |
Affiliate of the Real Shareholder | Lease payments | |||
Related Party Transaction [Line Items] | |||
Amount of transaction with related party (less than $0.1 million for affiliate of the Real Shareholder) | $ 100 | ||
Recapitalization Merger | |||
Related Party Transaction [Line Items] | |||
Purchase price per share (in dollars per share) | $ 8.40 | ||
Face value | $ 239,500 | ||
Associated PIK dividends | $ 114,400 | ||
Recapitalization Merger | HI Holdings Playa | |||
Related Party Transaction [Line Items] | |||
Purchase price per share (in dollars per share) | $ 8.40 | ||
Face value | $ 196,000 | ||
Associated PIK dividends | $ 93,600 | ||
Recapitalization Merger | Real Shareholder | |||
Related Party Transaction [Line Items] | |||
Purchase price per share (in dollars per share) | $ 8.40 | ||
Face value | $ 43,500 | ||
Associated PIK dividends | $ 20,800 |
Related party transactions - Tr
Related party transactions - Transactions with Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Related Party Transaction [Line Items] | ||
Total transactions with related parties | $ 4,668 | $ 13,004 |
Dividends on the Preferred Shares | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | 0 | 7,922 |
Deferred consideration accretion | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | 0 | 36 |
Interest expense on related party debt | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | 0 | 372 |
Hyatt franchise fees | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | 4,451 | 4,365 |
Lease payments | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | $ 217 | $ 309 |
Commitments and contingencies
Commitments and contingencies - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Loss Contingencies [Line Items] | |||
Tax contingencies | $ 2,329 | $ 2,310 | |
Rental expense under non-cancelable operating leases, including contingent leases | $ 500 | $ 500 | |
Electricity | |||
Loss Contingencies [Line Items] | |||
Term of electricity supply contract | 5 years | ||
Straight-line depreciation percent per annum | 20.00% | ||
Capital Investment | Electricity | |||
Loss Contingencies [Line Items] | |||
Obligated refund to supplier should contract be terminated prior to end of contractual term | $ 1,400 | ||
Unearned Rebates | Electricity | |||
Loss Contingencies [Line Items] | |||
Obligated refund to supplier should contract be terminated prior to end of contractual term | 700 | $ 800 | |
Foreign Tax Authority | Tax and Customs Administration, Netherlands | |||
Loss Contingencies [Line Items] | |||
Tax contingencies | $ 1,600 |
Ordinary shares - Narrative (D
Ordinary shares - Narrative (Details) | Dec. 28, 2017$ / sharesshares | Mar. 12, 2017shares | Mar. 31, 2017shares | Mar. 31, 2018€ / sharesshares | Dec. 31, 2017€ / sharesshares | Dec. 31, 2016shares |
Class of Stock [Line Items] | ||||||
Ordinary shares, outstanding (in shares) | 110,346,396 | 110,297,697 | 50,481,822 | |||
Ordinary shares, par value (in Euros per share) | € / shares | € 0.10 | € 0.10 | ||||
Member of Board of Directors | ||||||
Class of Stock [Line Items] | ||||||
Non-cash transfer of ordinary shares (in shares) | 7,367 | |||||
Consideration (in dollars per share) | $ / shares | $ 0 | |||||
Ordinary Shares | ||||||
Class of Stock [Line Items] | ||||||
Ordinary shares issued as part of recapitalization transaction (in shares) | 52,982,364 | 52,982,364 | ||||
Restricted Shares | ||||||
Class of Stock [Line Items] | ||||||
Unvested shares outstanding (in shares) | 2,226,121 |
Warrants - Narrative (Details)
Warrants - Narrative (Details) - Earnout Warrants | 3 Months Ended |
Mar. 31, 2018day$ / shares€ / sharesshares | |
Class of Warrant or Right [Line Items] | |
Warrants issued (in shares) | 3,000,000 |
Price per share underlying the warrants (in dollars per share) | $ / shares | $ 13 |
Warrants trading days threshold | day | 20 |
Warrants consecutive trading days threshold | day | 30 |
Warrants expiration term | 5 years |
Warrants outstanding (in shares) | 3,000,000 |
Ordinary Shares | |
Class of Warrant or Right [Line Items] | |
Number of shares entitled to each warrant (in shares) | 1 |
Exercise price (in dollars per share) | € / shares | $ 0.10 |
Share-based compensation - Nar
Share-based compensation - Narrative (Details) | Jan. 02, 2018criteriashares | May 26, 2017criteriashares | May 16, 2017shares | Mar. 31, 2018USD ($)shares | Mar. 31, 2017USD ($) |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |||||
Shares authorized for issuance (in shares) | 4,000,000 | ||||
Shares available for future grants under the 2017 Plan (in shares) | 1,311,506 | ||||
Restricted Share Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares approved for issuance (in shares) | 486,884 | ||||
Fair value of vested awards | $ | $ 500,000 | $ 0 | |||
Unrecognized compensation cost | $ | $ 14,400,000 | $ 0 | |||
Period over which unrecognized compensation expense will be recorded | 3 years 3 months 18 days | 0 years | |||
Share-based compensation | $ | $ 1,600,000 | $ 0 | |||
Restricted Share Awards | Employees and Executives | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares approved for issuance (in shares) | 438,185 | 410,096 | 994,115 | ||
Vesting period | 3 years | 3 years | 5 years | ||
Restricted Share Awards | Directors | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares approved for issuance (in shares) | 48,699 | 51,569 | |||
Restricted Share Awards | Vesting on the 3rd Anniversary of the Award | Employees and Executives | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Restricted Share Awards | Vesting on the 4th Anniversary of the Award | Employees and Executives | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 25.00% | ||||
Restricted Share Awards | Vesting on the 5th Anniversary of the Award | Employees and Executives | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 50.00% | ||||
Performance Share Awards | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Number of shares approved for issuance (in shares) | 273,729 | 265,222 | |||
Unrecognized compensation cost | $ | $ 4,100,000 | $ 0 | |||
Period over which unrecognized compensation expense will be recorded | 2 years 3 months 18 days | 0 years | |||
Share-based compensation | $ | $ 100,000 | $ 0 | |||
Number of performance criteria defined in award agreements | criteria | 2 | 2 | |||
Performance Share Awards | Minimum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 0.00% | 0.00% | |||
Performance Share Awards | Maximum | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Vesting percentage | 150.00% | 150.00% |
Share-based compensation - Sum
Share-based compensation - Summary of Restricted Stock Awards (Details) - Restricted Share Awards | 3 Months Ended |
Mar. 31, 2018$ / sharesshares | |
Number of Shares | |
Unvested balance at beginning of period (in shares) | shares | 1,265,830 |
Granted (in shares) | shares | 486,884 |
Vested (in shares) | shares | (48,699) |
Forfeited (in shares) | shares | (16,845) |
Unvested balance at end of period (in shares) | shares | 1,687,170 |
Weighted-Average Grant Date Fair Value | |
Unvested balance at beginning of period (in dollars per share) | $ / shares | $ 10.19 |
Granted (in dollars per share) | $ / shares | 10.78 |
Vested (in dollars per share) | $ / shares | 10.78 |
Forfeited (in dollars per share) | $ / shares | 10.19 |
Unvested balance at end of period (in dollars per share) | $ / shares | $ 10.35 |
Share-based compensation - Summ
Share-based compensation - Summary of Key Inputs (Details) - USD ($) $ in Thousands | Jan. 02, 2018 | May 26, 2017 |
Total Shareholder Return | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Total Award | 50.00% | 50.00% |
Grant Date Fair Value by Component | $ 860 | $ 770 |
Volatility | 26.13% | 27.02% |
Interest Rate | 2.00% | 1.39% |
Dividend Yield | 0.00% | 0.00% |
Adjusted EBITDA Comparison | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Total Award | 50.00% | 50.00% |
Grant Date Fair Value by Component | $ 1,475 | $ 1,350 |
Volatility | 0.00% | 0.00% |
Interest Rate | 0.00% | 0.00% |
Dividend Yield | 0.00% | 0.00% |
Preferred Shares - Narrative (D
Preferred Shares - Narrative (Details) - USD ($) $ / shares in Units, $ in Thousands | Mar. 12, 2017 | Mar. 31, 2018 | Mar. 31, 2017 |
Business Acquisition [Line Items] | |||
Purchase of preferred shares | $ 0 | $ 239,492 | |
Associated PIK dividends | $ 0 | $ 114,381 | |
Recapitalization Merger | |||
Business Acquisition [Line Items] | |||
Purchase price per share (in dollars per share) | $ 8.40 | ||
Purchase of preferred shares | $ 353,873 | ||
Face value | 239,500 | ||
Associated PIK dividends | $ 114,400 |
Earnings per share - Schedule
Earnings per share - Schedule of Calculation of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Numerator: | ||
Net income | $ 21,817 | $ 27,639 |
Preferred Share dividends | 0 | (7,922) |
Allocation of undistributed earnings to preferred shareholders | 0 | (6,799) |
Numerator for basic EPS - income available to ordinary shareholders | 21,817 | 12,918 |
Add back Preferred Share dividends | 0 | 0 |
Add back of undistributed earnings to preferred shareholders | 0 | 0 |
Numerator for diluted EPS - income available to ordinary shareholders after assumed conversions | $ 21,817 | $ 12,918 |
Denominator: | ||
Denominator for basic EPS - weighted-average shares (in shares) | 110,345,855 | 62,255,681 |
Effect of dilutive securities: | ||
Unvested restricted share awards (in shares) | 255,751 | 0 |
Preferred Shares (in shares) | 0 | 0 |
Denominator for diluted EPS - adjusted weighted-average shares (in shares) | 110,601,606 | 62,255,681 |
EPS - Basic (in dollars per share) | $ 0.20 | $ 0.21 |
EPS - Diluted (in dollars per share) | $ 0.20 | $ 0.21 |
Earnout Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares of common stock acquired by outstanding warrants (in shares) | 3,000,000 | 3,000,000 |
Convertible Preferred Securities | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings (losses) per share (in shares) | 32,032,530 | |
Unvested Performance-Based Equity Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings (losses) per share (in shares) | 538,951 | 0 |
Debt - Schedule of Debt Compone
Debt - Schedule of Debt Components (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Dec. 31, 2017 | |
Debt Obligations | ||
Total Debt Obligations | $ 904,123 | $ 906,398 |
Unamortized discount | ||
Total unamortized discount | (2,495) | (2,600) |
Unamortized debt issuance costs: | ||
Total unamortized debt issuance costs | (5,361) | (5,583) |
Total Debt | 896,267 | 898,215 |
Term Loan | ||
Debt Obligations | ||
Total Debt Obligations | 904,123 | 906,398 |
Unamortized discount | ||
Total unamortized discount | (2,495) | (2,600) |
Unamortized debt issuance costs: | ||
Total unamortized debt issuance costs | $ (5,361) | $ (5,583) |
Effective interest rate | 5.00% | 4.62% |
Term Loan | LIBOR | ||
Unamortized debt issuance costs: | ||
Basis spread on variable rate | 3.25% | |
Floor interest rate | 1.00% | |
Line of Credit | Revolving Credit Facility | ||
Debt Obligations | ||
Total Debt Obligations | $ 0 | $ 0 |
Debt - Narrative (Details)
Debt - Narrative (Details) | 3 Months Ended |
Mar. 31, 2018 | |
Term Loan | Amended and Restated Senior Secured Credit Facility | |
Debt Instrument [Line Items] | |
Springing leverage ratio financial maintenance covenant requirement threshold, percent of aggregate revolving credit commitments | 35.00% |
Derivative financial instrume63
Derivative financial instruments - Narrative (Details) | Mar. 31, 2018USD ($) | Mar. 29, 2018contract |
Interest rate swaps | ||
Derivative [Line Items] | ||
Number of interest rate swap contracts | contract | 2 | |
Notional amount | $ 800,000,000 | |
Fixed rate | 2.85% | |
Interest Rate Swap One | ||
Derivative [Line Items] | ||
Notional amount | $ 200,000,000 | |
Interest Rate Swap Two | ||
Derivative [Line Items] | ||
Notional amount | $ 600,000,000 |
Derivative financial instrume64
Derivative financial instruments - Effects on Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Interest rate swaps | Interest expense | Derivatives not Designated as Hedging Instruments | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects on Income Statement | $ 11,025 | $ 0 |
Derivative financial instrume65
Derivative financial instruments - Location and Fair Value of Derivatives in Balance Sheet (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Interest rate swaps | Derivatives not Designated as Hedging Instruments | Derivative financial instruments | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liability | $ 11,025 | $ 0 |
Fair value of financial instr66
Fair value of financial instruments - Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Fair value measurements on a recurring basis: | ||
Derivative financial instruments | $ 11,025,000 | $ 0 |
Fair Value Measurements on a Recurring Basis | ||
Fair value measurements on a recurring basis: | ||
Deferred consideration | $ 0 | |
Fair Value Measurements on a Recurring Basis | Interest rate swap | ||
Fair value measurements on a recurring basis: | ||
Derivative financial instruments | 11,025,000 | |
Fair Value Measurements on a Recurring Basis | Level 1 | Interest rate swap | ||
Fair value measurements on a recurring basis: | ||
Derivative financial instruments | 0 | |
Fair Value Measurements on a Recurring Basis | Level 2 | Interest rate swap | ||
Fair value measurements on a recurring basis: | ||
Derivative financial instruments | 11,025,000 | |
Fair Value Measurements on a Recurring Basis | Level 3 | Interest rate swap | ||
Fair value measurements on a recurring basis: | ||
Derivative financial instruments | $ 0 |
Fair value of financial instr67
Fair value of financial instruments - Reconciliation of Level 3 Fair Valued Instruments (Details) - Deferred Consideration $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Fair Value, Liabilities Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward] | |
Beginning balance | $ 1,836 |
Total gains included in earnings (or change in net assets) | (26) |
Settlements | (630) |
Ending balance | $ 1,180 |
Fair value of financial instr68
Fair value of financial instruments - Schedule of Financial Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Carrying Value | ||
Financial liabilities not recorded at fair value: | ||
Debt | $ 896,267 | $ 898,215 |
Carrying Value | Term Loan | ||
Financial liabilities not recorded at fair value: | ||
Debt | 896,267 | 898,215 |
Carrying Value | Revolving Credit Facility | ||
Financial liabilities not recorded at fair value: | ||
Debt | 0 | 0 |
Fair Value | Level 1 | ||
Financial liabilities not recorded at fair value: | ||
Debt | 0 | 0 |
Fair Value | Level 1 | Term Loan | ||
Financial liabilities not recorded at fair value: | ||
Debt | 0 | 0 |
Fair Value | Level 1 | Revolving Credit Facility | ||
Financial liabilities not recorded at fair value: | ||
Debt | 0 | 0 |
Fair Value | Level 2 | ||
Financial liabilities not recorded at fair value: | ||
Debt | 0 | 0 |
Fair Value | Level 2 | Term Loan | ||
Financial liabilities not recorded at fair value: | ||
Debt | 0 | 0 |
Fair Value | Level 2 | Revolving Credit Facility | ||
Financial liabilities not recorded at fair value: | ||
Debt | 0 | 0 |
Fair Value | Level 3 | ||
Financial liabilities not recorded at fair value: | ||
Debt | 928,097 | 916,369 |
Fair Value | Level 3 | Term Loan | ||
Financial liabilities not recorded at fair value: | ||
Debt | 928,097 | 916,369 |
Fair Value | Level 3 | Revolving Credit Facility | ||
Financial liabilities not recorded at fair value: | ||
Debt | $ 0 | $ 0 |
Employee benefit plan - Narrat
Employee benefit plan - Narrative (Details) - USD ($) | Mar. 31, 2018 | Dec. 31, 2017 |
Retirement Benefits [Abstract] | ||
Plan assets | $ 0 | $ 0 |
Employee benefit plan - Schedul
Employee benefit plan - Schedule of Net Periodic Pension Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Retirement Benefits [Abstract] | ||
Service cost | $ 174 | $ 158 |
Interest cost | 87 | 68 |
Effect of foreign exchange rates | 345 | 372 |
Amortization of prior service cost | 25 | 0 |
Amortization of gain | (6) | (8) |
Compensation-non-retirement post employment benefits | 4 | 4 |
Settlement gain | 0 | (7) |
Net periodic pension cost | $ 629 | $ 587 |
Other balance sheet items - Sch
Other balance sheet items - Schedule of Trade and Other Receivables, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Gross trade and other receivables | $ 62,485 | $ 52,312 |
Allowance for doubtful accounts | (409) | (785) |
Total trade and other receivables, net | $ 62,076 | $ 51,527 |
Other balance sheet items - S72
Other balance sheet items - Schedule of Prepayments and Other Assets (Details) - USD ($) $ in Thousands | Dec. 31, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Advances to suppliers | $ 6,587 | $ 6,509 | |
Prepaid income taxes | 10,445 | 10,935 | |
Prepaid other taxes | 11,207 | 10,737 | |
Contract deposit | 2,700 | 2,700 | |
Other assets | 2,791 | 3,185 | |
Total prepayments and other assets | 33,730 | $ 34,066 | |
Schedule of Equity Method Investments [Line Items] | |||
Additional amount due that will be treated as key money if purchase not completed | $ 800 | ||
Forecast | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership interest planning to purchase | 30.00% |
Other balance sheet items - S73
Other balance sheet items - Schedule of Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Gross carrying value | $ 51,731 | $ 51,731 |
Accumulated impairment loss | 0 | 0 |
Carrying Value | $ 51,731 | $ 51,731 |
Other balance sheet items - S74
Other balance sheet items - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2018 | Mar. 31, 2017 | Dec. 31, 2017 | |
Finite-Lived Intangible Assets [Line Items] | |||
Accumulated Amortization | $ (2,506) | $ (5,808) | |
Indefinite-lived Intangible Assets [Line Items] | |||
Acquisition Cost | 5,789 | 7,895 | |
Carrying Value | 3,283 | 2,087 | |
Amortization expense for intangibles | 300 | $ 200 | |
Licenses | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets | 981 | 981 | |
Strategic Alliance | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquisition Cost, Finite-lived Intangible Assets | 0 | 3,616 | |
Accumulated Amortization | 0 | (3,616) | |
Carrying Value, Finite-lived Intangible Assets | 0 | 0 | |
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Acquisition Cost, Finite-lived Intangible Assets | 4,808 | 3,298 | |
Accumulated Amortization | (2,506) | (2,192) | |
Carrying Value, Finite-lived Intangible Assets | $ 2,302 | $ 1,106 |
Other balance sheet items - S75
Other balance sheet items - Schedule of Trade and Other Payables (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Trade payables | $ 16,538 | $ 18,160 |
Advance deposits | 38,610 | 43,884 |
Withholding and other taxes payable | 42,730 | 34,904 |
Accrued professional services | 9,201 | 7,131 |
Interest payable | 8,163 | 5,586 |
Payroll and related accruals | 10,308 | 13,848 |
Other payables | 17,803 | 16,015 |
Total trade and other payables | $ 143,353 | $ 139,528 |
Other balance sheet items - S76
Other balance sheet items - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | Mar. 31, 2018 | Dec. 31, 2017 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Tax contingencies | $ 2,329 | $ 2,310 |
Pension obligations | 5,122 | 4,456 |
Casino loan and license | 953 | 975 |
Cap Cana land purchase obligation | 10,625 | 10,625 |
Other | 892 | 1,028 |
Total other liabilities | $ 19,921 | $ 19,394 |
Segment information - Schedule
Segment information - Schedule of Net Revenue and Reconciliation to Gross Revenue (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018USD ($)segment | Mar. 31, 2017USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 3 | |
Segment Reporting Information [Line Items] | ||
Management fees | $ 296 | $ 0 |
Cost reimbursements | 44 | 0 |
Total gross revenue | 176,847 | 174,067 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total gross revenue | 172,504 | 170,510 |
Operating Segments | Yucatàn Peninsula | ||
Segment Reporting Information [Line Items] | ||
Total gross revenue | 79,271 | 80,748 |
Operating Segments | Pacific Coast | ||
Segment Reporting Information [Line Items] | ||
Total gross revenue | 29,055 | 28,432 |
Operating Segments | Caribbean Basin | ||
Segment Reporting Information [Line Items] | ||
Total gross revenue | 64,178 | 61,330 |
Other | ||
Segment Reporting Information [Line Items] | ||
Other | 352 | 0 |
Management fees | 296 | 0 |
Cost reimbursements | 44 | 0 |
Compulsory tips | $ 3,651 | $ 3,557 |
Segment information - Schedul78
Segment information - Schedule of Adjusted EBITDA and Reconciliation to Net Income (Loss) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2018 | Mar. 31, 2017 | |
Adjusted EBITDA: | ||
Total consolidated Adjusted EBITDA | $ 74,559 | $ 74,473 |
Management fees | 296 | 0 |
Less: | ||
Other expense, net | 1,824 | 1,074 |
Add: | ||
Interest expense | (21,882) | (14,015) |
Depreciation and amortization | (15,689) | (12,410) |
Net income before tax | 31,400 | 41,227 |
Income tax provision | (9,583) | (13,588) |
Net income | 21,817 | 27,639 |
Operating Segments | ||
Adjusted EBITDA: | ||
Total consolidated Adjusted EBITDA | 82,583 | 82,282 |
Operating Segments | Yucatàn Peninsula | ||
Adjusted EBITDA: | ||
Total consolidated Adjusted EBITDA | 39,604 | 43,070 |
Operating Segments | Pacific Coast | ||
Adjusted EBITDA: | ||
Total consolidated Adjusted EBITDA | 13,908 | 14,272 |
Operating Segments | Caribbean Basin | ||
Adjusted EBITDA: | ||
Total consolidated Adjusted EBITDA | 29,071 | 24,940 |
Other corporate - unallocated | ||
Adjusted EBITDA: | ||
Total consolidated Adjusted EBITDA | (8,320) | (7,809) |
Other | ||
Adjusted EBITDA: | ||
Management fees | 296 | 0 |
Less: | ||
Other expense, net | 1,824 | 1,074 |
Share-based compensation | 1,786 | 0 |
Transaction expenses | 2,344 | 6,000 |
Other tax expense | 431 | 176 |
Jamaica delayed opening accrual reversal | (342) | 0 |
Non-service cost components of net periodic pension cost | (455) | (429) |
Add: | ||
Interest expense | (21,882) | (14,015) |
Depreciation and amortization | $ (15,689) | $ (12,410) |