Cover Page
Cover Page - shares | 3 Months Ended | |
Mar. 31, 2024 | Apr. 30, 2024 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2024 | |
Document Transition Report | false | |
Entity File Number | 1-38012 | |
Entity Registrant Name | Playa Hotels & Resorts N.V. | |
Entity Incorporation, State or Country Code | P7 | |
Entity Tax Identification Number | 98-1346104 | |
Entity Address, Address Line One | Nieuwezijds Voorburgwal 104 | |
Entity Address, Postal Zip Code | 1012 SG | |
Entity Address, City or Town | Amsterdam, | |
Entity Address, Country | NL | |
Country Region | 31 | |
City Area Code | 6 | |
Local Phone Number | 82 55 84 30 | |
Title of 12(b) Security | Ordinary Shares, €0.10 par value | |
Trading Symbol | PLYA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 133,180,720 | |
Entity Central Index Key | 0001692412 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2024 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
ASSETS | ||
Cash and cash equivalents | $ 285,342 | $ 272,520 |
Insurance recoverable | 11,058 | 9,821 |
Inventories | 18,690 | 19,963 |
Prepayments and other assets | 49,711 | 54,294 |
Property and equipment, net | 1,407,248 | 1,415,572 |
Derivative financial instruments | 9,707 | 2,966 |
Goodwill, net | 60,642 | 60,642 |
Other intangible assets | 3,441 | 4,357 |
Deferred tax assets | 12,514 | 12,967 |
Total assets | 1,946,998 | 1,933,725 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Income tax payable | 12,608 | 11,592 |
Debt | 1,060,158 | 1,061,376 |
Other liabilities | 33,930 | 33,970 |
Deferred tax liabilities | 64,891 | 64,815 |
Total liabilities | 1,360,013 | 1,378,928 |
Commitments and contingencies (see Note 7) | ||
Shareholders’ equity | ||
Ordinary shares (par value €0.10; 500,000,000 shares authorized, 172,016,422 shares issued and 135,040,042 shares outstanding as of March 31, 2024 and 169,423,980 shares issued and 136,081,891 shares outstanding as of December 31, 2023) | 19,104 | 18,822 |
Treasury shares (at cost, 36,976,380 shares as of March 31, 2024 and 33,342,089 shares as of December 31, 2023) | (280,787) | (248,174) |
Paid-in capital | 1,205,652 | 1,202,175 |
Accumulated other comprehensive income | 7,813 | 1,112 |
Accumulated deficit | (364,797) | (419,138) |
Total shareholders’ equity | 586,985 | 554,797 |
Total liabilities and shareholders’ equity | 1,946,998 | 1,933,725 |
Related Party | ||
ASSETS | ||
Trade and other receivables, net | 6,423 | 5,861 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Trade and other payables | 11,710 | 10,743 |
Nonrelated Party | ||
ASSETS | ||
Trade and other receivables, net | 82,222 | 74,762 |
LIABILITIES AND SHAREHOLDERS’ EQUITY | ||
Trade and other payables | $ 176,716 | $ 196,432 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - € / shares | Mar. 31, 2024 | Dec. 31, 2023 |
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) | 172,016,422 | 169,423,980 |
Ordinary shares, outstanding (in shares) | 135,040,042 | 136,081,891 |
Treasury shares, at cost (in shares) | 36,976,380 | 33,342,089 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Revenue | ||
Total revenue | $ 300,635 | $ 273,802 |
Direct and selling, general and administrative expenses | ||
Direct | 137,979 | 128,968 |
Selling, general and administrative | 51,219 | 45,127 |
Depreciation and amortization | 18,672 | 19,191 |
Reimbursed costs | 2,889 | 3,534 |
(Gain) loss on sale of assets | (36) | 13 |
Business interruption insurance recoveries | (17) | 0 |
Gain on insurance proceeds | (370) | 0 |
Direct and selling, general and administrative expenses | 210,336 | 196,833 |
Operating income | 90,299 | 76,969 |
Interest expense | (23,128) | (29,666) |
Other (expense) income | (793) | 232 |
Net income before tax | 66,378 | 47,535 |
Income tax provision | (12,037) | (4,816) |
Net income | $ 54,341 | $ 42,719 |
Earnings per share | ||
Basic (in dollars per share) | $ 0.40 | $ 0.27 |
Diluted (in dollars per share) | $ 0.39 | $ 0.27 |
Weighted average number of shares outstanding during the period - Basic (in shares) | 136,651,696 | 157,314,177 |
Weighted average number of shares outstanding during the period - Diluted (in shares) | 138,009,859 | 158,772,453 |
Package | ||
Revenue | ||
Total revenue | $ 259,629 | $ 233,568 |
Non-package | ||
Revenue | ||
Total revenue | 34,143 | 33,481 |
The Playa Collection | ||
Revenue | ||
Total revenue | 1,020 | 726 |
Management fees | ||
Revenue | ||
Total revenue | 2,534 | 1,929 |
Cost reimbursements | ||
Revenue | ||
Total revenue | 2,889 | 3,534 |
Other revenues | ||
Revenue | ||
Total revenue | $ 420 | $ 564 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Statement of Comprehensive Income [Abstract] | ||
Net income | $ 54,341 | $ 42,719 |
Other comprehensive income, net of taxes | ||
Gain on derivative financial instruments | 6,750 | 2,895 |
Pension obligation loss | (49) | (218) |
Total other comprehensive income | 6,701 | 2,677 |
Comprehensive income | $ 61,042 | $ 45,396 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Ordinary Shares | Treasury Shares | Paid-In Capital | Accumulated Other Comprehensive Income (Loss) | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2022 | 158,228,508 | |||||
Beginning balance at Dec. 31, 2022 | $ 664,862 | $ 18,700 | $ (62,953) | $ 1,189,090 | $ (6,985) | $ (472,990) |
Beginning balance (in shares) at Dec. 31, 2022 | 10,046,996 | |||||
Shareholders' Equity | ||||||
Net income | 42,719 | 42,719 | ||||
Other comprehensive income | 2,677 | 2,677 | ||||
Share-based compensation, net of tax withholdings (in shares) | 1,148,476 | |||||
Share-based compensation, net of tax withholdings | 3,166 | $ 122 | 3,044 | |||
Repurchase of ordinary shares (in shares) | (4,974,132) | (4,974,132) | ||||
Repurchase of ordinary shares | (40,890) | $ (40,890) | ||||
Ending balance (in shares) at Mar. 31, 2023 | 154,402,852 | |||||
Ending balance at Mar. 31, 2023 | $ 672,534 | $ 18,822 | $ (103,843) | 1,192,134 | (4,308) | (430,271) |
Ending balance (in shares) at Mar. 31, 2023 | 15,021,128 | |||||
Beginning balance (in shares) at Dec. 31, 2023 | 136,081,891 | 136,081,891 | ||||
Beginning balance at Dec. 31, 2023 | $ 554,797 | $ 18,822 | $ (248,174) | 1,202,175 | 1,112 | (419,138) |
Beginning balance (in shares) at Dec. 31, 2023 | 33,342,089 | 33,342,089 | ||||
Shareholders' Equity | ||||||
Net income | $ 54,341 | 54,341 | ||||
Other comprehensive income | 6,701 | 6,701 | ||||
Share-based compensation, net of tax withholdings (in shares) | 2,579,278 | 13,164 | ||||
Share-based compensation, net of tax withholdings | $ 3,650 | $ 282 | $ (109) | 3,477 | ||
Repurchase of ordinary shares (in shares) | (3,621,127) | (3,621,127) | (3,621,127) | |||
Repurchase of ordinary shares | $ (32,504) | $ (32,504) | ||||
Ending balance (in shares) at Mar. 31, 2024 | 135,040,042 | 135,040,042 | ||||
Ending balance at Mar. 31, 2024 | $ 586,985 | $ 19,104 | $ (280,787) | $ 1,205,652 | $ 7,813 | $ (364,797) |
Ending balance (in shares) at Mar. 31, 2024 | 36,976,380 | 36,976,380 |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||
Net income | $ 54,341 | $ 42,719 |
Adjustments to reconcile net income to net cash from operating activities | ||
Depreciation and amortization | 18,672 | 19,191 |
Amortization of debt discount and issuance costs | 1,648 | 1,795 |
Share-based compensation | 3,759 | 3,166 |
Loss on derivative financial instruments | 9 | 6,405 |
Deferred income taxes | 529 | 3,826 |
(Gain) loss on sale of assets | (36) | 13 |
Amortization of key money | (192) | (193) |
Provision for doubtful accounts | 491 | 81 |
Other | 153 | 198 |
Changes in assets and liabilities: | ||
Insurance recoverable | (1,237) | 5,626 |
Inventories | 1,273 | (569) |
Prepayments and other assets | 5,393 | 3,159 |
Trade and other payables | (21,692) | (28,743) |
Payables to related parties | 967 | 2,292 |
Income tax payable | 1,016 | (205) |
Other liabilities | 196 | 531 |
Net cash provided by operating activities | 56,777 | 45,287 |
INVESTING ACTIVITIES | ||
Capital expenditures | (9,953) | (10,257) |
Purchase of intangibles | (79) | (77) |
Payment of key money | (485) | 0 |
Proceeds from the sale of assets, net | 71 | 3 |
Property damage insurance proceeds | 0 | 7,979 |
Net cash used in investing activities | (10,446) | (2,352) |
FINANCING ACTIVITIES | ||
Repayments of debt | (2,750) | (2,750) |
Repurchase of ordinary shares | (30,534) | (42,558) |
Principal payments on finance lease obligations | (116) | (107) |
Repurchase of ordinary shares for tax withholdings | (109) | 0 |
Net cash used in financing activities | (33,509) | (45,415) |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 12,822 | (2,480) |
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | 272,520 | 283,945 |
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 285,342 | 281,465 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||
Cash paid for interest, net of interest capitalized | 21,038 | 21,406 |
Cash paid for income taxes, net | 11,381 | 1,427 |
SUPPLEMENTAL DISCLOSURES OF NON-CASH ACTIVITIES | ||
Capital expenditures incurred but not yet paid | 1,894 | 873 |
Repurchase of ordinary shares not yet settled | 1,970 | 0 |
Par value of vested restricted share awards | 282 | 122 |
Related Party | ||
Changes in assets and liabilities: | ||
Trade and other receivables, net | (562) | (2,602) |
Nonrelated Party | ||
Changes in assets and liabilities: | ||
Trade and other receivables, net | $ (7,951) | $ (11,403) |
Organization, operations and ba
Organization, operations and basis of presentation | 3 Months Ended |
Mar. 31, 2024 | |
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”), through its subsidiaries, is a leading owner, operator and developer of all-inclusive resorts in prime beachfront locations in popular vacation destinations. We own and/or manage a portfolio of 24 resorts located in Mexico, the Dominican Republic and Jamaica. 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 our Consolidated Financial Statements as of and for the year ended December 31, 2023, included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on February 22, 2024 (the “Annual Report”). 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. Results for the comparative prior periods have been reclassified to conform to the current period presentation. |
Significant accounting policies
Significant accounting policies | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Significant accounting policies Derivative financial instruments 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. Changes in the fair value of a derivative contract that is qualified, designated and highly effective as a cash flow hedge are recorded in total other comprehensive income in our Condensed Consolidated Statements of Comprehensive Income and reclassified into earnings in our Condensed Consolidated Statements of Operations in the same period or periods during which the hedged transaction occurs. If a derivative contract does not meet these criteria, then the total change in fair value is recognized in earnings. Cash flows from a derivative financial instrument that is classified as a cash flow hedge are recorded in the same category as the cash flows from the items being hedged in the Condensed Consolidated Statements of Cash Flows. Standards not yet adopted Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. Annual periods beginning after December 15, 2023 We are in the process of evaluating the impact of ASU No. 2023-07 on the Condensed Consolidated Financial Statements with respect to our segment disclosures. ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures The amendments in this update require that public business entities on an annual basis (i) disclose specific categories in the rate reconciliation and (ii) provide additional information for reconciling items that meet a quantitative threshold. Annual periods beginning after December 15, 2024 We are in the process of evaluating the impact of ASU No. 2023-09 on the Condensed Consolidated Financial Statements with respect to our income tax disclosures. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following tables present our revenues disaggregated by geographic segment (refer to discussion of our reportable segments in Note 15) ( $ in thousands) : Three Months Ended March 31, 2024 Yucatán Pacific Dominican Jamaica Other Total Package revenue $ 88,062 $ 39,638 $ 72,213 $ 59,716 $ — $ 259,629 Non-package revenue 10,794 5,916 9,508 7,925 — 34,143 The Playa Collection — — — — 1,020 1,020 Management fees 39 — — — 2,495 2,534 Cost reimbursements — — — 1,095 1,794 2,889 Other revenues — — — — 420 420 Total revenue $ 98,895 $ 45,554 $ 81,721 $ 68,736 $ 5,729 $ 300,635 Three Months Ended March 31, 2023 Yucatán Pacific Dominican Jamaica Other Total Package revenue $ 81,287 $ 36,803 $ 59,602 $ 55,876 $ — $ 233,568 Non-package revenue (1) 9,700 4,747 9,167 9,867 — 33,481 The Playa Collection — — — — 726 726 Management fees 38 — — — 1,891 1,929 Cost reimbursements — — — 1,337 2,197 3,534 Other revenues (1) — — — — 564 564 Total revenue $ 91,025 $ 41,550 $ 68,769 $ 67,080 $ 5,378 $ 273,802 ________ (1) Includes $0.6 million that was reclassified from non-package revenue to other revenues to conform with current period presentation. Contract assets and liabilities We do not have any material contract assets as of March 31, 2024 and December 31, 2023 other than trade and other receivables on our Condensed Consolidated Balance Sheet. Our receivables are primarily the result of contracts with customers, which are reduced by an allowance for doubtful accounts that reflects our estimate of amounts that will not be collected. We record contract liabilities when cash payments are received or due in advance of guests staying at our resorts, which are presented as advance deposits (see Note 14) within trade and other payables on our Condensed Consolidated Balance Sheet. Our advanced deposits are generally recognized as revenue within one year. |
Property and equipment
Property and equipment | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment The balance of property and equipment, net is as follows ($ in thousands ): As of March 31, As of December 31, 2024 2023 Property and equipment, gross Land, buildings and improvements $ 1,648,338 $ 1,646,452 Fixtures and machinery (1) 87,539 86,717 Furniture and other fixed assets 205,476 203,639 Construction in progress 25,402 22,077 Total property and equipment, gross 1,966,755 1,958,885 Accumulated depreciation (559,507) (543,313) Total property and equipment, net $ 1,407,248 $ 1,415,572 ________ (1) Includes the gross balance of our finance lease right-of-use assets, which was $6.3 million as of March 31, 2024 and December 31, 2023. Depreciation expense for property and equipment was $17.7 million and $18.8 million for the three months ended March 31, 2024 and 2023, respectively. For the three months ended March 31, 2024, we capitalized $0.3 million of interest expense on qualifying assets using the weighted-average interest rate of our debt. We did not capitalize any interest expense for the three months ended March 31, 2023. Hurricane Fiona We received business interruption proceeds of $0.4 million during the three months ended March 31, 2024 related to the impact of Hurricane Fiona in September 2022. We received an additional $1.2 million of business interruption insurance proceeds in April and May 2024 and expect to receive the remaining proceeds in 2024. Lessor contracts We rent certain real estate to third parties for office and retail space within our resorts. Our lessor contracts are considered operating leases and generally have a contractual term of one ($ in thousands) : Three Months Ended March 31, Leases 2024 2023 Operating lease income (1) $ 1,186 $ 950 ________ (1) Our operating lease income, which is recorded within non-package revenue in the Condensed Consolidated Statements of Operations, includes variable lease revenue which is typically calculated as a percentage of our tenant’s net sales. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2024 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes We file tax returns for our entities in key jurisdictions including Mexico, the Dominican Republic, Jamaica, the United States, and the Netherlands. We are domiciled in the Netherlands and our Dutch subsidiaries are subject to a Dutch general tax rate of 25.8%. Our other operating subsidiaries are subject to tax rates of up to 30% in the jurisdictions in which they are domiciled. The Netherlands enacted the Dutch Minimum Tax Act 2024 in December 2023. The Dutch Minimum Tax Act 2024 implements measures to ensure that large multinational groups of companies pay a minimum corporate tax rate of 15% in accordance with the European Union's Pillar 2 Directive. As we are incorporated in the Netherlands, we were subject to certain provisions of the Dutch Minimum Tax Act 2024 beginning January 1, 2024. The adoption of the Dutch Minimum Tax Act 2024 resulted in $12.0 million of additional income tax expense incurred in the Netherlands for the three months ended March 31, 2024, which increased our effective tax rate (“ETR”) by 18.2%. As a result, our ETR was 18.1% for the three months ended March 31, 2024 compared to 10.1% for the three months ended March 31, 2023. An Advance Pricing Agreement (“APA”) for Playa Dominican Resort B.V. was approved in March 2024 and is effective January 1, 2022 through December 31, 2025. We are in the process of finalizing new APAs for Playa Cana B.V. and Playa Romana Mar B.V., which expired as of December 31, 2021. We expect the APAs to be completed before the end of 2024, as the APA terms for the general hotel association have already been approved. Our estimated annual effective tax rate calculation reflects the terms of the APAs that are expected to apply for the year ending December 31, 2024. We had no uncertain tax positions or unrecognized tax benefits as of March 31, 2024. We expect no significant changes in unrecognized tax benefits over the next twelve months. We regularly assess the realizability of our deferred tax assets by evaluating historical and projected future operating results, the reversal of existing temporary differences, taxable income in permitted carry back years, and the availability of tax planning strategies. As of March 31, 2024, a valuation allowance has been maintained as a reserve on a portion of our net deferred tax assets due to the uncertainty of realization of our loss carry forwards and other deferred tax assets. If our operating results continue to improve and our projections show continued utilization of tax attributes, we may consider that as significant positive evidence and our future reassessment may result in the determination that all or a portion of the valuation allowance is no longer required. The exact timing and amount of the valuation allowance releases are ultimately contingent upon the level of profitability achieved in future periods. |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions Relationship with Hyatt Hyatt Hotels Corporation (“Hyatt”) is considered a related party due to its ownership of our ordinary shares by its affiliated entities. We pay Hyatt fees associated with the franchise agreements of our resorts operating under the all-ages Hyatt Ziva and adults-only Hyatt Zilara brands and receive reimbursements for guests that pay for their stay using the World of Hyatt ® guest loyalty program. Hyatt also owns Apple Leisure Group (“ALG”), the brand management platform AMResorts, and various tour operators and travel agencies. Relationship with Sagicor Sagicor Financial Corporation Limited and its affiliated entities (collectively “Sagicor”) is considered a related party due to its ownership of our ordinary shares and representation on our Board of Directors (our “Board”). We pay Sagicor for employee insurance coverage at one of our Jamaica properties. Sagicor is also a part owner of the Jewel Grande Montego Bay Resort & Spa and compensates us as manager of the property. Lease with our Chief Executive Officer One of our offices is owned by our Chief Executive Officer and we sublease the space at that location from a third party. Transactions with related parties Transactions between us and related parties during the three months ended March 31, 2024 and 2023 were as follows ( $ in thousands ): Three Months Ended March 31, Related Party Transaction 2024 2023 Revenues Sagicor Cost reimbursements (1) $ 1,095 $ 1,477 Expenses Hyatt Franchise fees (2) $ 11,299 $ 9,954 Sagicor Insurance premiums (2) $ 394 $ 320 Chief Executive Officer Lease expense (3) $ 153 $ 196 AMResorts Management fees (2) $ — $ 41 AMResorts Marketing fees (3) $ — $ 37 ________ (1) Equivalent amount included as reimbursed costs in the Condensed Consolidated Statements of Operations. (2) Included in direct expense in the Condensed Consolidated Statements of Operations with the exception of certain immaterial fees associated with the Hyatt franchise agreements, which are included in selling, general, and administrative expense. (3) Included in selling, general, and administrative expense in the Condensed Consolidated Statements of Operations. |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2024 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies We are involved in various claims and lawsuits arising in the normal course of business, including proceedings involving tort and other general liability claims, and workers’ compensation and other employee claims. 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. With the exception of Playa Hotels & Resorts N.V., our Dutch companies file as a fiscal unity. 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. |
Ordinary shares
Ordinary shares | 3 Months Ended |
Mar. 31, 2024 | |
Equity [Abstract] | |
Ordinary shares | Ordinary shares Our Board previously authorized a $200.0 million share repurchase program pursuant to which we may repurchase our outstanding ordinary shares as market conditions and our liquidity warrant. The repurchase program is subject to certain limitations under Dutch law, including the existing repurchase authorization granted by our shareholders. Repurchases may be made from time to time in the open market, in privately negotiated transactions or by other means (including Rule 10b5-1 trading plans). Depending on market conditions and other factors, these repurchases may be commenced or suspended from time to time without prior notice. During the three months ended March 31, 2024, we repurchased 3,621,127 ordinary shares under the program at an average price of $8.98 per share. As of March 31, 2024, we had approximately $163.9 million remaining under the $200.0 million share repurchase program. As of March 31, 2024, our ordinary share capital consisted of 135,040,042 ordinary shares outstanding, which have a par value of €0.10 per share. In addition, 5,075,907 restricted shares and performance share awards and 36,272 restricted share units were outstanding under the 2017 Plan (as defined in Note 9). The holders of restricted shares and performance share awards are entitled to vote, but not to dispose of, such shares until they vest. The holders of restricted share units are neither entitled to vote nor dispose of such shares until they vest. |
Share-based compensation
Share-based compensation | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Share-based compensation | Share-based compensation We adopted our 2017 Omnibus Incentive Plan (the “2017 Plan”) to attract and retain independent directors, executive officers and other key employees. As of March 31, 2024, there were 10,054,397 shares available for future grants under the 2017 Plan. Restricted share awards consist of restricted shares and restricted share units that are granted to eligible employees, executives, and board members and consist of ordinary shares (or the right to receive ordinary shares). A summary of our restricted share awards from January 1, 2024 to March 31, 2024 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Unvested balance at January 1, 2024 2,733,532 $ 6.84 Granted 1,456,506 8.03 Vested (1,417,634) 6.61 Forfeited (19,156) 7.25 Unvested balance at March 31, 2024 2,753,248 $ 7.59 Performance share awards consist of ordinary shares that may become earned and vested at the end of a three-year performance period based on the achievement of performance targets adopted by our Compensation Committee. Our performance shares have market conditions where either 25% or 50% of the performance share awards will vest based on the total shareholder return (“TSR”) of our ordinary shares relative to those of our peer group and either 50% or 75% will vest based on the compound annual growth rate of the price of our ordinary shares. The peer shareholder return component may vest between 0% and 200% of target, with the award capped at 100% of target should Playa’s TSR be negative. The growth rate component may vest up to 100% of target. The table below summarizes the key inputs used in the Monte-Carlo simulation to determine the grant date fair value of our performance share awards ($ in thousands) : Performance Award Grant Date Percentage of Total Award Grant Date Fair Value by Component Volatility (1) Interest Rate (2) Dividend Yield January 17, 2024 Peer Shareholder Return 50 % $ 2,915 39.05 % 4.09 % — % Growth Rate 50 % $ 2,066 39.05 % 4.09 % — % February 8, 2024 Growth Rate 100 % $ 4,369 38.21 % 4.20 % — % ________ (1) Expected volatility was determined based on Playa’s historical share prices. (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. A summary of our performance share awards from January 1, 2024 to March 31, 2024 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Unvested balance at January 1, 2024 2,048,350 $ 6.34 Granted 1,509,519 7.39 Vested (1,174,808) 5.38 Forfeited (24,130) 6.01 Unvested balance at March 31, 2024 2,358,931 $ 7.35 |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic and diluted earnings per share (“EPS”) are as follows ( $ in thousands, except share data ): Three Months Ended March 31, 2024 2023 Numerator Net income $ 54,341 $ 42,719 Denominator Denominator for basic EPS - weighted-average number of shares outstanding 136,651,696 157,314,177 Effect of dilutive securities Unvested performance share awards 747,783 952,494 Unvested restricted share awards 610,380 505,782 Denominator for diluted EPS - adjusted weighted-average number of shares outstanding 138,009,859 158,772,453 EPS - Basic $ 0.40 $ 0.27 EPS - Diluted $ 0.39 $ 0.27 For the three months ended March 31, 2024 and 2023, we had no anti-dilutive unvested performance share awards. The performance targets of our unvested performance share awards were partially achieved as of March 31, 2024 and 2023. For the three months ended March 31, 2024 and 2023, we had no anti-dilutive unvested restricted share awards. |
Debt
Debt | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our debt consists of the following ($ in thousands) : Outstanding Balance as of Interest Rate Maturity Date March 31, 2024 December 31, 2023 Senior Secured Credit Facilities Revolving Credit Facility (1) SOFR + 3.50% January 5, 2028 $ — $ — Term Loan due 2029 (2) SOFR + 3.25% January 5, 2029 1,086,250 1,089,000 Total Senior Secured Credit Facilities (at stated value) 1,086,250 1,089,000 Unamortized discount (25,139) (26,466) Unamortized debt issuance costs (6,059) (6,380) Total Senior Secured Credit Facilities, net $ 1,055,052 $ 1,056,154 Financing lease obligations $ 5,106 $ 5,222 Total debt, net $ 1,060,158 $ 1,061,376 ________ (1) We had an available balance on our Revolving Credit Facility of $225.0 million as of March 31, 2024 and December 31, 2023. (2) The effective interest rate for the Term Loan due 2029 was 8.58% and 8.59% as of March 31, 2024 and December 31, 2023, respectively. Financial maintenance covenants We were in compliance with all applicable covenants as of March 31, 2024. A summary of our applicable covenants and restrictions is as follows: Debt Covenant Terms Senior Secured Credit Facility We are subject to a total net leverage ratio of 5.20x if we have more than 35% drawn on the Revolving Credit Facility. |
Derivative financial instrument
Derivative financial instruments | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative financial instruments | Derivative financial instruments Interest rate swaps We have entered into interest rate swaps to mitigate the interest rate risk inherent to our floating rate debt. Our interest rate swaps outstanding during the three months ended March 31, 2024 and 2023 are as follows: Notional Amount Interest Rate Received Fixed Rate Paid Effective Date Maturity Date Designated as Cash Flow Hedges $275 million One-month SOFR 4.05% April 15, 2023 April 15, 2025 $275 million One-month SOFR 3.71% April 15, 2023 April 15, 2026 Not Designated as Hedging Instrument (1) $800 million One-month LIBOR 2.85% March 29, 2018 March 31, 2023 ________ (1) Our LIBOR-based interest rate swaps were designated as cash flow hedges in March 2019, but were deemed ineffective in February 2020 due to the decrease in interest rates. Foreign currency forward contracts We have entered into foreign currency forward contracts to mitigate the risk of foreign exchange fluctuations on certain direct expenses, such as salaries and wages and food and beverage costs, which are denominated in Mexican Pesos. As of March 31, 2024, the total outstanding notional amount of the forward contracts was $78.7 million, or $1.4 billion Mexican Pesos, which will be settled monthly with maturity dates between April 2024 and December 2024. Quantitative disclosures about derivative financial instruments The following tables present the effect of our derivative financial instruments, net of tax, in the Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 ($ in thousands) : Three Months Ended March 31, 2024 2023 Interest rate swaps (1) Foreign currency forwards (2) Interest rate swaps Change in fair value $ (5,852) $ (2,868) $ — Reclassification from AOCI to the income statement $ 2,024 $ (54) $ (2,895) ________ (1) Amounts are reclassified from AOCI to interest expense. As of March 31, 2024, the total amount expected to be reclassified during the next twelve months is $5.6 million. (2) Amounts are reclassified from AOCI to direct expenses. As of March 31, 2024, the total amount expected to be reclassified during the next twelve months is $2.9 million. Derivative Financial Instruments Financial Statement Classification Three Months Ended March 31, 2024 2023 Designated as Cash Flow Hedges Interest rate swaps Interest expense $ (2,024) $ — Foreign currency forwards Direct expenses $ (180) $ — Not Designated as Hedging Instruments Interest rate swaps (1) Interest expense $ — $ 3,013 ________ (1) Includes the loss from the change in fair value of our interest rate swaps and the cash interest paid or received for the monthly settlements of the derivative. The following table presents the effect of our derivative financial instruments in the Condensed Consolidated Balance Sheet as of March 31, 2024 and December 31, 2023 ($ in thousands) : Derivative Financial Instruments Financial Statement Classification As of March 31, As of December 31, 2024 2023 Designated as Cash Flow Hedges Interest rate swaps Derivative financial instruments $ 6,785 $ 2,966 Foreign currency forwards Derivative financial instruments $ 2,922 $ — |
Fair value of financial instrum
Fair value of financial instruments | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair value of financial instruments 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 believe the carrying value of our financial instruments, excluding our debt, approximate their fair values as of March 31, 2024 and December 31, 2023. We did not have any Level 3 instruments during any of the periods presented in our Condensed Consolidated Financial Statements. The following tables present our fair value hierarchy for our financial assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 ($ in thousands) : Financial Assets March 31, 2024 Level 1 Level 2 Level 3 Fair value measurements on a recurring basis Interest rate swaps $ 6,785 $ — $ 6,785 $ — Foreign currency forwards $ 2,922 $ — $ 2,922 $ — Financial Assets December 31, 2023 Level 1 Level 2 Level 3 Fair value measurements on a recurring basis Interest rate swaps $ 2,966 $ — $ 2,966 $ — The following tables present our fair value hierarchy for our financial liabilities not measured at fair value as of March 31, 2024 and December 31, 2023 ($ in thousands) : Carrying Value Fair Value As of March 31, 2024 Level 1 Level 2 Level 3 Financial liabilities not recorded at fair value Term Loan due 2029 $ 1,055,052 $ — $ — $ 1,102,108 Carrying Value Fair Value As of December 31, 2023 Level 1 Level 2 Level 3 Financial liabilities not recorded at fair value Term Loan due 2029 $ 1,056,154 $ — $ — $ 1,097,081 The following table summarizes the valuation techniques used to estimate the fair value of our financial instruments measured at fair value on a recurring basis and our financial instruments not measured at fair value: Valuation Technique Financial instruments recorded at fair value Foreign currency forwards The fair value of the foreign currency forwards is estimated based on the expected future cash flows by incorporating the notional amount of the forward contract, the maturity date of the contract, and observable inputs including spot rates, forward rates, and interest rate curves (including discount factors). The fair value also incorporates credit valuation adjustments to appropriately reflect nonperformance risk. The fair value is largely dependent on prevailing foreign currency forward rates as of the measurement date and maturing on the maturity dates of any existing forwards. If, in subsequent periods, any prevailing foreign currency forward rate differs from the corresponding contracted foreign currency rate, we will recognize a gain or loss. 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. The fair value of our interest rate swaps is largely dependent on forecasted SOFR as of the measurement date. If, in subsequent periods, forecasted SOFR exceeds the fixed rates we pay on our interest rate swaps, we will recognize a gain and future cash inflows. Conversely, if forecasted SOFR falls below the fixed rates we pay on our interest rate swaps in subsequent periods, we will recognize a loss and future cash outflows. Financial instruments not recorded at fair value Term Loan due 2029 The fair value of our Term Loan due 2029 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 due 2029. The fair value of the Revolving Credit Facility generally approximates its carrying value as the expected term is significantly shorter in duration. |
Other balance sheet items
Other balance sheet items | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023 ($ in thousands) : As of March 31, As of December 31, 2024 2023 Gross trade and other receivables (1) $ 82,656 $ 75,051 Allowance for doubtful accounts (434) (289) Total trade and other receivables, net $ 82,222 $ 74,762 ________ (1) The opening balance as of January 1, 2023 was $63.4 million. We have not experienced any significant write-offs to our accounts receivable during the three months ended March 31, 2024 and 2023. Prepayments and other assets The following summarizes the balances of prepayments and other assets as of March 31, 2024 and December 31, 2023 ($ in thousands) : As of March 31, As of December 31, 2024 2023 Advances to suppliers $ 13,391 $ 18,213 Prepaid income taxes 12,540 11,510 Prepaid other taxes (1) 4,606 5,641 Operating lease right-of-use assets 6,243 6,426 Key money 6,896 6,475 Other assets 6,035 6,029 Total prepayments and other assets $ 49,711 $ 54,294 ________ (1) Includes recoverable value-added tax, general consumption tax, and other sales tax accumulated by our Mexico, Jamaica, Dutch and Dominican Republic entities. Goodwill We recognized no goodwill impairment losses on our reporting units nor any additions to goodwill during the three months ended March 31, 2024. The gross carrying values and accumulated impairment losses of goodwill by reportable segment (refer to discussion of our reportable segments in Note 15) as of March 31, 2024 and December 31, 2023 are as follows ($ in thousands) : Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Total Gross carrying value $ 51,731 $ — $ — $ 33,879 $ 85,610 Accumulated impairment losses (6,168) — — (18,800) (24,968) Net carrying value $ 45,563 $ — $ — $ 15,079 $ 60,642 Other intangible assets Other intangible assets as of March 31, 2024 and December 31, 2023 consisted of the following ( $ in thousands ): As of March 31, As of December 31, 2024 2023 Gross carrying value Casino and other licenses (1) $ 628 $ 607 Management contract 1,900 1,900 Enterprise resource planning system 6,352 6,352 Other 4,732 4,674 Total gross carrying value 13,612 13,533 Accumulated amortization Management contract (546) (523) Enterprise resource planning system (5,250) (4,349) Other (4,375) (4,304) Total accumulated amortization (10,171) (9,176) Net carrying value Casino and other licenses (1) 628 607 Management contract 1,354 1,377 Enterprise resource planning system 1,102 2,003 Other 357 370 Total net carrying value $ 3,441 $ 4,357 ________ (1) Our casino and other licenses have indefinite lives. Accordingly, there is no associated amortization expense or accumulated amortization. Amortization expense for intangible assets was $1.0 million and $0.4 million for the three months ended March 31, 2024 and 2023, respectively. Trade and other payables The following summarizes the balances of trade and other payables as of March 31, 2024 and December 31, 2023 ($ in thousands) : As of March 31, As of December 31, 2024 2023 Trade payables $ 26,374 $ 25,929 Advance deposits (1) 69,054 80,506 Withholding and other taxes payable 15,747 15,164 Interest payable 2,853 2,603 Payroll and related accruals 25,183 31,466 Accrued expenses and other payables (2) 37,505 40,764 Total trade and other payables $ 176,716 $ 196,432 ________ (1) The opening balance as of January 1, 2023 was $83.3 million. (2) As of March 31, 2024 and December 31, 2023, accrued expenses and other payables includes $10.1 million and $16.8 million, respectively, of unpaid clean up and repair expenses related to Hurricane Fiona. As of March 31, 2024, accrued expenses and other payables also includes $2.0 million related to share repurchases not yet settled. Other liabilities The following summarizes the balances of other liabilities as of March 31, 2024 and December 31, 2023 ($ in thousands) : As of March 31, As of December 31, 2024 2023 Pension obligation (1) $ 10,396 $ 9,980 Operating lease liabilities 6,811 6,973 Unfavorable ground lease liability 1,721 1,748 Key money 14,073 14,331 Other 929 938 Total other liabilities $ 33,930 $ 33,970 ________ (1) For the three months ended March 31, 2024 and 2023, the service cost component of net periodic pension cost was $0.4 million and $0.3 million, respectively, and the non-service cost components were $0.3 million and $0.9 million, respectively. |
Business segments
Business segments | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Business segments | Business segments We consider each one of our owned resorts 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 resorts. Our operating segments meet the aggregation criteria and thus, we report four separate reportable segments by geography: (i) Yucatán Peninsula, (ii) Pacific Coast, (iii) Dominican Republic and (iv) Jamaica. Our operating segments are components of the business that 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. For the three months ended March 31, 2024 and 2023, we have excluded the immaterial amounts of management fees, cost reimbursements, The Playa Collection revenues and other from our segment reporting. The performance of our business is evaluated primarily on adjusted earnings before interest expense, income tax provision, and depreciation and amortization expense (“Adjusted EBITDA”) and the performance of our segments is evaluated on Adjusted EBITDA before corporate expenses, The Playa Collection revenue and management fees (“Owned Resort EBITDA”). Adjusted EBITDA and Owned Resort EBITDA should not be considered alternatives 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 periods presented, before interest expense, income tax provision, and depreciation and amortization expense, further adjusted to exclude the following items: (a) (gain) loss on sale of assets; (b) other (expense) income; (c) repairs from hurricanes and tropical storms; (d) share-based compensation; and (e) transaction expenses. Adjusted EBITDA includes corporate expenses, which are overhead costs that are essential to support the operation of the Company, including the operations and development of our resorts. There are limitations to using financial measures such as Adjusted EBITDA and Owned Resort 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 table presents segment Owned Net Revenue, defined as total revenue less compulsory tips paid to employees, cost reimbursements, management fees, The Playa Collection revenue, and other miscellaneous revenue not derived from segment operations, and a reconciliation to total revenue for the three months ended March 31, 2024 and 2023 ( $ in thousands ): Three Months Ended March 31, 2024 2023 Owned net revenue Yucatán Peninsula $ 95,988 $ 88,748 Pacific Coast 44,296 40,515 Dominican Republic 81,612 68,769 Jamaica 64,642 62,977 Segment owned net revenue 286,538 261,009 Other revenues 420 564 Management fees 2,534 1,929 The Playa Collection 1,020 726 Cost reimbursements 2,889 3,534 Compulsory tips 7,234 6,040 Total revenue $ 300,635 $ 273,802 The following table presents segment Owned Resort EBITDA, Adjusted EBITDA and a reconciliation to net income for the three months ended March 31, 2024 and 2023 ( $ in thousands ): Three Months Ended March 31, 2024 2023 Owned Resort EBITDA Yucatán Peninsula $ 40,053 $ 37,936 Pacific Coast 19,141 17,523 Dominican Republic 37,770 26,849 Jamaica 27,076 27,081 Segment Owned Resort EBITDA 124,040 109,389 Other corporate (14,122) (13,555) The Playa Collection 1,020 726 Management fees 2,534 1,929 Adjusted EBITDA 113,472 98,489 Interest expense (23,128) (29,666) Depreciation and amortization (18,672) (19,191) Gain (loss) on sale of assets 36 (13) Other (expense) income (793) 232 Repairs from hurricanes and tropical storms — 861 Share-based compensation (3,759) (3,166) Transaction expenses (1,037) (863) Non-service cost components of net periodic pension cost (1) 259 852 Net income before tax 66,378 47,535 Income tax provision (12,037) (4,816) Net income $ 54,341 $ 42,719 ________ (1) Represents the non-service cost components of net periodic pension cost or benefit recorded within other (expense) income in the Condensed Consolidated Statements of Operations. We include these costs in calculating Adjusted EBITDA as they are considered part of our ongoing resort operations. The following table presents segment property and equipment, gross and a reconciliation to total property and equipment, net as of March 31, 2024 and December 31, 2023 ($ in thousands) : As of March 31, As of December 31, 2024 2023 Segment property and equipment, gross Yucatán Peninsula $ 683,966 $ 683,073 Pacific Coast 308,271 305,588 Dominican Republic 542,700 541,629 Jamaica 425,382 422,772 Total segment property and equipment, gross 1,960,319 1,953,062 Corporate property and equipment, gross 6,436 5,823 Accumulated depreciation (559,507) (543,313) Total property and equipment, net $ 1,407,248 $ 1,415,572 The following table presents segment capital expenditures and a reconciliation to total capital expenditures for the three months ended March 31, 2024 and 2023 ( $ in thousands ): Three Months Ended March 31, 2024 2023 Segment capital expenditures Yucatán Peninsula $ 2,021 $ 2,741 Pacific Coast 2,528 946 Dominican Republic 1,554 3,895 Jamaica 3,175 1,806 Total segment capital expenditures (1) 9,278 9,388 Corporate 874 126 Total capital expenditures (1) $ 10,152 $ 9,514 ________ (1) |
Subsequent events
Subsequent events | 3 Months Ended |
Mar. 31, 2024 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events During the period from April 1, 2024 through April 30, 2024, we purchased 1,859,322 ordinary shares at an average price of $9.36 per share. As of April 30, 2024, we had $146.5 million remaining under our $200.0 million share repurchase program. |
Pay vs Performance Disclosure
Pay vs Performance Disclosure - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Pay vs Performance Disclosure | ||
Net income | $ 54,341 | $ 42,719 |
Insider Trading Arrangements
Insider Trading Arrangements | 3 Months Ended |
Mar. 31, 2024 | |
Trading Arrangements, by Individual | |
Rule 10b5-1 Arrangement Adopted | false |
Non-Rule 10b5-1 Arrangement Adopted | false |
Rule 10b5-1 Arrangement Terminated | false |
Non-Rule 10b5-1 Arrangement Terminated | false |
Significant accounting polici_2
Significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2024 | |
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 our Consolidated Financial Statements as of and for the year ended December 31, 2023, included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on February 22, 2024 (the “Annual Report”). 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. Results for the comparative prior periods have been reclassified to conform to the current period presentation. |
Derivative financial instruments | Derivative financial instruments 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. Changes in the fair value of a derivative contract that is qualified, designated and highly effective as a cash flow hedge are recorded in total other comprehensive income in our Condensed Consolidated Statements of Comprehensive Income and reclassified into earnings in our Condensed Consolidated Statements of Operations in the same period or periods during which the hedged transaction occurs. If a derivative contract does not meet these criteria, then the total change in fair value is recognized in earnings. Cash flows from a derivative financial instrument that is classified as a cash flow hedge are recorded in the same category as the cash flows from the items being hedged in the Condensed Consolidated Statements of Cash Flows. |
Standards not yet adopted | Standards not yet adopted Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. Annual periods beginning after December 15, 2023 We are in the process of evaluating the impact of ASU No. 2023-07 on the Condensed Consolidated Financial Statements with respect to our segment disclosures. ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures The amendments in this update require that public business entities on an annual basis (i) disclose specific categories in the rate reconciliation and (ii) provide additional information for reconciling items that meet a quantitative threshold. Annual periods beginning after December 15, 2024 We are in the process of evaluating the impact of ASU No. 2023-09 on the Condensed Consolidated Financial Statements with respect to our income tax disclosures. |
Contract assets and liabilities | Contract assets and liabilities We do not have any material contract assets as of March 31, 2024 and December 31, 2023 other than trade and other receivables 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 as advance deposits (see Note 14) within trade and other payables on our Condensed Consolidated Balance Sheet. Our advanced deposits are generally recognized as revenue within one year. |
Significant accounting polici_3
Significant accounting policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Standards Adopted | Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. Annual periods beginning after December 15, 2023 We are in the process of evaluating the impact of ASU No. 2023-07 on the Condensed Consolidated Financial Statements with respect to our segment disclosures. ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures The amendments in this update require that public business entities on an annual basis (i) disclose specific categories in the rate reconciliation and (ii) provide additional information for reconciling items that meet a quantitative threshold. Annual periods beginning after December 15, 2024 We are in the process of evaluating the impact of ASU No. 2023-09 on the Condensed Consolidated Financial Statements with respect to our income tax disclosures. |
Accounting Policies (Tables)
Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Accounting Policies [Abstract] | |
Schedule of Standards Adopted | Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures The amendments in this update improve reportable segment disclosure requirements, primarily through enhanced disclosures about significant segment expenses. Annual periods beginning after December 15, 2023 We are in the process of evaluating the impact of ASU No. 2023-07 on the Condensed Consolidated Financial Statements with respect to our segment disclosures. ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures The amendments in this update require that public business entities on an annual basis (i) disclose specific categories in the rate reconciliation and (ii) provide additional information for reconciling items that meet a quantitative threshold. Annual periods beginning after December 15, 2024 We are in the process of evaluating the impact of ASU No. 2023-09 on the Condensed Consolidated Financial Statements with respect to our income tax disclosures. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our revenues disaggregated by geographic segment (refer to discussion of our reportable segments in Note 15) ( $ in thousands) : Three Months Ended March 31, 2024 Yucatán Pacific Dominican Jamaica Other Total Package revenue $ 88,062 $ 39,638 $ 72,213 $ 59,716 $ — $ 259,629 Non-package revenue 10,794 5,916 9,508 7,925 — 34,143 The Playa Collection — — — — 1,020 1,020 Management fees 39 — — — 2,495 2,534 Cost reimbursements — — — 1,095 1,794 2,889 Other revenues — — — — 420 420 Total revenue $ 98,895 $ 45,554 $ 81,721 $ 68,736 $ 5,729 $ 300,635 Three Months Ended March 31, 2023 Yucatán Pacific Dominican Jamaica Other Total Package revenue $ 81,287 $ 36,803 $ 59,602 $ 55,876 $ — $ 233,568 Non-package revenue (1) 9,700 4,747 9,167 9,867 — 33,481 The Playa Collection — — — — 726 726 Management fees 38 — — — 1,891 1,929 Cost reimbursements — — — 1,337 2,197 3,534 Other revenues (1) — — — — 564 564 Total revenue $ 91,025 $ 41,550 $ 68,769 $ 67,080 $ 5,378 $ 273,802 ________ (1) |
Property and equipment (Tables)
Property and equipment (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | The balance of property and equipment, net is as follows ($ in thousands ): As of March 31, As of December 31, 2024 2023 Property and equipment, gross Land, buildings and improvements $ 1,648,338 $ 1,646,452 Fixtures and machinery (1) 87,539 86,717 Furniture and other fixed assets 205,476 203,639 Construction in progress 25,402 22,077 Total property and equipment, gross 1,966,755 1,958,885 Accumulated depreciation (559,507) (543,313) Total property and equipment, net $ 1,407,248 $ 1,415,572 ________ (1) Includes the gross balance of our finance lease right-of-use assets, which was $6.3 million as of March 31, 2024 and December 31, 2023. |
Schedule of Rental Income | The following table presents our rental income for the three months ended March 31, 2024 and 2023 ($ in thousands) : Three Months Ended March 31, Leases 2024 2023 Operating lease income (1) $ 1,186 $ 950 ________ (1) Our operating lease income, which is recorded within non-package revenue in the Condensed Consolidated Statements of Operations, includes variable lease revenue which is typically calculated as a percentage of our tenant’s net sales. |
Related party transactions (Tab
Related party transactions (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Transactions between us and related parties during the three months ended March 31, 2024 and 2023 were as follows ( $ in thousands ): Three Months Ended March 31, Related Party Transaction 2024 2023 Revenues Sagicor Cost reimbursements (1) $ 1,095 $ 1,477 Expenses Hyatt Franchise fees (2) $ 11,299 $ 9,954 Sagicor Insurance premiums (2) $ 394 $ 320 Chief Executive Officer Lease expense (3) $ 153 $ 196 AMResorts Management fees (2) $ — $ 41 AMResorts Marketing fees (3) $ — $ 37 ________ (1) Equivalent amount included as reimbursed costs in the Condensed Consolidated Statements of Operations. (2) Included in direct expense in the Condensed Consolidated Statements of Operations with the exception of certain immaterial fees associated with the Hyatt franchise agreements, which are included in selling, general, and administrative expense. (3) Included in selling, general, and administrative expense in the Condensed Consolidated Statements of Operations. |
Share-based compensation (Table
Share-based compensation (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Share-Based Payment Arrangement [Abstract] | |
Summary of Restricted Share Awards | A summary of our restricted share awards from January 1, 2024 to March 31, 2024 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Unvested balance at January 1, 2024 2,733,532 $ 6.84 Granted 1,456,506 8.03 Vested (1,417,634) 6.61 Forfeited (19,156) 7.25 Unvested balance at March 31, 2024 2,753,248 $ 7.59 |
Summary of Key Inputs Used in Monte-Carlo Simulation | The table below summarizes the key inputs used in the Monte-Carlo simulation to determine the grant date fair value of our performance share awards ($ in thousands) : Performance Award Grant Date Percentage of Total Award Grant Date Fair Value by Component Volatility (1) Interest Rate (2) Dividend Yield January 17, 2024 Peer Shareholder Return 50 % $ 2,915 39.05 % 4.09 % — % Growth Rate 50 % $ 2,066 39.05 % 4.09 % — % February 8, 2024 Growth Rate 100 % $ 4,369 38.21 % 4.20 % — % ________ (1) Expected volatility was determined based on Playa’s historical share prices. (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. |
Summary of Performance Share Awards | A summary of our performance share awards from January 1, 2024 to March 31, 2024 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Unvested balance at January 1, 2024 2,048,350 $ 6.34 Granted 1,509,519 7.39 Vested (1,174,808) 5.38 Forfeited (24,130) 6.01 Unvested balance at March 31, 2024 2,358,931 $ 7.35 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted EPS | Basic and diluted earnings per share (“EPS”) are as follows ( $ in thousands, except share data ): Three Months Ended March 31, 2024 2023 Numerator Net income $ 54,341 $ 42,719 Denominator Denominator for basic EPS - weighted-average number of shares outstanding 136,651,696 157,314,177 Effect of dilutive securities Unvested performance share awards 747,783 952,494 Unvested restricted share awards 610,380 505,782 Denominator for diluted EPS - adjusted weighted-average number of shares outstanding 138,009,859 158,772,453 EPS - Basic $ 0.40 $ 0.27 EPS - Diluted $ 0.39 $ 0.27 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Debt Disclosure [Abstract] | |
Schedules of Debt Components and Covenants | Our debt consists of the following ($ in thousands) : Outstanding Balance as of Interest Rate Maturity Date March 31, 2024 December 31, 2023 Senior Secured Credit Facilities Revolving Credit Facility (1) SOFR + 3.50% January 5, 2028 $ — $ — Term Loan due 2029 (2) SOFR + 3.25% January 5, 2029 1,086,250 1,089,000 Total Senior Secured Credit Facilities (at stated value) 1,086,250 1,089,000 Unamortized discount (25,139) (26,466) Unamortized debt issuance costs (6,059) (6,380) Total Senior Secured Credit Facilities, net $ 1,055,052 $ 1,056,154 Financing lease obligations $ 5,106 $ 5,222 Total debt, net $ 1,060,158 $ 1,061,376 ________ (1) We had an available balance on our Revolving Credit Facility of $225.0 million as of March 31, 2024 and December 31, 2023. (2) The effective interest rate for the Term Loan due 2029 was 8.58% and 8.59% as of March 31, 2024 and December 31, 2023, respectively. Debt Covenant Terms Senior Secured Credit Facility We are subject to a total net leverage ratio of 5.20x if we have more than 35% drawn on the Revolving Credit Facility. |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Derivative Instruments | We have entered into interest rate swaps to mitigate the interest rate risk inherent to our floating rate debt. Our interest rate swaps outstanding during the three months ended March 31, 2024 and 2023 are as follows: Notional Amount Interest Rate Received Fixed Rate Paid Effective Date Maturity Date Designated as Cash Flow Hedges $275 million One-month SOFR 4.05% April 15, 2023 April 15, 2025 $275 million One-month SOFR 3.71% April 15, 2023 April 15, 2026 Not Designated as Hedging Instrument (1) $800 million One-month LIBOR 2.85% March 29, 2018 March 31, 2023 ________ (1) Our LIBOR-based interest rate swaps were designated as cash flow hedges in March 2019, but were deemed ineffective in February 2020 due to the decrease in interest rates. |
Schedule of Effects of Derivative Instruments on Condensed Consolidated Statements of Comprehensive Loss and Condensed Consolidated Statements of Operations Operations | The following tables present the effect of our derivative financial instruments, net of tax, in the Condensed Consolidated Statements of Comprehensive Income and Condensed Consolidated Statements of Operations for the three months ended March 31, 2024 and 2023 ($ in thousands) : Three Months Ended March 31, 2024 2023 Interest rate swaps (1) Foreign currency forwards (2) Interest rate swaps Change in fair value $ (5,852) $ (2,868) $ — Reclassification from AOCI to the income statement $ 2,024 $ (54) $ (2,895) ________ (1) Amounts are reclassified from AOCI to interest expense. As of March 31, 2024, the total amount expected to be reclassified during the next twelve months is $5.6 million. (2) Amounts are reclassified from AOCI to direct expenses. As of March 31, 2024, the total amount expected to be reclassified during the next twelve months is $2.9 million. Derivative Financial Instruments Financial Statement Classification Three Months Ended March 31, 2024 2023 Designated as Cash Flow Hedges Interest rate swaps Interest expense $ (2,024) $ — Foreign currency forwards Direct expenses $ (180) $ — Not Designated as Hedging Instruments Interest rate swaps (1) Interest expense $ — $ 3,013 ________ (1) Includes the loss from the change in fair value of our interest rate swaps and the cash interest paid or received for the monthly settlements of the derivative. |
Schedule of Location and Fair Value of Derivative Instruments in Condensed Consolidated Balance Sheet | The following table presents the effect of our derivative financial instruments in the Condensed Consolidated Balance Sheet as of March 31, 2024 and December 31, 2023 ($ in thousands) : Derivative Financial Instruments Financial Statement Classification As of March 31, As of December 31, 2024 2023 Designated as Cash Flow Hedges Interest rate swaps Derivative financial instruments $ 6,785 $ 2,966 Foreign currency forwards Derivative financial instruments $ 2,922 $ — |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Assets Measured at Fair Value on a Recurring Basis | The following tables present our fair value hierarchy for our financial assets measured at fair value on a recurring basis as of March 31, 2024 and December 31, 2023 ($ in thousands) : Financial Assets March 31, 2024 Level 1 Level 2 Level 3 Fair value measurements on a recurring basis Interest rate swaps $ 6,785 $ — $ 6,785 $ — Foreign currency forwards $ 2,922 $ — $ 2,922 $ — Financial Assets December 31, 2023 Level 1 Level 2 Level 3 Fair value measurements on a recurring basis Interest rate swaps $ 2,966 $ — $ 2,966 $ — |
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, 2024 and December 31, 2023 ($ in thousands) : Carrying Value Fair Value As of March 31, 2024 Level 1 Level 2 Level 3 Financial liabilities not recorded at fair value Term Loan due 2029 $ 1,055,052 $ — $ — $ 1,102,108 Carrying Value Fair Value As of December 31, 2023 Level 1 Level 2 Level 3 Financial liabilities not recorded at fair value Term Loan due 2029 $ 1,056,154 $ — $ — $ 1,097,081 |
Summary of Valuation Techniques | The following table summarizes the valuation techniques used to estimate the fair value of our financial instruments measured at fair value on a recurring basis and our financial instruments not measured at fair value: Valuation Technique Financial instruments recorded at fair value Foreign currency forwards The fair value of the foreign currency forwards is estimated based on the expected future cash flows by incorporating the notional amount of the forward contract, the maturity date of the contract, and observable inputs including spot rates, forward rates, and interest rate curves (including discount factors). The fair value also incorporates credit valuation adjustments to appropriately reflect nonperformance risk. The fair value is largely dependent on prevailing foreign currency forward rates as of the measurement date and maturing on the maturity dates of any existing forwards. If, in subsequent periods, any prevailing foreign currency forward rate differs from the corresponding contracted foreign currency rate, we will recognize a gain or loss. 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. The fair value of our interest rate swaps is largely dependent on forecasted SOFR as of the measurement date. If, in subsequent periods, forecasted SOFR exceeds the fixed rates we pay on our interest rate swaps, we will recognize a gain and future cash inflows. Conversely, if forecasted SOFR falls below the fixed rates we pay on our interest rate swaps in subsequent periods, we will recognize a loss and future cash outflows. Financial instruments not recorded at fair value Term Loan due 2029 The fair value of our Term Loan due 2029 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 due 2029. The fair value of the Revolving Credit Facility generally approximates its carrying value as the expected term is significantly shorter in duration. |
Other balance sheet items (Tabl
Other balance sheet items (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
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, 2024 and December 31, 2023 ($ in thousands) : As of March 31, As of December 31, 2024 2023 Gross trade and other receivables (1) $ 82,656 $ 75,051 Allowance for doubtful accounts (434) (289) Total trade and other receivables, net $ 82,222 $ 74,762 ________ (1) The opening balance as of January 1, 2023 was $63.4 million. |
Schedule of Prepayments and Other Assets | The following summarizes the balances of prepayments and other assets as of March 31, 2024 and December 31, 2023 ($ in thousands) : As of March 31, As of December 31, 2024 2023 Advances to suppliers $ 13,391 $ 18,213 Prepaid income taxes 12,540 11,510 Prepaid other taxes (1) 4,606 5,641 Operating lease right-of-use assets 6,243 6,426 Key money 6,896 6,475 Other assets 6,035 6,029 Total prepayments and other assets $ 49,711 $ 54,294 ________ (1) Includes recoverable value-added tax, general consumption tax, and other sales tax accumulated by our Mexico, Jamaica, Dutch and Dominican Republic entities. |
Schedule of Goodwill | The gross carrying values and accumulated impairment losses of goodwill by reportable segment (refer to discussion of our reportable segments in Note 15) as of March 31, 2024 and December 31, 2023 are as follows ($ in thousands) : Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Total Gross carrying value $ 51,731 $ — $ — $ 33,879 $ 85,610 Accumulated impairment losses (6,168) — — (18,800) (24,968) Net carrying value $ 45,563 $ — $ — $ 15,079 $ 60,642 |
Schedule of Other Intangible Assets, Indefinite-Lived | Other intangible assets as of March 31, 2024 and December 31, 2023 consisted of the following ( $ in thousands ): As of March 31, As of December 31, 2024 2023 Gross carrying value Casino and other licenses (1) $ 628 $ 607 Management contract 1,900 1,900 Enterprise resource planning system 6,352 6,352 Other 4,732 4,674 Total gross carrying value 13,612 13,533 Accumulated amortization Management contract (546) (523) Enterprise resource planning system (5,250) (4,349) Other (4,375) (4,304) Total accumulated amortization (10,171) (9,176) Net carrying value Casino and other licenses (1) 628 607 Management contract 1,354 1,377 Enterprise resource planning system 1,102 2,003 Other 357 370 Total net carrying value $ 3,441 $ 4,357 ________ (1) Our casino and other licenses have indefinite lives. Accordingly, there is no associated amortization expense or accumulated amortization. |
Schedule of Other Intangible Assets, Finite-Lived | Other intangible assets as of March 31, 2024 and December 31, 2023 consisted of the following ( $ in thousands ): As of March 31, As of December 31, 2024 2023 Gross carrying value Casino and other licenses (1) $ 628 $ 607 Management contract 1,900 1,900 Enterprise resource planning system 6,352 6,352 Other 4,732 4,674 Total gross carrying value 13,612 13,533 Accumulated amortization Management contract (546) (523) Enterprise resource planning system (5,250) (4,349) Other (4,375) (4,304) Total accumulated amortization (10,171) (9,176) Net carrying value Casino and other licenses (1) 628 607 Management contract 1,354 1,377 Enterprise resource planning system 1,102 2,003 Other 357 370 Total net carrying value $ 3,441 $ 4,357 ________ (1) Our casino and other licenses have indefinite lives. Accordingly, there is no associated amortization expense or accumulated amortization. |
Schedule of Trade and Other Payables | The following summarizes the balances of trade and other payables as of March 31, 2024 and December 31, 2023 ($ in thousands) : As of March 31, As of December 31, 2024 2023 Trade payables $ 26,374 $ 25,929 Advance deposits (1) 69,054 80,506 Withholding and other taxes payable 15,747 15,164 Interest payable 2,853 2,603 Payroll and related accruals 25,183 31,466 Accrued expenses and other payables (2) 37,505 40,764 Total trade and other payables $ 176,716 $ 196,432 ________ (1) The opening balance as of January 1, 2023 was $83.3 million. (2) |
Schedule of Other Liabilities | The following summarizes the balances of other liabilities as of March 31, 2024 and December 31, 2023 ($ in thousands) : As of March 31, As of December 31, 2024 2023 Pension obligation (1) $ 10,396 $ 9,980 Operating lease liabilities 6,811 6,973 Unfavorable ground lease liability 1,721 1,748 Key money 14,073 14,331 Other 929 938 Total other liabilities $ 33,930 $ 33,970 ________ (1) For the three months ended March 31, 2024 and 2023, the service cost component of net periodic pension cost was $0.4 million and $0.3 million, respectively, and the non-service cost components were $0.3 million and $0.9 million, respectively. |
Business segments (Tables)
Business segments (Tables) | 3 Months Ended |
Mar. 31, 2024 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table presents segment Owned Net Revenue, defined as total revenue less compulsory tips paid to employees, cost reimbursements, management fees, The Playa Collection revenue, and other miscellaneous revenue not derived from segment operations, and a reconciliation to total revenue for the three months ended March 31, 2024 and 2023 ( $ in thousands ): Three Months Ended March 31, 2024 2023 Owned net revenue Yucatán Peninsula $ 95,988 $ 88,748 Pacific Coast 44,296 40,515 Dominican Republic 81,612 68,769 Jamaica 64,642 62,977 Segment owned net revenue 286,538 261,009 Other revenues 420 564 Management fees 2,534 1,929 The Playa Collection 1,020 726 Cost reimbursements 2,889 3,534 Compulsory tips 7,234 6,040 Total revenue $ 300,635 $ 273,802 The following table presents segment Owned Resort EBITDA, Adjusted EBITDA and a reconciliation to net income for the three months ended March 31, 2024 and 2023 ( $ in thousands ): Three Months Ended March 31, 2024 2023 Owned Resort EBITDA Yucatán Peninsula $ 40,053 $ 37,936 Pacific Coast 19,141 17,523 Dominican Republic 37,770 26,849 Jamaica 27,076 27,081 Segment Owned Resort EBITDA 124,040 109,389 Other corporate (14,122) (13,555) The Playa Collection 1,020 726 Management fees 2,534 1,929 Adjusted EBITDA 113,472 98,489 Interest expense (23,128) (29,666) Depreciation and amortization (18,672) (19,191) Gain (loss) on sale of assets 36 (13) Other (expense) income (793) 232 Repairs from hurricanes and tropical storms — 861 Share-based compensation (3,759) (3,166) Transaction expenses (1,037) (863) Non-service cost components of net periodic pension cost (1) 259 852 Net income before tax 66,378 47,535 Income tax provision (12,037) (4,816) Net income $ 54,341 $ 42,719 ________ (1) Represents the non-service cost components of net periodic pension cost or benefit recorded within other (expense) income in the Condensed Consolidated Statements of Operations. We include these costs in calculating Adjusted EBITDA as they are considered part of our ongoing resort operations. The following table presents segment property and equipment, gross and a reconciliation to total property and equipment, net as of March 31, 2024 and December 31, 2023 ($ in thousands) : As of March 31, As of December 31, 2024 2023 Segment property and equipment, gross Yucatán Peninsula $ 683,966 $ 683,073 Pacific Coast 308,271 305,588 Dominican Republic 542,700 541,629 Jamaica 425,382 422,772 Total segment property and equipment, gross 1,960,319 1,953,062 Corporate property and equipment, gross 6,436 5,823 Accumulated depreciation (559,507) (543,313) Total property and equipment, net $ 1,407,248 $ 1,415,572 The following table presents segment capital expenditures and a reconciliation to total capital expenditures for the three months ended March 31, 2024 and 2023 ( $ in thousands ): Three Months Ended March 31, 2024 2023 Segment capital expenditures Yucatán Peninsula $ 2,021 $ 2,741 Pacific Coast 2,528 946 Dominican Republic 1,554 3,895 Jamaica 3,175 1,806 Total segment capital expenditures (1) 9,278 9,388 Corporate 874 126 Total capital expenditures (1) $ 10,152 $ 9,514 ________ (1) |
Organization, operations and _2
Organization, operations and basis of presentation - Narrative (Details) | 3 Months Ended |
Mar. 31, 2024 resort | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of resorts in portfolio | 24 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 300,635 | $ 273,802 |
Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 259,629 | 233,568 |
Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 34,143 | 33,481 |
The Playa Collection | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,020 | 726 |
Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,534 | 1,929 |
Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,889 | 3,534 |
Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 420 | 564 |
Operating Segments | Other revenues | Revision of Prior Period, Reclassification, Adjustment | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 600 | |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 5,729 | 5,378 |
Other | Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Other | Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Other | The Playa Collection | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,020 | 726 |
Other | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 2,495 | 1,891 |
Other | Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,794 | 2,197 |
Other | Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 420 | 564 |
Yucatán Peninsula | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 98,895 | 91,025 |
Yucatán Peninsula | Operating Segments | Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 88,062 | 81,287 |
Yucatán Peninsula | Operating Segments | Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 10,794 | 9,700 |
Yucatán Peninsula | Operating Segments | The Playa Collection | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Yucatán Peninsula | Operating Segments | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 39 | 38 |
Yucatán Peninsula | Operating Segments | Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Yucatán Peninsula | Operating Segments | Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Pacific Coast | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 45,554 | 41,550 |
Pacific Coast | Operating Segments | Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 39,638 | 36,803 |
Pacific Coast | Operating Segments | Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 5,916 | 4,747 |
Pacific Coast | Operating Segments | The Playa Collection | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Pacific Coast | Operating Segments | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Pacific Coast | Operating Segments | Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Pacific Coast | Operating Segments | Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Dominican Republic | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 81,721 | 68,769 |
Dominican Republic | Operating Segments | Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 72,213 | 59,602 |
Dominican Republic | Operating Segments | Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 9,508 | 9,167 |
Dominican Republic | Operating Segments | The Playa Collection | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Dominican Republic | Operating Segments | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Dominican Republic | Operating Segments | Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Dominican Republic | Operating Segments | Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Jamaica | Operating Segments | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 68,736 | 67,080 |
Jamaica | Operating Segments | Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 59,716 | 55,876 |
Jamaica | Operating Segments | Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 7,925 | 9,867 |
Jamaica | Operating Segments | The Playa Collection | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Jamaica | Operating Segments | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Jamaica | Operating Segments | Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,095 | 1,337 |
Jamaica | Operating Segments | Other revenues | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 0 | $ 0 |
Property and equipment - Schedu
Property and equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 1,966,755 | $ 1,958,885 |
Finance Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Total property and equipment, net | Total property and equipment, net |
Accumulated depreciation | $ (559,507) | $ (543,313) |
Total property and equipment, net | 1,407,248 | 1,415,572 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 1,648,338 | 1,646,452 |
Fixtures and machinery | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 87,539 | 86,717 |
Gross balance of finance lease right of use asset | 6,300 | 6,300 |
Furniture and other fixed assets | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | 205,476 | 203,639 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Total property and equipment, gross | $ 25,402 | $ 22,077 |
Property and equipment - Narrat
Property and equipment - Narrative (Details) - USD ($) | 2 Months Ended | 3 Months Ended | |
May 31, 2024 | Mar. 31, 2024 | Mar. 31, 2023 | |
Lessor, Lease, Description [Line Items] | |||
Depreciation expense | $ 17,700,000 | $ 18,800,000 | |
Interest expense capitalized on qualifying assets | (300,000) | $ 0 | |
Business Interruption Insurance | Hurricane Fiona | |||
Lessor, Lease, Description [Line Items] | |||
Insurance proceeds | $ 400,000 | ||
Business Interruption Insurance | Hurricane Fiona | Subsequent Event | |||
Lessor, Lease, Description [Line Items] | |||
Insurance proceeds | $ 1,200,000 | ||
Maximum | |||
Lessor, Lease, Description [Line Items] | |||
Contractual term (in years) | 3 years | ||
Minimum | |||
Lessor, Lease, Description [Line Items] | |||
Contractual term (in years) | 1 year |
Property and equipment - Sche_2
Property and equipment - Schedule of Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Property, Plant and Equipment [Abstract] | ||
Operating lease income | $ 1,186 | $ 950 |
Income taxes (Details)
Income taxes (Details) - USD ($) $ in Millions | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Income Tax Contingency [Line Items] | ||
Increase in effective income tax rate ("ETR") (in percent) | 18.20% | |
Effective income tax rate ("ETR") | 18.10% | 10.10% |
NETHERLANDS | ||
Income Tax Contingency [Line Items] | ||
Increase in effective income tax rate ("ETR") | $ 12 |
Related party transactions - Tr
Related party transactions - Transactions with Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Related Party | Sagicor | Cost reimbursements | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | $ 1,095 | $ 1,477 |
Related Party | Sagicor | Insurance premiums | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | 394 | 320 |
Related Party | Hyatt | Franchise fees | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | 11,299 | 9,954 |
Related Party | AMResorts | Management fees | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | 0 | 41 |
Related Party | AMResorts | Marketing fees | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | 0 | 37 |
Chief Executive Officer | Lease expense | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | $ 153 | $ 196 |
Ordinary shares - Narrative (De
Ordinary shares - Narrative (Details) $ / shares in Units, $ in Millions | 3 Months Ended | |||
Mar. 31, 2024 $ / shares € / shares shares | Mar. 31, 2024 USD ($) shares | Dec. 31, 2023 € / shares shares | Dec. 07, 2023 USD ($) | |
Class of Stock [Line Items] | ||||
Amount of ordinary shares reauthorized for repurchase | $ | $ 200 | |||
Repurchase of ordinary shares (in shares) | 3,621,127 | |||
Average price of shares repurchased (in dollars per share) | $ / shares | $ 8.98 | |||
Remaining authorized amount under share repurchase program | $ | $ 163.9 | |||
Ordinary shares, outstanding (in shares) | 135,040,042 | 136,081,891 | ||
Ordinary shares, par value (in euros per share) | € / shares | $ 0.10 | € 0.10 | ||
Restricted Shares and Performance Share Awards | ||||
Class of Stock [Line Items] | ||||
Shares outstanding (in shares) | 5,075,907 | |||
Restricted Share Units | ||||
Class of Stock [Line Items] | ||||
Shares outstanding (in shares) | 36,272 |
Share-based compensation - Narr
Share-based compensation - Narrative (Details) - shares | 3 Months Ended | ||
Feb. 08, 2024 | Jan. 17, 2024 | Mar. 31, 2024 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Shares available for future grants under the 2017 Plan (in shares) | 10,054,397 | ||
Unvested performance share awards | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting period (in years) | 3 years | ||
Vesting percentage | 100% | ||
Award vesting rights, negative awards (in percent) | 1 | ||
Unvested performance share awards | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 0% | ||
Unvested performance share awards | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Vesting percentage | 200% | ||
Peer Shareholder Return | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of Total Award | 50% | ||
Peer Shareholder Return | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of Total Award | 25% | ||
Peer Shareholder Return | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of Total Award | 50% | ||
Growth Rate | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of Total Award | 100% | 50% | |
Growth Rate | Minimum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of Total Award | 50% | ||
Growth Rate | Maximum | |||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Percentage of Total Award | 75% |
Share-based compensation - Summ
Share-based compensation - Summary of Restricted Share Awards and Performance Share Awards (Details) | 3 Months Ended |
Mar. 31, 2024 $ / shares shares | |
Restricted Share Awards | |
Number of Shares | |
Unvested balance at beginning of period (in shares) | shares | 2,733,532 |
Granted (in shares) | shares | 1,456,506 |
Vested (in shares) | shares | (1,417,634) |
Forfeited (in shares) | shares | (19,156) |
Unvested balance at end of period (in shares) | shares | 2,753,248 |
Weighted-Average Grant Date Fair Value | |
Unvested balance at beginning of period (in dollars per share) | $ / shares | $ 6.84 |
Granted (in dollars per share) | $ / shares | 8.03 |
Vested (in dollars per share) | $ / shares | 6.61 |
Forfeited (in dollars per share) | $ / shares | 7.25 |
Unvested balance at end of period (in dollars per share) | $ / shares | $ 7.59 |
Performance Share Awards | |
Number of Shares | |
Unvested balance at beginning of period (in shares) | shares | 2,048,350 |
Granted (in shares) | shares | 1,509,519 |
Vested (in shares) | shares | (1,174,808) |
Forfeited (in shares) | shares | (24,130) |
Unvested balance at end of period (in shares) | shares | 2,358,931 |
Weighted-Average Grant Date Fair Value | |
Unvested balance at beginning of period (in dollars per share) | $ / shares | $ 6.34 |
Granted (in dollars per share) | $ / shares | 7.39 |
Vested (in dollars per share) | $ / shares | 5.38 |
Forfeited (in dollars per share) | $ / shares | 6.01 |
Unvested balance at end of period (in dollars per share) | $ / shares | $ 7.35 |
Share-based compensation - Su_2
Share-based compensation - Summary of Key Inputs (Details) - USD ($) $ in Thousands | Feb. 08, 2024 | Jan. 17, 2024 |
Peer Shareholder Return | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Total Award | 50% | |
Grant Date Fair Value by Component | $ 2,915 | |
Volatility | 39.05% | |
Interest Rate | 4.09% | |
Dividend Yield | 0% | |
Growth Rate | ||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||
Percentage of Total Award | 100% | 50% |
Grant Date Fair Value by Component | $ 4,369 | $ 2,066 |
Volatility | 38.21% | 39.05% |
Interest Rate | 4.20% | 4.09% |
Dividend Yield | 0% | 0% |
Earnings per share - Schedule o
Earnings per share - Schedule of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Numerator | ||
Net income | $ 54,341 | $ 42,719 |
Denominator | ||
Denominator for basic EPS - weighted-average number of shares outstanding (in shares) | 136,651,696 | 157,314,177 |
Effect of dilutive securities | ||
Denominator for diluted EPS - adjusted weighted-average number of shares outstanding (in shares) | 138,009,859 | 158,772,453 |
EPS - Basic (in dollars per share) | $ 0.40 | $ 0.27 |
EPS - Diluted (in dollars per share) | $ 0.39 | $ 0.27 |
Unvested performance share awards | ||
Effect of dilutive securities | ||
Unvested share awards (in shares) | 747,783 | 952,494 |
Unvested restricted share awards | ||
Effect of dilutive securities | ||
Unvested share awards (in shares) | 610,380 | 505,782 |
Earnings per share - Narrative
Earnings per share - Narrative (Details) - shares | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Unvested performance share 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) | 0 | 0 |
Restricted Share 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) | 0 | 0 |
Debt - Schedule of Debt Compone
Debt - Schedule of Debt Components (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Dec. 31, 2023 | |
Debt Instrument [Line Items] | ||
Financing lease obligations | $ 5,106 | $ 5,222 |
Total debt, net | 1,060,158 | 1,061,376 |
Senior Secured Credit Facilities | Medium-term Notes | ||
Debt Instrument [Line Items] | ||
Total debt obligations | 1,086,250 | 1,089,000 |
Unamortized discount | (25,139) | (26,466) |
Unamortized debt issuance costs | (6,059) | (6,380) |
Debt, net | 1,055,052 | 1,056,154 |
Revolving Credit Facility | Senior Secured Credit Facilities | Line of Credit | ||
Debt Instrument [Line Items] | ||
Total debt obligations | 0 | 0 |
Available balances | $ 225,000 | 225,000 |
Revolving Credit Facility | Senior Secured Credit Facilities | Line of Credit | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.50% | |
Term Loan Due 2029 | Senior Secured Credit Facilities | Medium-term Notes | ||
Debt Instrument [Line Items] | ||
Total debt obligations | $ 1,086,250 | $ 1,089,000 |
Effective interest rate (in percent) | 8.58% | 8.59% |
Term Loan Due 2029 | 2022 Senior Secured Credit Facility | Medium-term Notes | Secured Overnight Financing Rate (SOFR) Overnight Index Swap Rate | ||
Debt Instrument [Line Items] | ||
Basis spread on variable rate | 3.25% |
Debt - Financial Maintenance Co
Debt - Financial Maintenance Covenants (Details) - Revolving Credit Facility - 2022 Senior Secured Credit Facility - Line of Credit | 3 Months Ended |
Mar. 31, 2024 | |
Debt Instrument [Line Items] | |
Minimum total net leverage ratio | 5.20 |
Total net leverage ratio requirement threshold, percentage drawn on Revolving Credit Facility | 35% |
Derivative financial instrume_3
Derivative financial instruments - Schedule of Interest Rate Swaps (Details) $ in Millions | Mar. 31, 2024 USD ($) |
Interest Rate Swap, Maturing April 15, 2025 | Designated as Hedging Instrument | Cash Flow Hedging | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional Amount | $ 275 |
Fixed Rate Paid (in percent) | 4.05% |
Interest Rate Swap, Maturing April 15, 2026 | Designated as Hedging Instrument | Cash Flow Hedging | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional Amount | $ 275 |
Fixed Rate Paid (in percent) | 3.71% |
Interest Rate Swap, Maturing March 31, 2023 | Not Designated as Hedging Instrument | |
Derivative Instruments and Hedging Activities Disclosures [Line Items] | |
Notional Amount | $ 800 |
Fixed Rate Paid (in percent) | 2.85% |
Derivative financial instrume_4
Derivative financial instruments - Narrative (Details) - Mar. 31, 2024 $ in Millions, $ in Millions | USD ($) | MXN ($) |
Foreign currency forwards | Designated as Hedging Instrument | ||
Derivative Instruments and Hedging Activities Disclosures [Line Items] | ||
Derivative, notional amount | $ 78.7 | $ 1,400 |
Derivative financial instrume_5
Derivative financial instruments - Effects on Comprehensive Loss Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Interest rate swaps | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) expected to be reclassified from AOCI to interest expense during next twelve months | $ 5,600 | |
Interest rate swaps | Not Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments, not designated as hedging instruments | 0 | $ 3,013 |
Interest rate swaps | Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments | (2,024) | 0 |
Interest rate swaps | Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in fair value | (5,852) | 0 |
Reclassification from AOCI to the income statement | 2,024 | (2,895) |
Foreign currency forwards | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Total gain (loss) expected to be reclassified from AOCI to interest expense during next twelve months | 2,900 | |
Foreign currency forwards | Cash Flow Hedging | Designated as Hedging Instrument | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Gain (loss) on derivative instruments | (180) | $ 0 |
Foreign currency forwards | Cash Flow Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Change in fair value | (2,868) | |
Reclassification from AOCI to the income statement | $ (54) |
Derivative financial instrume_6
Derivative financial instruments - Location and Fair Value of Derivatives in Balance Sheet (Details) - Designated as Hedging Instrument - Cash Flow Hedging - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Interest rate swaps | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 6,785 | $ 2,966 |
Foreign currency forwards | ||
Derivatives, Fair Value [Line Items] | ||
Derivative assets | $ 2,922 | $ 0 |
Fair value of financial instr_3
Fair value of financial instruments - Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Fair value measurements on a recurring basis | ||
Interest rate swaps | $ 9,707 | $ 2,966 |
Fair value measurements on a recurring basis | Interest rate swap | ||
Fair value measurements on a recurring basis | ||
Interest rate swaps | 6,785 | 2,966 |
Fair value measurements on a recurring basis | Foreign currency forwards | ||
Fair value measurements on a recurring basis | ||
Interest rate swaps | 2,922 | |
Fair value measurements on a recurring basis | Level 1 | Interest rate swap | ||
Fair value measurements on a recurring basis | ||
Interest rate swaps | 0 | 0 |
Fair value measurements on a recurring basis | Level 1 | Foreign currency forwards | ||
Fair value measurements on a recurring basis | ||
Interest rate swaps | 0 | |
Fair value measurements on a recurring basis | Level 2 | Interest rate swap | ||
Fair value measurements on a recurring basis | ||
Interest rate swaps | 6,785 | 2,966 |
Fair value measurements on a recurring basis | Level 2 | Foreign currency forwards | ||
Fair value measurements on a recurring basis | ||
Interest rate swaps | 2,922 | |
Fair value measurements on a recurring basis | Level 3 | Interest rate swap | ||
Fair value measurements on a recurring basis | ||
Interest rate swaps | 0 | $ 0 |
Fair value measurements on a recurring basis | Level 3 | Foreign currency forwards | ||
Fair value measurements on a recurring basis | ||
Interest rate swaps | $ 0 |
Fair value of financial instr_4
Fair value of financial instruments - Schedule of Financial Liabilities Not Measured at Fair Value (Details) - Term Loan Due 2029 - Medium-term Notes - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Carrying Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term Loan due 2029 | $ 1,055,052 | $ 1,056,154 |
Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term Loan due 2029 | 0 | 0 |
Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term Loan due 2029 | 0 | 0 |
Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Term Loan due 2029 | $ 1,102,108 | $ 1,097,081 |
Other balance sheet items - Sch
Other balance sheet items - Schedule of Trade and Other Receivables, Net (Details) - Nonrelated Party - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 | Jan. 01, 2023 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross trade and other receivables | $ 82,656 | $ 75,051 | |
Allowance for doubtful accounts | (434) | (289) | $ (63,400) |
Total trade and other receivables, net | $ 82,222 | $ 74,762 |
Other balance sheet items - S_2
Other balance sheet items - Schedule of Prepayments and Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Advances to suppliers | $ 13,391 | $ 18,213 |
Prepaid income taxes | 12,540 | 11,510 |
Prepaid other taxes | $ 4,606 | $ 5,641 |
Operating Lease, Right-of-Use Asset, Statement of Financial Position [Extensible List] | Total prepayments and other assets | Total prepayments and other assets |
Operating lease right-of-use assets | $ 6,243 | $ 6,426 |
Key money | 6,896 | 6,475 |
Other assets | 6,035 | 6,029 |
Total prepayments and other assets | $ 49,711 | $ 54,294 |
Other balance sheet items - Nar
Other balance sheet items - Narrative (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Impairment losses | $ 0 | |
Amortization expense for intangible assets | $ 1,000,000 | $ 400,000 |
Other balance sheet items - S_3
Other balance sheet items - Schedule of Goodwill (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Goodwill [Roll Forward] | ||
Gross carrying value | $ 85,610 | $ 85,610 |
Accumulated impairment losses | (24,968) | (24,968) |
Net carrying value | 60,642 | 60,642 |
Yucatán Peninsula | ||
Goodwill [Roll Forward] | ||
Gross carrying value | 51,731 | 51,731 |
Accumulated impairment losses | (6,168) | (6,168) |
Net carrying value | 45,563 | 45,563 |
Pacific Coast | ||
Goodwill [Roll Forward] | ||
Gross carrying value | 0 | 0 |
Accumulated impairment losses | 0 | 0 |
Net carrying value | 0 | 0 |
Dominican Republic | ||
Goodwill [Roll Forward] | ||
Gross carrying value | 0 | 0 |
Accumulated impairment losses | 0 | 0 |
Net carrying value | 0 | 0 |
Jamaica | ||
Goodwill [Roll Forward] | ||
Gross carrying value | 33,879 | 33,879 |
Accumulated impairment losses | (18,800) | (18,800) |
Net carrying value | $ 15,079 | $ 15,079 |
Other balance sheet items - S_4
Other balance sheet items - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Finite-Lived Intangible Assets [Line Items] | ||
Total accumulated amortization | $ (10,171) | $ (9,176) |
Indefinite-lived Intangible Assets [Line Items] | ||
Total gross carrying value | 13,612 | 13,533 |
Total net carrying value | 3,441 | 4,357 |
Casino and other licenses | ||
Indefinite-lived Intangible Assets [Line Items] | ||
Indefinite-Lived Intangible Assets | 628 | 607 |
Management contract | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | 1,900 | 1,900 |
Total accumulated amortization | (546) | (523) |
Net carrying value, finite-lived intangible assets | 1,354 | 1,377 |
Enterprise resource planning system | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | 6,352 | 6,352 |
Total accumulated amortization | (5,250) | (4,349) |
Net carrying value, finite-lived intangible assets | 1,102 | 2,003 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross carrying value, finite-lived intangible assets | 4,732 | 4,674 |
Total accumulated amortization | (4,375) | (4,304) |
Net carrying value, finite-lived intangible assets | $ 357 | $ 370 |
Other balance sheet items - S_5
Other balance sheet items - Schedule of Trade and Other Payables (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | Jan. 01, 2023 | |
Trade and Other Payables [Line Items] | ||||
Repurchase of ordinary shares not yet settled | $ 1,970 | $ 0 | ||
Nonrelated Party | ||||
Trade and Other Payables [Line Items] | ||||
Trade payables | 26,374 | $ 25,929 | ||
Advance deposits | 69,054 | 80,506 | $ 83,300 | |
Withholding and other taxes payable | 15,747 | 15,164 | ||
Interest payable | 2,853 | 2,603 | ||
Payroll and related accruals | 25,183 | 31,466 | ||
Accrued expenses and other payables | 37,505 | 40,764 | ||
Total trade and other payables | 176,716 | 196,432 | ||
Hurricane Fiona | Nonrelated Party | ||||
Trade and Other Payables [Line Items] | ||||
Repair and clean up expense | 10,100 | $ 16,800 | ||
Repurchase of ordinary shares not yet settled | $ 2,000 |
Other balance sheet items - S_6
Other balance sheet items - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2024 | Mar. 31, 2023 | Dec. 31, 2023 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Pension obligation | $ 10,396 | $ 9,980 | |
Operating lease liabilities | 6,811 | 6,973 | |
Unfavorable ground lease liability | 1,721 | 1,748 | |
Key money | 14,073 | 14,331 | |
Other | 929 | 938 | |
Total other liabilities | 33,930 | $ 33,970 | |
Service cost | 400 | $ 300 | |
Non-service cost components of net periodic pension cost (benefit) | $ 300 | $ 900 |
Business segments - Schedule of
Business segments - Schedule of Net Revenue and Reconciliation to Gross Revenue (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 USD ($) segment | Mar. 31, 2023 USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 4 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 300,635 | $ 273,802 |
Other revenues | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 420 | 564 |
Management fees | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 2,534 | 1,929 |
The Playa Collection | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 1,020 | 726 |
Cost reimbursements | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 2,889 | 3,534 |
Operating Segments | Segment owned revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 286,538 | 261,009 |
Operating Segments | Yucatán Peninsula | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 98,895 | 91,025 |
Operating Segments | Yucatán Peninsula | Segment owned revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 95,988 | 88,748 |
Operating Segments | Yucatán Peninsula | Other revenues | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Yucatán Peninsula | Management fees | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 39 | 38 |
Operating Segments | Yucatán Peninsula | The Playa Collection | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Yucatán Peninsula | Cost reimbursements | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Pacific Coast | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 45,554 | 41,550 |
Operating Segments | Pacific Coast | Segment owned revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 44,296 | 40,515 |
Operating Segments | Pacific Coast | Other revenues | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Pacific Coast | Management fees | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Pacific Coast | The Playa Collection | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Pacific Coast | Cost reimbursements | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Dominican Republic | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 81,721 | 68,769 |
Operating Segments | Dominican Republic | Segment owned revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 81,612 | 68,769 |
Operating Segments | Dominican Republic | Other revenues | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Dominican Republic | Management fees | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Dominican Republic | The Playa Collection | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Dominican Republic | Cost reimbursements | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Jamaica | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 68,736 | 67,080 |
Operating Segments | Jamaica | Segment owned revenue | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 64,642 | 62,977 |
Operating Segments | Jamaica | Other revenues | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Jamaica | Management fees | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Jamaica | The Playa Collection | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Operating Segments | Jamaica | Cost reimbursements | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 1,095 | 1,337 |
Segment Reconciling Items | Other revenues | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 420 | 564 |
Segment Reconciling Items | Management fees | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 2,534 | 1,929 |
Segment Reconciling Items | The Playa Collection | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 1,020 | 726 |
Segment Reconciling Items | Cost reimbursements | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 2,889 | 3,534 |
Segment Reconciling Items | Compulsory tips | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 7,234 | $ 6,040 |
Business segments - Schedule _2
Business segments - Schedule of Owned Resort EBITDA, Adjusted EBITDA and Reconciliation to Net (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Owned Resort EBITDA | ||
Adjusted EBITDA | $ 113,472 | $ 98,489 |
Interest expense | (23,128) | (29,666) |
Depreciation and amortization | (18,672) | (19,191) |
Gain (loss) on sale of assets | 36 | (13) |
Other (expense) income | (793) | 232 |
Non-service cost components of net periodic pension cost | (300) | (900) |
Net income before tax | 66,378 | 47,535 |
Income tax provision | (12,037) | (4,816) |
Net income | 54,341 | 42,719 |
Operating Segments | ||
Owned Resort EBITDA | ||
Adjusted EBITDA | 124,040 | 109,389 |
Operating Segments | Yucatán Peninsula | ||
Owned Resort EBITDA | ||
Adjusted EBITDA | 40,053 | 37,936 |
Operating Segments | Pacific Coast | ||
Owned Resort EBITDA | ||
Adjusted EBITDA | 19,141 | 17,523 |
Operating Segments | Dominican Republic | ||
Owned Resort EBITDA | ||
Adjusted EBITDA | 37,770 | 26,849 |
Operating Segments | Jamaica | ||
Owned Resort EBITDA | ||
Adjusted EBITDA | 27,076 | 27,081 |
Corporate, Non-Segment | ||
Owned Resort EBITDA | ||
Adjusted EBITDA | (14,122) | (13,555) |
Segment Reconciling Items | ||
Owned Resort EBITDA | ||
Interest expense | (23,128) | (29,666) |
Depreciation and amortization | (18,672) | (19,191) |
Gain (loss) on sale of assets | 36 | (13) |
Other (expense) income | (793) | 232 |
Repairs from hurricanes and tropical storms | 0 | 861 |
Share-based compensation | (3,759) | (3,166) |
Transaction expenses | (1,037) | (863) |
Non-service cost components of net periodic pension cost | 259 | 852 |
Segment Reconciling Items | The Playa Collection | ||
Owned Resort EBITDA | ||
Adjusted EBITDA | 1,020 | 726 |
Segment Reconciling Items | Management fees | ||
Owned Resort EBITDA | ||
Adjusted EBITDA | $ 2,534 | $ 1,929 |
Business segments - Schedule _3
Business segments - Schedule of Segment Property and Equipment and Reconciliation to Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2024 | Dec. 31, 2023 |
Segment Reporting Information [Line Items] | ||
Total property and equipment, gross | $ 1,966,755 | $ 1,958,885 |
Accumulated depreciation | (559,507) | (543,313) |
Property and equipment, net | 1,407,248 | 1,415,572 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment, gross | 1,960,319 | 1,953,062 |
Operating Segments | Yucatán Peninsula | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment, gross | 683,966 | 683,073 |
Operating Segments | Pacific Coast | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment, gross | 308,271 | 305,588 |
Operating Segments | Dominican Republic | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment, gross | 542,700 | 541,629 |
Operating Segments | Jamaica | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment, gross | 425,382 | 422,772 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total property and equipment, gross | $ 6,436 | $ 5,823 |
Business segments - Schedule _4
Business segments - Schedule of Segment Capital Expenditures and Reconciliation to Capital Expenditures (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2024 | Mar. 31, 2023 | |
Segment Reporting Information [Line Items] | ||
Total capital expenditures | $ 10,152 | $ 9,514 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 9,278 | 9,388 |
Operating Segments | Yucatán Peninsula | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 2,021 | 2,741 |
Operating Segments | Pacific Coast | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 2,528 | 946 |
Operating Segments | Dominican Republic | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 1,554 | 3,895 |
Operating Segments | Jamaica | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 3,175 | 1,806 |
Corporate | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | $ 874 | $ 126 |
Subsequent Events (Details)
Subsequent Events (Details) - USD ($) $ / shares in Units, $ in Millions | 1 Months Ended | 3 Months Ended | |
Apr. 30, 2024 | Mar. 31, 2024 | Dec. 07, 2023 | |
Subsequent Event [Line Items] | |||
Repurchase of ordinary shares (in shares) | 3,621,127 | ||
Average price of shares repurchased (in dollars per share) | $ 8.98 | ||
Remaining authorized amount under share repurchase program | $ 163.9 | ||
Amount of ordinary shares reauthorized for repurchase | $ 200 | ||
Subsequent Event | |||
Subsequent Event [Line Items] | |||
Repurchase of ordinary shares (in shares) | 1,859,322 | ||
Average price of shares repurchased (in dollars per share) | $ 9.36 | ||
Remaining authorized amount under share repurchase program | $ 146.5 |