PLYA - Earnings call transcript Q1 2020 | Playa Hotels & Resorts N.V.

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Operator

Ladies and gentlemen, thank you for standing by and welcome to the Playa Hotels & Resorts First Quarter Earnings Call. At this time all participants lines in a listen-only mode. After the speakers' presentation, there will be a question-and-answer session. [Operator Instructions]

I would now like to hand the conference over to your speaker today, Mr. Hymel. Ryan you. Thank sir. ahead, Please go

Ryan Hymel

Thank you to earnings everyone welcome Good call. much, Hotels & Blue. Playa XXXX morning Resorts and very first conference quarter

Before cause and what are that to numerous materially remind today like from uncertainties has be actual subject we that results and our differ may will statements communicated. of Company’s comments participants forward-looking considered risks begin, I’d the been many to to

to the today made as effective forward-looking Company undertakes are obligation and statements Forward-looking of no only update statements. today,

For of cause a the Relations our Investor factors our Commission. of our XX-K, the actual section investors.playaresorts.com end at recent with review releases. website the Form Annual February Factors Exchange of We’ve please which the discussion updated some at and with that we Report on our results could to Risk filed of differ, Securities

to non-GAAP this addition, of call In included measures on in were GAAP reconciliation yesterday’s release. we discuss a the financial

provide Executive over with Bruce call, Q&A. I Wardinski, today’s our will call quarter operational address key quarter will remarks then On on results, we and then highlights. before situation will up our wrap Playa's Chief the outlook. liquidity concluding it and and first the first Officer, some some our turn Chairman Bruce comments to

Bruce. I’ll to that, With turn it over

Bruce Wardinski

by our outlook. over to I'll level turn call our this to and operating thoughts extraordinary today Great. Thanks, begin discuss operating year high the thanks give this everyone time certainly on interest during then industry. morning for prior the balance and then I'll for joining Ryan. accomplishments of some your world Good some environment. Playa of and us. We in appreciate our reviewing to the and sheet Ryan March

the just of the Mexico first documented quarter around to our our when the started with February, reported Now make had COVID-XX QX on the morning XXXX being turning call. travel case reported pronounced industry more in results world, on first in late impact to we earnings the results,

difference call a stabilization makes, Yucatan, fourth Cancun. led the This quarter in bookings. in in solid see we results improvement by XXXX March, in first November, earnings prior mentioned last to a that the followed to a QX sequential quarter by of particularly starting What we signs strong the on close our was were

Just results. carry the try in segment over beginning it January February del the both Playa XXXX, combined with Cancun and X.X% as RevPAR posting into positive and grew Carmen and comparable of

year with given to Pacific softer The nicely was line quarter slightly RevPAR business. Jamaica growth due following difficult group a rebounded in start but with the a our expectations less position X.X% and down book group to fourth

to approximately Dominican during to we was by the the make Cap bookings February that the year. RevPAR Romana with continued fourth and the in driven XX.X%, decline of Cana strength of progress XX% a better ahead also Dreams both Properties, Republic, La recovery the encouraging starts at a comparable for close had similar Turning The of to quarter. of the through saw expectations Hilton our decline

booked year-over-year, on focused were basis year-over-year. XXX to least growing direct room business direct quarter XX% during consumer confident In Playa customer direct, on increase and costs nights our are Shifting acquisition of stayed room by our managed of at first and were with sales aggregate, nights XXX XXXX. XX.X% up up dragged, XX.X% remain our the plan are XXXX, points of basis points year our lowering to target we five to bookings, over efforts, our we

customer think booking quarter recognized Generally, about with also brands our have direct U.S. our as reducing lowest for competition. to possible periods. growth, booked value mitigating Additionally, ADR of minimizing resorts, highest revenue acquisition costs, they effects of addressable the negative is impact total the the and globally as supply at guests of higher the to we loyal tend our direct represented growth driving increasing a key by this to consumers XX.X% during cost market, our future partnering

branded bookings, business. we're Hilton as seeing increases properties, more and in group as direct strong well At Hyatt our

able Cap more to space strategic group, other Ziva handle the the serve related resorts of caliber, this groups they bookings resorts provide should well, planners in incentive not destination All we group that our house large Specifically Hyatt properties, the Los be than outside our Ziva to do like Hall Cabos, destinations rotation a inclusive and to Rose variety Playa. having without with Hyatt a to portfolio fulfill Cana Punta Cancun. the Zilara and or are of meeting extent clients Hyatt desire. and expect incredibly for year Ziva, meeting to them to boost of in Cana, often three Hyatt Ziva Zilara Because certain to now Hyatt all the cycle go

cover will XXXX. our Ryan the business details of group in

technological Now, some on strategic I initiatives. would to ongoing like of our touch

expanding costs business, several initiative aimed growth. book improving including and to driving continue lowering the experience, and mentioned, customer on in direct our initiatives, already acquisition invest customer We our at I've launching the

March packages sell upgrade including This portfolio and a and seasonally technology the of technology will end-to-end during book revenue new sophisticated early selected additional new XXXX. guest. enable the ancillary XXXX, we rebook quarter the the entire with further bids real-time room that to of up accept technology of the fourth finished enabling at in room selling In period using through We us slower year. targeted began move opportunities, soft of we identifies algorithms the resorts. back enter rollout By as more this and window to a items

in the up of pre booking in ancillary travel X% existed, Playa a per removes quarter maintaining make or through a in to economics improving This we revenues. the to reservations which proprietary case can travel on XXXX, at now previously while and commission, costs same and go a portal time for that of launched saving the operator. booking, without directly of our commissions having agent travel booked agent agents the X% tour layer first approximately the the effectively economics travel basic sells During

our line believe that spa exclusive expectations is air, inclusive can website dinners and with vacation real of sweet To-date, luxury been ground agents now bookings we end-to-end potential modest via our excursions, transportation book XXXX, in appointments. commissionable growth in as have the

are live with book We ancillary package. services for now the ability vacation to complete flights a and

with To playaresorts.com XXXX our March give of the our a of the million versus ahead revenue as in on website, $XX.X of better was books underlying XXXX. fundamentals to of gauge of for direct expectations million XXth, gross $XX.X consumer pacing

our into during new two system. and QX first nearly are of made parallel and teams, QX. QX the further with expanded step more out management in the least progress for forecasting of XXXX in now our our system turn to with a all We important of We our hotels. properties rollout the new our yield data at our year Let's given in to went seasonality fine-tune marketing process historical We'll judgment in current property business. during live it, live operate of leveraging

We results system XXXX. up to expect of the benefit financial real the show starting late in in our

March. suspend and the we financial As on for many and our late operations spread have temporarily our at to global decided in the of impact ensuing guidance resorts of withdraw seen travel, XXXX COVID-XX you following

safety Dominican action hospitality and career, to restrictions during and protect While governments the our various this guests. on of and unnecessary it the unprecedented Mexican imposed was is associates my Jamaican, based by

with like to unprecedented you Now, we times. I thoughts and ahead would look our in as share plans these

doing be will July We which ultimately currently so. across but properties are portfolio, the reservations reopen of and for to reopen decision to local entire and the the determined accepting our governments on viability when economic by

now, restrictions reasonable will we to but we will eased of it As occur. assume cannot the that by think is be actually July, certain that be travel

tune the booking of in our clustering provide will to possible. on proximity in close and the front, based the and efficient fairly helping resources markets reopening certain volumes, open new operating forward financial protocols the most destinations safety manner in phases flexibility fine On

with Ryan resource walk of plans details frequently financial cleaner resorts, a I'd some day the highlight the more through generally typical that high occupancies want momentarily. and to historically will the you beaches given our much of near than hotel. nature with our of throughout reopening

are beaches are we for spaces positioned as that believe accommodating quite for well distancing, world expansive footprints social resorts pools, expansive and open observing We reconfiguration. large have and our a

We partners are leading world. safety competition this in with that the from on us brand industry our new separate working protocols should further

We're focused our the in on we are that markets. our operations improving for choice so destination travelers of

opportunity and indirect the On take advantages. we view share plan pursue both our competition, marketing as front, direct competitive market our and to a this from aggressively we unique to

need physically able Ultimately, be our resorts. to guests our to get will to

we're closely monitoring our into markets. airlift So,

airlift traveler, into to begin traveling expected before travelers and hopeful reasonably sufficient priced. leisure will that we're markets be that our the Given business again

outlook. over back call and the turn discuss will quarter XXXX Ryan I results our first that, With to to

Ryan Hymel

right represents a Adjusted Thank first period into which the you, of XX% versus the EBITDA Jumping Bruce. same prior Good year. decrease the details morning million was in everyone. $XX.X quarter.

the we Given suspension separate to GAAP furlough U.S. severance from cost of quarter approximately operations to which at the the resorts, requires of in cost had our expense under temporary timing X.X million recognize you upfront. first

XXX net XX.X% non-package Comparable revenue decline X,XXX down and first net X.X%. rate. basis total down package occupancy decrease a non-package Comparable a and RevPAR and decreased net points revenue the basis the during just under quarter, XX% quarter points in on in was was

occupancy. X.X% Comparable del ADR XX.X% decline comparable property million level both owned Yucatan, in Playa declined region, XX%. resort the lower Carmen $X and X,XXX the In net decreased which package points and Cancun a EBITDA or reflects basis RevPAR on

an as and we February investments lever the operation Bruce basis Company's however, XXX had As EBITDA the Yucatan we Through in by year. excellent expand grew margins shared center. service to points, began mentioned, to RevPAR start the comparable X.X%

decrease decreased the decreased about and were in XXXX, expanded Through a Pacific QX February the declined Coast, resort group occupancy. nights million non-package and however, revenue by Owned points. segment point down XX.X% $X.X X% decrease package in XX%. in about driven XX the margins basis EBITDA net in On EBITDA X% Pacific ADR X,XXX or Coast basis RevPAR XX%,

X,XXX us a in on margins group RevPAR basis heading making almost driven slightly into in make X% points expanded it and occupancy, back by Jamaica. for a to Now position decrease to package basis point increase the Comparable nicely decreased decrease Through turning point comparable in XX% are bounce quarter, XXX EBITDA ADR in XX net a first adverse basis despite RevPAR. quarter. February, just the

Republic. Now turning Dominican the to

quarter almost in XX% net First mentioned, we Bruce ahead last XX.X% ADR. XX% however, of occupancy the outlined and decreased comparable February recorded the XX as package call. of comparable we Through earnings segment, expectations by in well point our declined driven decrease on almost RevPAR decrease in RevPAR

time lead an points, mid staffing margins the improvement sudden year, had following last reported XX to decline decline operating XXXX, size versus EBIT point market right percentage Comparable as expenses. which we XX compressed more in the that is almost in and

began Hilton X,XXX $X.X months basis completion contracted the the Cap Through properties of newly improvement of Dominican the Romano opened Republic combined profits The and and newly first EBITDA of Ziva QX over million points decline and XX and a February, in million comparable to margin margins versus remodeled the percentage in two LA Zilara both a QX. generated ramp versus over Cana construction in loss points. QX, as in EBITDA following work improvement X

earnings our On comparable Beach performance RevPAR upside the our February, Dreams RevPAR Dreams drove beach Cana the expected the we Palm versus better last above our Dream Palm of highlighted at expectations. the expectations. pushing both Punta and call, Through RevPAR than

disruption very the to the recognize a fortunate in to crisis. that slated we're able we like to attention XX% I'd MICE and your quarter group that revenue of business were our coming prior over year, with business. had the into stay to turn first little We to little the very now

for Another rebooked later roughly in business XX% and have to rest XX% XXXX, with was XXXX XX% the them scheduled XXXX. half in rebooking in rebooking of and already that of QX stay about for

Of the and XX% that still is not QX is MICE about of the the remaining already undecided XX% remainder rebooked, business canceled. has

wait we'll look that group year, the QX of than throughout business see stay QX, progresses had slightly out the we more year. on for books the we half the to in second move how as we As and in

advanced stays of have quarter the currently end to respect half tied the million With to deposits, just second over of with we about the XX XX% in as that year. of

business same XXXX, the that the year. versus million into over X out Looking XX XXXX of million business XXXX just XX.X to on at MICE This just over have books for last includes from of XXXX. time we shifted million

quarter closing the of We Now sheet, the revenue subject anticipate closing the travel additional four and position, we cash no balance conditions. liquidity turning to uncertain. to On the length decline this sale cash May million. $XX and liquidity environment This action further depth solidify liquidity, to two of consideration of customary and of as highly resorts during announced a flows. the second was approximately transaction our taken for months is adding the Xst,

believe In from unlock of closing addition, major had to renovations. assets, potential CapEx two spend significant the we to have EBITDA these for we disruption the true resorts would incur

had of on cash not the XX As of X,XXX cash we of the hand under outstanding April sales, and include XX, XX XXXX, consideration our revolver on total million. which borrowings does asset outstanding million million just from debt

have lenders any mature until and April until the pursuing liquidity revolving XXXX. to April, in the to share matures our that maturities to our Company provide to with We actively also are with actively revolver debt additional and and does you do under front covenants not of our in financial its future. modify facility near have loan XXXX capital credit hope working alternatives with We're raise the something and to our not on amend agreement term

CapEx. to Turning

During over Cap Carmen, maintenance first quarter, before the strong Romana, resorts. the the at del new development work Hilton Cana, of Playa the million spent and CapEx our done for performed fortify properties and on just the we Ziva timing temporary the suspension and to due payments already Zilara in La we the pandemic and given and of spent work at over $X $X year, the million CapEx operations to to Hilton start our the just

and development spend significant through we anticipate in maintenance move any minimal spending of amounts XXXX CapEx crisis. as expecting CapEx, not this We're

cash our while have are current as we've activity we the users use buyback include properties we does forecasted to decided following now. today the Based debt, of share not Our the additional repurchases cash suspend estimate closed. for information and on

that million million $X month of month, $X premium paid million CapEx; down thereafter month burn they're high-teens QX total, estimate of month, million while yet million be and $X.X no monthly a Cash per monthly burn $X interest includes to burn in per in scenario. millions that level cash roughly revenue the payment to $X corporate under million property cash a of is closed, cash expense $X.X and so per roughly is insurance in we minimal

Now attention our to XXXX turning our outlook.

as selected extreme We currently we previously financial withdrew to of travel stated, a COVID-XX quarter. As third in result following our disruption guidance the the XXXX during for crisis. trends reopening resorts March, anticipate

thoroughly it analyzing will information prudent. open were variety a determining we mentioned, real in Bruce As is of time only and when believe we

believe reopen expect relating Based the we on we at to operating to our we analysis costs et we XX% reasonable new in do level staffing, upfront can achieve at of XX%, inclusive as some occupancies COVID-XX a begun startup protocol. property to safety of our cetera breakeven resorts. Furthermore, marketing, ADR, range

trust a is of possible, will the intent the premium believe Our as that maintain in our for industry as consumer sentiment to pay in safety. and echo much many pricing as we others

at is for of slightly As April, year revenue for September, ahead of segments our year. December books with we last November all end only look the on ahead, behind through the last as

of fourth is ahead Our X%. year, roughly quarter currently last pacing by

Daily sales in began improvement playaresorts.com showing turn through our as April, months the progressed. corner to the nice

XX-hour cancellation As given of there's in before, policies guests this to to risk the delayed will we be a the able current mentioned encouraging, and market. to always while resorts cancellation travel need available is

over that, to turn for I'll Bruce remarks. back closing With it some

Bruce Wardinski

Thanks Ryan.

destination will once encouraging portfolio, will want to deem the it of as in we attractive quarter to offense gives and highlight be to first on optimism return destinations. we which people prior to COVID-XX entire Our all they play appropriate. brands the to front the leader was outbreak performance the marketing us to very that a resorts that and clear merits the and of operate the is goal emerge our sales My our across

willing offerings be provide pay we excellent and that. will service for to Consumers premium to a and intend just

months opportunities. also take and challenges will the the and We in to While be myriad challenges there intend aggressively on tremendous the of there be a coming opportunities. will years, pursue

your you will interest Thank Playa, and in take for time now questions. we and your

Operator

from Instructions] [Operator Your first question Woronka Bank. you. line of from Deutsche Chris Thank comes the

is line Your open.

Chris Woronka

that kind question to even you, of way maybe more families you premium a more you was get there presumably where temporarily think of can, first to to a, high like Is people rate on until cabanas, Is back things things distant just feel can normal? maybe make closer for and of a do how a really when reconfigure that? a anything can more My reopening. experience, more bit about pay there

Bruce Wardinski

you're thanks this being Hope for in So, well question. first all, in. for there new we're and doing Chris, thanks the of world

I tremendous up, quality -- pay world our pay it's need to safe. people is for in we service, think I in really safety. in said opportunities up will prepared going there's as for feel And service. putting going what to new be that be be mean, to to we're remarks people to the

Everybody is to want feel safe. going to

look one, beaches them of lots multiple And lobbies, the restaurants. number beaches, open multiple to were buffet And you and I'm that, when in resource their at expansive footprint air have. our competitors fewer to so We the many people using hallways, have we're never model of just our that have going difficult big sorry, they're it's change pack-them-in resort. pools, of wide so wide -- to going to be from for at still

number okay, two, safe; the guests that our great be of So, one number partner time. level highest have our for our brands going they're is goal and to with confidence a have

we point, your to sell? Oh, up absolutely. can So,

see wanting to going you're think cabanas. I families

to more you're on dining. beach, dinners the more think I private see in-room going be could

buffet the won't at people be We will that allow not self-served.

your buffets, to things we'll and for by will a a served server. have at different model still but will point be to you be There table that. you'll We

out. to things I the we lots said, Like of have space restaurants. have ability We

go to include home, So, of for. be people going have going And I they and and brands quality in be big in and we're resorts our to confidence for is partnering an for are fun going to And our be safe. what outstanding pay time safe, one differentiator us. that's up and think with that can a go safety quality includes the have

discerning we as and into well aware plays really that don't customer the an going in our in to customers people that space, be forward, more all-inclusive to the and of our going have Most strengths. segment, you're brand going with be awareness are think the advantage I think that's well

Chris Woronka

good Bruce. than And kind of Thanks past. Yes. It's might incremental side, on a really obviously there points. some have good more color, in the most, expenses done you lot a cost then the although be guys model cleaning

to but levels want kind during You keep kind there high, reduced be think stay. a service touch you of personal may cleaning do of

So bit shift, model kind business you less the coming of not but people could little might, into their room because may out looking more get might expensive a they're while want people just it expensive, there?

Bruce Wardinski

not take will think that. a think of the, there going are I are you're back don't be do advantage week, absolutely, be, Yes, and the my while decrease some is, one my we number more, we think for in don't come their going guests that's going the to that. It's -- in And a to see be to lot even will optionality to during be going people the certain wash things of have towels. that hey, and going room I on just or two, it to sheets It's of then number cut I to people case stay.

the things confidence level guests comfort too. we're do, Amenity guests the them. to packages, again make of so, And and we that of Those lot to feel make a provide would of going will change care feel that that highest just and welcome to the are special. taking at we

competence know, amenity security. You and are in packages going to of interested more in people and be interested high less safety level the on

that. will So, we on focus

get are elevator, traditional a of We're in just things lot cleaning constantly we're To your point, sand anyway. I labor and position cost much elevator to hotel. to than better a cost like we're and an to cleaning get water be wiping of, like markets, in do out the labor, we think from and things already happy that, be obvious see, the the to We'll the a standpoint, lower of order willing elevator. safety keys add I think a it's But and to going down that. they're more going and guests and the that going to and extent that. be to cleaning pay very see to going you're

Chris Woronka

remind for year use that to travelers earning just because and their this preserving financially> status. how housekeeping -- be, they mind you worry use a to for more you And their personal elect have how they a using can their points might how don't bit. Great can more But hearing we're the and little your question, about and points might personal cash is point, work us

Bruce Wardinski

It's for solution company. a solution the and Playa good brand well as for customer good a it's as the

where And companies is liabilities your all points well that very positive better redeeming we beverage. their getting just terms of because also point the about place there and than getting So, we've resort to an aware, you're you're very From the brand not room, as the our inclusive redeem food at points. fair standpoint, the feel they big people balances have, hold. negotiated you're no

the have think attractive. on they to benefit I while redeem more points, more it's cost So, much perspective,

a do we their of forward that would to look you a it. and members to very Hyatt good people, this look frequent we it large saying, had redeeming and yes, and if is points be number and Hilton time stay forward we So, happy to hey,

Ryan Hymel

And other add is that. I'd Chris, thing the

have in having downturn no wait to ones, nine. compare we in points did back tool previous to is While our belt not until this and with partnering I'm in tool a way brands a not that trying

we've it to future being past mitigant as in downturn. the talked about so, nice And a

us, to that's think market going the to started reopen. we bode for when well So,

Operator

of question Chad next line from the comes Macquarie. from Your Beynon

Chad Beynon

historically, occupancy flow about can us that XX% well. Hi, work XX as things any occupancies is revenues really any return months? you're in the around so good certain Just I margin but occupancies and XX%, out know might help breakpoint morning. hear as to breakeven the XX%, that you Thanks between the figure to you recovery think the for out Good all figure sensitivity? mentioned trying portfolio question. you've taking how your run trying there Ryan, Are just get to this through my how additional ramp? leverage? you next

Ryan Hymel

Yes, let's the at so start bottom.

So from an are all, we those costs indifference XX%. even can think on in as inclusive or about in of to we're we point different average to break open of XX% roughly additional XX% they at close properties

So, we take hotels, combine talked Bruce hotels to not. that about clustering when open or or into consideration which

think So that step we as about can one.

And don't or is initial world at just social so. know couple but or occupancies probably first then, this plan XX% think given Bruce I long, how if distancing don't least new but for so, I cap months know mentioned, for around the

on Just bit not get back they that people feel there's to them. them allows understanding that of helps and customers given secure more pay top safer a little because

us, in for where last markets think about or the have issues under been been where rates so, if margin so year And had pressure. the from in you we've it's

the of had down, over of Peninsula still years lot in coming a occupancies saw were last there. were but the and You XXXX, in couple rates Yucatan supply

to And the your rate, you margins come a amount costs variable so, at just obvious, pressure same or going that's the of more stating on lower if guests have because put guests up.

while, interim, look. around depending least steps of still forever, coming tapping occupancies the we're if the to you out about rates. XX% we're If short potentially and to at how recovery this, a maintaining but on if So the think at steps world then and XX%, for proper the

I XX% full obvious need quite you think XX% because we property. us that's this staff out nicely come stating a the the actually of going won't to as for help

can adjust actually You appropriately. staffing

So I is continue assuming to recovery build margins, assuming the the momentum. think, gradual and

think night sequentially. you're margin seeing improvement I

Chad Beynon

question rate Okay, second great. to on segues actually That integrity. just my

You in that's group the strong about November December business on pricing talked in books. the in

a free. the Some have dollars packages of one, parter, away two secondly, for from of you future in plan four any in rate type seeing integrity guess your upgrade And I doing future? your spawn starting they as competitors well? but inducement for to market? early are what those your do are peers to lodging Thanks. discounts. on it's and tell, sold packages? giving from rates So five discount Others are and you holding standpoint, then Are they star probably the or

Ryan Hymel

Right.

the recognized there minimal as majority business it's few year, mostly already vast just shifts the was fairly Right we first in seen groups of been cancellations, which So timing. adjust group want for our as mean, nice. what second far actually its while the half I a group half, have now, the visits, their of and we to

So we've just keep things managed to the over. shift deposit and

really, kind incentives? planners. do Compared Are coveted of revenue. while we that where individual do cases the of amount other much given we've portion on XX%. overall by of there. had considerable to group business at our hotel, just of do, discounting our We've as additional meeting destinations an unique few to to there too incentive to overall each had XX% But highly only not peers, negotiate a It's just and our and facilities really guest some whole, Yes. our meeting or renown world

yield, make So, another. one us or helpful while doesn't way group to -- it it's break or

was more ever, own is and channels far our now decision it's overall excited website. given or that our QX, to lot integrity, go to our and year. partner for a As last And that with just as our it remain And consumer. as now, would than brands of direct at through the we're about expect brands our rate through coming pacing direct business to don't than higher is look I mentioned, our the that rate Bruce goal. actually if right you

to there's at that end at that we'll Normally, it's trying discounting the reductions they're if in some of interim, world, if where new helps would expect demand. don't I There market, bring properties that or rates, something do we'd larger from be of that the we stimulate think demand room will to be reopen. X,XXX just world, always more to world if it X,XXX said, the want, some stimulates back. this onset, end That price able as as carriers the the the demand. not At particularly of is. the be have but an some stimulates airlift day, it starts the least market out it's in the given

Bruce Wardinski

going not rolling from model. going partnership believe have what to of I a the it's less rate. really is quality downward level to more can to and They're you Our to goal was mean, do what 'XX, if rate issue a be is do. a business and follow people, a have with to the need rate them issue. spiral our look going deliver to different we that they it much to the attract back I brands of 'XX, customer. They And

with I issue quality going is issue. a situation safety be and to this think a

so, comfortable what our do going on on is be experience go to that need because get them people, to to comfortable focus an go them is to airplane, delivering And you get to to be your not different visit less proposition. it's could offer on. we're us, And resort, like, very you what come going and it focused going we're a to oh, just be to that's to

Operator

line Batory the Markets. from comes from question Janney Tyler next of Capital Your

Tyler Batory

some be earlier of looking that sales things give of whether some that thoughts side or you're missed I terms capital options now other liquidity more the might of on. out on on start and high you I right avenues be this there? level to wanted if the apologize additional I asset in at raising Can

Ryan Hymel

of asset with point and our cost announced at subject best lowest the and for holders. closing this executed we shareholders debt sale, time capital to in because So,

it to optionality made capital it do so, to raises. timely additional choosy more able for a more very manner. sense And importantly, and with provides And us in so be us be allows to

okay, we right no to asked, your but of scenario. are additional through want been coming million back happen of with forecasts, do virus, what's predict you market not, uncertain want draconian given that enough the now, the capital? additional and get in liquidity the onset and an one don't I've based is another so that need extremely to make fall the on and markets Maybe we this $XX have can going sure to fact the we to because keep

and working very, soon capital and additional that. on for color with we very some looking to that additional actively are we hope on be So, back

we an that we we're capacity additional question entered asset additional we something call your number different and last debt another the not into LOI that sales, our two of baskets, at was sources. on a have that an option. answer in We announced and assets our asset had on on looking have is To jewel so

it's on transact or currently the we're can't hold. Those we're to two difficult on in And anytime transact execute on those. incredibly to able I are whether now, we feel Jewels. able other on to not fortunate right this comment going be market. to assets soon pretty And But

draconian So now right capitals enough make have we it's through other to looking of at any scenarios. sort get to sure

Tyler Batory

CapEx my second is spending. on then question And

You mentioned minimal levels.

on? how Just to are going at much you spend keep long spend, how might money you And low what level? kind you CapEx of spending such can a

Ryan Hymel

years. end four the first good the last three so full the two-thirds at properties of tail for is to but year, Hyatts was our XXXX. heavily even opened have this Yes, new end of the brand 'XX, or year is, brand all renovated the new us of their news Obviously, we open portfolio in either

feel to over of four years, we millions So, flexible it the spending of five to be last dollars allows us we to when more it and spent the good the about hundreds now. comes

we're probably in quarter, of next the going selling two to deferred more had assets here that the in they the other mean, portfolio. any be than assets our CapEx I

We're to CapEx to not hotel. levels. at able like to minimal when let at joke there's the ball looking pool or is Bruce like that. just we're impossible guests stuff left, related like drop retile a on going what's So operate, anything at safety obviously to the

doing now few things we're that a recognizing that, like that's minimal, there's it's focus. cash right king is but and cases So our

Operator

Your question last line Rose of comes the from to Citi. Smedes

Smedes Rose

I just of breakeven your to XX% go XX%. back wanted to to occupancy

to So of kind Or underlying flat of that? been assuming had assumptions are for you you there achieving? what what the sort rates rate

Ryan Hymel

down. the when rates in market of are seeing we're What kind QX the for

is down forecasting. that in kind You the will, know, I hole the a competitive on not Bruce if of you it's that this and books there and that, the we're, the in the market but following based we market. ADR mentioned we're have rabbit We're on discounting

the rebuilding downer we slightly and as were would not brand to you books is where with it much yield, our a just position given it So expect our obviously. is as from it down ability but

Smedes Rose

wanted that Okay. assets the are there Jewel contract, And any to the conditions ask then under any I just of side on or have you sales closing you for buyer? of asset financing the needs

Ryan Hymel

outstanding We in is it hope days. and we'll but customary No now. needs, customary just and we on to are second And fast, sale as They closing agreement closing. question. so a that looking more the equally purchase close are negotiated XX financing the closing going that. other conditions. are no through Great in be there But it we to come quarter issues than

Smedes Rose

you I refundable deposit down a had before small And that. Okay. think mentioned to on buyer? Is that's been then put already that there's the

Ryan Hymel

refundable. something both escrow. good or unless just faith work we It's to It's them. like bad proud bucks X%. It X was in it’s we that non-refundable and for a something wouldn't No, million with and deal parties just act or there's do. not That's we're which excited in that,

Operator

Yes, please continue.

Bruce Wardinski

I you thank want again say to everybody. Well, to just

is, You you the say multiple don't can enough. know, I this think we've word times. it said unprecedented

the think going successful like I very back protect this, there associates, And know, down with that get is to a a no the the but from on we our dealing the do business the XXX% is very doing to plan game team and for future, to up thing level to think, guests, You we're running. focused corporate highly near protect be properties in situation our in to to right able rate. our

again, interest. say able And look appreciate we on we're very forward with your more, in much. to being working we future. near you Thank to So, the things

Operator

Ladies and conference. concludes this gentlemen, the

may You disconnect. now

Playa Hotels & Resorts (PLYA) 12 May 202020 Q1 Earnings call transcript