PLYA - Earnings call transcript Q4 2021 | Playa Hotels & Resorts N.V.

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Operator

Good day, and welcome to the Playa Hotels' & Resorts Fourth Quarter 2021 Earnings Conference Call. All participants will be in listen-only mode [Operator Instructions]. Please note that this event is being recorded. I would now like to turn the conference over to Ryan Hymel. Please go ahead.

Ryan Hymel

Chuck. much, very you Thank Good morning, Resorts’ Playa & again and quarter XXXX welcome fourth to earnings Hotels everyone, conference call.

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

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

could that section factors our the report Company's of SEC. some of our Relations review filed Factors discussion to We've results Risk on we Investor the please recent the Web of cause releases. differ, night which For actual annual with site last updated with Form at the XX-K, our investors.playaresorts.com

with Chairman financial key On to Officer, fourth to I'll outlook. Chief quarter we in In measures on Q&A. some it were Playa's that, then reconciliation release. will yesterday's some quarter this to remarks on up call wrap press addition, the Wardinski, and before a results the Bruce address call concluding non-GAAP the the over our call operational fourth included comments and Executive provide call, GAAP today's discuss will then our we Bruce With and Bruce. turn will turn over highlights. I with

Bruce Wardinski

review us. Good Great. to thank quarter most fourth sure I'm joining you reported everyone, of Thanks, had last for morning, chance our Ryan. you night. results have a and

peak the well. to the The in sequentially sequentially consistent The improving year-over-year demand and holiday similar quarter broad So flight the with by not ADR was say particularly ramp let's fundamentals to advances were improved Dominican strength occupancies continuing with once That as get and Republic. and gains during into business driven again only in month period. capacity the pricing based, fourth the each discussion. is ADR up occupancy

basis six a the been In for on months. fact, remarkably steady last percentage they've

results EBITDA represent margin our XXXX percentage quarter fourth our quarters. the and resort absolute of any fourth for importantly, More highest historical

mandate, proud and working together area at more to day, obvious organization functional an that is like critical it seem be improving I'm may Playa each how the happening entire couldn't of truly each a of this incredibly strategy. believe execute time. I our While is

of offer it in pleased innings compared in that awareness in believe been has universal find be and travel, relative a us January, elevated as are pre-pandemic the On close by to levels, in remain we in sales that to I relatively figures successfully the outbreak sales the Though booking travelers recognized up the following the for of Omicron fourth of first revenue November, to pacing I our December of summer, with pre-pandemic quarter, during potential slowdown early you love as December to impact more lapping in equilibrium, booking reaching given will our record two that mind, modest travel with gains, that January bookings setting to an with due on weeks. XXXX even several variant. its XXXX. we ADR recent for front, our short was are still and consecutive believe the peaks the value ticked incredible and likely Omicron grows. so impact resurgence the the many in slowing in the had down likely lived for a our With weekly weekly before share process and surged a in era. new multiyear the October dramatically was months

with the details Suddenly, for idea August that will you Ryan don't I the a booking Mexico stands think I off peak to think also likely going it all get becoming trends going is share we're of more in bad. repricing momentarily. to periods. that on permanent our

levels and segments, our have line pandemic passenger continues back. for KPIs beginning of not us, exceeded looked to Mexico margins. since and underlying the XXXX the first exceptional quarter September International well arrivals top perform at another Looking in posting of the for time

to occupancy performance We improvement sequential in Moving capacity, Republic, forward the we the for forecasted expectations. experienced quarter we the our segment the hopeful the exceeded but Dominican quarter, were entered on and biggest quarter. bookings given the our as our flight in the increase in

as which there. give confidence of on resource goal by The performance down weighed and profit a absolute achieve XX% which recall, was performance, managed As flagship also segment Hyatt in our in biggest branded mid lower externally mix XX% a our to managed cash resource progress the fourth Cap a on guests XX% and the his gains, and as pre-pandemic resorts. the we and of during our have globally can exceeding compared The margin our had to great DR the Ziva way only ramp investment you yield cash significantly led returns quarter, branded particularly in us and a our leader properties. Zilara ADR again occupancy the in properties, resorts the with further the EBITDA it may behind particularly itself rate Playa segment's respect in established European two that has in our lagged low-XXs. was globally with Cana drag scale Once market, period, stabilized our with to our the

the our to third Turning segment's Jamaica, stalled results. other out quarter largely segments, geographic its recovery to and compared

bookings is diminishing are back of and the disproportionate the impact the entry waves to in QX quarter there year as impact has had variant into impact stringent a up requirements. The and beyond. the given Jamaica rest XXXX, first picking the testing out we look to more the lingered for back As of but

a to business plan direct to by with on In as continues XXXX. Playa aggregate of channels are year target group and points percentage continued confident XX% reflecting significant direct, on Our strength consumer off XX.X of fourth at XXXX, business. down the and including focus pay nights our in least direct room source were to increase year-over-year, quarter relative during booked the five acceleration we well channels, third-party growth XX.X% of book our

room playaresorts.com percentage point XXXX, of XX.X% night for our X.X total During quarter accounted down the of year-over-year. bookings, fourth

the Looking critical for This playaresorts.com XX XXXX bookings at I potential XX significant a for for direct believe XX, for many overlook. We managed comparable our period. aspect is only a million at is as competitive which current resorts of of drive our portion our compared to generated now of advantage approximately Playa XXXX a in-house, XXXX that million portfolio revenues in January future. third-party the of business major

an likely direct dollar we immediately will world still a the significantly anticipated below as the as returned our business was to But we absolute that fall higher XX%. than to at prior reminder, look would Finally, Taking level higher slowly traveling. normal, remain believe that and basis. who mix a of pandemic on sees

QX our makes of to business change three room source mix over sourced came XXXX Just in our significantly business QX percentage higher while points. in guests, business quarter which the 'XX. from channels, return XX% managed group the basis in XX% nights, our compared points the the 'XX increased direct of XX European of Playa But our room percentage sequentially the night was American our our remained OTA XXX points as biggest managed increased mix and approximately to QX improved stays and US South Geographically, depressed.

remained depressed significantly restrictions Asian customer state versus current travel mix Canadian of and our level. the pre-pandemic Given

than remained versus booking QX Our but improved levels. window shorter pre-pandemic

close of we QX bookings. length up with during was in rely continue stay versus is quarter on Our the and line QX And this less nearly in as trend fourth XXXX XX% to XXXX. expected

this Cancun the Wyndham recently partner myriad has two Playa truly Xst all-inclusive thank awareness our the sets of what mid perspective Wyndham Alltra critical guest we world the to just deliver Ryan balance with of segments turn Finally, the challenges. have service to completed class our Hotels, is fourth quarters. both officially quarter that announced believe model. outlook. smoothly resorts relationships of the dedication as I'll to strategic the and Once over proposition of and del our growth The and apart. sharing that, look behind in work We from scale to upper midscale coming and again, the of about related superb concept Their to I an all of we pandemic customer would a in relationship With unwavering went the the leveraging December face continued forward a Playa service with you passion been associates new our conversion value sizable to the to first on Carmen. sheet operational I which portfolioby back but call discuss accelerate of during exposure us, partnership and to more and like transition with welcomed for scene. the increase in in new Wyndham's Wyndham to will database

Ryan Hymel

provide our million of cash sheet then reminder, review with bookings market our morning. financing. update we quarter. end you and will with on of a first the on of trend. XXXX discussion approximately at of $XXX the finished And from the as liquidity a Good quarter million Bruce. fourth finish you, with year. fundamentals total balance forward a as June $XX.X We Thank Again, an the unrestricted and cash sheet, and the the balance Then I additional balance have restricted on

anticipate debt approximately year in related. credit of outstanding On projected did is have revolving over currently a approximately million XXXX ledger, we quarter to outstanding that million. for the total the spend The of be million We of with of fourth side under year full majority cash million our we our the from CapEx for XXXX interest-bearing vast no the $XX $X.XX just not on anticipated. $X other $XX borrowings CapEx and facility to as spend carried being CapEx maintenance

debt mandatory sales XXXX have roughly repayment million and over $XX left asset XXXX. in We our obligations of from

Group now business. to our Turning MICE

start While of was to segment the year, strong this books our as result we've a business variant. some the in and the movement on Omicron in remained segment seen

the well pacing and is revenues this XX half we that to XXXX Our of second first the we balanced existing books the slated ahead prior have than our our pandemic. of the early in changed is half net come last million given on business the much books Group the which had spoke that bookings MICE onset XXXX, and Nearly year is XX% to our year is our of time, the of incremental of and million MICE at last XXXX in call, of hasn't the which of for more stay year ahead of $XX final business limited of many movement as approximately time XXXX, some $XX since slightly the for MICE million, MICE of on the full reservations.

help manage books. over has Cana. Rose with million Hyatt MICE nice on pacing already particularly resorts this Cap and strong a and $XX Cabos, to improve yields Our business of XXXX remained provide in our for return the at drive base should year-over-year, profitability The Hall

to on the fundamentals. Moving

As job Bruce environment. mentioned, current excellent navigating the done teams have the an

to continue inflation half the similar of early, how has of our experienced book do inflation half I in in we the worse to for first be future of is phenomenal a expense not of a anticipate XXXX I expect for be second XXXX it XXXX. year half of currently Though XXXX. the believe degree business top-line, building With at that Playa, can in been still We we as periods. respect second to look

the and the some for the Both half based third granular of we virus know what and quarters up and it's up first the together ADR lap for We we are XXXX our year-over-year the half second revenues in significantly comparable that XXXX, XXXX the ADR. half revenue a fourth encouraged all of versus second the XXXX, fluidity will best with about periods we by on and of color ahead half year-over-year the and today both gained little second visibility then particularly and more it half, given to and Putting feel are pacing record a think XXXX firm detail in the as later. performance. of pacing in are directional

than portfolio entire So quarter XXXX the for the mid $XXX low at quarter occupancy of average rate expect daily first reported package the rate. XXXX, we average improve fourth approximately higher occupancy rate versus that to to is the in points rate the of for double-digit QX an percentage

half half second rely enough performance get Also levels, quarter, be to first increase in would ADR obviously in mind margin increase the not ADR the on margin more is occupancy lower stating ADR prior this This Playa variant. represent ever is higher January, QX, second need highest base the on that has of the highest to percentage there same the achieved tempered magnitude we XXXX us you is keep XXXX. the in absolute quarter QX to a felt Thus, easily While will obviously differently, QX a as should compared of particularly the in impact to XXXX. experienced the historically expect because our in versus the more to peak season. Said the occupancies XXXX. to to reach lingering offset we that Omicron in versus owing not

the Jamaica the likely in mentioned, hardest entry by with segment hit we the testing As driven disruption by requirements. bookings country's

versus looking ADR at quarter, growth up we and versus resorts percentage mid portion we significant managed points Now percentage QX. ADR what to substantially increase. in the in as accelerate driving a our QX our basis revenues time a On same the to compared expect pacing report to in of strong second applier XXXX, XX with expect remain 'XX the

half back with typical our you in interplay remarks. framework In slightly XXs levels become in think some easier account margins we grow headcount for As occupancy we I maintain to XXXX. than until and roughly occupancy. faster second order year, we half a purposes mid of into expect the that your ADR With helps the line turn to for closing we higher the reach help move ADR experienced models. and XXXX, modeling the will hope half, low to Bruce tune back to in fine to I'll the inflation additional we for to second for stabilized in need property that be between occupancy OpEx the of should you. XXXX to And with to over it occupancy we

Bruce Wardinski

Ryan. thanks, Great,

The another growth a members being growth hopefully any Also, sourcing intermediate ancillary profile. and opportunity a to enhance the with for owned into own I new licensing Playa. near-term, by with want will we will Strategically, in sourcing augment be provide and managed our collection also for this cost our the endeavor channel. amenities with We a will Playa collecting into this term. year which certain that over pursued Wyndham am acquisition operated entered changes Playa take profile. to party material help we in program So a should pursuant our present another simply agreement, We summary, we membership third expect agreement our the benefits for contract will be operate but very anticipate management not to as new or expect and designated it will is to profits optimistic this licensing third-party and a growth collection third-party expect that profile to not share ahead I a -- partnership that how has at company licensing will and grow a other do we material customer resorts. the fees channel driver do financials. favorable from Playa

leadership our All create Inclusive to experience for leverage to and value look the that, to investors. up ways in We open our results I'll strong shareholder customer segment financial line drive questions. expertise, and any for to continue will With for the

Operator

Chris first come [Operator will Instructions] Bank. the And with Woronka question Deutsche from

Chris Woronka

have of potentially, Bruce, maybe comment lower percentage really ADR periods. off if your the Does and on on the to whether historically? interesting full periods directly that during give the relate been can other also higher peak OTAs direct color you structurally in much kind off bookings peak channels of the bookings through

Bruce Wardinski

you is ADR those channels. with think Actually, you across the it's I'm you increases through what really because shorter that, glad asked periods, what I see all

to channels more that our are have rate discounts, been on company. mix couldn't with but we've focused like every us right business, what up. to all we so in but going all incredibly change certainly used parties, We've literally able from just they integrity not benefited, direct third benefiting but been across the hotel So do people do be

big And just really And little see I'll up, And of the days think focus in increasing the a you're starting in then And some first DR, group in So better I I be groups, with to same very a it's just that's for the to Mexico That's good kind kind it and with they're good give really package and then it's get week. big non been pick technology, there. booking on you lot signed mix happening believe the they this can not smaller of revenue. is the private the And other are of of of the there, spend attractive. more people was group our the really there. Republic able smaller lot September. are having but I of and contract an people direct. can we while groups, were on was you demand, package a lot out now a while for the leisure when trips. last per four mean, vacations or Dominican segment only figure realizing we've example. a thing to for those on not give too. can was the be I ADRs, smaller their groups they week, the revenue, because not, we person a groups And a I their basis, are in group

we I really you're seeing stay. think to here all something is short-term I across So this as this a just said, channels. is not believe it I And that think phenomenon,

Chris Woronka

growth. collection And a fee with talked then about new you the platform little supply for bit

fees become on or of XX% in directionally base. roundly of Is -- total also way and think where something is your like that? a of EBITDA there growing kind a there growing or percentage process fee can kind longer any as to of just management XX% cycle term just about the right your of hopefully You're -- you're

Bruce Wardinski

-- want to with a come it's don't projection. too way we to Well, try early today, to

the the the kind are different, discussions will what do Playa from We future, as it's see have that collection. a and results a to it's third-party. try we near little in of we as said, And

progress, we're at the pretty So have they it so that optimistic if not see, through channel. in drive things we but ourselves of inclusive all business segment, it. competitors running how look just we're our many to significant about And you

But main focus, of this our for focus Some channel of kind loyal to a their and and us our it of main give people kind sales. is that's be and Playa main will stated, resorts book. resorts will not are direct who them good really as we've additional our brands focus, our them to to

So really for lower to good as a and it's the us well. the way benefit it's customers cost get for a customers

So they successful. per nice one to three typically is two it's I And to who think about that times year. in people the to channel going be are thing come,

a that's customer So good for base really us.

Chris Woronka

ADRs being kind And last of the about kind and one of in guys then higher the are to hang structural, we of this some you on is, right growth can RevPAR.

at You're year. this pretty a higher CapEx plan a base. have gonna much small I you be know

You and lot cash a steep have you probably leverages of pre-COVID. be than free down. still the debt generating But pay the required are back lower down

I So do project? or share begin kind ROI some or possibly bigger to think you of do where mean, prioritize, you be about able where purchase to renovation

Bruce Wardinski

look options. So at you I mean, obviously, all always

would we Ziv, mentioned you our From money objective. look where be number or and one Zilara if Cana, success drive that share ROI at superior of can invest returns, my Hyatt our the So and standpoint, purchase projects. Cap you

existing had organic so pre-pandemic, kind as within about we've lot our of of we the past And projects opportunities of portfolio. kind talked growth, in of a

projects, talking So ROI we're just new build not enhancements. we're about about talking

rebranded. a be have could We properties couple that

what higher customers order and going that to saying seeing invest have honestly can to things. higher is have going money very We with others you're to the in are standards, ADRs are quite want higher we business, your drive they're strategically

the years, so with Dominican I opportunity. it. think kind and really down we using right excited was penalty And be I as you was that's And I of on about is group described from We box, the with, I all hockey to it the ice and of but are the said there box were the COVID it COVID. challenge, again. in team there. After metaphor. the to back a we our told I we our out two big were a that's team so were penalty in exciting And It

Chris. So I that's how it, look at

Operator

come America. Kelley question next The of from Shaun Bank with will

Shaun Kelley

in just outlook dig bit, and to your Ryan, the want little in comment. for all I booking Thank clarity. a you

is environment do just gonna of So now year. half, half though. you think being second that's side. being I ask want sale I'm the seeing second starting typically But that second to because for on rates business I in up think the going I we clear start I'm more about as could -- of half to is obviously that terms, -- able consistent half when be 'XX. with the relative can okay be be the the you're and just half to the Do Is operating had rates an second really dollar might that it's the point? be I just you you the talking lap what in rate in last ADRs to to you on in encouraging or way think we want up second super with should, and that

Ryan Hymel

Shaun. correct, is that Yes,

Shaun Kelley

help just up the pretty of again unpack following the And sort XQ, critical how question inflection. Can then side that's the would a be of you on rate I those second -- think because me equation.

in dollars. But I you I right, maybe think the me call point. is about of said I is forties your think at revenue least, think you side highest pacing help if rate QX how mid lower that can up,

XQ from to there? still the or going down year takes -- on puts a So is bit that's and QX. from we are it what 'XX up But year be

Ryan Hymel

because good absolute relative base. what but not you're get is our basis as trying a ADR, that, XXXX on think highest in a versus would be QX, to it's saw message the be I So QX we what higher would just

of that would would makes to over The to be back trying QX, percentage closer in that lower relative we've would position previous come into if QX, half in its ADR slightly sense. go QX, levels down to gain it's would QX’s And record convey over up be second expect be kind in that XX ADR of the years was than while XXXX, but what breaking I higher. the so was absolute

Shaun Kelley

of then like, how second much would fill visibility have obviously, half, you'd have So we You of for Two in but percentage as normalizing? be we the book style those the and we increasingly much sort business arrival? now? last what of be of to corporate on a booking book longer need sense just typically here than trending a environment to nights is, components want how booking I obviously think, have get of that room transient would hotels, and the do between day how curve

Ryan Hymel

So through quarter. said run let's the just differently, so

on two is booked, under of it booked revenue little what sense of now, right this books our we and of about like reported for through. kind now QX we're the of typically current just way I XX% thirds think in of then QX, quarter, is for QX for typically, So as way XX% the makes third the about actually XX%-ish QX for XXXX. a were

Shaun Kelley

hotel the what of call especially there's seeing you help points seeing -- I'm around on leverage just more for labor labor lot what pinch mentioned side? nuances market micro on me unpack those sort intrigued some thing actually Can obviously, then that of we're or of on much you hotels is about your just kind of points, can than inflation How much US might either environment how market. let's be environment in, what different be seeing are be, last seeing the maybe and a us And trying much costs And obviously, bottleneck based to side, this of product the labor think and the it on where would the you're US for inflation. a very slightly of Playa? you you of

Ryan Hymel

as has not us. As far availability, issue staffing been labor for an

there's extra as Difficulty] of quarantine transmissibility of time, government to XX Mexican periods deal bit a [Technical QX, had Omicron a to in The exception example, With out early, bit airlines what like those the in because of wage periods of lower have just and little down so people an minimum we as the from much staffed. little But for with. the some couple pricing the years, Mexico teen. and were done the that and does there every the that for the DR of days for five as DR was XXXX in days shorter both far Mexico it. increases unit XX has on costs, had increased

on On overall costs this a is our it's for of think other doesn't I basis, us than dollar dent [Anlo] only of since third that, huge, is huge biggest make took F&B. in because time office. And and portion it a our salary a staff kind unit wages. purely like the a growth component line in

continue like fully points, where saw And half in it half what the we cost the the in increasing second then first any don't year. to year this so back normal of year, it's of are we kind of expecting see of we we sit F&B but the pinch today than of But the half more said, the two labor. -- I those are the the kind and of that

Operator

Beynon will with next The from Macquarie. question come Chad

Chad Beynon

first For guidance. with your the quarter, Ryan, just

would noted Jamaica. be slightly up be And the that big I like occupancies sequentially. driver think it you increasing looks of would

When I increases. Jamaica for calls think below XX%. closer we currently move can where is the to still over start rest to QX the QX slightly is? portfolio normally, up seasonality of occupancy

Bruce Wardinski

quarter. seeing so many what places the I other still restrictions as mean, and entry we’re Your mine. last world like in UK, other that love places I requirements as is good Bahamas guess removing that remove their

QX books that Jamaica is not seen only half at highest the other only was period just what make And the the to on quarter that like you that one so we've did last the said, would if call. it our pacing, beyond, look against But be as you has any increase like second you since the look and our segment. second at occupancy

you moved when inflection pretty signs starting quarter. we're relative that into kind really to Delta, last when as the the good. of And perspective we a of point second in just on post fall year pricing see looks Jamaica of So saw an kind

so I'm the go positive And said, take like, and I'll I'll chance there. okay, people that willing to test

obviously, when about worried positive being more somebody not testing and family go. popped up, Now to Omicron people or able in significant their other

can bookings there. is you recover. But expectation those as that our So to down hopefully lag continues slow that imagine

have when as pulled that no they far out requirement, I As idea.

Chad Beynon

terms of just expect couple market gauge more what kind more still you that somewhat help side an see kind announced side of of start hit the basis? in there on of or on is opportunities a and then these generally conversion expectations contract Can us things, of we Wyndham, or each a the year in for And of types just management we with can ceiling? to the should like are things annual you

Bruce Wardinski

is And traveling one, weren't because were Playa more to sell big there's and get really pandemic, feeling is to meet we're I the that then the been one the phase. of well. to But there. of what's opportunities, everybody restrictions opportunities and selling conserve comfortable out right I meeting two that during prepare for story. going trying in out to able Yes, beyond number getting reason is now cash had on the unknown, front things, with we Playa pretty think we're the Part out the second incredibly people. kind during the story of I've mean, is, there's Things trying pandemic, do

in difficult our these change. far just it's with advantage the we’re properties all and others, segment, do that Having of and driving, we superior I who of results the said the percentage kinds to are own the resonating to always to the competitive so get our I think particularly inclusive transactions said business the that's that, we've profile people given people that's across incredibly well segment, that think have. the direct of segment, that So

So But say. let our get management we're that, conservative what could if our more numbers bottom-line. let year, at global a that's put a the we’ll you brand, out come years. hey, said direct generate particularly are could do of that to more the that's do least hard trying that, couple think and there very, and very and Playa and us drive a business we to us with number let couple and profit sales of I properties? story work in to very We What do is a of the sell we’ll in, very

Ryan Hymel

Chad, in we we impacted have over did And year little management a revenue management roughly even a million COVID $X fee contracts of today, the two. or

areas of We you've aware, X expect kind million grown well infrastructure. got flow contracts but that's to contracts of in existing you're already fee the anywhere revenue. that mid could those stabilize management pretty X you taking today be And as where high to million on existing

Operator

next will Rose from come question Smedes Citi. The with

Smedes Rose

in big presence? you or ask management guess, that because to the But I I more in question. business now, for on and they're wanted to for opportunities what is just enough seen not any is around increase, I another competition just such there contract side, you being have everybody, it heavily and you then had a one-off so go Hyatt if or

Bruce Wardinski

of the that have all, been very and have first number and at, They Smedes, a Resorts, about there if do. they contracts they specifically been successful I'm look company, been there. have they of able to speaking have always AM you been

a focus quality broader. they’re a strong now competitor. is So say their I will company and

over looking So new and Europe. their over are in they're lot contracts of Europe a

you we while we is should and have all strong than contract players us, will management they're pretty with inclusive as saying that, So in flexibility space, competing I brands will I should position. much lodging there I a in and or us the position. I'm many better focus them with or it's segment line. any we the think have are not think are we well, thing of product think gives not industry, competitive strong on we better them we very multiple are we compete see them, be there The than whether just geographic would a on, focus the just kind competitive other as of bigger global where

us. think still well I so And incredibly for that bodes

think often family operators to let our of that biggest convincing, is kind of challenge owner kind challenge. magic, real us is and Playa partner the So I the with do

Smedes Rose

seeing just the Cancun, And are also as you, also, like boost wanted do I any maybe rates seeing they are specifically it's you any your a the you over maybe or because And is or competitors new you or other unique mean, are I do online well. next supply -- more that product so? see to more there? what 'XX, you I think ask then that's in branded guess coming markets versus to for just significant year

Bruce Wardinski

So tide the all there boats. that, fact is the always rises

going there sure, is some to there be of impact that. So

and than us kind also industry faster market to really the percentage exceeding two we are and going far But that due is Number differentiating segment. with brands, we focus it that, I direct. have. is the we affiliation levels market levels seeing you're factors direct, competitors, global increasing the comes which why one superior to faster are when than two, than ADRs. factors our of those which is the are two big what is sell factors exceeding we market, are affects think across we big with the think the our Number I

feature. again a the of to first I world, so, permanent just everywhere projects during projects, the of all, that, And like kind of development, most think stopped. lodging pandemic, new somewhat in the With regards is new

going were drawing were in and There So more the the that opened we're just they couple hey, obviously recently strong very that a that. were pandemic were they board to plow that said, occur. on people just order even and to through didn't any do financially

today. they're they are So there open,

stuff proper no is lot particularly available then of there Cancun new nothing, look okay, coming, a As as no. just conversion do opportunities. virtually when because, And you or at anything far land to

as our Jamaica market Cancun Dominican well. kind good as kind positioning very Riviera within the and whole feel as in and of we the within in So about well

Operator

Janney. from next will Tyler Batory The question come with

Tyler Batory

here. A few follow-up questions

In terms in numbers put of XXXX pre-COVID? on compared this margin basis of quantify or XXXX? are things, around what much or some terms you were year up QX can then And you in of increases costs cost the with how expecting cost versus a percentage side just

Ryan Hymel

at a of from you typical XXX if either and on recovery. how 'XX. with a in as kind if XXX to cumulative anywhere have of And a think want reminder, inflation since you basis you aren't points. been just 'XX costs cumulatively of comparison, it that you kind So of XX% depending or about really gains since as year, up about since line early our think roughly our look roughly CAGR 'XX XXXX, to cost typical multi-year cumulative But what cycle this a can play the out XX% instead saw on

and continue that that shouldn’t. where doesn't expect the of to So the of world rest we immune thus But far, what that rest the year to is not that the have hope we been the see.

Tyler Batory

occupancy, XX% I talked of of property? think stabilization which about originally of thinking very about? margin strong thinking at return that terms cash you're cash how in really were and to And potential the terms in And on XX% XX% What are obviously to Cap margin there. XX% reach you sort that timeline on achieve stabilization you then the is Cana, you

Ryan Hymel

probably Our margin are on underwriting around was today perspective. a where we

stabilized that a has to think last quarters doing in well typical to communicate three I of so is we tried been hotels only that we've are we so reaching this the couple hotel think accelerated. think And timelines kind those returns two -- years, that I

imply potentially this by could that of end the year. So

Operator

Scholes from The Patrick Truist. last will with come question

Patrick Scholes

modeling could us your How level then any if with that you just thoughts working have your year? growth Wyndham deferred them? questions. this forward there's story of coming Couple going and As far And if with give on CapEx folks up think should we and you question. about high latest as the

Ryan Hymel

about the 'XX, introducing to amount sold needed 'XX, CapEx, Wyndham we And nice of in bunch CapEx kind think capital, $XX spent think growth lower Hyatt, out take road this just CapEx with that. then the save when of then fortunate mostly it deferred that significant has were we sold and the trajectories We of or about million have expect sits, last down where in more Hilton The 'XX, and we million or starting public. to to part these time you what back $XX this immense deferred the converting we didn't XXXX about the brands in anything portfolio we during maintenance a we couple year. years, heavily kind very our to like of

discussed Wyndham. there $XX if of let critical, time, so $XX didn't CapEx that of we our So the certainly was we million talk in it roughly revenues to during million. And anything we've expect return the the maintenance past percentage ignore Bruce kind I’ll about pre-pandemic are

Bruce Wardinski

of we properties to converted December. like Xst said, Wyndham, we so the With regards the on

January. of you a kind obviously, early impact then December in bit of had So and Omicron into little

very, So we're very even what doing we're look with pleased it, think you with that, if I far. at so

management Playa all a point, just inventory look same harder at Wyndham. quality, mean the And crowd to but because think where kind lot relationship they've through it's this from started kind really pleased scenes with if excited more So -- conversions kind price. for our with point, more so great brand there the the also out price are contract really think for stand of be crowd, that been inclusive just to our they're to that price us, what We they have And done we've a as I excited. there's in at to a higher I to at upper mentioned go single with. remarks the opportunity if great midscale and you not think the it's with brand great prepared this quickly just harder, big lot there's a exciting how just super with up of Wyndham. at and of we Alltra with Wyndham excited are it's channel, properties in have market generating it's business behind there's they and opportunity work other we're as I we're too, we the more working are we're you pleased very of we about and And opportunities the multiple reason. the where price

the we're excited relationship. expanding to So

Operator

over to concludes I Wardinski the This Bruce go conference Mr. turn like session. remarks. our to would Please for question-and-answer ahead. any closing back

Bruce Wardinski

Great.

benefits to we just questions thanks, the the go cover, we Now, and able were nod to that kind we and all to on prepared I we of we’re really accelerate wanted got the I the the to with worst forward. think up it's things more think be the side likely our other and pandemic. demand, the we're think excited as questions And everybody, cover other of just of with of pent we seeing remarks

prospects the appreciate we about in excited interest we're Playa everybody for from the of So all and company. our

So thank Take care. you very much.

Operator

has conference today's concluded. Thank for The presentation. attending you now

You may now disconnect.

Playa Hotels & Resorts (PLYA) 25 Feb 222021 Q4 Earnings call transcript