PLYA - Earnings call transcript Q1 2022 | Playa Hotels & Resorts N.V.

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Operator

Good day, and welcome to the Playa Hotels & Resorts First Quarter 2022 Earnings Call. All participants will be in a listen-only mode. [Operator Instructions]. After today's presentation there will be an opportunity to ask questions. [Operator Instructions]. is event this note being recorded. Please now Mr. would like to to over conference the turn I Hymel. Ryan go Please sir. ahead,

Ryan Hymel

conference first you, Thank Jack. 'XX Resorts to And again, earnings quarter everyone and good welcome Hotels Playa call. morning &

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

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

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

addition, In call non-GAAP measures today's we GAAP on discuss in release. the reconciliation to press included financial were of yesterday's

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

Bruce Wardinski

the momentum of expectations, the fundamental early for Once our of quarter. again, us. impact the from joining built our and Good you experienced during Ryan. Omicron thank Thanks, results a and the the Great. continuation everyone afternoon, throughout part despite first-quarter variant exceeded that XXXX,

December, of catch year. materially the last from ongoing on you impact up at of bookings month Which earnings recovery. we As the call, our on to of with the bookings during our we our Omicron, in the demand attributed accelerated the beginning shared

services. elevated back exceeding encouraging highly seasonal on this consumer to and trend, shift as continued quarter, through entire typical of the is spending pace bookings However, patterns a

our and Playa third higher is Xst, on May year-over-year, books And of for managed is year-over-year, up to we XX% occupancy pacing revenue this also the while quarter on demand over and both very robust and the XXXX. Most owned As XX% and continue quarter, versus continuing And up guest XX% will healthy at the the pacing versus XX% ADRs. fourth balance to satisfaction nearly yield, has and XXXX. operations front. importantly, deliver come

peak improving quarter One interesting of during for periods. resulted the of the each this highly ADR has Playa in sequentially year. off during re-pricing the recovery, ADRs with developments XXXX, been abnormal trends of Which during

Ryan Hymel

seen traditional period, We we of season in based believe view likely dips appears that had pricing during high a from our bookings. the on that playing shallower going the forward. summer XXXX That be sticky to be might rebasing out and our

expect We to versus growth ADR our second during versus our which quarter rate quarter XX% nearly to XXXX an ADR, this acceleration the increase quarter. second first reported is

Our successfully XXXX. build QX is well, robust first books up quarter, to as on will continue the results from year-over-year ADR during nicely lapping the growth the QX

rate single-digit for high Similarly, periods. high ADR as both to momentum up at s year-over-year. be with increase to upside year-over-year the ADR expect QX well, our to we expect We QX single-digits

resort an occupancy exceptional for our occupancy strong XXXX improve well to bode remainder experience for and customer rate to slightly These EBITDA and our our expect the ADR We gains margins. of versus QX. occupancy ability in deliver

pacing building business book pre our remained by levels to the of call encouraged the business by -pandemic driven that discuss in is for also the this high robust, at high wrapped Although the year-over-year year earnings for season in season revenue two next as MICE the ahead. we're up, XXXX pacing from just the highly results ADR times,

Bruce Wardinski

and a experiencing positive to pandemic these all out due children, groups us that Dominican dynamic. yet who return all Europe, are of traveling to given a note impacted. we trends Asia, The customers, even the to concerns. ADR and demand to have There broad encouraging wish first performance. of customers to USA, important are young potential requirements turn do recovery having risk levels, consistent potential markets, families quarter based, full demand not in is walk, we certain not the strength positive trip have the our particularly to in the are Occupancy with parts strong month guests. particularly recovered. for sequentially And mind, fundamentals, let's to consistently finally, ramp the due which fully the once with in With more full There It sequentially business the not improving experiencing that with particularly continuing with are once of international the The reenter our up, customer travel seen trends customer still are Occupancy of occurring segments was higher relatively Republic. in again testing improved each Canadian and

and in on As not call, quarters. our results But expectations. impact QX level last first given our expect resort our prior from we discussed absolute the of record the our Omicron, margins and RevPAR, we EBITDA earnings did significantly resort exceeded margins

variant. business quarter disrupted our during was As MICE not by the Omicron significantly the

which of pace reflected phase of XXXX. believe continue very drove the last of than the we our ADR awareness has compelling second half teams close relative high strongly experience have demand our and in the of value in both long for our While a the in today's level. This bookings and environment, despite the incredibly runway. on revenue ADRs become and I ahead year to ADR execute still all-inclusive significantly and gains. operations to travel also trial of inflationary value and In initial are the is resurgence proposition a higher continues at be expected,

Looking Dominican experienced improvement our sequential segments, once again the at quarter. biggest the in occupancy the Republic

Once a the particularly of which on margins our the performance destination as a market, may of you European mid-scale they early of key return low period, of the flagship highest guests choice has as are in a Zilara in we mix The driver be Ziva to and exceeding during DR with again, Cana great the its pre the with segment. Hyatt properties. as was As drag the resorts recall, way the in in itself been during XX% resume EBITDA leader traveling. the recovery, the in guests established And occupancy thrilled it -pandemic the first had European the led has Cap our the quarter XXs. part

quarter, at in years just the our profit of stabilized potential. operation XX% segment's The full of result our EBITDA As strong the already XX% our returns its on by has a two and even investment reached exceeded was to weighed trailing down of goal our first managed to as has Cap Cana on not XX-month performance Hyatt lower full yield which They these branded behind Playa the absolute properties, two segment compared a our occupancy at have improves and branded rate in globally ADR segment's resorts, the also resorts with respect the a significantly externally our lagged and margins. ADR gains gains managed to properties. globally drag is which cash-on-cash

higher counts expect Mexico, increasing Both segment gains performance and Mexico as occupancy and Canada. we and Europe from recovery this year-over-year has and continue driven Turning guest to in MICE remained sequential by in were progresses. steady this mix group to

Jamaica despite the business. driven we in the our in largest the first and requirements recovery impact encouraging occupancy Turning here the well also that Jamaica on hardest bodes being experienced this following in removing on had implementation after in negative requirement Republic Group the incremental recent sequential for segment expired to the based is our the And by during of business the our enter results April most the on by -testing pre This Jamaican to the Jamaica, largely Dominican quarter, segments, hit XXth. improvement of of development Omicron announcement the any the restrictions. same

ADR a Jamaica seen room gains occupancy While potential that improvement other recently, and of lag have restrictions ADR we as pickup in cause nice segment our Jamaica’s in has lot there segments. to this for a

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

which portion our playaresource.com the business. and XX.X% our for quarter of managed managed accounted apply revenues advantage bookings, in-house, now total down of many the aspect This During competitive a night direct current portfolio overlook. of of for points a percentage is a XXXX, and year-over-year. future. resorts in I our third-party for believe major is potential room significant Playa We first X.X drive critical our

we below seen to slowly returned world would that Finally, mix still as we'll reminder, direct fall higher normal, on basis. we dollar prior remain pandemic, a But of higher believe likely level than business as the an significantly that absolute and anticipated to our the XX%.

is came a direct quarter taking from in at our night Playa Now, less Little traveling. look of stays the than XX% who managed room channels. the

and group of XXXX, room significantly points sourcing to QX compared remained our mix our XX% to As nights. sequentially, mix OTA Geographically, U.S. managed increased improved XX% depressed. approximately

increased business higher. XXX source points European American South our mixed points. X% While basis guests

changing travel state levels. of -pandemic the Asian pre and remain Canadian versus Given depressed mix customer our significantly restrictions,

post-pandemic quarter but fourth similar exceed to period, booking experienced first the comparable -pandemic during time was Our the the window was first lead to XXXX, we for in the what period. quarter the quarter of pre the

passion QX stay our Our would close-in service, expected again, the Playa of service, challenges. Ryan QX have thank outlook. to in that sheet bookings. XXXX. to back and in turn our With truly quarter continued sets line deliver that, over trend less apart. I as the all And with during world rely Their XXXX, unwavering to on to discuss of was this pandemic we face first line will is the with related dedication was in like to to the continue is what length of and associates Once and I call balance class

Ryan Hymel

it's liquidity first Good update market review will quarter. the give Bruce. you then Thank of first with And then an finish bookings and sheet forward discussion balance our you, guess of the everyone, trends. good again. and afternoon, I and the I fundamentals morning. on

majority pursuant we total have just under $XXX of to for our the million. cash the a know, the on $XX quarter a $XX million we approximately revolving the outstanding for the balance anticipate restricted We debt and no In full vast billion. end a of CapEx being million, of outstanding not projected little is of which did $XX agreement, satisfied property release cash $X carried cash the to credit quarter, spend our with XXXX to we I'm ledger, facility our side, with approximately CapEx And the terms other have you in loan our CapEx be related. the $X.XX million. subsequent conditions totaled The over spend to currently that share interest-bearing As of from as XXXX XXXX unrestricted maintenance finished borrowings total to pleased million over we of year anticipated.

this MICE nice pickup as quarters our experienced between movement cancellation demand in the Group for quarter the on a to minimal that rest we're result Turning while books the segment XXXX. of and very pleased have saw we some our first activity Omicron, business, a business during in of seen

the million limited had of the XXXX of Our the our revenue that year full million books some well books onset is which of $XX in bookings at of XXXX, earnings ahead $XX on of and slightly it's early final the time the many Group facing first call. XX% call XXXX time prior MICE versus we the MICE our Nearly more is this MICE of the last stay business And and our slated our of $XX MICE our to second year, reservations. of year the $XX last movement net the XXXX existing given on at for incremental to well in the than business of half pandemic. as ahead have million of both approximately half come balanced of is space

resorts provide a is books, which Cana. April for remained XXXX quite in should has particularly improve $XX to revenue results profitability already on to Bruce nearly Cap mentioned, on -- of year Hall, million books roughly manage of in Cabos, yields we well, amount as MICE for pacing our two the Los base of business the XXXX. Rose ahead Return as times the Our the strong year-over-year, with had and XXXX good help MICE this drive in

on to fundamentals. moving the Now,

to were Our as both additional QX the result inflationary and efficiencies higher first-quarter position, of ADRs higher-than-expected margin guest benefited to more due the compared results higher investments F&B much experience. margins. costs a resort exceeded our while importantly, from Resort pressures, booked expectations revenue given in targeted marketing but

current Bruce job mentioned, cost navigating front, have excellent done an the the the teams as On environment.

of the that periods. second to gains Playa, year, phenomenal the the in our how the We look and for expense I we still third, for performance. second experienced as expect ADR. by pacing annual a insurance is believe the the just Though worse fourth has XXXX. quarters building increased anticipate ADR as of respect of XXXX's expect pacing particularly similar significantly half periods of book not lap top-line, ahead half in I year-over-year property of costs early, at be record and XXXX revenue With scheduled the and in in in inflation the XXXX continue year lap to first beginning both half can as XXXX comparable of And been are XXXX connection of to we of of business continue half it inflation with second XXXX be second ADR exception quarter regularly with degree in ahead the renewal. future XXXX. out to second the of we our Both revenues in to importantly, half We're do -- policy encouraged a in of

the the XXXX, nearly quarter, modestly and first to margins. Occupancy EBITDA Which improve versus lead compared we should earlier. Resorts Bruce with continue mentioned Looking up second ADR at excellent XX%, as to to expect when to quarter,

half interplay of the for of between stabilized to second As order occupancy to account become in margins ADR, and into will faster ADR maintain additional typical required for the experienced XXXX, until need to slightly the In half we we second we move higher should for than grow headcount the again occupancy. levels, inflation, reach OpEx Occupancy, year, purposes, modeling easier. we property

seeing bias in XXs the the forecast, our call. We materially, ADRs XXXX ADR to what detail some on an XXXX, we're additional continued last half since even second this have to our give on based with second that, high current expect on occupancy mid the be of booking and XXXX To environment. context and half upward single-digit over of in growth improve in earnings ADR for our

keep assume books I'll fine turn hope to we significantly is With as As any further at the rates, Bruce improvement. for I remarks. and market versus what that, framework is over turn forecast that closing booking models. not some already, higher you helps on it our your

Bruce Wardinski

Hey, thanks Ryan.

and we're summary, the more and drive So Jamaica, recent one-of-a-kind in of increase members. travel providing Playa to guest experience, ability in ADR, never guests given and been for by have what recovery our seeing our on the change team a optimistic I front value care and the bookings requirements take in ongoing

want is Inclusive and leverage continue and ways line we improving to value. will any experience our With shareholder best expertise, look that, create upon for move I'll the We strategic may to Playa initiatives. that world. focused the open for our in quickly resorts All have. the in leadership, you owner arguably operator And up institutionally of to continue questions to all-inclusive segment positioned the to

Operator

now begin Kelley answer of the we'll We this question go And [Operator will pause first America. Instructions] from to question the come assemble Bank Shaun and ahead. at our will session. Please roster. with momentarily And time,

Shaun Kelley

color. the Thank Good you everyone. all for Hi. afternoon,

all. I Sorry, was I make caught sure typing to I want furiously and it

just question and one will first So be an easy clarification. hopefully

XX% if said you're Ryan or that the same be right, calculating that's Bruce. ADR you I if and am -- quarter the in the that. you to you think XXXX, down, I of distance in you're I to And that the sequentially, XQ up case, over want just actually striking that of within I'm Again, I ballpark posted caught might sure ADRs make right but -- in QX? yes, be

Ryan Hymel

put Technically, Yes, you up, of you're just I got And right, we correctly. correct. that then definitely but spitting that's nearly the said that XX%, Shaun. ADRs within all distance

Shaun Kelley

Super.

second bit then And clarification. got queue and somatic I would a a taking just here. for out be Thanks Okay. pulled more question little

of apologize the the major on can if stabilized, to for one QX market relative you But this, about have either pre in think in So probably you didn't Jamaica, left market might us COVID. contribution as sort said blocks about I think for when for help the obviously revenue there a repeat. Anyway, the - that with you that terms, much maybe if the building be or EBITDA you have how EBITDA? table preferably that

Ryan Hymel

Yeah.

markets the triangulate different our and of where built a at. couple first a at how starting looked to that other quarter on and based couple market for it's impact quarters we So just of ago of trended the ways

drag in roughly on ADR Or It's XXXX ADR X% just growth or roughly occupancy. X.X% questions EBITDA would million rough terms, answer our to said loss higher. Playa So EBITDA versus on $X differently, $XX a point total or roughly potential. our it's drag our your roughly on specifically, be a a drag

Shaun Kelley

Great. that And was right? quarter, for Ryan, the just

Ryan Hymel

for correct. Just QX,

Shaun Kelley

lot Very obviously, Super. incredible these DR seeing on outlook markets? and maybe from can Can and out bit it we've generically we numbers seen interest markets. supply. or how But of across are in and 'XX much just metrics the and us supply thoughts little are 'XX? you of thoughtful. amount a Caribbean of in decent there Maybe [Indiscernible]. attract landscape? Cancun markets the to to But front current what to Do theoretically be types developers you supply narrow just These grow expect you would the question, give last these

Ryan Hymel

into and the and over thing time, a more net. in all-inclusive markets, attracts it have of the as a more wider market, rooms within long easily it's the of kind market. you about it's year-over-year, can been that good absorbed growth have The healthy merrier our Shaun, airplanes situation, one In Sure. pretty where you period if supply markets that it a back look there over has more is you customers, throw relatively seats, attracts more more world time out and is

for of and levels all, actually new City most is I'm just in to of to particularly, rooms York below are competitive about coming where I rooms then are most first New new properties. are down. opposite coming at that that demand you comment just in it's that, because like our So talk the want experienced the coming driven. that and of prices We've And not on have going rates us,

at as much now, trending so supply. to our seeing due right we're And where guests not are up

So at virtually no with the that, hotel there's land no there, nothing supply if you proper, zone, and There's look there's coming. Cancun coming. new

So the to continue resorts see zone, hotel that you'll are And have we perform think to I exceptionally the going that. well. in

necessarily was So then in some coming? Florida to room. I the But new the way of down there's People, the go Carmen down to the and like as way new Playa far is, projects. announced, directly up room away competitive, new Yes, the how you it, all coming. my big is. just new it And Riviera almost to The it's are coast. caveated think about think but it's I down a a Tulum. Hilton think will Hilton from way coast. thing Tulum, XXX Puerto going Tulum all really that's you Miami cost not Morelos is familiar room I not with new is there before, stuff from any del Maya, stuff But see

West Key the from way out. So all

resort XXX So we're coastline. of miles like to miles, a talking XX gets up

there many thing our for the within markets it is, are the that from customer. particularly away get again, attractive less the you airport airport, the further location. distinct So And is

be an willing going but At a don't points, half are a see big people more lower hour price that. we and just and Okay. to bus or on

will I be there think So supply concerning resorts. it's to our in new be Riviera don't to overly going Maya. well,

of kind and it's the you've Hotels, of Los is, That's that inclusive. EP the more of I Okay. didn't much Los which not much Cabos seen at about point to all part more as lot been high very a price Cabos, limited. know Yucatan a yard restricted in you and

a Maya the it's close-in think So or the I Cancun. would built again, it of situation, out. Republic, call relatively well-positioned. In Most properties to Riviera Dominican similar I we're are

Okay.

near little out. So our airport you already there. I with There's look we're think There's our a even land Cana been bit very little at very Cana, little also Cana Other Ziva the space. have in there. incredibly in Cap so well-positioned in situation Cap Cap built but historically close-in a flagship, Hyatt locations

I opportunity away so us think forward that the be more conversions, seeing a destinations airport. build destinations would And the for in from the of lot than significantly you're the and going newer others are build Dominican, new further and new

called So on market Almond new way up other of past locations. who Ube the north or Alto, in newer markets

it's are the go Dominican, and to I Tourism on So going to I and of and more get they're people lower challenging the points. them. government be there, Ministry to going the to pushing think price be touting these all think at But

while again, wanted to in stuff be in going short-term, then really new just going you just to nothing So on Jamaica. competitive run focus not will I Jamaica, in overly is come and there's the but know the I think Dominican, for to us. in, long And

I think that's a So too. situation good

Shaun Kelley

you. Thank

Ryan Hymel

Sure.

Operator

Please from The Bank. will next Deutsche with question go ahead. Chris Woronka come

Chris Woronka

congratulations It higher, and like-for-like possible? are they certain how we drill certain you little getting that Good that's on something? Do to rate. of could mix customer now. keep to or maybe relates the structurally Just business, Bruce, you guys. not think can Hey. intentionally stay about away Should bit whether almost geographies? down from it or is morning, quarter. booked buckets occupancy maybe where rates like XX% if they're a And on back we these how sounds

Ryan Hymel

we've or this lot very of then on to these but have beginning, couple as a previous lowering to cruise is, of process the travel never who aware, beginning going more on are other and maybe over just of on, who Sure. to back travel. very standpoint, country. hey, really And the The any business. entering people noticed trends. have calls, increased new on we've rates our it rate of And been the question. opportunities a it's Europe said people drive last interesting going isn't early in since travel lifted. all out the are - as the to thought to going pandemic. Good Thanks, Good Chris. And talking From our we you. focused, in to so or years, trying gone a are available people Caribbean inclusives, are lot previously the and then had Mexico, at restrictions The well had to people weren't islands, those them. all Dominican would

Now, of course, Jamaica theirs. has lifted

into what travel you've to -- is easy So relatively there. seen it's has been our markets

And people. shutdown. restrictions, a of was question that's been so that, for because dominant Europe is States. back, isn't that really lot the more of also And United we've still and coming good. seen different market No business the Asia, Canada us had supply

American was customer thing percentage changed, is. was it's just the the But biggest so that also that of who So that increased. the type of that

so And

Bruce Wardinski

and the in construction pandemic, I the Cana, all-adults finished opening Cap the and right the before lot all Hilton Romana, Hilton all-adults Carmen. recall, if Hyatt just exposure. we [Indiscernible] Ziva had and ages in La a we And got you and more del Zilara Playa of think renovated

the things those and ramp we've our launch So pandemic had came open they and shutdown. business, and were the just to plans and then up

ramp to is So up in what the you started really months to of XX resorts. the XX those last see

paying the dividends and seeing high us. level resorts you're those quality are resorts. the of strong really service the for so of The the made investment customer huge there of acceptance And we and

to a mix it's what if really achieve just change, much not that's not there so so we anyway, had pandemic. And been a even achieving expected

call but to in emphasize of listened the that's so note. having really have people U.S. the very, other in overall, to to different sustainability rates, got positive position. companies we're over lodging And and think very emphasized leisure I some I And a earnings because other concerns this, of we've and from

I sustainable, argue than are I would and incredibly they're our rates cheap. think more still

year going in in dismayed you at we're to of the value pay any have rest and think I summer proposition the if look seeing Lauderdale. of rates into what or risk Fort so the people next they coming year. Arizona and second get this to go down as for of ours, may more not And more by And a

you're options we'll think rates. going great be see I And continue them. to are our drive for going to just resorts to that

So our is We're inclusive. focus on okay? all Number rates. one,

right? the have, expensive, people more all So the and we we provide Because beverage. the more food

in people off much going resorts, it why I why that's fine. trade get we're more and experience. driving customer or that's sense for and rather down we would us rates drive really more makes higher astronomical not really I and get we're occupancy. we're of if rates some want that totally may focus And high-margins, we the coming to back better the levels what on to to more past, were seeing, to the to bottom-line in season. that's think it our that's and to in necessarily We occupancy particularly So the never summer

Ryan Hymel

Chris, today, is versus a only and one room the fill today occupancy I'd on the have thing a demand environment accepting profit base where incredibly the attractive. essentially to ADR, your point a in we to inflection this add world And to like booking to final attractive existing the low you're final we live in is margin. In of world the incredibly incredibly, business discounting versus and a room marginal

Chris Woronka

Yes, Very you with relative for and on proposition. agree I sure. value helpful the commentary know

great. that's So

a more Sean's you it's we're guys per about M&A transactions there looking management rates ventures, for to that future, the kind contracts, going you think opportunities a of talked higher, or these anything hopefully follow-up. of or room And whether pretty off like some participate, structurally as values the on see maybe out that. with things With be that to question, to assets. we to assign folks your being are they're any for might, of good you joint spin do secondarily, this going comfort is side. in give Bruce, Just more but a

Bruce Wardinski

So I'd and And say X yes. absolutely, say I'll elaborate, so. on Question I hope Question X, on

all-inclusive the breadth So talking market know, I the as of of with know -- Many audience in have institutional period, have today. trade by in to owned just periods. but They as resorts are our be operators. They don't different things the owner don't you long companies, so often. our very markets of properties. forever owners opportunities, investment listening it's investment family resorts M&A could -- our We

enter always Having others to interest institutional been kinds global if see. already the in and it's expand the just all building looking looking companies, the of the or segment players, building that, from real of to they're others So owners there, brand challenging said different more segment. to estate, has

activity? those that So attractive of do Yes. values will will cheap? I make think think I Do there's trade our prices a Yes. M&A good at look possibility

I question. of But get think that then contracts And can management kind yes. Okay. from too, opportunities grow think, we I and absolutely, answers perspective our I new in that's to think more

So see being and the everybody our public is all-inclusive gets reporting company to good the that our numbers, only news about results.

And been distribution big on to our as have and as different results sell have reaching are add our talking more resort talk strategy. strategy and on I to and the been that playaresorts.com, ability on has global not managed us looking view to our way more resorts a what owned direct growing, positive. the who we so mentioned, the may channels. a at really we gives that doing brought and focus Every strength the us us of or want about, we've money and customers, now more branding portfolio, they spend with the positive to sales, before, our is and strong in who people us that we're interested to With

to going more positive So for us you'll see I us, think it's announcements growth. make about and be

Chris Woronka

Okay, great.

all appreciate the guys. color. Sounds good. I Thanks,

Bruce Wardinski

Thanks.

Ryan Hymel

Thanks, Chris.

Operator

Beynon Chad Macquarie. from come will with question Please ahead. go Next

Chad Beynon

Congrats results. afternoon. Hi, the on

the And know, the think provided about do think lot back printed. couple a a think guys given frame don't is what side. degree But or on translate of how that just that wanted 'XX, year, revenue flow-through wondering decline. it which you and $XX we details greater Any anywhere would revenues I $XX of next 'XX, of to to should of to the off this you've I guys could I'm million probably to 'XX? EBITDA million we lead a in standpoint the I EBITDA. between different flow-through help a generally and there we'll certainly commentary historically see how of about from see guys or Thanks. margins. half you quarters what than would provided, the You

Bruce Wardinski

Things And severe the right? to one we a very things of control. Yes. of But are it of immune get I the one, certainly that start. out made pressure, having issues some want that think inflationary we across; off to great that not are aren't clear we've

Inflation our getting crushed lack many For by better costs has the world in region others been term, the a like really part and of environment operating are. always we're not completely nothing normal in of so is new.

at year have it's elevated in have least staff, very though cost with every the the cases experienced some at even every increases, property for at least We or at the years. line labor good level. we dealing two moment, And all a that

we've voluntary paramount flex already year. our lead you margins operating so to maintain record the and as costs in margin think one, year. grow guest last is choosing and in and very rates and And to and And this saw prepared repeated maintain again to while more experience we've very that invest those We're comments, the fantastic that muscle continue a that but we up, that clear what made this play us be the that our actually of expect very, to to intentional. it of some some that of I and edge very done operating are specific are often. that was see, so, And we fairly you to, for opportunity

from of talked or is above. own time-to-time. our the staffing per And levels. out of circumstances the examples as we've many and presentation level that quality are hires in the areas, at our you perspective? for overearning from beverage guest guests at simple food Operators a our of been labor we staffing are for because you And have the come now more before, I you're essentially are and procurement, made food issues here having think we've of asked Pre-Pandemic Whether currently we've it corporate investments headcount so you And this do pandemic unique and invested properties. some and about. beverage some things other at think in. set importantly, while Just we've or

in and environment one So I already we're I can numbers think we mentioned this and earning now, over in it is say just already our was not definitively everything. there. right

in, favor, value in covered, should 'XX said, rate that than is well, lead own our So XXXX fact margins or relative the better environment this playing or continued Bruce proposition you've in that you to given the that operate like completely just seen given 'XX. and just incredibly even we can

Chad Beynon

if such the the been a And experienced. is things, more Ryan. of may side gas be any a past and on on airplane then given the importantly in consumer Thanks. just the increased terms increase with the that strong small you flight The flight from consumer looking back or of they're have overall do of increasing sense push and there's part as, trip, prices, thanks, side. just any of outlook have the Great, prices

Ryan Hymel

factor it we and this higher our of and of play bigger there's recent moving on likely I the intention segment earnings the robust Yeah. that think And always season, from are the airline price a a traveling, business. But we've a saying earnings to population. pricing economy most market, really depends, job short-term prices a of Obviously, factors oil. very But it them get in oil right? goes one some anything but time, if Obviously, ultimately, like others properties, not throughout space, the at shocks, or of thus can of only and given this of to Shaun, going population stronger the point, hit for way and shift function you're and of correct. that obviously back good still that our I to road the issues Probably not abroad on pay of hesitation. mentioned mean, to by has our swap noticeable happens earlier, without business traveled US higher the all however, monitor result with our as still large affects our that services as sort universally and Bruce there's the and and customers some can in be demand, your commodity loved cause that certainly in the any to from durables, seen of travel service any not again. and it's

So -- and so far good. so

Chad Beynon

very you much. Congrats. Thank Great.

Operator

Citi. Please proceed question will next your question. The from come with Rose Smedes from

Smedes Rose

introduction there? ask just specifically Hi, the bit wanted how about the to you initial with you a of customers see the I Wyndham thanks. little up take Alltra brand and

Bruce Wardinski

Yeah. brand mean, speeds well. I I to has think very very, started the

efficient between have and in coordination I'd two say may we our First our I of operation with companies, relationship but all, this before, exceptional. Wyndham the said think is

just So point. that's the first

Second, at world, point, big as in that's bubble price the that price when that supply was the all-inclusive I I point. is to the answering alluded question, is

So think there's price Wyndham point. I at out the lot that with have is standing of of advantage a crowd. from property we what Alltra And the

positive point about Hilton's I relationship big for Wyndham that's and other the in tend with our consumers, So by At think doing it the a lot of our do and a our aren't we're with of we customer much to through extremely thing They so positive And recognizable brands to channels. our consumers. in other that so. operator edge try this same particularly the expensive the to channels source time, US more high acquisition Alltra. high

with to can results, price Playa I lot a And I the want near two, So relationship I those that's in very more in commented one expand and that a see brand point drive they and lot assure significantly Carmen. going Cancun and properties. that one out of future And to be us, we we in to to lot del have relationship. that of are at could when the that think growth talk them a they great of people you in that our on us. it'd have reaching

Smedes Rose

contract be management could the on more That side?

Bruce Wardinski

and both, yes. renovations, management acquisitions our contracts be repositionings, but too on Could also Yes.

Smedes Rose

then And did looks think condos be is to there ask -- [Indiscernible] -- But -- here. Cap you're was opened guess like there. be hotel slated maybe if the built I are this and being another Cana Cap just I I -- two But Hyatt hotel the to you there's like to there you, trying having coming talk on that the to large Cana, there. maybe or is specific Margaritaville your from fairly potentially maybe impact there wholly feeling your going recently and any could want Margaritaville really like customer be different is one. adjacent I is partially it it wondering or and the that base, looks thoughts just another could up about a

Ryan Hymel

not. immediately been land right, we believe plot I fully First, of there despite a actually you're I'll that, behind but door. not. anything position. unique mention, adjacent been next planned, comment successful, think Bruce on -- can that or don't whether a that's I It's it's our are has put Margaritaville, what or asset has signs up in operate. we But sanctuary the

a has funky And a beach. very small layout so it situation and

that's I true. think

first So Margaritaville. line is talking about

a But our XX% it said, delivered I project about construction sanctuary was nice very think sits as it's there. of that Ryan behind project and attractive resorts.

not on beach. it's So the

a like of of it of like kind New part kind in part of York on, have State, big, the like, New of part big, York a a you that Margaritaville. beach day map, So it's is think almost can kind on sticking where you the city that's

much beach, are the to etc. kind the the views, water So of limited. access more

situation So that's the there.

far not our properties Cana, either is as it can properties our of either in impacting impacting tell is there. of I As Cap not. you

think there of I that's far and more Hyatt's we've you then and we're in that's plenty we're that as in as existing the Zilara So neutral Cap that to goes, Cap not even land the to driving future. done committed as with sanctuary have both can Cana. I and Ryan ' obviously love of today, assure said, at the Cana, of Cap is that Canas And to nothing piece there incredibly piece what happy land business

end just me way. Let it that

Smedes Rose

you. Thank it. Appreciate

Operator

with ahead. Tyler go from Next question Batory Oppenheimer. Please come will

Tyler Batory

that sure what you. more margin be with XXXX directly Thank understanding It question I just high half. under the you're us ADR I'm that that little a single-digit will assuming want that for imply back really afternoon. margin I you with margin sounds bit to growth second Good just want here. flat does in compared a And in ask half, that to XXXX? like the be telling scenario, correctly. expect year-over-year

Bruce Wardinski

take, or year, last saw historical that give roughly or be should but above slightly or It those near correct. That's at levels correct. we

Tyler Batory

then we're or is provided sure for that, that. be just a some on terms are do folks numbers of And this advocate scenario on of mean, but to it's think now Jamaica? grows where this a you I to devil's bit to going the in a -- Okay. be and that Jamaica little maybe of want announcement a just business. the you shift maybe the things to in terms -- of Great. a I play of announcement, switching going I Is really share Cancun overall loss and that kind that just to a maybe going And potentially and Dominican going or be second, to appreciate [Indiscernible]

Bruce Wardinski

People done incredibly just who Jamaica me Republic. well. you from this, Ryan pass Let Cancun Jamaica and to then or it who to tell different are to historically It's my different over the go very I'll Dominican has always go market. and than start But Tyler. I'll standpoint, people the a

it's rated Typically, business. higher much a Okay?

our Northeast Jamaica, best more Prior a that with well UK component, historical was given go to people Jamaica U.S. connection segment. as You the high the the Kingdom. everyone's as very to refresh United get just pandemic, a lot performing to memory,

to it's to think don't or open going to I just people going this lot and it and switching, going Jamaica." I to Cancun people. you're not going going [Indiscernible] "Okay, to we're say, a more not at look think So to

let's who Jamaica to the has Second, coming just about gone markets. out talk of Northeast typically again,

due higher much be quite it's pandemic come market, honest, income back has rate group that concerns. a to higher a not and it's So significantly disposable to really

Okay.

getting related as are the have have changed, things mask more all Northeast cities mandates removal in of other up, people with think the I comfortable and the to opened COVID. So protocols

huge, Jamaica for huge. think I is potential absolutely the

Tyler Batory

not an interested and know come and coming I'm helpful. you for did the coming I'm you are properties, of me, incremental specific all-inclusive have are think very fall guests been a some very your quite that closely. all. time or that for even getting very terms to before new guys one good you Okay. your Are experience Last folks Excellent. that interested maybe to down you're where -- then -- track bit -- That's that new from resort I and you maybe brand just never they how hope just in back? folks how compares to that have first just visiting a

Bruce Wardinski

Yeah, absolutely.

Ryan Hymel

the more the -- lot there of experienced years. was We're Tyler. became before over part seeing people only who all-inclusive Absolutely, never a in were two -- last we it town. And game

So you could only our go markets. to

so part think very our to And because I concerns an safer high early the as desire COVID, at being of all-inclusive. there a properties all-inclusive people looked at and stay felt was at about people at and

were, So and safety they didn't knew they have to what we're know doing what they the restaurants etc. outside where didn't protocols go to

they very comfortable. So felt

And how segment, and drive every do, which consumers, particularly back. do is they people involved more lot case. just been in time people, beginning, and I now I've it you this segment all-inclusive. was the think always the come like, for so to It's my trying and a XX all-inclusive experience? U.S. like my amazing issue goal the been And And from you very got we So of years. people

very resorts. percentage to come a after have people We high to our return we get

big do. on And part so then a to And what branding. we focus I of our add think that's it

the brands Why who all-inclusive program never major XXX, what built we So do and do replicate for use state can early the we're and that focuses the frequent only points, the resorts. our reach on, million one have have, do. we've the in stay their of we ability redemption at said frequent can We to brands As the up use people branding. can that? members XXX all over of XXX, and on them as the

they're even over big all another have what they So component our doing looking years and then grow affiliation and they with are the more. brands grown last finally, two And to have eager, the is brands of inclusive, the eager been it.

group. acquiring You Hyatt saw Apple leisure

focused the more A in And Middle strategic on world. just they're saw the the Europe, announcement part particularly on about, East of portfolio, our core been doing You now They've to transaction. then elegant their Sunwing and the major Mediterranean. and the focus in all-inclusive. Marriott focus made going a

over really good So one list. start gas. drive And to XXs millions looking just of inclusive, it's ratings, us. of People looking lot we're every going million think or for all the looking XXX time at these companies out is start at takes eyeballs at a the initiative of We grand us. I the of to that at TripAdvisor get all inclusive. top They those

Tyler Batory

Very all me. That's from you. Thank helpful.

Bruce Wardinski

Thanks, Tyler.

Operator

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

Bruce Wardinski

Great. Thank you very much.

on still make first sure quickly, walk points to had I and got the a themes today. second couple we've people We rolling away make So just are to want really just great quarter. into of momentum with got We the cheap. hopefully just prices they quarter think a our

we it's As said, our for a great value proposition resorts.

it's Canada, or building for and looking really back Asia, take And of MICE really that really out XXXX. were ADRs we're of with these and to second yet this of COVID, hesitant you people components is Our things in see coming We good finally, mentioned, second-half business coming surpassing back. people cohorts or half during as XXXX. And we or or that people strong year, Europe the our into young are Lots think business traveling. are Playa. well all have not started ADRs children starting

Hope So participating thank this you has weekend. again everyone a for afternoon. great

Operator

attending you Thank presentation. for concluded. are today's We

now may disconnect. You

Playa Hotels & Resorts (PLYA) 6 May 222022 Q1 Earnings call transcript