PLYA - Earnings call transcript Q2 2022 | Playa Hotels & Resorts N.V.

Due to licensing restrictions, you must log in to view earnings call transcripts.

Operator

Good morning, and welcome to the Playa Hotels & Resorts Second Quarter Earnings Conference Call. All participants will be in listen-only mode. [Operator Instructions] After today's presentation, there will be an opportunity to ask questions. Please note that this event is being recorded.

Now, I would like to turn the call over to Mr. Hymel. Ryan ahead. go Please

Ryan Hymel

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

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

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

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

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

Bruce Wardinski

adjusted to the XX%. Great. continued ADR growth the Thanks, in rate during Playa to and us. XXXX quarter our second Ryan. our second EBITDA accelerated approximately continued Good as morning, momentum as quarter everyone, the and rebuild joining thank you compared company's Business for to occupancy generated history, highest

QX our digit XX% books, on at to the continue and our XX% on pacing Based XX% nearly business the revenue nearly high-single rate higher we and year-over-year year-over-year. pacing to managed fourth versus third quarter XX% owned year-over-year As quarter QX ADR of XX, Playa nearly on XXXX. expect grow the July and books versus up is the XXXX and for nearly a up is and

We to observed pullback meaningful consumer I to any environment. to appropriately, cancellation remind to are booking were go in two occupancy, to our changes rebuild past our prepared activity and in back adjust were to not many that staffing others and or everyone we a demand we long want have costs see the that baseline demand, industry, but over ago, forced then like X% our years. we slowly if not to the

environment book for we levels accordingly, So memory any needed lead are to our ever our adjustments act a demand experienced. it. at fresh will With times the to call conditions the and adapt in have healthiest changing quite if we

We time. this our are potential effectively are in on we not any although anything manage the confident seeing slowdown, through horizon to ability at

we incredibly which our we have be continues compelling, modest In as ADR the And entry This our long environment, our USS the become and our pacing, in testing evidenced led still by uptick I MICE since groups particularly value proposition It's all There the today's demand families strong pandemic look that a bookings for last of bookings, on XXXX. still segment. year important in of experience note to satisfaction ahead believe of of reflected the scores yet. upcoming these experienced complete. call, high pleased relative are trends positive inflationary awareness despite with customer ADR a As that also children value continued with season, all-inclusive are build demand recovery occurring due revenue of consumer to by lingering travel customers, young last is not from to and removal and in runway. without were are ahead leisure to half of guest revenue far full the our yet we second the pace requirement. to the significantly have the following that dynamic us ADR has the traveling both trial are of which in recapturing our concerns, gains. and

date, seen and international to recovery we a full parts of guests. Asia, particularly certain Canadian our of our have Additionally, not Europe markets,

Finally, I offer that approximately is favor it considerations of some from ADR want resorts to to compared our the we the at our highlight compelling ADR, guests. robust, when growth been is headline path still standpoint. ADR value to percentage growth competitive that as is from to headline Playa, I establishes forward our and remind points a growth that we XXXX would like although benefiting best has everyone X approximately manageable resorts, non-cash percentage our mainly sustainability the highlighted change Strategically, dispositions and of release, continue billing These believe asset ceding as addition Cana our contemplating earnings our important are from Hyatt resort. of ADR XX in occupancy Cap Hyatt leader rate and OTA from in methodology respective for the standpoint markets operation points us in lower the more our an the

globally, the pricing of a the are continue inflationary With to pressure, businesses, impacting operations also offering only higher of operating expenses. fantastic to the value for reality dealing not guests, we but growing while economic consumers our cost with on focused

broad-based performance, The fundamentals in versus business to strength margin exhibited quarter period with challenging environment. Jamaica. growth the healthy ADR the and leading up, once despite continuing XXXX, particularly in ramp the comparable an in to cost occupancy with gains was again growth Second occupancies in acceleration

periods, the from requirements for portfolio as than remainder has we COVID testing for a during disruption currently Jamaica's year. that combined As and books the occupancy entry our the you, estimate quarter this second of for on and sense of of Jamaica had the acute the shared optimism gave Omicron variant particularly impact occupancy the a previously our removal lead We the bookings earlier Jamaica arrivals XX% quarter, with but -- XX% by to quarterly basis on exceed with future during airlift a segments. us growth in exhibited more our the other our QX since year, beginning by in. in to bookings the the the to other rated for growth finally on second accelerated mix a the XXXX segment levels passenger nearly underlying growth pandemic. drove compared XXXX between Bay of segment, first time, capacity higher there international the into sequentially lag and Montego the ADR growth as which demand ADR lift is impressive lagged

extremely Jamaica leaves its believe we the addition, as the bookings XXXX. have of in stronger segments, nothing as is XXXX which was our other always into best following has encouraging, second This removal Jamaica, performing structurally considerable pandemic. ongoing in In requirements. future than half our been head testing all of into This from changed to the the onset in of Jamaica, and upside segment we the prior recovery

way Coast. recovery Republic and from in XX for to target a Zilara stellar high to quarter the led return XX% are a strong had over which with Cap range the the XX% the The end investments XX% during by of EBITDA another cash-on-cash to Turning Ziva trailing continue to margin which generating Mexico, on and on particularly quarter that Playa, better benefit than Hyatt the expected a month Resort Dominican another now prior basis, our of well quarter. resorts, demand had Cana second has was Pacific above the we made pandemic, we close led capital in the the

pay on to direct channels off. focus Our continues

our strength year-over-year, is to of of the year source consumer by the Playa percentage booked In target X.X direct We were in are at channels, business least significant five direct third-party of increase aggregate, second acceleration business. room on points XXXX. Playa XX.X% to that with managed continued during reflecting quarter plan group confident XX% our night booked relative a and including direct and XXXX,

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

significantly normal, that than returned seen reminder, direct mix fall XX%, will to Finally, a still higher we new we likely as the as levels the would world below our direct from anticipated basis. we at less a but a prior little XX% Taking who traveling quarter of that look and believe slowly Playa remain higher absolute our managed of room a business to came on the an pandemic channels. night than is the in stays

tour points, compared and operator approximately Geographically, XXXX improved group to QX our nights. managed remained XX% to As room our percentage mix of and sourcing OTA U.S. depressed. XX mix increased year-over-year

business points point While XXX nearly our percentage mixed South increased guests and X European source higher. American basis

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

pacing robust significantly result Our than calls. longer recent been in figures have with a was the you sharing QX earnings of we XXXX, booking window

second XXXX. in to the truly and the back Our was outlook. what length our sets that I'll Playa thank Their to during XXXX that, is the challenges. call apart. QX face and sheet I all deliver like Ryan to of Once balance quarter again, sincerely world-class to unwavering service QX have to would X% and service pandemic-related dedication passion turn X% With discuss over associates the of of our continued above longer stay than

Ryan Hymel

bookings finish of and liquidity first and the update Good the with will then Thank fundamentals sheet our balance you, an Bruce. morning, trends. market discussion quarter, and and of you the on I then forward again. give review second

As as currently we is have debt June and asset quarter outstanding sales. mandatory billion. a repayments under you total balance total interest-bearing credit of million our $XX from no borrowings our know, stemming made on XX. outstanding million of finished facility is with cash just balance $X.XX of we the revolving We our This $XXX of XXXX net debt

at trailing million The related. through approximately spend at cash to CapEx, point carried now CapEx vast X.X a on $X in anticipated. XXXX roughly is this spend majority projected year, we for We basis did leverage with our $XX full net XXXX from CapEx year maintenance million anticipate for stands our not the as be times. over of XXXX Our being roughly

business. our Now group turning to MICE

and Our earnings the million of group our $XX year call and in is quarter. million full it's XXXX of the the quarter XXXX our MICE the us to a second approximately About net million $XX the at ahead in of the million. books the remainder MICE of stay fourth last time again with third $XX business on is revenues expected well XX% in the $XX versus of third of year, final with that half

on at particularly pacing shared on a X manage Our $XX with Cabos XXXX remained business year-over-year, the of amount nearly MICE to yields had XXXX. And XXXX higher already is with roughly books this of and we on revenue the our return of strong, which Cana. drive July in Rose MICE in than XX% books, or has provide the we The also million for earnings resorts help should Cap call. Hall base you improved what and our last good profitability times

to on moving the Now fundamentals.

our as came and Our respect top ADR our second by results better line, closing also ADR than above better demand above Coast. came than ADR slightly expected a but and exceeded result to our of gains quarter the properties. expectations, occupancy in driven occupancy. at the expectations, expectations by With Dominican of Pacific in both anticipated in Republic Jamaica, our managed the in

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

food utility food ahead enhance shy efficiencies, to factors of that XXXX XXXX while Margins XX Our just make QX bps I'd given the margins. QX the of and beverage like pressures versus the due Resort were marketing revenue some guest to and levels higher, inflationary comparing Resort well and fundamentals in and compared XXXX margins targeted and higher were from QX both and experience. position, everyone expenses of investments booked benefited periods beverage and of difficult. remind to our the analyzing XXXX to

June the higher lower in ADRs had a profile. on operating a markets and First, know, as you higher XXXX. at costs And are of a the closed we historically like-for-like are that's have on while as reminder, Jamaican Sagicor margin the transaction basis,

most and second the we as impact and XXXX sharp pronounced the the related as disruption segment At third led to slowdown to conversions improvement mentioned, related And experienced decline the XXXX during concerns which Dominican quarters was profitability, a in XXXX. Secondly, level, lastly, the second occupancy year. through of June quarter standout. the rest the notable material in construction during Hilton recall, experienced of our are the carry a you Bruce perceived Jamaica's the of to sequential in Republic, safety beginning

we of improved second have Following on the the half start pace expect the year, slower XXXX has quarter in in the meaningful relatively The and versus and improved second to and further as performance Jamaica potential MICE resorts. increasing improvement during on to XXXX, historically Jamaica airlift into the based relative business booking we the be has a growth the growth comparable to in our segments been in EBITDA ADR muted contributor a the other market. recovery books,

adjust have double-digit comparable low to ADRs for dispositions, If the the XX only roughly lagging percentage XXXX ADRs rate of resorts growth in mix points. versus points you half like-for-like Jamaica at by of That's XX asset a impact during XXXX. percentage increased first

tailwind the us the With and will of to the the coming the for removal of entry requirements, in be MICE the monitor strength COVID in months. segment particularly Jamaica exciting

adjusted versus to higher XX% occupancy dispositions. of results impact from our sequential at improvement OTA strong segments, Looking deliver adjustments gains nearly mix or channels, ADR XX% continued XXXX, leading through driven by to for approximately reported and other direct Yucatan and asset commission Peninsula QX demand our of

beverage However, to quarter The helped had in our than pressure channels by on higher and they similar Pacific weighed food and margins food beverage group Coast second margin the and second segment, our utilities which from costs. Yucatan, fantastic utilities cost were headwinds demand direct XXXX throughout and quarter, MICE while and driven strong still a in offset levels.

strong Zilara again Cap the XXXX properties, to Finally, Ziva weighed (ph) still quarter ADR segment two externally lead our another ADRs our way and margin down the segment the below managed Resorts of whose flagship once Cana levels. in were with Results are by performance. continue in

revenues continue half year-over-year to lap expect record half been at and by of pacing second in has XXXX, book particularly second about excited building. we I As second periods business the encouraged fourth Both pacing ahead significantly of and XXXX are potential in half gains third comparable how the year, our of our be to XXXX's in ADR. the And the on based of look We're the we and revenue of both the quarters year. the and performance. ADR

first second half rates an is to occupancy the the digit occupancy which trend, ADR versus expect acceleration the of of second to and growth, quarter levels XXXX XXXX. when half XXXX, in the similar in we For to high-single compared be a year-over-year. reported

the in year. Another largely of change reminder implemented OTA the on modeling front, third was quarter methodology quarter and should the become and in during comparable XXXX the ADR our comparability second year-over-year the impacting billing this of

regularly the with began exception second half some materially many do we the are first reservations that quarter second second The materially still new commission increased books utility ahead policy compared to QX the anticipate versus in be 'XX, insurance which just the of had with We renewal treatment. XXXX, quarter the as costs, of of reported change, XXXX, of we and the the half on connection F&B in was expense inflation impacted the which to annual not of to not accounting year, worse our subject scheduled as higher in costs. and

our during middle inflation experience reminder, a a the XXXX. of costs As in step-up

margins fine helps for further guide you, over we're or of that the of half remarks. margin in as expecting. framework to the and that, lap your I'll XXXX's the some in We tune second So year conclusion, and performance. hold turn we and insight models half you Bruce still what it year-over-year record hope grow in With expect second seeing to back closing gives

Bruce Wardinski

Ryan. Thanks, Great.

within uncertainty carefully increasing our monitoring diligently the we the With landscape. backdrop, control in focused the the are are on macro areas and

travel confidence leisure be focus, derail durables. the in losses for shift as success major could back employment, potentially most job services our from factor the Given our to and a important uptick or will

indications job market and in of labor demonstrates impending morning's the an overall report no However, no recession. weakness gives this

positive. certainty As even business face market continues remained the travelers, backdrop. outlook the believe to very Playa economic should Playa's amazing by strong, as job long We provided be in price and an uncertain of value the with resonate

ago a market for and ideal Finally, naturally X extending on healthy aren't Our anticipate front, faster what the leverage short although debt approximately asks has which recovered a the allocation balance, times the time refinancing our conditions moment, question, financial maturities. capital Playa? expected, most at now just for next and of us of long-term and have we now only approached cash is have target we than

months yet on that refinancing announce, and of on pursuing we reduce our that we became long-term Separately, loan part another property As leverage costs capital time-sensitive help projects rate working use which actively debt X.XX% save use we of our with interest believe of potentially for provide cash have have recently our cash, which to but is are hand. consideration, a been the of callable, attractive value-added will return, solid a capital.

markets begin line remain would to stock continues severely in interested the depressed, Finally, credit open that, current and its questions. I'll at valuation. up if our stock any our be for back cooperate With to we buying

Operator

from Instructions] Please go ahead. begin the [Operator session. We'll question-and-answer Patrick Securities. comes First question Scholes, Truist

Patrick Scholes

Hi, guys. Good everyone. morning,

Bruce Wardinski

Good morning.

Ryan Hymel

morning. Good

Patrick Scholes

you of the of [Technical possibly properties on Difficulty] attractive. value here. Couple very example you mark-to-market, Certainly, venture doing questions this here my ever might worth. a [Technical property, -- it's where consider is piece would selling joint a question what of off is the properties the Difficulty] really for on what is, your And looks be certainly valuation typical trading

comps effect, than of that with I expecting. and they you of their example something that so similar the it they that do small certainly good something was there's a Would was that you there. off did what higher a just really a worth? And street much Ryman weren't get to are where think segment of entertainment of somewhat sold Hospitality piece good lot

Bruce Wardinski

I answer we the is an standpoint, academic sure, consider. think, from would

likely. it. think I less standpoint, mean, a about from I'd think, it's so say, I realistic you

cash what went First Ryan of balance our all, is. over

asset cash to even needs, you very we have for an So a healthy any asset cash right? need part a sell an it's balance. Because like of or not

So that's one.

thing, is in second it's incredibly think exists markets overriding an the inefficient Playa that estate I for is, that in reason opportunity real The bigger market. the our buying of kind

example, that don't properties for competitively like You on our markets the Ryman all reach or are bidding have, in others time.

and very frequently. a comp. sell to thought trade joint be was so growth. and just share trying creates for exist. there our to efficient if things and a it buy market that's assets. And we is with there of, It's is people to doesn't no some from find that, a problems very a question, sell kind properties don't of opportunity why standpoint an do it In and Maybe would that somebody really There venture case,

So by we would be growing than like doing more something than that growing less.

our So that's look we're and against that not of no just I it. mean, crazy cash do free I flow But there why indication at we undervalued? we're we're generating I mentioned, weakness as believe think on Do would I if think, horizon. the that. inherently you I'm any undervalued. really I is

and the for I have mean, big highlight health, of always And job, inflation employment a go we for And vacations, are think, spend is the they're mean, us, their going on to is long of kind some as long And income do to increase, to to as our sure, their markets as other wages we do on I waiting negative. it. go continue drop. vacations. healthy, that. I business as they're to have going up, going not for (ph) sheet people

are to increase able a And it's but utility overall, and as as for remain costs, our than dynamic beverage exists, rates going us. some to in our we're and positive have going up. long costs higher that price We food

that business anytime not be fearful and not of to our we're really going declining we're is soon. So fearful really inflation

Patrick Scholes

win had make that… an you Thank you [Technical Difficulty] to there a new question, [Technical we Difficulty] get Okay. landed I concessions had were My you contract. next recently or announced that [Technical to any management you. Difficulty] guess when Would you think

Bruce Wardinski

No, actually, Yeah. good it's a contract No. and that example.

excited only ago, point the reason get so performance, we people you can asset, take space. dramatically So owners our your I they And the look that, -- experiencing, to the two in they the said, competitors and performance all-inclusive our to the your signing were we wanted see public above I was our agreement. at and of where weeks and company what being performance being were that to all that do over we look management down in Mexico tell can they're and excited. you meeting so there is and is with what at they properties and we're that

improving think their I are really for our very, high. performance prospects very

so we doing are that. and And excited about they

a So, agreement. very tell with concessions absolutely we're management discussions others. And I strong not. I mean, you, can in was third-party it

I that strong, than near for we'll able But make it's announcements. And exciting because markets those even an to time in operate very think has be the it. us, so, the our stronger in hopefully performance future, been additional we

Patrick Scholes

Okay. Congrats on that.

Bruce Wardinski

Thank you.

Patrick Scholes

some question I [Technical done admit, know one probably of see on year, growth. when last [Technical land Miami exceptional you already. We're you Difficulty] to whether on resort then we to answer Difficulty] past know my it's the think And this Beach some markets and starting the Aspen. the But I the or I Vail pressure and over well

obviously did in look XQ, Difficulty] you on -- next on early [Technical seeing in you noticeable but any in Thank your you you. you Difficulty] pressure -- and are year, at numbers anything occupancy? as As [Technical

Bruce Wardinski

that clear point why and Patrick, No, we to see here. make tried that's

are seeing reasonably -- mean, numbers, absolutely notable growth the fully we're non-organic any there impacting cross in change we're underlying very We're drivers erosion reiterate, sustainable. not currents. is our ADR organic eye aware still portfolio. to seeing just any is again, not any popping, our like like-for-like and I You're while of but consumer their or headline slowdown, ADRs right, those or impressive while

markets But of and have think to had a people still willing that rates, want like don't our back they particular in the to we've with South make any pricing and service the may to levels, while we're and that others, is captive not is levels, to up, want staffing else But sure go but and do go don't same go. captive where I opted willing of people some to that I particularly a be nowhere had And pricing in kind there. I to been lower audience examples, can in may or -- go places product market right, South in disparage year complete Florida probably those in you ADR investing lower the investing underlying growth to the still pay staffing. unsustainable, opposite next say appropriately, Florida.

Patrick Scholes

Difficulty] thank color all for [Technical Okay. you the on those. of

Bruce Wardinski

you, Thank Pat.

Operator

you. Thank

will question Next of America. Kelley, Please from Shaun ahead. be go Bank

Shaun Kelley

morning. Hi, for Thanks everyone. my taking questions. Good

just of I dig upfront to wanted you're all, So in a about Bruce QX. the trends little just bit for there and first seeing your QX on, commentary

I this, all thus figures. up bookings So yeah, QX directionally at rates. XX% revenue got right, if mean, kind QX, of revenue in that's are on far in in Those year-over-year in high-single-digit I all XX% and you're

A did which that -- sort first occupancy in should B get half of of the to did do? balance minus mid you you the of handle what expect, I similar the like how you is I So kind to improvement low XXs,

Bruce Wardinski

Absolute, you're really good.

Shaun Kelley

Okay.

all Just make want that the as decomposition. I caught to sure

really, question little a my next year So bit, right. then goes into

even What a a As push are the we of levers lot organic you don't story taken perspective, roll, consumer about we've growth for price we bit in But start things in help cycle you've that recovery can the from to 'XX. Playa think that last Jamaica is tailwind has to obviously, done like that's do for a us As largely part, to outlined. know, lens. it, if going a forward?

of and properties? are call Is it the can opportunities there kind back sort -- the demand? slowly up What occupancy we mid of growth -- it to other some kind it, like of levels 'XXs hit resorts? is high-single next around drive of optimizing year, let's or digit a, So the as building once we normalized organic

Bruce Wardinski

let's step going up could keep Well, look back and drive at that. kind what of Sure. and

Omicron, recall, First impacted of and in January all, definitely by were February right. if we you

not So we a formal first quarter XXXX. of did have

a to get another to fortunately, benefit going of -- we So don't right, that, it. away, right variant let's we're going assume just have that's have

to we're normalized a there. more a benefit going have have should we big first quarter, So

Second, okay, is Jamaica effect. the just

April. As you're Jamaica until well lift of their travel aware, didn't restrictions middle

were we So much probably MICE able you've MICE, half big that business Jamaica have final under then And and then market then so that really in not for the months is significantly in 'XX that restrictions the some has and Jamaica. results the we in the be the be great of historically first 'XX improve. to And continue quarter, going third our lap did to a X.X should seen in projects. the but is okay. us. one second that of And been again, we And travel to say, component may drive I'd that beyond capital

that So the But are, we highlighted capital our time announce investment announced will are. what been what they with haven't success we board we have these sensitive we projects, has they our across incredible.

projects, not that really the We have projects we've in good surprisingly returning returns, are whenever okay. money the best we invest identified,

you to generate this year the returns of doing So organic forward. going beginning be those projects are going really 'XX, into we're some nice kind to what look of at as later going

paints for for a XXXX. think all very I So of components, it positive those picture

Ryan Hymel

I return And And Riviera Zilara kind reiterate look of just said ADR end XX to low-double it's think the Maya XX market. Hyatt already and which at of Ziva about percentage hotels that, Ziva then, by we couple opened management points we digit percentage up last that the year, Cancun ADR twos, others, highest I and first far at reminder, last over earlier add just ones Riviera what compare XXXX, reservations it's an traditionally start the points. -- growth the in like really started only thing you build -- while the done, years, it's seen in it from contract what's but only proof comparable December, had taking performed Shaun, a of high immense in small we mean, I'd point, Cancun and starting other half And and XXXX, And third-party ADR nice but guys already well. like had. Jamaica. some of how mentioned, continue that add lagged should is not is was just market. beyond to the our on recover and increasing have airlift next if of that It's with the other the just we've it's you amount additional the that they thus build, We've you fetus been revenue other kind when thesis year to an contract that as and that revenue, for to

Shaun Kelley

And capital then Thank allocation up you sheet that. for follow question. is of the sort my balance

So I callability the notes. the, of X.XX you the alluded to guess,

target would reload as growth getting be should you've it how sounds as or as like is first level, something, times -- X refinancings about, maybe with we're you're organic going at high place if properties are and capital times the it yeah, that you just super mean, strike us where ROI about -- in we're want just priorities, help that much especially, around familiar exactly X But maybe the an that would potential to the because, So obvious, think maybe you not there to probably the into I of but dollars, you're past? like, me the potential. talking I'm and -- as demonstrated

Ryan Hymel

Yeah. And you are absolutely right.

in of those kind couple think So of it of buckets. we

capital -- like we but XXXX, mind. help certainly of at save over which for of interest but cash choice. than over as right. more and till the imagine. it is would need can and helps potentially debt capital mentioned over to need that, that a said, can't refinance this we maturity refinancing not due anticipate in say much remain And more help It's just X.XX that may overall that's of smooth process obvious expense the cost certainly as our on $XX run, and kind a and And something market, point. that smooth to a you million maybe, -- something certainly disjointed, that And little long whenever debt. help an disjointed. time just smooth first ideal the more the help some we're Bruce But extend year it's cash they So facilitate of if top not our obviously I little you process are markets the focused

the bad, markets is the little are still leveraged tough. loan bit in markets As you're high-yield OID incredibly better well but shape, been aware, a have

months address getting markets in liquidity So sensitive ability alluded the if background not be actively compelling fix we've And and yet and pursue themselves. point, preparing they're of for then, ready our absolutely the sure in approved, that or your projects to But you, some time and to and you're value use great capital. and our anything to more background, Bruce preparing we're in the but we added been working but making that can, we're right. a they're when to announced

Shaun Kelley

much. very you Thank guys. Great,

Ryan Hymel

Shaun. Thanks,

Bruce Wardinski

you. Thank right. All

Operator

Thank you.

Chris Our ahead. Deutsche from Bank. next is Please go question Woronka,

Chris Woronka

Hey. Good guys. morning,

Bruce Wardinski

Hi, Chris.

Chris Woronka

sensitivity something you you these the And mentioned think time on opportunities. want to specifics CapEx time of sensitivity the get is into some due Bruce, is you yet, didn't market But or to there I just know -- an grow to sensitivity approval maintain or it share? terms need procurement to or something is the time like to Or do that? or you another angle of in

Bruce Wardinski

latter. the of more it's then, And Yeah.

opportunities dynamics with a That's slower, it's or it bit the couple could little faster we but a more if okay. mean, -- is refers great there to is to projects. just things of do Obviously, guess, And on cash, I that. get across I what opportunities. we of don't from I projects a of and kind we things have strong couple more wanted track overplay really and there delivering those have So record we to. is want I have great properties. of a any message

prioritized but perfect So world, do more, them. we've we in the even

opportunities the returning to focus and we've So at that's we're going on. looked best what

coming And next the second year will in will I very half so the probably it positive, of be like beginning and be out think, positive. results

Chris Woronka

Bruce. on just that, And follow-up a Okay.

can a it I is forward disruption that do that guess, those, way of obviously Because that such in some If move you kind you do through went of minimized? XXXX. guys in, went XXXX, with you --

disrupt So can feel you very strong you to a environment -- get revenue confident those? do do we wouldn't

Bruce Wardinski

Yeah.

on we I disruption So going 'XX in than had back less an impact to we're the Chris have things mean, talking are 'XX. and of about way

when number the EBITDA And prioritizing number we're that's that evaluating two, and project. So into we one. disruption account take

the it want shareholder would one do quarter, next next to disruption capital they they markets back me, never incredibly definitely look what key were you mean, my learned. okay. getting quarter. was Finance, cash EBITDA an see for in adjusted best get when of and your told I've not permanent they Well, impairment considerations. long-term efficient results, markets always you and to projects I the me. of And risk the that's we and look, the have and capital back. and value. So It's That's case, just everyone The flow next that's quarter MBA value of is EBITDA I assume -- kind frustrating EBITDA at a they if

So practical focused that's what EBITDA and and But eye our disruption projects, that theoretical market way for doing. value going keep that the definitely we're capital shareholder do sense we makes the to on. between somewhere the what driving But value is issue. on we're we're

Chris Woronka

last of occupied in us revenue, both is Was impressive basis, kind Can QX room Or you more what the non-package strong just Okay. on higher Great. there that on then of you at momentum function going absolute and an that? intentional? tell one pricing the really some but for it on And resort? number more something Can of even drove basis. maintain everything a is it forward?

Bruce Wardinski

there. couple a It's levers of

at things already putting was We We'd roll there that quickly, a we're started. the of allowed from to out one, it charging selling website. our Cabana like our usage pandemic around through to So just transfers place for idea you'd to spa a in and South them few what right? prior the more the private the more us that kicked competitive more and airport still business. world offering well. charging those. building In get do property XXXX, to socially them, started for price, cabanas upon in in as We but in everybody instance, for distance more were Beach compared selling a able wanted very to We reopening

July. story And you're a of return that you've did -- and and and have on we dinners is the nice like and I MICE the Cana we a that beach layered the a was throughout nice already things lot events that. on long short, doing Cap in in of what now seeing so pandemic. base celebrations grew And wedding business, who's

right. that X was one. celebration And a one. As certified over was And doing that there the with, weddings three and very amount Indian large I -- $XXX,XXX we've the chefs, days, cheap cheap now with we're of chefs, one was that Indian away at over there example, hired I And was it an the think resort. I just a and relatively blown just relatively top like the again,

So our spent. very on focused package

Chris Woronka

guys. Thanks helpful. Super Okay.

Bruce Wardinski

Thanks.

Ryan Hymel

Chris. Thanks

Operator

Thanks you.

Tyler Next go Batory be from Oppenheimer. ahead. question of will Please

Tyler Batory

commentary you positive, Thanks in Hey. for being you any portfolio? within driven than of more bit obviously the Good rate morning. by is a question. different but are for weakness Hyatts taking performance little seeing within I rated Can the And my the the at holistically more lower very talk of portfolio about some that example? Wyndham's the the mean your terms business brands?

Bruce Wardinski

right slowdown No, still you're is Wyndham end always certainly a very, consumer, the Hilton's very outperformers But nothing I businesses been, get trying at, core the the Hilton's at and mean, seeing our of and I lower the to that a of Alltra even Hyatt yet. portfolio, Wyndham's. that's still we're kind consumer kind the mid-tier to and if have kind of strong now. like in our compared not think, still

down more in end markets Hilton like We for that years Cancun heard Alltra Playa whole the market, various from not it's the high-end weakness vis-a-vis supply It's proper. different say But del are many Carmen, just we're recovered and that the one all slowly more that at further Cancun from another, had pockets Hyatt. obvious the pockets Wyndham that than It seeing of over airport, properties you've the now not us lower any have there. times includes reasons.

Tyler Batory

then there rescheduled, I the and flight ramping airline the bit about kind lot in stories flights this challenges you've news did look Is headlines, getting of noticed capacity that of is, my capacity more stable? the like your little Okay. follow-up markets of for in back mean, issues. what with And up? year? question a is canceled, something that issues is industry I it's it the half think Great.

Ryan Hymel

in of Europe any already of had not there's that data in flights others. fairly what cancellation top in been QX the of QX on was The on the longer haul We've we -- nice of based kind that large happening. upward back and issues Yeah. half revision received, a and you've the seen year,

well. essentially upward Cancun revisions in heard Montego and the Cabos QX bigger mentioned and Montego You in for in crossed and arrivals Bruce into in threshold that's finally positivity earlier and that, And doubling Bay into QX we and then as Bay. Los QX,

any not up So of in show seeing numbers. the that

Tyler Batory

from I detail. all me. the Thank That's you. Excellent. Okay. appreciate

Bruce Wardinski

Tyler. Thanks,

Operator

Please be you. Macquarie. Thank go [Operator Chad Instructions] from Beynon, question will Next ahead.

Chad Beynon

for my Good taking question afternoon. guys. Thanks

Bruce Wardinski

Hi, Chad.

Chad Beynon

around, lot We get from of a questions a investors of kind macro hypothetical. just downturn

could talk to weaker of more a a margins bit just out the price Thanks. about kind of or general, keep a model, point? do there some your a Given relatively if you can consumer see slightly things you strong we at consumer little kind that of sensitive

Bruce Wardinski

details value in tell of that. business get years. Yeah. cycles, the going let can Chad, It's from been XX just can the been I now. down standpoint, overall the through Ryan into you I'll I've tell all-inclusive it the it's is But but I'll and And incredibly If you, to different unknown. so does like and in proposition well well spend what know to fact you you're downturns, why that it, goes the that? exactly going back all-inclusive this not going incredibly and into

players honestly over better if I cautious see it, see But don't not levers of the at Ryan. look will looking I think, pull, it manage think we through more that then of that. will all. much I kind pass to some benefit. to traditional so to we more part do have tend comes, negative, and signs of but to than, first I'll would I kind downturns. just and of And And benefit quite I it cautious And -- I'm be at I kind no person,

Ryan Hymel

Yeah.

positioning. different you time, has just depends only competitive establish it bit were the occupancy, I'd at we're property. is given the some the okay scale that price can makes making lower a the about the -- present marching add if when occupancy, think from favor that sure more with on OPS more generally kind think to slightly been because price from of than easier seating properties. may effectively rate, differ at think rebound expenses, of It general, it guests recovery like specifically, a that But beginning flexible we're in to I on allows up continue to in it overfill the and take because to And property, across it were there adamant thing little the and the in orders about expectations. chain so, us the giving our the place. just ADR to and to -- pretty if Hyatts, you portfolio may environment But maintaining were that not itself, strategy with same be and beginning, favor I team, Bruce

Chad Beynon

more about the And you Canada, some Thanks. not of are then mentioned inbound saw separately, little but certainly recovering, Europe, Can talk where International Great. pre-pandemic. still you it bit markets a we Asia.

of maybe inbound? inbound kind where see collectively, restrictions, in were has obviously you're Asia, group strong improvement if pretty versus of that to percentages, that where starting pre-pandemic. And we

Bruce Wardinski

fairly choppiness the higher see Actually, percentage properties is but recover points. with at room some XXX it June, nights. in a Europe than actually by parts is that not We like QX were of there did of that July. was was continuing into in just well. Europe, few Europe 'XX, did overall our Yeah, basis actually

cause there. So concern for no

of Europe, everything months. right, the couple recognizing that's happened over Just in last

prior Asia kind mean, less as Canada you the can X% the X% Asia pandemic Canada, and was lagging, of roughly and X%. I was overall are remix still than severely to to imagine. of

Canada massive But So picture. of that's most the is a lagging it's the behind. not one part

Chad Beynon

it. quarter. Thanks Nice guys. appreciate I

Bruce Wardinski

Chad. Thanks,

Ryan Hymel

you. Thank

Operator

I'd to concludes remarks. session. the closing conference for Mr. Bruce This back over to Wardinski like turn question-and-answer our

Bruce Wardinski

continued the rest appreciate of to we the the again, Well, We're business throughout in We great. very, very into the time obviously today. looking was and forward think, strength everybody's Okay, year XXXX. quarter strong.

I from I end. the think to picked all coming my comments, you see as were don't up -- an

to execute hopefully, top really at not we soon. can going to And happen continue anytime level. a So it's

book stay thanks please our again, resorts. apply participating for and you. and call to playaresorts.com Thank at go in a So ahead our of one

Operator

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

disconnect. now may You

Bruce Wardinski

Dave. you, Thank

Playa Hotels & Resorts (PLYA) 5 Aug 222022 Q2 Earnings call transcript