Executive Summary

Q2 2024 results were mixed: total revenue $235.5M, down 5.1% YoY; Adjusted EBITDA $63.7M, down 11.7% YoY; diluted EPS $0.10 vs $0.13 LY; underlying, ex-FX owned resort margins modestly improved versus last year after normalizing for BI and FX .
Strength in Yucatán and legacy Dominican Republic offset Jamaica weakness and Pacific renovation disruption; management said Q2 “exceeded our expectations” on operations and demand execution, with FX headwinds less severe in June .
Guidance shifted to the low end of the prior $250–$275M FY24 Adjusted EBITDA range given Hurricane Beryl demand impact and greater-than-expected Pacific construction disruption; Q3 Adjusted EBITDA guided to $17–$21M .
Capital allocation remained shareholder-friendly: ~$36.7M repurchased in Q2 and ~$12M further in Q3-to-date; term loan spread reduced by 50 bps (SOFR+275), expected to save >$5M annually .

What Went Well and What Went Wrong

What Went Well

Yucatán delivered ADR growth (~3%) and FX-neutral margin expansion (~210 bps), with nearly 10% underlying EBITDA growth; management: “results in the Yucatan were... exceptional on a currency adjusted basis” .
Legacy Dominican Republic underlying profits grew mid-single digits, and excluding BI impacts from both periods, underlying EBITDA growth was strong; flagship Cap Cana assets led performance .
Operational efficiencies continued (procurement, staffing); underlying owned resort EBITDA margins increased ~20 bps YoY after adjusting for FX and BI in Q2 .

What Went Wrong

Jamaica incurred a material demand hit from the U.S. State Department advisory: occupancy -10.3 pts, ADR -8.2%, RevPAR -19.7%, Owned Resort EBITDA -40.3%; margins -1000 bps YoY .
Pacific renovations caused larger-than-anticipated guest disruption and cancellations, lowering occupancy -8.9 pts and EBITDA -18.5%; management increased expected full-year construction disruption to mid/high-teens vs prior ~$10M .
Hurricane Beryl significantly impacted Q3 demand (expected EBITDA hit ~$6–$8M, revenue loss ~6–9%); FY24 now guided to the low end of $250–$275M .

Financial Results

Consolidated trend vs prior two quarters

Metric	Q4 2023	Q1 2024	Q2 2024
Total Revenue ($USD Millions)	$242.517	$300.635	$235.475
Diluted EPS ($)	$0.01	$0.39	$0.10
Adjusted Diluted EPS ($)	$0.04	$0.40	$0.12
Adjusted EBITDA ($USD Millions)	$60.825	$113.472	$63.697
Owned Resort EBITDA ($USD Millions)	$73.630	$124.040	$75.081
Adjusted EBITDA Margin (%)	26.8%	39.1%	28.0%
Owned Resort EBITDA Margin (%)	32.9%	43.3%	33.5%

Q2 YoY comparison (Total Portfolio)

Metric	Q2 2023	Q2 2024
Occupancy (%)	73.5%	71.9%
Net Package ADR ($)	$425.52	$450.18
Net Package RevPAR ($)	$312.64	$323.68
Total Net Revenue ($USD Millions)	$238.764	$227.198
Owned Net Revenue ($USD Millions)	$235.212	$223.809
Adjusted EBITDA ($USD Millions)	$72.122	$63.697
Adjusted EBITDA Margin (%)	30.2%	28.0%
Owned Resort EBITDA ($USD Millions)	$83.112	$75.081
Owned Resort EBITDA Margin (%)	35.3%	33.5%
Diluted EPS ($)	$0.13	$0.10
Adjusted Diluted EPS ($)	$0.14	$0.12

Segment breakdown (Q2 2024 vs Q2 2023)

Segment	Occupancy (%) Q2'23	Occupancy (%) Q2'24	ADR ($) Q2'23	ADR ($) Q2'24	RevPAR ($) Q2'23	RevPAR ($) Q2'24	Owned Net Rev ($M) Q2'23	Owned Net Rev ($M) Q2'24	Owned Resort EBITDA ($M) Q2'23	Owned Resort EBITDA ($M) Q2'24	EBITDA Margin (%) Q2'23	EBITDA Margin (%) Q2'24
Yucatán Peninsula	76.7	76.7	441.82	456.38	338.95	349.97	74.891	77.088	24.327	25.711	32.5	33.4
Pacific Coast	71.8	62.9	543.17	544.98	389.86	343.00	37.776	34.576	14.883	12.124	39.4	35.1
Dominican Republic	66.6	70.8	346.62	428.29	230.90	303.27	65.127	65.657	21.979	24.155	33.7	36.8
Jamaica	82.4	72.1	454.59	417.18	374.72	300.95	57.418	46.488	21.923	13.091	38.2	28.2

KPIs (Total vs Comparable Portfolios)

KPI	Q2 2023 (Total)	Q2 2024 (Total)	Q2 2023 (Comparable)	Q2 2024 (Comparable)
Occupancy (%)	73.5	71.9	76.3	73.4
Net Package ADR ($)	425.52	450.18	428.37	436.66
Net Package RevPAR ($)	312.64	323.68	326.65	320.46
Adjusted EBITDA Margin (%)	30.2	28.0	30.0	26.8

Non-GAAP/adjustment context: BI proceeds added ~50 bps to Q2’24 reported margins (vs ~180 bps in Q2’23); FX appreciation of MXN was a ~60–70 bps margin headwind in Q2 . Management’s reconciliation details the adjustments to EBITDA and net income .

Guidance Changes

Metric	Period	Previous Guidance	Current Guidance	Change
Adjusted EBITDA ($USD Millions)	FY 2024	$250–$275M	Near the low end of $250–$275M	Lowered within prior range
Owned Resort EBITDA ($USD Millions)	Q3 2024	N/A	$31–$35M	New quarterly guide
Adjusted EBITDA ($USD Millions)	Q3 2024	N/A	$17–$21M	New quarterly guide
Corporate Expense ($USD Millions)	Q3 2024	N/A	$15–$16M	New quarterly guide
Playa Collection + Mgmt Fee Income ($USD Millions)	Q3 2024	N/A	$2.0–$2.5M	New quarterly guide
FX Impact (MXN) on Adj. EBITDA ($USD Millions)	FY 2024	~$7–$10M headwind (prior view)	~$5–$8M headwind; Q3 favorable ~$1M	Improved outlook
Occupancy (Reported)	Q3 2024	N/A	Low–mid 60s [%]	New color
Package ADR Growth (Reported)	Q3 2024	N/A	Low–mid single-digit YoY	New color
Term Loan Spread	Effective 6/24/2024	SOFR + 325 bps (pre-amend)	SOFR + 275 bps (−50 bps)	Reduced interest cost
CapEx ($USD Millions)	FY 2024	N/A	~$110–$120 total; ~$45–$50 maintenance	Formalized spending plan

Drivers of change: Hurricane Beryl (EBITDA hit ~$6–$8M in Q3) and larger Pacific disruption (incremental ~$3–$4M to Q3) pushed FY24 to low end; FX expected to be a modest tailwind in Q3 .

Earnings Call Themes & Trends

Topic	Previous Mentions (Q-2 and Q-1)	Current Period (Q2 2024)	Trend
FX (MXN) headwinds	FY23 had ~$24.7M headwind; Q1’24 MXN headwind ~$4.8M to Adj. EBITDA	Q2 margin headwind ~60 bps; FY24 headwind now ~$5–$8M vs prior $7–$10M	Moderating FX headwind vs prior outlook
Jamaica travel advisory impact	Noted choppy demand entering summer (Q1 commentary)	Significant YoY declines in occupancy, ADR, RevPAR, EBITDA; pacing negative for Q3 and Q4	Persistent headwind, gradual improvement expected in Q4 pacing
Pacific Coast renovations	Accelerated renovation plan, anticipated disruption in 2024	Greater-than-expected disruption; cancellations; Q3 incremental construction headwind ~$3–$4M	Disruption peaking; jackhammering to end by late August; recovery thereafter
DR underlying performance & BI	FY23 BI proceeds affected comps; underlying strength in legacy DR	Underlying EBITDA up after normalizing BI; Cap Cana leading	Solid fundamentals, less BI benefit than LY
MICE demand	Strength in high season; Q1 group buyout in Pacific at below-market ADR	2024 MICE ~$65M on books; 2025 pacing down ~25% due to Pacific renovation timing	Healthy near-term; temporary 2025 dip in Pacific
Insurance costs	Elevated premiums were a headwind in 2023	Renewal flat to slightly down (~2% dollar decline); insurance ~5–7% of cost base	Cost pressure easing vs LY
Direct channels	Proprietary channels central to ADR gains	47.4% transient revenue booked direct; playaresorts.com ~12.9% of room nights; booking window ~3 months	Continued direct mix support
Capital returns	Repurchases ongoing since Sep-2022 (Q4 commentary)	~$36.7M repurchased in Q2; ~$12M Q3-to-date; >$115M remaining authorization	Ongoing buybacks
Hurricane Beryl	N/A	No significant property damage; all resorts open; demand impact concentrated in July	One-off demand shock, mostly Q3

Management Commentary

“Our second quarter results exceeded our expectations, led by continued momentum in our Yucatan and Dominican Republic segments... FX being less of a headwind than expected in June.” — Bruce Wardinski .
“Reported owned resort EBITDA margins declined 180 bps YoY... underlying owned resort EBITDA margins increasing 20 bps YoY in the second quarter” — Ryan Hymel .
“Given the impact from Hurricane Beryl and the construction disruption in the Pacific Coast, we now expect our FY 2024 Adjusted EBITDA to be near the low end of our $250–275 million guidance range.” — Bruce Wardinski .
“We repurchased approximately $37 million in Q2 and an additional $12 million thus far in Q3... leverage at or near 3x... repurchasing remains compelling.” — Ryan Hymel .
“Our renovation plans are proceeding as expected... room product at our Los Cabos Resort looks spectacular... Zilara Cancun to undergo a full reinvention in 2025.” — Bruce Wardinski .

Q&A Highlights

Construction disruption: jackhammering in Cabo ended by late August; disruption raised full-year Pacific impact from ~$10M to mid/high-teens; no assumption of cancellation-rate improvement embedded in outlook .
Capital projects ROI: Los Cabos renovation is defensive (protect EBITDA/MICE); Zilara Cancun planned as a full reinvention with potential ADR uplift and room-count optimization (8–9 month closure) .
MICE pacing: ~$65M 2024 on the books; 2025 ~$36M (~25% YoY decline) driven by Pacific renovation timing; expect marketing ramp as sample rooms come online .
Costs: Insurance flat-to-down (~2% dollars), ~5–7% of cost base; wages expected +4–6% in Mexico steady-state portfolio .
Beryl BI coverage: No BI claim—insufficient property damage to trigger coverage; parametric/loss-of-attraction options are prohibitively expensive .

Estimates Context

S&P Global consensus estimates were unavailable for PLYA at the time of this analysis due to missing CIQ mapping in the database; as a result, we cannot provide vs-consensus comparisons and have omitted beat/miss designations for Q2 2024. We default to management’s guidance commentary in place of consensus comparisons [GetEstimates error].

Key Takeaways for Investors

Segment divergence persists: Yucatán and legacy DR are demonstrating resilient ADR/margin trends, while Jamaica remains pressured and Pacific renovation disruption peaked in Q2/Q3; normalization should follow once construction noise subsides .
Guidance reset to low-end reflects extraordinary items (Beryl, construction); near-term Q3 is guided weak (Adj. EBITDA $17–$21M), but underlying mix and FX tailwinds could help into Q4 .
Operational efficiency is tangible: procurement/staffing efforts and easing insurance headwind supported underlying margin stability even amid top-line pressure; monitor wage inflation offsets via ADR .
Balance sheet/cost of capital improving: spread cut to SOFR+275 bps and robust cash ($233.9M) underpin continued buybacks (> $115M authorization remaining) and CapEx execution in 2025 .
Watch catalysts: completion of Pacific heavy works (late Aug), Jamaica sentiment/recovery into high season, the Zilara Cancun 2025 reinvention timeline, and FX evolution (MXN) .
Trading setup: near-term volatility tied to Q3 softness and headlines (storms/advisories); medium-term thesis favors margin normalization post-renovation, ADR mix improvements, and capital returns supporting equity value .

Playa Hotels & Resorts N.V. (PLYA)·Q2 2024 Earnings Summary