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Playa Hotels & Resorts N.V. (PLYA)·Q4 2024 Earnings Summary

Executive Summary

  • Q4 2024 results exceeded internal guidance: Adjusted EBITDA was $55.8M vs prior guidance of $48–$53M, with tailwinds from MXN FX, $1.1M business interruption proceeds, and lower corporate expense; underlying owned resort EBITDA was still down y/y due to Pacific renovations, Jamaica travel advisory, and lingering Beryl effects .
  • Mix by segment was bifurcated: Yucatán and Dominican Republic delivered resilient margin and profit performance, while Jamaica and the Pacific Coast remained pressured (renovation/ADR cuts in Jamaica), though trends improved sequentially vs Q3 .
  • Non-GAAP adjustments mattered: BI insurance added ~50 bps to Q4 resort margins and FX added ~200 bps; excluding FX/BI, resort and adjusted EBITDA margins were ~250 bps lower y/y on the quarter .
  • Strategic and capital updates: Playa completed/advanced portfolio actions (Jewel Paradise Cove sale; major Pacific renovation progressing) and announced a $13.50 per-share cash tender offer by Hyatt, which now dominates the stock’s catalyst path .

What Went Well and What Went Wrong

  • What Went Well

    • Yucatán and DR execution: “Our teams in the Yucatan Peninsula and Dominican Republic continued to execute at a high level,” with Q4 DR comparable EBITDA up ~9–9.5% and Yucatán margins supported by cost efficiencies and FX tailwinds .
    • Cost control and lower corporate expense: Corporate expense was $13.9M, below the $15–$16M guidance, aiding the beat versus Q4 outlook .
    • Clear FX/insurance tailwinds in Q4: MXN depreciation added ~200 bps to owned resort margin and ~$4.3M to Adjusted EBITDA; BI proceeds added ~$1.1M and ~50 bps to margins .

  • What Went Wrong

    • Renovation disruption in Pacific Coast: Occupancy down 12.1 pts; Owned Resort EBITDA down 36.5% with margin -740 bps, reflecting peak guest-impacting work (now easing) .
    • Jamaica weakness persisted: Travel advisory forced ADR cuts; Q4 Owned Resort EBITDA -50.7% and margin -1,380 bps y/y; sequential improvement vs Q3 but still a major drag .
    • Underlying profitability softer ex tailwinds: Excluding FX and BI, Q4 resort and adjusted EBITDA margins were ~250 bps lower y/y; underlying owned resort EBITDA was down ~15% for the total portfolio in Q4 per management .

Financial Results

Key P&L and margin comparison

MetricQ4 2023Q3 2024Q4 2024
Total Revenue ($USD Millions)$242.517 $183.517 $218.942
Net Income ($USD Millions)$1.004 -$2.734 $9.036
Diluted EPS ($)$0.01 -$0.02 $0.07
Adjusted EPS ($)$0.04 $0.00 $0.08
Adjusted EBITDA ($USD Millions)$60.825 $25.119 $55.761
Adjusted EBITDA Margin (%)26.8% 14.2% 26.5%
Owned Resort EBITDA ($USD Millions)$73.630 $36.568 $67.149
Owned Resort EBITDA Margin (%)32.9% 21.1% 32.4%

Operating KPIs – Total Portfolio and Comparable (Q4)

KPIQ4 2023Q4 2024
Occupancy – Total Portfolio (%)72.9% 74.0%
Net Package ADR – Total Portfolio ($)$413.66 $439.94
Net Package RevPAR – Total Portfolio ($)$301.47 $325.50
Occupancy – Comparable Portfolio (%)77.7% 77.7%
Net Package ADR – Comparable ($)$436.15 $430.52
Net Package RevPAR – Comparable ($)$338.84 $334.72

Segment breakdown – Q4 2024

SegmentOwned Net Revenue ($USD Millions)Owned Resort EBITDA ($USD Millions)Owned Resort EBITDA Margin (%)
Yucatán Peninsula$79.224 $27.730 35.0%
Pacific Coast$26.787 $8.353 31.2%
Dominican Republic$58.890 $23.101 39.2%
Jamaica$42.585 $7.965 18.7%
Total$207.486 $67.149 32.4%

Balance sheet snapshot (12/31/24)

MetricValue
Cash and Cash Equivalents$189.278M
Total Interest-Bearing Debt (Term Loan due 2029)$1,078.0M
Revolving Credit Facility Drawn$0

Notes:

  • FX tailwind and BI proceeds affected comparability: ~200 bps MXN FX tailwind to resort margins and ~$1.1M BI proceeds (~50 bps) in Q4 2024; excluding FX/BI, Adjusted EBITDA margin ~24.0% and Owned Resort EBITDA margin ~29.9% .
  • Sequential improvement vs Q3 across most lines given normalization post-Beryl and holidays strength .

Guidance Changes

MetricPeriodPrevious GuidanceCurrent/ActualChange
Adjusted EBITDA ($M)Q4 2024$48–$53M $55.8M Beat guidance
Owned Resort EBITDA MarginQ4 2024“Decline significantly y/y” with ~+50 bps FX tailwind 32.4% vs 32.9% y/y; FX tailwind ~200 bps Better FX than guided
Corporate Expense ($M)Q4 2024$15–$16M $13.9M Below guidance (favorable)
Fee Income ($M, Playa Collection + Mgmt Fees)Q4 2024$2–$3M $2.525M ($1.623M + $0.902M) In range
2025+ OutlookFY 2025/26—No new forward guidance given Q4 (pending Hyatt transaction) N/A

Earnings Call Themes & Trends

TopicQ2 2024 (11-6 press/call)Q3 2024 (11-6 press/call)Q4 2024 (2-26 call)Trend
FX (MXN)2024 headwind $5–$8M; Q2 ~-60 bps to margins; hedged ~50% for 2024 Q3 tailwind ~170 bps to margins Q4 tailwind ~200 bps; hedged ~75% of 2025 at ~MXN 19.5 Improving tailwind into 2025
Hurricanes (Beryl/Fiona)Beryl expected $6–$8M Q3 EBITDA hit; BI in DR aids comps Q3 lingering disruption; sequential improvement into holidays Q4 BI proceeds $1.1M; lingering impacts smaller Fading headwind; BI tapering
Renovations (Pacific)Acceleration; disruption mid/high-teens of EBITDA in 2024 Peak disruption in Q3; completion expected Q1’25 Trend easing; sequential better vs Q3 Headwind abating in 1H25
Jamaica Travel AdvisoryMaterial impact; ADR pressure ADR cuts to rebuild occupancy; Q3 RevPAR ~-30% Q4 EBITDA -50.7%; occupancy improving, ADR still down Stabilizing occupancy; ADR rebuild later
MICE2024 on-books ~$65–68M; 2025 down given renovations Pacing down 2025; expect 2026 ramp post-renovations Expect improved 2026 after Pacific work 2026 rebuild
Capital AllocationOngoing buybacks; debt spread cut to SOFR+2.75% Q3 buybacks ~$50M, more in Oct.; strong FCF Q4 buybacks ~$25M; cash $189M; term loan repriced Continued buybacks pre-deal
Strategic/Corporate——Hyatt tender offer at $13.50; Board supports Transaction-driven

Management Commentary

  • Strategic message: “We exceeded our forecast for the fourth quarter as demand continued to improve… Favorable foreign currency exchange rates, business interruption insurance proceeds of $1.1 million and continued expense control were meaningful contributors.” .
  • On full year: “Foreign currency tailwinds helped offset higher-than-expected construction disruption in the Pacific… but the significant impact in Jamaica from Hurricane Beryl and the travel warning led to a y/y decline in Adjusted EBITDA.” .
  • CEO on Q4 drivers: FX tailwind (~200 bps), BI (~50 bps), lower corporate expense, but underlying total/legacy portfolio owned resort EBITDA down ~15%/~17.5% due to Pacific, Jamaica, Beryl .
  • Transaction stance: “A wholly-owned subsidiary of Hyatt… tender offer for all outstanding shares… $13.50 per share in cash. The Playa executive team fully supports the transaction.” .

Selected quotes:

  • “Our results exceeded our expectations… finished with a phenomenal holiday season as demand fully normalized post Hurricane Beryl.” — Bruce Wardinski .
  • “Subsequent to the fourth quarter, we… closed on the sale of the Jewel Paradise Cove… for ~$28.5 million.” .
  • “We repurchased approximately $25 million worth of Playa stock during the fourth quarter… total repurchases since September 2022 to approximately $376 million.” .

Q&A Highlights

  • No Q&A held on the Q4 call given the potential Hyatt transaction; prepared remarks only .
  • Context from prior quarter Q&A (Q3):
    • 2026 bridge opportunity post-renovations and Jamaica recovery; potential EBITDA back to ~$275M+ as building blocks normalize (illustrative, not guidance) .
    • Jamaica competitive dynamics; ADR cuts to rebuild occupancy; not a “race to the bottom,” aiming to exit 2025 with occupancy base to yield ADR up thereafter .
    • Airlift trends stabilizing vs 2019; asset proximity to airports aids share .

Estimates Context

  • Wall Street consensus (S&P Global) for Q4 2024 EPS, revenue and EBITDA was unavailable via our S&P Global tool mapping at the time of analysis, so we cannot quantify beat/miss vs Street. Values retrieved from S&P Global were unavailable due to missing mapping.
  • Relative to company guidance, Q4 Adjusted EBITDA of $55.8M surpassed the $48–$53M outlook; corporate expense was below the $15–$16M guide; fee income landed within the $2–$3M range .

Key Takeaways for Investors

  • Playa beat its Q4 internal guide on Adjusted EBITDA, with FX and BI proceeds plus lower corporate expense providing upside; underlying profit trends still reflect renovation and Jamaica headwinds .
  • Yucatán and DR continue to anchor portfolio performance; Jamaica remains the principal drag (lower ADRs to rebuild occupancy), and Pacific disruption should abate in 1H25 as rooms return .
  • Non-GAAP adjustments (BI, FX) were material in Q4; excluding these, margins were ~250 bps lower y/y, highlighting underlying cost pressures (labor) and transitory headwinds .
  • Balance sheet/liquidity is solid heading into the pending transaction: $189M cash, no revolver draw, term loan repriced lower; continued buybacks underscore FCF strength pre-deal .
  • The $13.50 cash tender from Hyatt is the dominant near-term catalyst and likely caps standalone trading upside/downside absent deal risk; management and Board support the offer .
  • Watch items: Jamaica demand/ADR trajectory into high season, Pacific post-renovation ramp, BI proceeds normalization, and FX (2025 hedged ~75% at ~MXN 19.5) .

Appendix: Additional Q4 Details

  • Total Net Revenue: $210.3M; Total GAAP revenue: $218.9M; Compulsory tips and cost reimbursements explain the difference between Total Net Revenue and GAAP revenue .
  • Cash/Debt and swaps: $189.3M cash; $1.078B term loan; swaps on $550M notional at 4.05% and 3.71% through 2025/2026 .
  • Asset actions: Sale of Jewel Paradise Cove announced Dec 31, 2024; closed Feb 20, 2025; gross proceeds ~$28.5M .

All citations: 8-K/press release Q4 2024 and Q4 call ; Q3 materials ; Q2 materials .