Playa Hotels & Resorts N.V. Reports First Quarter 2025 Results

, /PRNewswire/ -- Playa Hotels & Resorts N.V. (the "Company" or "Playa") (NASDAQ: PLYA) today announced results of operations for the three months ended March 31, 2025. Three Months Ended March 31, 2025 Results Net Income was $43.1 million compared to $54.3 million in 2024 Adjusted Net Income(1) was $46.7 million compared to $55.2 million in 2024 Net Package RevPAR increased 1.4% over 2024 to $433.20, driven by a 4.6% increase in Net Package ADR; partially offset by a 2.6 percentage point decrease in Occupancy Comparable Net Package RevPAR decreased 1.7% over 2024 to $449.14, driven by a 3.3% decrease in Net Package ADR; partially offset by a 1.4 percentage point increase in Occupancy Owned Resort EBITDA(1) decreased 10.0% versus 2024 to $111.7 million Owned Resort EBITDA Margin(1) decreased 0.6 percentage points versus 2024 to 42.7%, inclusive of: a positive impact of approximately 300 basis points due to the depreciation of the Mexican Peso; and positive impacts of 20 basis points for the three months ended March 31, 2025 and 10 basis points for the three months ended March 31, 2024 from business interruption insurance proceeds related to disruption caused by Hurricane Fiona in the Dominican Republic in the second half of 2022 Excluding these impacts, Owned Resort EBITDA Margin would have been 39.6%, a decrease of 3.6 percentage points compared to 2024 Adjusted EBITDA(1) decreased 11.9% versus 2024 to $99.9 million, inclusive of: a positive impact of approximately $7.9 million due to the depreciation of the Mexican Peso; and positive impacts of $0.4 million for the three months ended March 31, 2025 and $0.4 million for the three months ended March 31, 2024 from business interruption insurance proceeds Adjusted EBITDA Margin(1) decreased 1.2 percentage points versus 2024 to 37.9%, inclusive of: a positive impact of approximately 300 basis points due to the depreciation of the Mexican Peso; and positive impacts of 20 basis points or the three months ended March 31, 2025 and 20 basis points for the three months ended March 31, 2024 from business interruption insurance proceeds Comparable Adjusted EBITDA(1) decreased 5.9% versus 2024 to $85.8 million Comparable Adjusted EBITDA Margin(1) decreased 1.5 percentage points versus 2024 to 37.8% (1) See "Definitions of Non-U.S. GAAP Measures and Operating Statistics" for a description of how we compute Adjusted Net Income/(Loss), Owned Resort EBITDA, Owned Resort EBITDA Margin, Adjusted EBITDA, Adjusted EBITDA Margin, Comparable Adjusted EBITDA, Comparable Adjusted EBITDA Margin and other non-GAAP financial figures included in this press release, as well as reconciliations of such non-GAAP financial figures to the most directly comparable financial measures calculated in accordance with GAAP. Financial and Operating Results The following tables set forth information with respect to the operating results of our total portfolio and comparable portfolio for the three months ended March 31, 2025 and 2024 ($ in thousands): Total Portfolio Three Months Ended March 31, 2025 2024 Change Occupancy 82.5 % 85.1 % (2.6) pts Net Package ADR $ 525.34 $ 502.12 4.6 % Net Package RevPAR $ 433.20 $ 427.17 1.4 % Total Net Revenue (1) $ 263,885 $ 290,512 (9.2) % Owned Net Revenue (2) $ 261,281 $ 286,538 (8.8) % Owned Resort EBITDA $ 111,684 $ 124,040 (10.0) % Owned Resort EBITDA Margin 42.7 % 43.3 % (0.6) pts Other corporate $ 14,107 $ 14,122 (0.1) % The Playa Collection Revenue $ 1,449 $ 1,020 42.1 % Management Fee Revenue $ 895 $ 2,534 (64.7) % Adjusted EBITDA $ 99,921 $ 113,472 (11.9) % Adjusted EBITDA Margin 37.9 % 39.1 % (1.2) pts Comparable Portfolio (3) Three Months Ended March 31, 2025 2024 Change Occupancy 85.7 % 84.3 % 1.4 pts Net Package ADR $ 523.83 $ 541.74 (3.3) % Net Package RevPAR $ 449.14 $ 456.94 (1.7) % Total Net Revenue (1) $ 227,226 $ 232,223 (2.2) % Owned Net Revenue (2) $ 224,622 $ 228,249 (1.6) % Owned Resort EBITDA $ 97,564 $ 101,763 (4.1) % Owned Resort EBITDA Margin 43.4 % 44.6 % (1.2) pts Other corporate $ 14,107 $ 14,122 (0.1) % The Playa Collection Revenue $ 1,449 $ 1,020 42.1 % Management Fee Revenue $ 895 $ 2,534 (64.7) % Adjusted EBITDA $ 85,801 $ 91,195 (5.9) % Adjusted EBITDA Margin 37.8 % 39.3 % (1.5) pts (1) Total Net Revenue represents revenue from the sale of all-inclusive packages, which include room accommodations, food and beverage services and entertainment activities, net of compulsory tips paid to employees, as well as revenue from other goods, services and amenities not included in the all-inclusive package. Government mandated compulsory tips in the Dominican Republic are not included in this adjustment as they are already excluded from revenue in accordance with U.S. GAAP. A description of how we compute Total Net Revenue and a reconciliation of Total Net Revenue to total revenue can be found in the section "Definitions of Non-U.S. GAAP Measures and Operating Statistics" below. Total Net Revenue also includes all Management Fee Revenue. (2) Owned Net Revenue excludes Management Fee Revenue, other corporate revenue and The Playa Collection revenue (which is a third-party owned and operated membership program). (3) For the three months ended March 31, 2025, our comparable portfolio excludes Jewel Paradise Cove Beach Resort & Spa, which was sold in February 2025, Jewel Palm Beach, which was sold in September 2024, the Hyatt Ziva Los Cabos and Hyatt Ziva Puerto Vallarta, which were partially closed for renovations during the three months ended March 31, 2025. Balance Sheet As of March 31, 2025, the Company held $265.4 million in cash and cash equivalents, with no restricted cash. Total interest-bearing debt was $1,075.3 million, comprised of our Term Loan due 2029. As of March 31, 2025, there was no balance outstanding on our $225.0 million Revolving Credit Facility. Effective April 15, 2023, we entered into two interest rate swaps to mitigate the floating interest rate risk on our Term Loan due 2029, which incurs interest based on SOFR. The interest rate swaps each have a fixed notional amount of $275.0 million and are not for trading purposes. The fixed rates paid by us on the interest rate swaps are 4.05% and 3.71%, and the variable rate received resets monthly to the one-month SOFR rate. The 4.05% interest rate swap matured on April 15, 2025 and the 3.71% interest rate swap will mature on April 15, 2026. About the Company Playa, through its subsidiaries, is a leading owner, operator and developer of all-inclusive resorts in prime beachfront locations in popular vacation destinations in Mexico and the Caribbean. As of March 31, 2025, Playa owned and/or managed a total portfolio consisting of 22 resorts (8,342 rooms) located in Mexico, Jamaica, and the Dominican Republic. In Mexico, Playa owns and manages Hyatt Zilara Cancún, Hyatt Ziva Cancún, Wyndham Alltra Cancún, Wyndham Alltra Playa del Carmen, Hilton Playa del Carmen All-Inclusive Resort, Hyatt Ziva Puerto Vallarta and Hyatt Ziva Los Cabos. In Jamaica, Playa owns and manages Hyatt Zilara Rose Hall, Hyatt Ziva Rose Hall, Hilton Rose Hall Resort & Spa, and Jewel Grande Montego Bay Resort & Spa. In the Dominican Republic, Playa owns and manages the Hilton La Romana All-Inclusive Family Resort, the Hilton La Romana All-Inclusive Adult Resort, Hyatt Zilara Cap Cana, and Hyatt Ziva Cap Cana. Playa also manages seven resorts on behalf of third-party owners. Playa currently owns and/or manages resorts under the following brands: Hyatt Zilara, Hyatt Ziva, Hilton All-Inclusive, Wyndham Alltra, Seadust, Kimpton, Jewel Resorts and The Luxury Collection. Playa leverages years of all-inclusive resort operating expertise and relationships with globally recognized hospitality brands to provide a best-in-class experience and exceptional value to guests, while building a direct relationship to improve customer acquisition cost and drive repeat business. Forward-Looking Statements This press release contains "forward-looking statements," as defined by federal securities laws. Forward-looking statements reflect our current expectations and projections about future events at the time, and thus involve uncertainty and risk. The words "believe," "expect," "anticipate," "will," "could," "would," "should," "may," "plan," "estimate," "intend," "predict," "potential," "continue," and the negatives of these words and other similar expressions generally identify forward looking statements. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled "Risk Factors" in Playa's Annual Report on Form 10-K, filed with the SEC on February 25, 2025, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC's website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this release and in Playa's filings with the SEC. While forward-looking statements reflect our good faith beliefs, they are not guarantees of future performance. The Company disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to us (or to third parties making the forward-looking statements). Definitions of Non-U.S. GAAP Measures and Operating Statistics Occupancy "Occupancy" represents the total number of rooms sold for a period divided by the total number of rooms available during such period. The total number of rooms available excludes any rooms considered "Out of Order" due to renovation or a temporary problem rendering them inadequate for occupancy for an extended period of time. Occupancy is a useful measure of the utilization of a resort's total available capacity and can be used to gauge demand at a specific resort or group of properties during a given period. Occupancy levels also enable us to optimize Net Package ADR (as defined below) by increasing or decreasing the stated rate for our all-inclusive packages as demand for a resort increases or decreases. Net Package Average Daily Rate ("Net Package ADR") "Net Package ADR" represents total Net Package Revenue for a period divided by the total number of rooms sold during such period. Net Package ADR trends and patterns provide useful information concerning the pricing environment and the nature of the guest base of our portfolio or comparable portfolio, as applicable. Net Package ADR is a commonly used performance measure in the all-inclusive segment of the lodging industry and is commonly used to assess the stated rates that guests are willing to pay through various distribution channels. Net Package Revenue per Available Room ("Net Package RevPAR") "Net Package RevPAR" is the product of Net Package ADR and the average daily occupancy percentage. Net Package RevPAR does not reflect the impact of Net Non-package Revenue. Although Net Package RevPAR does not include this additional revenue, it generally is considered the key performance statistic in the all-inclusive segment of the lodging industry to identify trend information with respect to net room revenue produced by our portfolio or comparable portfolio, as applicable, and to evaluate operating performance on a consolidated basis or a regional basis, as applicable. Net Package Revenue, Net Non-package Revenue, Owned Net Revenue, Management Fee Revenue, Cost Reimbursements and Total Net Revenue "Net Package Revenue" is derived from the sale of all-inclusive packages, which include room accommodations and premium room upgrades, food and beverage services, and entertainment activities, net of compulsory tips paid to employees. Government mandated compulsory tips in the Dominican Republic are not included in this adjustment, as they are already excluded from revenue. Revenue is recognized, net of discounts and rebates, when the rooms are occupied and/or the relevant services have been rendered. Advance deposits received from guests are deferred and included in trade and other payables until the rooms are occupied and/or the relevant services have been rendered, at which point the revenue is recognized. "Net Non-package Revenue" includes revenue associated with premium services and amenities that are not included in net package revenue, such as dining experiences, wines and spirits, and spa packages, net of compulsory tips paid to employees. Government mandated compulsory tips in the Dominican Republic are not included in this adjustment, as they are already excluded from revenue. Net Non-package Revenue is recognized after the completion of the sale when the product or service is transferred to the customer. Food and beverage revenue not included in a guest's all-inclusive package is recognized when the goods are consumed. "Owned Net Revenue" represents Net Package Revenue and Net Non-Package Revenue. Owned Net Revenue represents a key indicator to assess the overall performance of our business and analyze trends, such as consumer demand, brand preference and competition. In analyzing our Owned Net Revenues, our management differentiates between Net Package Revenue and Net Non-package Revenue. Guests at our resorts purchase packages at stated rates, which include room accommodations, food and beverage services and entertainment activities, in contrast to other lodging business models, which typically only include the room accommodations in the stated rate. The amenities at all-inclusive resorts typically include a variety of buffet and á la carte restaurants, bars, activities, and shows and entertainment throughout the day. "Management Fee Revenue" is derived from fees earned for managing resorts owned by third-parties. The fees earned are typically composed of a base fee, which is computed as a percentage of resort revenue, and an incentive fee, which is computed as a percentage of resort profitability. Management Fee Revenue was a minor contributor to our operating results for the three months ended March 31, 2025 and 2024. "Total Net Revenue" represents Net Package Revenue, Net Non-package Revenue, Management Fee Revenue, The Playa Collection revenue and certain Other revenues. "Cost reimbursements" is excluded from Total Net Revenue as it is not considered a key indicator of financial and operating performance. Cost reimbursements is derived from the reimbursement of certain costs incurred by Playa on behalf of resorts managed by Playa and owned by third parties. This revenue is fully offset by reimbursable costs and has no net impact on operating income or net income. Contract termination fees are also excluded from Total Net Revenue as they are not an indicator of the performance of our ongoing business. EBITDA, Adjusted EBITDA, Adjusted EBITDA Margin, Owned Resort EBITDA, and Owned Resort EBITDA Margin We define EBITDA, a non-U.S. GAAP financial measure, as net income or loss, determined in accordance with U.S. GAAP, for the period presented before interest expense, income tax and depreciation and amortization expense. EBITDA and Adjusted EBITDA (as defined below) include corporate expenses, which are overhead costs that are essential to support the operation of the Company, including the operations and development of our resorts. We define Adjusted EBITDA, a non-U.S. GAAP financial measure, as EBITDA further adjusted to exclude the following items: Other miscellaneous non-operating income or expense Pre-opening expense Losses or gains on sales of assets Share-based compensation Other tax expense Transaction expenses Severance expense for employee terminations resulting from non-recurring or unusual events, such as the departure of an executive officer or the disposition of a resort Gains from property damage insurance proceeds (i.e., property damage insurance proceeds in excess of repair and clean up costs incurred) Repairs from hurricanes and tropical storms (i.e., significant repair and clean up costs incurred which are not offset by property damage insurance proceeds) Loss on extinguishment of debt Other items which may include, but are not limited to the following: contract termination fees; gains or losses from legal settlements; and impairment losses. We include the non-service cost components of net periodic pension cost or benefit recorded within other income or expense in the Condensed Consolidated Statements of Operations in our calculation of Adjusted EBITDA as they are considered part of our ongoing resort operations. "Adjusted EBITDA Margin" represents Adjusted EBITDA as a percentage of Total Net Revenue. "Owned Resort EBITDA" represents Adjusted EBITDA before corporate expenses, The Playa Collection revenue and Management Fee Revenue. "Owned Resort EBITDA Margin" represents Owned Resort EBITDA as a percentage of Owned Net Revenue. Adjusted Net Income "Adjusted Net Income" is a non-GAAP performance measure. We define Adjusted Net Income as net income attributable to Playa Hotels & Resorts, determined in accordance with U.S. GAAP, excluding special items which are not reflective of our core operating performance, such as one-time expenses related to debt extinguishment and transaction expenses. Adjusted Net Income is not a substitute for net income or any other measure determined in accordance with U.S. GAAP. There are limitations to the utility of non-U.S. GAAP financial measures such as Adjusted Net Income. For example, other companies in our industry may define Adjusted Net Income differently than we do. As a result, it may be difficult to use Adjusted Net Income or similarly named non-U.S. GAAP financial measures that other companies publish to compare the performance of those companies to our performance. Because of these and other limitations, Adjusted Net Income should not be considered as a measure of the income or loss generated by our business or discretionary cash available for investment in our business, and investors should carefully consider our U.S. GAAP results presented in this release. Usefulness and Limitation of Non-U.S. GAAP Measures We believe that each of Net Package Revenue, Net Non-package Revenue, Owned Net Revenue, Total Net Revenue, Net Package ADR, Net Package RevPAR, and Net Direct Expenses are all useful to investors as they more accurately reflect our operating results by excluding compulsory tips. These tips have a margin of zero and do not represent our operating results. We also believe that Adjusted EBITDA is useful to investors for two principal reasons. First, we believe Adjusted EBITDA assists investors in comparing our performance over various reporting periods on a consistent basis by removing from our operating results the impact of items that do not reflect our core operating performance. For example, changes in foreign exchange rates (which are the principal driver of changes in other income or expense), and expenses related to capital raising, strategic initiatives and other corporate initiatives, such as expansion into new markets (which are the principal drivers of changes in transaction expenses), are not indicative of the operating performance of our resorts. The other adjustments included in our definition of Adjusted EBITDA relate to items that occur infrequently and therefore would obstruct the comparability of our operating results over reporting periods. For example, revenue from insurance policies, other than business interruption insurance policies, is infrequent in nature, and we believe excluding these expense and revenue items permits investors to better evaluate the core operating performance of our resorts over time. We believe Adjusted EBITDA Margin provides our investors a useful measurement of operating profitability for the same reasons we find Adjusted EBITDA useful. The second principal reason that we believe Adjusted EBITDA is useful to investors is that it is considered a key performance indicator by our board of directors (our "Board") and management. In addition, the compensation committee of our Board determines a portion of the annual variable compensation for certain members of our management, including our executive officers, based, in part, on consolidated Adjusted EBITDA. We believe that Adjusted EBITDA is useful to investors because it provides investors with information utilized by our Board and management to assess our performance and may (subject to the limitations described below) enable investors to compare the performance of our portfolio to our competitors. We believe that Owned Resort EBITDA and Owned Resort EBITDA Margin are useful to investors as they allow investors to measure resort-level performance and profitability by excluding expenses not directly tied to our resorts, such as corporate expenses, and excluding ancillary revenues not derived from our resorts, such as management fee revenue. We believe Owned Resort EBITDA is also helpful to investors that use it in estimating the value of our resort portfolio. Management uses these measures to monitor property-level performance and profitability. A reconciliation of net income or loss as computed under U.S. GAAP to EBITDA, Adjusted EBITDA and Owned Resort EBITDA is presented below. Adjusted Net Income is non-GAAP performance measure that provides meaningful comparisons of ongoing operating results by removing from net income or loss the impact of items that do not reflect our normalized operations. A reconciliation of net income or loss as computed under U.S. GAAP to Adjusted Net Income is presented below. Our non-U.S. GAAP financial measures are not substitutes for revenue, net income or any other measure determined in accordance with U.S. GAAP. There are limitations to the utility of non-U.S. GAAP financial measures, such as Adjusted EBITDA. For example, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA or similarly named non-U.S. GAAP financial measures that other companies publish to compare the performance of those companies to our performance. Because of these limitations, our non-U.S. GAAP financial measures should not be considered as a measure of the income or loss generated by our business or discretionary cash available for investment in our business, and investors should carefully consider our U.S. GAAP results presented. Comparable Non-U.S. GAAP Measures We believe that presenting Adjusted EBITDA, Owned Resort EBITDA, Total Net Revenue, Net Package Revenue and Net Non-package Revenue on a comparable basis is useful to investors because these measures include only the results of resorts owned and in operation for the entirety of the periods presented and thereby eliminate disparities in results due to the acquisition or disposition of resorts or the impact of resort closures or re-openings in connection with redevelopment or renovation projects. As a result, we believe these measures provide more consistent metrics for comparing the performance of our operating resorts. We calculate Comparable Adjusted EBITDA, Comparable Owned Resort EBITDA, Comparable Total Net Revenue, Comparable Net Package Revenue and Comparable Net Non-package Revenue as the total amount of each respective measure less amounts attributable to non-comparable resorts, by which we mean resorts that were not owned or in operation during some or all of the relevant reporting period. Our comparable portfolio for the three months ended March 31, 2025 excludes Jewel Paradise Cove Beach Resort & Spa, which was sold in February 2025, Jewel Palm Beach, which was sold in September 2024, and the Hyatt Ziva Los Cabos and Hyatt Ziva Puerto Vallarta, which were partially closed for renovations during 2025. A reconciliation of net income or loss as computed under U.S. GAAP to comparable Adjusted EBITDA is presented below. For a reconciliation of Comparable Net Package Revenue, Comparable Net Non-package Revenue, and Comparable Total Net Revenue to total revenue as computed under U.S. GAAP, see "Net Package Revenue, Net Non-package Revenue, Owned Net Revenue, Management Fee Revenue, Cost Reimbursements and Total Net Revenue" in this section. Reconciliation of Non-U.S. GAAP Measures Playa Hotels & Resorts N.V.Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Owned Resort EBITDA($ in thousands) The following is a reconciliation of our U.S. GAAP net income to EBITDA, Adjusted EBITDA, Owned Resort EBITDA and Comparable Owned Resort EBITDA for the three months ended March 31, 2025 and 2024 ($ in thousands): Three Months Ended March 31, 2025 2024 Net income $ 43,125 $ 54,341 Interest expense 19,961 23,128 Income tax provision 2,361 12,037 Depreciation and amortization 19,440 18,672 EBITDA 84,887 108,178 Other expense (a) 151 793 Share-based compensation 4,395 3,759 Transaction expense (b) 3,373 1,037 Severance expense (c) 452 — Contract termination fees (d) 6,208 — Loss (gain) on sale of assets 626 (36) Non-service cost components of net periodic pension cost (171) (259) Adjusted EBITDA 99,921 113,472 Other corporate (e) 14,107 14,122 The Playa Collection (1,449) (1,020) Management fees (895) (2,534) Owned Resort EBITDA 111,684 124,040 Less: Non-comparable Owned Resort EBITDA 14,120 22,277 Comparable Owned Resort EBITDA(f) $ 97,564 $ 101,763 (a) Represents changes in foreign exchange and other miscellaneous non-operating expenses or income. (b) Represents expenses incurred in connection with corporate initiatives, such as: system implementations, debt refinancing costs; other capital raising efforts; and strategic initiatives, such as the launch of a new resort or possible expansion into new markets. (c) For the three months ended March 31, 2025, represents severance expense incurred in connection with the sale of the Jewel Paradise Cove Beach Resort & Spa. (d) Represents the forgiveness of outstanding receivables and unamortized key money during the three months ended March 31, 2025 in connection with the termination of our management agreement for the Wyndham Alltra Vallarta. (e) For the three months ended March 31, 2025 and 2024, represents corporate salaries and benefits of $10.1 million for 2025 and $9.8 million for 2024, professional fees of $1.6 million for 2025 and $2.1 million for 2024, corporate rent and insurance of $1.3 million for 2025 and $1.0 million for 2024, and corporate travel, software licenses, board fees and other miscellaneous corporate expenses of $1.1 million for 2025 and $1.2 million for 2024. (f) Our comparable portfolio for the three months ended March 31, 2025 excludes Jewel Paradise Cove Beach Resort & Spa, which was sold in February 2025, Jewel Palm Beach, which was sold in September 2024, and Hyatt Ziva Los Cabos and Hyatt Ziva Puerto Vallarta, which were partially closed for renovations during three months ended March 31, 2025. Playa Hotels & Resorts N.V.Reconciliation of Net Package Revenue, Net Non-Package Revenue and Total Net Revenue to Total Revenue($ in thousands) The following table shows a reconciliation of Net Package Revenue and Net Non-package Revenue to total revenue for the three months ended March 31, 2025 and 2024 ($ in thousands): Total Portfolio Three Months Ended March 31, 2025 2024 Net Package Revenue Comparable Net Package Revenue $ 196,173 $ 201,793 Non-comparable Net Package Revenue 32,163 51,036 Net Package Revenue 228,336 252,829 Net Non-package Revenue Comparable Net Non-package Revenue 28,449 26,456 Non-comparable Net Non-package Revenue 4,496 7,253 Net Non-package Revenue 32,945 33,709 The Playa Collection Revenue 1,449 1,020 Management Fee Revenue 895 2,534 Other Revenues 260 420 Total Net Revenue Comparable Total Net Revenue 227,226 232,223 Non-comparable Total Net Revenue 36,659 58,289 Total Net Revenue 263,885 290,512 Compulsory tips 6,405 7,234 Cost reimbursements 3,205 2,889 Contract termination fees (1) (6,208) — Total revenue $ 267,287 $ 300,635 (1) Represents the forgiveness of outstanding receivables and unamortized key money during the three months ended March 31, 2025 in connection with the termination of the management agreement for the Wyndham Alltra Vallarta. Playa Hotels & Resorts N.V.Reconciliation of Net Income to Adjusted Net Income($ in thousands) The following table reconciles our net income to Adjusted Net Income for the three months ended March 31, 2025 and 2024 ($ in thousands): Three Months Ended March 31, 2025 2024 Net income $ 43,125 $ 54,341 Reconciling items Transaction expense 3,373 1,037 Severance expense 452 — Total reconciling items before tax 3,825 1,037 Income tax provision for reconciling items (204) (139) Total reconciling items after tax 3,621 898 Adjusted Net Income $ 46,746 $ 55,239 The following table presents the impact of Adjusted Net Income on our diluted earnings per share for the three months ended March 31, 2025 and 2024 ($ in thousands, except share data): Three Months Ended March 31, 2025 2024 Adjusted Net Income $ 46,746 $ 55,239 Earnings per share - Diluted $ 0.34 $ 0.39 Total reconciling items impact per diluted share 0.03 0.01 Adjusted earnings per share - Diluted $ 0.37 $ 0.40 Condensed Consolidated Financial Statements Playa Hotels & Resorts N.V. Condensed Consolidated Balance Sheet ($ in thousands, except share data) (unaudited) As of March 31, As of December 31, 2025 2024 ASSETS Cash and cash equivalents $ 265,400 $ 189,278 Trade and other receivables, net 66,310 66,957 Insurance recoverable 11,484 14,549 Accounts receivable from related parties 803 1,560 Inventories 15,475 17,226 Prepayments and other assets 47,127 55,065 Property and equipment, net 1,381,110 1,374,330 Derivative financial instruments 658 1,672 Goodwill, net 60,642 60,642 Other intangible assets 1,937 2,091 Deferred tax assets 11,797 11,491 Assets held for sale — 28,227 Total assets $ 1,862,743 $ 1,823,088 LIABILITIES AND SHAREHOLDERS' EQUITY Trade and other payables $ 151,087 $ 154,577 Payables to related parties 7,687 6,611 Income tax payable 23,304 15,442 Debt 1,068,263 1,069,543 Derivative financial instruments 5,701 12,581 Other liabilities 27,635 27,512 Deferred tax liabilities 49,339 54,932 Total liabilities 1,333,016 1,341,198 Commitments and contingencies Shareholders' equity Ordinary shares (par value €0.10; 500,000,000 shares authorized, 173,817,323 shares issued and 122,988,198 shares outstanding as of March 31, 2025 and 172,016,422 shares issued and 121,554,617 shares outstanding as of December 31, 2024) 19,290 19,104 Treasury shares (at cost, 50,829,125 shares as of March 31, 2025 and 50,461,805 shares as of December 31, 2024) (404,310) (399,732) Paid-in capital 1,221,011 1,216,802 Accumulated other comprehensive loss (4,064) (8,959) Accumulated deficit (302,200) (345,325) Total shareholders' equity 529,727 481,890 Total liabilities and shareholders' equity $ 1,862,743 $ 1,823,088 Playa Hotels & Resorts N.V. Condensed Consolidated Statements of Operations ($ in thousands, except share data) (unaudited) Three Months Ended March 31, 2025 2024 Revenue Package $ 234,339 $ 259,629 Non-package 33,348 34,143 The Playa Collection 1,449 1,020 Management fees (3,884) 2,534 Cost reimbursements 1,775 2,889 Other revenues 260 420 Total revenue 267,287 300,635 Direct and selling, general and administrative expenses Direct 126,642 137,979 Selling, general and administrative 52,182 51,219 Depreciation and amortization 19,440 18,672 Reimbursed costs 3,205 2,889 Loss (gain) on sale of assets 626 (36) Business interruption insurance recoveries (21) (17) Gain on insurance proceeds (385) (370) Direct and selling, general and administrative expenses 201,689 210,336 Operating income 65,598 90,299 Interest expense (19,961) (23,128) Other expense (151) (793) Net income before tax 45,486 66,378 Income tax provision (2,361) (12,037) Net income $ 43,125 $ 54,341 Earnings per share Basic $ 0.35 $ 0.40 Diluted $ 0.34 $ 0.39 Weighted average number of shares outstanding during the period - Basic 122,830,671 136,651,696 Weighted average number of shares outstanding during the period - Diluted 125,178,151 138,009,859 Playa Hotels & Resorts N.V. Consolidated Debt Summary - As of March 31, 2025 ($ in millions) Maturity Applicable Rate LTM Interest (6) Debt Date # of Years Balance Revolving Credit Facility (1) Jan-28 2.8 $ — — % $ 0.9 Term Loan (2)(3) Jan-29 3.8 1,075.3 7.07 % 82.3 Total debt (4) $ 1,075.3 7.07 % $ 83.2 Less: cash and cash equivalents (5) (265.4) Net debt $ 809.9 (1) Undrawn balances bear interest between 0.25% and 0.50% depending on certain leverage ratios. We had $225.0 million available as of March 31, 2025 and 2024, respectively. (2) Prior to our debt refinancing in June 2024, we incurred interest based on SOFR + 325 bps (where SOFR is subject to a 0.50% floor). Our Term Loan due 2029 currently incurs interest based on SOFR + 275 bps (where SOFR is subject to a 0.50% floor). The effective interest rate was 7.07% as of March 31, 2025. (3) Effective April 15, 2023, we entered into two interest rate swaps to mitigate the floating interest rate risk on our Term Loan due 2029. The interest rate swaps each have a fixed notional amount of $275.0 million and are not for trading purposes. The fixed rates paid by us on the interest rate swaps are 4.05% and 3.71%, and the variable rate received resets monthly to the one-month SOFR rate. The 4.05% interest rate swap matured on April 15, 2025 and the 3.71% interest rate swap will mature on April 15, 2026. (4) Excludes $19.4 million of unamortized discounts, $4.7 million of unamortized deferred financing costs, and a $17.1 million financing lease obligation as of March 31, 2025. (5) Represents cash balances on hand as of March 31, 2025. (6) Represents last twelve months' cash paid for interest on the outstanding balance of our Term Loan due 2029. The impact of amortization of deferred financing costs and discounts and capitalized interest is excluded. Segment Operating Statistics - Three Months Ended March 31, 2025 and 2024 Occupancy Net Package ADR Net Package RevPAR Owned Net Revenue Owned Resort EBITDA Owned Resort EBITDA Margin Total Portfolio Rooms 2025 2024 Pts Change 2025 2024 % Change 2025 2024 % Change 2025 2024 % Change 2025 2024 % Change 2025 2024 Pts Change Yucatán Peninsula 2,126 86.9 % 87.0 % (0.1) pts $ 502.06 $ 507.77 (1.1) % $ 436.38 $ 441.54 (1.2) % $ 93,181 $ 95,988 (2.9) % $ 38,979 $ 40,053 (2.7) % 41.8 % 41.7 % 0.1 pts Pacific Coast 926 67.0 % 86.7 % (19.7) pts $ 550.67 $ 526.87 4.5 % $ 369.12 $ 456.59 (19.2) % 35,048 44,296 (20.9) % 14,027 19,141 (26.7) % 40.0 % 43.2 % (3.2) pts Dominican Republic 1,524 85.5 % 83.7 % 1.8 pts $ 598.27 $ 468.26 27.8 % $ 511.50 $ 392.07 30.5 % 80,598 81,612 (1.2) % 40,670 37,770 7.7 % 50.5 % 46.3 % 4.2 pts Jamaica 1,203 82.6 % 83.1 % (0.5) pts $ 461.29 $ 524.92 (12.1) % $ 381.10 $ 436.46 (12.7) % 52,454 64,642 (18.9) % 18,008 27,076 (33.5) % 34.3 % 41.9 % (7.6) pts Total Portfolio 5,779 82.5 % 85.1 % (2.6) pts $ 525.34 $ 502.12 4.6 % $ 433.20 $ 427.17 1.4 % $ 261,281 $ 286,538 (8.8) % $ 111,684 $ 124,040 (10.0) % 42.7 % 43.3 % (0.6) pts Occupancy Net Package ADR Net Package RevPAR Owned Net Revenue Owned Resort EBITDA Owned Resort EBITDA Margin Comparable Portfolio Rooms 2025 2024 Pts Change 2025 2024 % Change 2025 2024 % Change 2025 2024 % Change 2025 2024 % Change 2025 2024 Pts Change Yucatán Peninsula 2,126 86.9 % 87.0 % (0.1) pts $ 502.06 $ 507.77 (1.1) % $ 436.38 $ 441.54 (1.2) % $ 93,181 $ 95,988 (2.9) % $ 38,979 $ 40,053 (2.7) % 41.8 % 41.7 % 0.1 pts Pacific Coast — — % — % — pts $ — $ — — % $ — $ — — % — — — % — — — % — % — % — pts Dominican Republic 1,524 85.5 % 82.6 % 2.9 pts $ 598.29 $ 571.09 4.8 % $ 511.51 $ 471.77 8.4 % 80,602 74,186 8.6 % 40,767 36,906 10.5 % 50.6 % 49.7 % 0.9 pts Jamaica 1,203 84.0 % 81.9 % 2.1 pts $ 467.60 $ 567.95 (17.7) % $ 392.69 $ 465.34 (15.6) % 50,839 58,075 (12.5) % 17,818 24,804 (28.2) % 35.0 % 42.7 % (7.7) pts Total Comparable Portfolio 4,853 85.7 % 84.3 % 1.4 pts $ 523.83 $ 541.74 (3.3) % $ 449.14 $ 456.94 (1.7) % $ 224,622 $ 228,249 (1.6) % $ 97,564 $ 101,763 (4.1) % 43.4 % 44.6 % (1.2) pts Yucatán Peninsula Owned Net Revenue for the three months ended March 31, 2025 decreased $2.8 million, or 2.9%, compared to the three months ended March 31, 2024 and was driven by: a decrease in Occupancy of 0.1 percentage points; a decrease in Net Package ADR of 1.1%; and a decrease in Net Non-package Revenue of $0.9 million, or 8.3%. Net Non-package Revenue per sold room decreased 7.3%, primarily driven by a lower meetings, incentives, conventions and events ("MICE") group contribution to our guest mix. Owned Resort EBITDA for the three months ended March 31, 2025 decreased $1.1 million, or 2.7%, compared to the three months ended March 31, 2024 and was driven by: a decrease in Net Package ADR compared to the three months ended March 31, 2024; a headwind from increased labor and related expenses, which were partially due to union-negotiated and government-mandated wage benefit increases in the second quarter of 2024; partially offset by a favorable impact of $5.7 million due to the depreciation of the Mexican Peso, inclusive of the impact of our foreign currency forward contracts (refer to discussion of our derivative financial instruments in Note 12 to the Condensed Consolidated Financial Statements in our Form 10-Q). Our Owned Resort EBITDA Margin for the three months ended March 31, 2025 was 41.8%, an increase of 0.1 percentage point compared to the three months ended March 31, 2024. Owned Resort EBITDA Margin was positively impacted by 610 basis points due to the depreciation of the Mexican Peso. Owned Resort EBITDA Margin was negatively impacted by 200 basis points due to increases in labor and related expenses excluding the depreciation of the Mexican Peso compared to the three months ended March 31, 2024. Excluding the impact from the depreciation of the Mexican Peso, Owned Resort EBITDA Margin for the three months ended March 31, 2025 would have been 35.7%, a decrease of 6.0 percentage points compared to the three months ended March 31, 2024. Pacific Coast Owned Net Revenue for the three months ended March 31, 2025 decreased $9.2 million, or 20.9%, compared to the three months ended March 31, 2024 as a result of the ongoing renovations and includes the following: a decrease in Occupancy of 19.7 percentage points; an increase in Net Package ADR of 4.5%; and a decrease in Net Non-package Revenue of $1.5 million, or 26.4%, primarily driven by a lower MICE group contribution to our guest mix; Net Non-package Revenue per sold room decreased 0.5%. Owned Resort EBITDA for the three months ended March 31, 2025 decreased $5.1 million, or 26.7%, compared to the three months ended March 31, 2024 and was driven by: a decrease in Occupancy and Net Non-package Revenue as a result of the ongoing renovations at the Hyatt Ziva Los Cabos; partially offset by a favorable impact of $2.0 million due to the depreciation of the Mexican Peso, inclusive of the impact of our foreign currency forward contracts (refer to discussion of our derivative financial instruments in Note 12 to the Condensed Consolidated Financial Statements in our Form 10-Q). Our Owned Resort EBITDA Margin for the three months ended March 31, 2025 was 40.0%, a decrease of 3.2 percentage points compared to the three months ended March 31, 2024. Owned Resort EBITDA Margin was positively impacted by 570 basis points due to the depreciation of the Mexican Peso. Excluding the impact from the depreciation of the Mexican Peso, Owned Resort EBITDA Margin would have been 34.3%, a decrease of 8.9 percentage points compared to the three months ended March 31, 2024. Dominican Republic Comparable Owned Net Revenue for the three months ended March 31, 2025 increased $6.4 million, or 8.6%, compared to the three months ended March 31, 2024. The increase was due to the following: an increase in Occupancy of 2.9 percentage points; an increase in Comparable Net Package ADR of 4.8%, and an increase in Comparable Net Non-package Revenue of $1.7 million, or 19.2%, compared to the three months ended March 31, 2024. Comparable Net Non-package Revenue per sold room increased 16.5% compared to the three months ended March 31, 2024, partially driven by higher realized fees related to cancellations, as well as an increase in events revenue. Comparable Owned Resort EBITDA for the three months ended March 31, 2025 increased $3.9 million, or 10.5%, compared to the three months ended March 31, 2024, and includes a $0.4 million benefit from business interruption insurance proceeds related to Hurricane Fiona. Comparable Owned Resort EBITDA for the three months ended March 31, 2024 also included a $0.4 million benefit from business interruption insurance proceeds related to Hurricane Fiona. Excluding the aforementioned business interruption proceeds from both periods, Comparable Owned Resort EBITDA for the three months ended March 31, 2025 would have increased 0.9% compared to the three months ended March 31, 2024, primarily due to an increase in Comparable Net Package ADR. Our Comparable Owned Resort EBITDA Margin for the three months ended March 31, 2025 was 50.6%, an increase of 0.9 percentage points compared to the three months ended March 31, 2024, and includes a favorable impact from business interruption proceeds related to Hurricane Fiona of 50 basis points, which was flat compared to the three months ended March 31, 2024. Excluding the aforementioned business interruption benefit, Comparable Owned Resort EBITDA Margin for the three months ended March 31, 2025 would have been 50.1%, an increase of 0.9 percentage points compared to the three months ended March 31, 2024. Jamaica Comparable Owned Net Revenue for the three months ended March 31, 2025 decreased $7.2 million, or 12.5%, compared to the three months ended March 31, 2024. The decrease and includes the following: an increase in Occupancy of 2.1 percentage points; a decrease in Comparable Net Package ADR of 17.7%; and an increase in Comparable Net Non-package Revenue of $1.2 million, or 16.7%. Comparable Net Non-package Revenue per sold room increased 15.1% as a result of a higher MICE group contribution to our guest mix. Comparable Owned Resort EBITDA for the three months ended March 31, 2025 decreased $7.0 million compared to the three months ended March 31, 2024. Our Comparable Owned Resort EBITDA Margin for the three months ended March 31, 2025 decreased 7.7 percentage points, or 18.0%, compared to the three months ended March 31, 2024. The decrease was primarily driven by the travel advisory issued for Jamaica by the United States government on January 23, 2024. SOURCE Playa Management USA, LLC WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM? 440k+ Newsrooms & Influencers 9k+ Digital Media Outlets 270k+ Journalists Opted In

Playa Hotels & Resorts N.V. Reports First Quarter 2025 Results

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