Playa Hotels & Resorts (PLYA) 4 Aug 232023 Q2 Earnings call transcript

Good morning and welcome to the Playa Hotels & Resorts Second Quarter 2023 Earnings 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 this event is being recorded.

I would now like to turn the conference over to Ryan Hymel. ahead. go Please

much, to very Earnings morning, and everyone, Call. Thank Hotels Jason. & again Playa XXXX Resorts welcome you Good Second Conference Quarter

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

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

For the our discussion Risk that actual night. quarterly which factors results of last the SEC XX-Q, report section some review we of of the could filed on Form to cause differ, Factors with our please

releases. updated investors.playaresorts.com We've website Relations recent our Investor at company's with the

to we trends quarter call, today's Officer Chief GAAP financial were will non-GAAP on call this provide reconciliations and will second operational on Wardinski, in the yesterday's demand release. measures included comments Executive and Playa's key Chairman of addition, highlights. press discuss Bruce On In the

I and wrap our we will it some with over outlook. quarter remarks turn concluding results second the call will to up Bruce Q&A. address our then before

I'll over call Bruce. turn that, the to With

thank Good Thanks, everyone, Great. for and morning, us. joining Ryan. you

despite to continued significant second quarter expansion momentum growing XXXX established FX in both on Our results headwind. ADR in core a build resort legacy margin owned EBITDA the our with year-over-year occupancy and portfolio and

second best our XX.X% quarter Playa's an our owned performance legacy the increase segment in the the the of RevPAR in was driven Jamaica in EBITDA year-over-year by company's recovery portfolio. continued resort million $XX.X in second-quarter core history, and

not was without quarter challenges, The however.

management the to year-over-year Resorts pressure we Republic the foreign in exchange Jewel As two headwinds Playa currency that in recently Mexico. to from both Dominican experience of transitioned and continue

Mexican the basis, Peso level basis the from resort points FX point Additionally, on reported drag owned this a margin XXX the basis operations teams executed appreciation an of despite approximate resort at EBITDA delivering of expansion our quarter. XXX

foreign legacy The a core performance improved year-over-year moderating particularly margins points was inclusive currency of drag. portfolio basis year-over-year the of XXX points margin pace given growth. RevPAR resort The basis XXX negative impressive

reminder, we for impact a last growth our the highest was of the as of year growth we XXXX year-over-year half the would first quarter ADR lapped and enter As Omnicron would as expectation XXXX. normalize the second that that represent

that Hurricane Finally, which note to during we XXXX. Dominican occurred of the the benefit half quarter, related a business I $X.X recognized would like interruption Fiona, insurance in second also second from million in to Republic the

proceeds, timing expect we is the insurance and business proceeds exact of more amount interruption Although the unpredictable.

As our restrictions to by I to during the segment quarter little Jamaican longer-lived other COVID-related travel led recovery April place being in XXXX. of segments curve the until is mentioned, as strength this fundamental due a market the was behind on our compared

The to period resort margin the second have occupancy market segment. when this Jamaica, of has compared we for XXXX our that quarter highest fundamentally EBITDA ever best-performing marks was QX rate reinforcing changed nothing the and in belief our it pre-pandemic owned achieved

into XX percentage arrivals showing to narrowed June That been other XX by lagging to second destinations major a airport points basis approximately Montego passenger XXXX, Compared percentage quarter. gap approximately with during points significant Bay basis international to to first the XX XX quarter the had during points our points ramp.

margins would meaningful estimate the seen recovery negatively Mexican on quarter, have curve. segment Both FX. Mexico, predominantly of the segments our improved this year-over-year, the the by year-over-year ADR-driven we both In improvement Peso have still change the a impacted in Mexican impact during were excluding the segments of revenue we market in of was vis-a-vis runway Comparing believe and country given growth was this in ahead. ADRs where ADRs peers,

opportunities year-over-year efficiency as manage a growing on of margins We mitigate to by segment currency-neutral X%. in FX evidenced margins and been Mexico Yucatan significant actively help on growth on our costs working impact basis, our the have ADR of an

Although for the experienced summer softness we the as in some June the close-in for demand in second expected, Yucatan period. largely quarter was

the Demand, the however, improved month. in July month in for

Our XXX of expectation through the Resorts, and fall transatlantic resort is our will the expansion the ADR occupancy grew resurgence yielding as in Jewel that and margin Palm demand both Yucatan year-over-year. the margin resorts legacy remain the -- Beach Cana basis DR travel Republic, points In year-over-year, Punta subsides. over excluding choppy Dominican Jewel

DR the previously our points an segment Adjusting discussed representing of by basis Jewel second properties slightly laid year-over-year insurance Results for were last the the earnings in million interruption XXX business legacy approximate on $X we Resorts DR ahead EBITDA of the for two drag year-over-year. grew out call, quarter. the margins expectations resort in benefit, the

sale improve continue to resorts the to We the expect profit of to the from of the assets. year-over-year continue these during these pursue year half while we drag second

processes buyers two along been separate further And dispositions. both on other, the with assets working can are update the that with diligently is We of we have sell negotiations than one to in the is today only the share I individually. you but

of following the quarter decline bookings the by first The front, revenues the were redemption Hyatt down fewer second for a Playa-owned direct XXX increase of rate of conversion and redemptions. of bookings ahead significant the a On point whole. quarter during has change aggregate, XXXX, driven was demand a points World year-over-year. in In as booked managed steady remained during basis XX.X% transient

XX% transit We the be our the of me, expect mix revenue. excuse this believe targeted we and of of will course over out believe revenue will, to year booked smooth ahead and

approximately and second XXXX, factor night room critical and quarter continuing be of to sourcing for a gains. of our managed bookings, XX% our playaresorts.com accounted total in customer the During Playa-owned ADR

of came Taking stays night quarter channels. our who the a the traveling. XX% Playa-owned direct managed look and Roughly at in is from room

most channel Our has levels OTA mix depressed remained pre-pandemic for to the compared stays.

XXX the during mix, guest basis second year-over-year. mix our Mexican points quarter in nearly change was was biggest source guest up our the Geographically, which

mix well source slightly year-over-year, but pre-pandemic levels. guest Our was of down ahead European

source recovered. modestly XX% most is the mix only year-over-year improved approximately Asian Our but depressed guest it remains as

our a success remains -- as booking under visibility window of our was critical booking window just as Our has three months. our factor

would Once again, passion of the world-class service Playa of challenges dedication associates to have deliver to from and costs. thank heart to in Playa like and who face all unwavering sets unexpected our continued the truly I operating Their apart. service is what rising

$XXX of allocation the outstanding. our since of million Playa program XX.X% purchased on but over well million in resuming capital quarter during July, total Finally, approximately approximately the September XXXX an stocks additional repurchases front, and $XX in second the shares bringing our worth we $XX million, to

continue capital term share over phenomenal under-appreciated that modest fundamentals. expected cash amount our given We repurchases of flow that the shareholder near our to to believe free We boost believe our CapEx of opportunity business offers healthy are free in and significant flow stock cash and use from a generation time. value ROI-driven is returns our tremendous the total

I the over to and to balance that, turn back sheet the Ryan discuss our With call will outlook.

Thanks, Bruce.

trends. reclassify we with revenue to revenues of to first non-package Before 'XX, upgrade I review like begin of beginning package quarter quarter, remind the to revenue from industry consistent property room on everyone that to be with my elected the I'd

and made deck and with found our period slide the investor to to for We've prior XXXX can of five. re-casted on reconciliation XXXX reporting presentation current prior periods the changes our period prior be conform -- in a made

points which results expansion Our Jewel includes a XXX result year-over-year, a expectations foreign interruption tailwind basis line second of basis Republic, in basis resort the Jamaica with a costs, point from exchange, two from a basis XXX and and headwind from Resorts were the business growth quarter from ADR headwind XXX again the in point pressure XXX of our margin energy as easing to continued leading proceeds. point

While outlined line with related the expectations, in pension-related headwinds were we higher in our also on a call than earnings and quarter $X fundamentally quarter foreign last was our had expectations catch-up in currency one-time approximately million Mexico. the generally

bookings of These a in which temporarily the are June Finally, weighed Jamaica Jamaica. warnings not of during unusual on quarter experienced we warning travel and unheard nor safety-related impacted for types results.

more picked see than disruption led some and in one cancellations, we particularly and coverage this However, in the bookings segment. media up typically to Group

are short-lived reporting Jewel strength Resorts year-over-year was we and segments with It the excluding not DR. the the growth was, all effects ADR fall. lingering broad-based any ADR very into seeing however, as

we On basis ease unit the that pressures cost of to see and on these and calls, if in we front, the will XXXX stabilization per began we're utilities occurred surge lap XXXX the food start to as that beverage begin and earnings middle into previous I of the a mentioned on moved in 'XX. and hopeful two costs around areas from the inflationary

of that XXXX. during the to began into of We improvements the half fourth carried and over see first quarter signs

as Although some undertaking entire relief, be of quarter-to-quarter. and take it's volatile scale. Bruce portfolio nice we're our the our advantage to expenses across improve efforts streamline see and size to these mentioned, to procurement cost can process Again

These -- efforts bear improvements the cost beyond to far. we and mid-single-digits to benefits accelerate are fruit moves in and thus into the beginning the taken as category per are as expect undertaken work savings XXXX averaging thus high-single-digit to just XXXX. category And far our per company purchase

ADR room year-over-year occupancy new warning experienced the the closing and The At helping segments' impact in led gap night despite other I the Jamaica to growth, mentioned. the segment margin previously and significant year-over-year versus ADR, travel ADR yield of level, way mix XXXX. in the improvement, temporary versus group segment improvement growth

'XX reminder, Jamaica given a that disproportionate Omnicom slower at to variant the got impact in a due on off start testing segment having As time. its requirements COVID the a to

for the to made half well to addition in expected Airport, Montego being and is in significant recovery segment for improve near ongoing beyond. Bay XXXX second bode completed Jamaican the future The which the the of investment be the to

all major seats year-over-year flight grow into Bay our over Montego second to XX% expected leading XXXX in of half are Forecasted of the destinations.

front, margin better-than-expected higher typically generally and costs utilities mind in higher expense, that in -- from food the Jamaica other comparing we Jamaica versus Jamaica well. keep beverage as in other keep and please when segments results ADRs again and has benefited segments operating generate and On once and

basis impact Looking Peninsula XXX a X.X%. strong deliver destinations, exchange. Yucatan result year-over-year growth down of as negative of at primarily Reported the XXX results occupancy foreign resort to with reported year-over-year points continued point and ADR our margins from basis EBITDA improving were owned other

were marketing basis, negatively expenses modest as currency-neutral growth utilities team's a costs on basis margins spend currency-neutral and The timing a mentioned, operations ability higher year-over-year our we're of sales as a also beverage with a told, on impacted while on labor margins. on favorable favorable the government expand All normalizes. pleased impact and to RevPAR policy-driven had Bruce margins. Food and

this in The with and robust year-over-year as beverage over XX%, leading segment. Pacific of were year-over-year Coast ADR improvement had quarter performance another food also expenses to fantastic margin favorable

negatively a Similar were the XXX impact. result basis year-over-year the sharp excluding and Peso of have up Yucatan, foreign fluctuation to points exchange segment Mexican margins as by impacted the been would the approximately in

the In and Republic, Cap resorts is driving the at nearly to and up also our grew La XX%, resorts 'XX increased in occupancy quarter non-package Dominican MICE year-over-year significantly Romana per Hyatt the helping with the their year-over-year. which ADRs legacy room XX.X% to of compared yield XX%, of ADRs sold Cana these growth. revenue second Hilton business higher

significantly pressure fundamental yet for utilities at these improving food expense resort and ease. business improvement and even as beverage to interruption The proceeds margins after year-over-year adjusting led continued resorts

slightly assumed performance Resorts expectations. ahead was we've down Jewel two recently their dragged was segment by performance our of management the of though The

the improve sale process expect resorts. while Jewel of execute to the we continue the the We year-over-year, at to performance Resorts sequentially two

turning our MICE Group business. Now, to

Our of books and $XX the $XX MICE at is call million $XX MICE of net million. is million ahead revenue the our on XXXX time Group our final XXXX business full-year last well earnings versus of

the ADR to XXXX, we of books, revenue first us of where our and with up high pacing leisure we the XX% and XXXX From base favorably time that. well the first over pacing a revenue approximately setting Looking bookings $XX at last transient ahead have year combined half business the same MICE ahead occupancy on MICE for of has contributing million currently with were XXXX our to and up half of season. both perspective, this

to a This of the ahead look gives optimism the through sense we high as move summer season. us period and

and of to the billion. with turning outstanding We balance the balance $X.XX total $XXX a cash sheet. debt Finally, interest-bearing million finished of total approximately quarter

year $XX trailing no basis have million revolving net three with full $XXX outstanding CapEx times. cash on the approximately CapEx to a leverage our million other currently our to spend year critical and facility million and at million $XX for We XXXX our anticipate $XX on credit million borrowings $XX needs. for for roughly stands to be We maintenance

we rate entered a reminder, two-year ROI-oriented fixed X.XX% entered swaps respectively. a April have mitigate into Also rate both term carry interest our floating of loan contract, effective XXth, X.XX% three-year in As of to into which amount and new designated risk SOFR two due and a We projects. fixed $XXX for notional is XXXX. of it million rates and

capital the the an of Bruce as shares in XX million front, we additional shares additional Since and repurchased stock million shares On allocation XX quarter we approximately or second million outstanding. mentioned, repurchased in last September, we an XX.X% of XX.X the began repurchasing July.

and four generation approximately repurchasing cash use We believe repurchase existing shares forward remaining of well going intend capital a valuation million of have $XXX free compelling business repurchase the of shares leverage market is to continue is the authorization. conditions. cash our our the to and still use ratio depending our discretionary to attractive very flow below our on With times, stock, anticipated we on

continue valuation stock. also of value deliver our the given on risk-adjusted shareholders our new will bar for the in basis a business our invest We guests projects with high to to to as and

has turning to ADRs beginning the outlook. outlook versus XXXX at Now the set largely expectations. our of our initial RevPAR the with expectation to expected our year, improving been Relative as attention growth

performance core in portfolio and Occupancy is Better-than-expected our Dominican. worse coming two lower. at Jewel and in the fundamentals slightly in the Resorts legacy

impact expected half million, from million As inclusive of second $XX our in full-year the million is approximately now which negative $XX expect hit of release, the to in XXXX. appreciation we million to said $XXX Peso. EBITDA the adjusted of of we Mexican $XXX again of

of $X last approximately time higher $X our is This million million to than impact call. the at

steady Pacific construction remained the has the and Yucatan in aforementioned Segment. outlook impacting most in with demand of summertime fundamental the the exception Our choppiness for portfolio the disruption of

and EBITDA approximately XXXX year-over-year and growth EBITDA in and hurricane-related represents foreign At for XXXX and the growth the guidance midpoint, XX% business a approximately adjusting our midpoint the XX% adjusted basis, expenses of after full-year reported adjusted on year-over-year. but impacts, currency interruption represents

we For XX%. occupancy to quarter, the third reported approximately expect be

in reported to EBITDA given owned QX year-over-year and from FX year-over-year on Jewel margins DR expect the year-over-year to high-single-digits ADR grow resort Resorts decline basis a drag We the headwinds and the continuing EBITDA Mexico. two in

million. of improve together, we of expect of resort QX The and million. $X owned collection margins million of $X.X year-over-year. all $XX $XX owned management Putting expect expense $XX adjusted impact the of it million, fee exchange, EBITDA $XX.X million EBITDA to thus Playa to approximately Excluding Corporate leading income to million million. EBITDA foreign we resort $XX.X million to to $XX to

our estimates approximately impact mind $X.X foreign that year-over-year worse approximately in million last call. million these this or from $X Keep QX exchange time of headwinds than include

we're currently third the booking booked window, our Given XX% for quarter.

And low of but we reported resort EBITDA the in again basis. we year-over-year expect mid-XXs in to occupancy Mexico. down, foreign the a year-over-year the ADR quarter up to owned be growth be excluding For low-single-digit margins fourth 'XX, of impacts the exchange and to mid-single-digit to on reported expect

helps We hope you as further give guide seeing insight expecting. your we're to models you fine what that framework tune you and and

I'll With back over it Bruce. that, to turn

Great. Thanks, Ryan.

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

resonates an resorts and travelers continue all-inclusive uncertain very certainty face Playa's by amazing believe provided price We to even value the in the of backdrop. with well economic

open for up questions. line I'll that, With any the

of go We session. begin from Instructions] Shaun Our Kelley comes from will first Bank America. ahead. question-and-answer Please question now [Operator the

sounds talked I Ryan, this Thank think obviously, Hi. rates the behavior little to lot my for theme has bit a different seasonal out you choppiness of your a just across you bit we've seen and maybe in a It little strong. travel normalization remain everyone. start, Yucatan been about taking Bruce, Good morning, questions. of a like there.

out a sort or longer-term little you as of kind you it in sort characterize how just seeing would about can normalization Would a kind behavior of more talk and something like little your So or experience macro? what the more more you're just calling customer of using bit this? bit characterize you exactly of there,

so believe in few we than think And do others we Yeah. during Caribbean we've Mexico space that destination divergence believe with From I our is what between this we and quarter, demand. fatigue well. the have as case been calling to around which a see perspective, began second pricing other likely rather done attributable the or to the and having to is anything issues

period, heard on in You manifested the times just segments summer we've but of some assume assumptions, around is of we're continues really itself mentioned nice great the in it Caribbean comments and see and guide already and in stabilization saw we but the our our many kind continued year, Jamaica, the as going remainder our mentioned, that call, us in the this our other Bruce July. for in to to throughout strength

for but for more could time kind we're a So a well destination. preparing it or just moment be in that blip of normalized far very choppiness,

the And only and I and one, that think CAGR mature into basis look you most look market of CAGR if deepest arrivals, were extend to XXXX into arrivals us market, number say of and just international you a If kind And and Yucatan heard that the X%. XXXX Cancun international back that roughly goes that annual destinations. through many think about on if airport times you X%, of through you at to X.X%. XXXX, it's our Airport like you've specifically all the

people then to which this saw go we reopen, actually happened Europe a still XXXX, destinations more some of other what's be you and year assets with and place essentially of you chose and I see and other choice own and as XXXX we're So you lot is in people Mexico it's visit had think below trend, essentially to locations. but the

we still normalization So we have destination. more like the and it don't any we of but return not choppy, we're but expect about it choices, view just -- as the concerns be to other long-term

I may from be can kind And Yeah. you I mean, you of June/summer made. my Ryan all standpoint, phenomenon. I'll tell this echo comments see that a the

As Ryan the well I into season, think high and very mentioned, season. going it the for when people have options other bodes high

from Houston ever and anecdotally, flights time, of strength number the X adding the Just that's Chicago, or of the market. saying. markets done huge they Denver, And in I of very triple flights they're and just haven't are United that think kind very, long a the which Cancun widebodies in coming some airlines of a announced into indicative the daily that

So if be I would is think United's doing other that. that, going I term. indicative anything doing kind imagine that It's airlines of the longer nothing of are to

I think summer a of a phenomenon. it's kind of more

the owned a for a to of from just operating Thanks the as We pieces struggle you just between and owned Thank margins, that. FX and on a more Jewel And all hotels for about there's follow-up. relative few topline. piece. the do to of color my But and bit moving operated operating then obviously, you think leverage overall, how in Ryan, operated driving I seeing, the here? are kind costs leverage and US think, for here

normalized thinking to margins model, we're of through what or little out kind to a to drop again kind as of in growth Playa's bit right XXXX? need now either FX of revenue for see it be hold and let's leverage environment a margin you see So FX-neutral, able call

a to of to Yeah. But Bruce in focused around year. been low it teams kind and of mid-single-digits growth. mentioned softness the Bruce acutely the few ADR we low procurement were into expecting energy small with On can in and in team and as we're started that giving into quarter or of I of occupancy basis, currency-neutral wherever have want -- sight of we're our some in see back mid-single-digit the gains Yucatan the time basis, and currency-neutral but of -- have kind And re-staffing and bits see XXXX. margins. the pretty on ADR indications a kind made this We on to and expand a have operation kind cost excited expand you I that's now. commented kind times of some first we first lines single-digits, what nice the growth X% on was it why into about that half mentioned, wasn't to seen investment we've and in think the

still now, can a expectation is right we margins to a ADR on our mid-single-digit on growth. basis, currency-neutral low So expand

very you Thank much.

Shaun. Thanks,

The next question from Please go ahead. Truist. comes from Scholes Patrick

Hi. Good morning, Bruce, Ryan.

Good morning, Patrick.

made in trends mixed sounds And -- airlines. markets to that I'd the hear were those a information the your touching briefly heard especially Good question with pricing and say to price thoughts on going or the air to certainly ADR? on two in you. might like I from your sort airlift and also with other ability morning. about it airlift down air you is on We some would and thoughts your we the pricing. How pricing. at your companies, like Mexico where think forward. Thank it's to just -- the -- Bruce, for previous trends impact now, your going are on you resorts at the do of

But I I add -- very you think and we're Ryan, think here. in seeing is I Yeah. what positive. overall mean can

early dominated high-demand able are And and the with then somewhat diminishing airline travel change Jamaica the we've right? as what in airline doing rates, to pandemic overall business high-demand prices and business, and said but and as flows they're market, coming travel they're more high doing the kind not a particularly what the post-pandemic highlighted, importantly With and during how throughout -- of patterns, the the to week. just demand traveller leisure it how recovered were it become increase and you they markets. we recovery, it's were markets As in down and has

you're their the you're adding never ways before. had I schedules adjust United that having airlines they And so in seeing think just XXXs, like

and going they to their a capacity they Thursday, excess put the my capacity to the more with so try market, beneficiary weaker And kind of be lot they're opinion that Wednesday, weaker customers have of money. it. as more Tuesday, into is we're in a where This making let's and mid-week face and flying

think I we're to So driven economically and that going is to that. from benefit going be just

So what amazing. amazing. with traveling this mean, Europe, you're I people to seeing summer it's absolutely

traveling, places, know not it's spending different world money and that has you aren't and right? they're just because spending It's people traveling much absolutely the so money they're literally And traveling, opened, not different at than it was two report and the ago. earnings a second the years it's are Look or record year the why because that, rates people Airbnb ago is quarter, for profits paying.

it both So highlight, never for our people's very bodes not rate. it airline type rate. pay your kind price did. We side look great but still I year-over-year, just think was of And well to exorbitant Sure, as gouging us willingness kind on the always and were we of modestly charge the increasing they rates. rates to others of

high So see, think our the you're continue what rates and to very season. ability sustain to in I to particularly those is and increase that's going them strong

the quarter the me, so I'm on high next very year. first late bullish into quarter season, for of So fourth and

Okay.

Just a couple of follow-up questions.

and remind for in release, Just how starts this earnings much summer above are XXXX but your ADR average your now this right point? somewhere us at you

Yeah.

Cana we think when basis you XX%, a on XX% some summertime, of clean and others. accounting the fact things the like between for that for have Cap adjust I the underlying it's and adjust for

mean the high at great but potentially lot leisure it's XX% So Bruce's not of some XX%, markets than of point, its last like a peak, and again assume resorts experience, again that XXXX last beverage, the which you've at you again in I to States. money, year, absolute quarter and entertainment dollar to reached more point doubled that, and resorts that's think a as a in not as to but include lot seen a don't United $XXX couple that's guest is to food of $XX and when and was and

one high-end Thoughts pressure a highly do question, a stock. hotel is Again, And question last this it's your obviously you. in that hear it's RevPAR but domestic Certainly Bruce, you was think of thoughts report is just investors XX%. in very had about the summer and higher-end think resorts, mean bubble. from lot speculative controversy saw a summer next States point Thank maintain really property RevPAR? lot flat this I last Napa a higher-end I a question. Okay. This I United We morning, a of get can your a a resorts I domestic, level. year-over-year want their year-over-year. high to down that?

I yes. mean, the is, Yeah. mean to your I answer short yes. question

more those market our too. this part, a premier night think you've we and seen described of can. our any year much Playa kind given that paying Napa are for of is we in to have the don't benefit to mean people And the Napa, we been properties it resorts softening, I see tired the properties what to into They're summer for is, haven't I has that that. we think who going don't And going a $X,XXX the We next about most really year, charge know within you you're and what okay? have. going got I not do for a pattern room in normalized Valley. $X,XXX, not So

we rate of healthy increases. garner of able still do so We kind on us premium pricing that And are to attract allows some social customer TripAdvisor good very and and power. media that and rankings well level other

XXXX, do the not for a at pricing and think think demand strong normalized So going I think throughout if to today and high power to seasons, quarter be quarter season. see have patterns think you're the early we're high the what And second of you bad. in lot high the season at we first going going that's summer as level, is into I I look then look a I to the and shoulder at And that.

during in patterns the got mid-single-digit season think I opposed have maybe as past, will higher we the increases, So we've high normalized those pricing more rate the ones that are to power. but

don't I of red So us. occurred kind see signal recently or anything for warning that has flag. Any

mentioned, well. Ryan July recovered As

at of Aug. isn't kind softening bit the of next August, significant, no Mexican just in June, the a that which is face, a time slowest three we shoulder back and signs. dollar had the the early of into the I'm DR. then hammer can Resorts what the into warning haven't in those through high as had there levels Peso, our fall, October, you second you into the things The The of is the and sorry, three Jewel of for impact headwinds the September And you season Mexican the July. right? pick be quarter season Yucatan, but year All seasonal Probably we almost phenomenon So years. September, that anyway, XX kind be in of the for look report, in the we at phenomenon is year, headwinds into drag little with think weakness going and up so seen traditionally in soft are Peso mitigated. I then

talked sell to think it Resorts I more continue issue the to we the we've stock. buy provides two then for that situation and back about us when Yucatan and drag cash if well the Jewel eliminates

So I'm bullish. very Very, bullish. very

you. but very sounds will a I here. could think lot myself Thank I Okay. encouraging. ask I That more stop questions,

Thank you, Patrick.

ahead. from question Bank. next comes Deutsche go The Chris from Please Woronka

realizing prior got similar Any to details kind Hey, we we and the relative so is do peak dots between going prior of recovery tail peak, you in say a obviously the be XX earlier better? good think, to Jamaica to in into that Jamaica phase. trajectory is to that going try Maybe of extend on where far. percentage all second over thoughts terms if a that be connect Mexico that? spend morning, the on And could for it's beyond? Does guys. Thanks in

was our market way was it, of concerns our guys us said just I our of the And namely COVID ability the the and destination. to of tired it investments to you and impairment the of the or that and the they're know right? the not learning expectation. were and making had of close over the so, never best-performing the is where you Bay kind are even Airport located bullish to limited the of so I of that fact on that's as market any couple to that, are think into prior pre-COVID. as that rest supply just most we when a Montego airport in perfect. no around probably we're countries reminder, years market And get resorts saying last that And concerns pretty but purely out about It some long-term country testing, destination fairly

lends segment. just demand it runway nice nice itself So that for to and some

from market And draw said the is, from rates Coast groups. US, And very just What that willing Ryan draws the higher-end draws a know the great other that. because significantly customers that's to well higher are those place than I'll it pay our of Jamaica very you to and to add Northeast other markets. from

are fact the think they I guests really Ryan somewhat very as willing to higher and close for discerning attractive the mentioned, have to So that that are airport. and we premier is properties such and It rates. guests pay

understood. Okay,

other. the What the both Are they this them of it across financing, I -- is get On mentioned closer year? get happen done line? than level think else? of is Just issue this to something confidence an of the there your needs is that actually any to Jewel finish of those can you sales, one

Sure.

is not to all, issue it address of financing. of an First

both country. able from providers to multiple debt get quotes were So within purchasers the

the that's banks fact country indicator. And and the due strength are in there so the And lend. I it's think to that to good willing a the then

buyer to confident further not the the that not we not the it's of along of of pulled Quite one were that's further we their So out process. economics a that. financing honestly, because very are related or variety reasons now with for along

we're we've pace get that on one optimistic, other the are am and I that that somewhat done. on to delayed going And back where So alluded as further be but is one, of we ahead said and little this in before, there are not our things no and -- a of just occurring. know that we've slower. it, and world, Chris, But the you to indications just part move

just way of is. it's kind So the it

time season, they because year want are do resort slow when they we as a the time we're August said, me higher kind to it immediately to Xst amazing October year. it, can we like cash in to buy you're we going trying where at the this add It's walk to always that into that and December of of in it -- when of September, want are here slowest when the buy they people You to sell have flow.

nature kind it's positive track on that we're I'm two the of the just of resorts. But, beast. So the to sell

so great. Ryan's Last what Okay, I think question you far. back have was comment of just for on -- kind the 'XX to on

overall MICE million half for said and more you first up pacing revenue than think your revenue I is XX%. that $XX of

of in this think is, do for question what have first-half percentage what do the first at half do on percentage is you you time? or what -- you the percentage represents revenue that 'XX the of think, So XXXX

XX% from that we're our three markets Yeah, -- revenue having driven in kind for about segments already occupancy that's the to about of because a on of books. forecasted the of again, is and And of a key the deal and three -- beauty there. particularly of XX% key the it allows it MICE lot kind to it's MICE us

cautiously the So this we're optimistic season point. at about high

good. guys. very Okay, Thanks,

Chris. Thanks,

The next ahead. comes Please Beynon Chad from go Macquarie. from question

morning. Ryan, just one ones. my for near-term to guide. Good around details taking Thanks Wanted of question. the the to for all thanks trying the

occupancy I'm that's should said QX, of QX be XXX If at around you think looking points So occupancies, about I portfolio basis pre-pandemic. XX%.

XXX XXX XXX So imply XX% basis and of would points. kind kind points of basis around points basis between

in few at Yucatan markets Why XX% in get guess booked. is arc points said how this think a of like just going from Coast? higher, -- this some you're those I running a some you little we've are of be like we then how operators, bit firstly higher on and occupancies this And particularly should So basis companies Thanks. that, can't hundred and below? about secondly Pacific the to companies heard

Yeah.

So an trip of time the first. advisor assets, the building rate the up kind rankings great thought we've And since and I'll of way great amount strict etcetera. versus profile about reopened start high second top with we've been occupancy immense your of spent pretty we ratings, great about question we've consumer reports,

to tree of things depending on so and Obviously, and occupancy have like we XXX% the softness even can And the to are entire board, in rates in everything mine ADR. some okay we summer team's rates do focus. knee-jerk a favor level across protect and time so is hotel-by-hotel built we've asset dropping that. our quality that reaction, that's and those the and that with general, But to we feeding in decision revenue a want been not and commercial Bruce

other many much more sense lower answer It to to your so, could one. many a answer makes And to it first operators be yes, like question, And occupancy. at run the higher.

People in started softness in bit that we want and QX period differences that seasonal, lowest they And June and little it's have it was It's you the it while QX of the that in Yucatan service QX a book is not then some know again, Pacific so what's general, We've would we a major out wider expectation it rates decisions. more season last our Our occupancies of be. they is but brings even in it got do certainly want out coming lowest see more particularly phenomenon more the to to of are QX is just our and than what down. pike little in QX. wait see Coast asset. is because construction more the rooms season. And make between some Port the still call. to when at disruption It's we the again, and to down pointed hurricane then than the in occupancy much [indiscernible] a summerXtime

than this what comfortable could absolutely are what forecasting. be but we at it better that's we're point, So expecting,

Okay, And future thanks. just then projects. about separately, great, thinking ROI

to year a in is for CapEx. project of $XX million just You that $XXmillion still said, with bit the of kind little CapEx million or $XX

is the is business well, at thinking about these and levels leverage other you the or expanding along properties how any pretty that within renovating humming are Thanks. Now portfolio?

Chad. there's caveat ROI I multiple our not ridiculously in investors today. those question. our that, what We're doing they're just at there's no position. I've in I in big well just or do an it we're about. business this or business, All for XX one shoes. And high But my opinion, guy, projects. think incredibly I and there or know not makes concerned We can't you mean is honestly the that trading to is of and years stock your I'm a is about of a our doing where and been return low tell sense sit what think hotel concerned more don't than in So, the is I at think we look mean, where and repurchasing -- for attractive stock. I kind generate that does I'm to attractiveness quite projects

got of obvious become balance. when benefit I'm the and pace grow should so we a the it back lower going and where because doing the stock three just And that quarter, doing to levels our share a will at we're our EBITDA the nice remaining the to and company that close times, We keep bought benefits not worried sheet. to eventually, is of me is says doing cash you've continues of lot still to undervalued shareholders. reap will leverage we the are It counts significant end million. in accrue at about what to was $XXX At balance the our it

so that's the plan. And

it's So we all. not are ROI that abandoning projects at

set and have kind high of that's so we it. bar a Just

Good Bruce. point,

We as to trading have you mid-teens sense of at so it year, yield off a next makes Thanks. well. us

Chad. Yeah. Thanks,

next comes from The go Oppenheimer. Tyler question Please Batory from ahead.

morning. follow-ups. A good for Hi, up. here questions Thanks couple taking my of

the of summer now just talk seeing where from choppiness you that in mix to you But typical? terms the in is Europe, European some are isolated Are the also Mexico, US versus trends what's in versus Just as guests? about travelers US the right choppy well? more

elsewhere. more and were customer a the pre-COVID. residents with mix down. seen more heading But Yeah, saw acutely coming they choice have anything. going than mentioned staying Yucatan Mexicans more over-indexed into in are and to We of the been as a up higher then customers I thing at certainly Same Europeans from US US country. from we as mean, it's our the local still mix than it has US kind yeah, European actually and of we're less Bruce But and of elsewhere

the head. So you hit on that one

is exacerbating of rates that's problem not I'm they bit. to Are Okay. the this? dropping market? little of And the your How a some kind competition reacting sure if in

It is, many, Tyler. through hotel I've again, business, That's times. What a always in the many been this good question. happens

on scared Some And point get depends people the in quickly where others. it spectrum. price than more you are

price, pull spectrum the is who here, you real lever the only are doing are lower in there, you And the the point have they price really of of to are if of right? some kind -- those So part that. so only

the very have We on focused service side. been

our they okay, the the rated properties end, of mix, So more way delivery, more way. kind of higher getting where it's focused rate in we on are service And satisfaction that stand in lower even even customer. at the with the

of So retain it's most that. we I so we're for all the why in part, to magnified. the premium that's and resorts said markets that in, of have And kind we're able the

what, very are bit an business. to okay is because you that's to rate all-inclusive we're much So decision over a little occupancy, on occupancy that answered of focus going Ryan before, if we our we have see it tree and know that

it's and empty that you you component the sell can beverage just on the food an then other at and and it empty a an like, not airplane it's the seat or There's any impact room of price. lot can service that guests. So into that comes because

of doesn't the that go the level season. continue on the some pricing we really the high that maintaining way. drops really also and think it's occupancy. rather of well into the highest driving of since seeing versus that the kind would short-term are we to doing is in intend rates you're I and competitors side came we the of So it air we And But think pandemic, pricing out done of

than shoulder is me the a that -- change gives the of this more phenomenon of a kind it again it or season of demand. optimism kind in shoulder market a period So fundamental summer is

just it's if And demand to else. anyway. believe truly stimulate it wouldn't we somewhere means fatigue, they try go a price then That moving which is really want destination

with our So we're pricing. fine

me. question last Okay, makes then And helpful. sense. just It's from very

over extra has On the at that. maybe within sure, some non-package uptake not the trends I'm past side of of talk those the options months? changed of couple about things, just all on

to non-package basis. a on be continues strong per-room No,

Just of we're when way this little is looking because the fact Extended plan. the you're lapping that reminder, at a that they results, get meaningful in Stay a wonky quarter last as our a our protection

stay adults think can during would COVID it program you tested come think when that test was pay, if we to you like they the $XX our big, per where and had remember that guests continue AFP guys all to at to our big they was I that exit to offered United a States, I upon hotel seller. guest to essentially for positively free and back

So that all and rents are non-package we're of that. now lapping effects

XX on occupancies. clean ESP room impact as take Makes profile points, we're just there points. in lapping back non-package that your of per about a of well. growth you basis was of The mix roughly just roughly if even wonky also ending basically Jewel of reported year-over-year you add well, the the on the basis, our is just a sold program customer if X%. kind just as your that the that XXX things So down include of But growth or kind and non-package given ESP building little Jewel, fact you basis

all Okay, that's from me. Thank you.

Thanks.

Thanks, Okay. Tyler.

ahead. go question Rose from Please The Smedes comes Citi. next from

thanks. Hi,

I your new to that competitive of to construction But a just either of kind in of coming might any ask covered supply You've markets, with be lot you you, more seeing you? new any are assets significant or of just online repositioning ground. wanted

from but But proper. you CAGR. below. a really compare really remain or that rescheduled XXXX nowhere a into X% the basically many XXXX a or being times Not still But absorbed. supply north market has It is most or Maya that to in for the the of of lot build. that is it's airport, saw like supply and of Maya it airport south that conversions whole in were Cancun to most was Riviera -- going the to of we come the where Greater say of points is on X% obviously Riviera where roughly No, lot there's not in other else destinations

to So a it's massive others, amount. while relative still at not elevated

- A Wardinski Bruce

trend and proper the Cancun positive. that's a our you've Royal that's there from and kind going customers a in there, we're rooms markets And at one see level the to conversions, standpoint, kind on you zone to It's more a converting adding that any go that's all-inclusive that's branded Hilton more kind the Hilton rooms. the to continuing hotel new start the product within get of of because confidence to market not look of but look that made the and is adding of big announcement brand that are recent positive in a brand hotel at we seen in and think brand

you trend, very that rooms. but new not importantly, So are it seeing is adding

Okay, thank you.

Thanks, Smedes.

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

Okay.

this I us in morning just summertime. Now, would joining appreciate Friday everybody on the early

to So We the in reasons be we're about thank on participating strategy. optimistic to for very a lot going continue execute much our there's our of to you future Playa and call. think of

great great I everybody Take wish and weekend. So a a with care. day that,

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

may disconnect. now You