Playa Hotels & Resorts (PLYA) 7 May 242024 Q1 Earnings call transcript

Good day, and welcome to the Playa Hotels & Resorts Q1 2024 Earnings Conference Call. [Operator Instructions] Please note, this event is being recorded.I would now like to turn the conference over to Ryan Hymel. Please go ahead.

Thank you very much, [ Sika ]. Good morning, everyone, and welcome again to Playa Hotels & Resorts first quarter 2024 earnings conference call.Before we begin, I'd like to remind participants that many of our comments today will be considered forward-looking statements and are subject to numerous risks and uncertainties that may cause the company's actual results to differ materially from what has been communicated.

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

release.Today's a filed differ, of our were some yesterday's wrap quarterly on report Bruce in Factors discussion trends and I'll that remarks XX-Q, that, our For Bruce. included some up cause the our which and over Chairman Form could we section quarter the of actual our night the review please Chief first factors to results on call the Officer, last before Risk results to of measures Q&A.With press releases.In turn and the comments we call, the investors.playaresorts.com provide with at Securities will review Relations Investor concluding website it of this Wardinski, on highlights. operational and quarter I'll with over discuss then turn GAAP will Playa's to company's key will Exchange addition, demand call outlook Executive for recent first Bruce call our non-GAAP to the we Commission. financial with XXXX. We've updated reconciliations the

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

growth shift again difficult excludes was once of Adjusting year's XXXX the in the currency-adjusted approximately in a holiday Business quarter Mexico. underlying but reporting favorably still XXXX, and last Dominican and first points modest is which the included for notable segments XXX results the first a of a broad-based the XXX points. owned range. driven full EBITDA a due QX year-over-year the our season. EBITDA all margin of we approximately commentary portfolio XXXX.Our the XXXX that results the our legacy estimate in proceeds significant Playa's XX% metrics.Our was dive Yucatan the results Palm quite basis million second Cana sold were portfolio $XXX,XXX of results, quarter up XX% on during began a growth portfolio.The we and with expected our XX and trailing of with end $X.X approximately Resorts of Easter interruption for Jewel total XXXX basis on line our quarter interruption comparison exceptional for basis all above our the up demand XXXX year-over-year would a the portion comparable better-than-expected were to RevPAR for with these were during portfolio, of drag comparable But was by XXXX margins quarter, peak from the reported as Punta closed year impact was $XXX in headwind our with the quarter all growth resort Jewel into Republic. XXXX, year our full KPIs into of comparable the the thus occupancy particularly The business into EBITDA the point carried of proceeds despite insurance well EBITDA first benefit expectations, Before XXXX high segments, for Mexican Beach first of across ADR demand Jewel Beach growth during negative year-over-year. synonymous the strong legacy contribution strength in approximately by resort nearly the on peso, Palm the of and Resort.For currency half to QX be factors, not exceeded foreign positive basis on quarter approximately across coming EBITDA headwind the and and in the in portfolio, headwinds from in our we first exchange FX million resort owned high resort X% Jewel of see first from our QX appreciation impacted from owned that adjusted the the bookings

offset operations expansion mid-single-digit continued of growth.As following Our various practices XXXX, models positive execute approximately the on team the XXXX of pressure.In points management despite in be efforts ADR we've margin XXXX, as legacy group continuing Yucatan impacts believe the improvements expense mentioned show where we of negative, procurement year-over-year possible, revisiting moderated.As will results anticipated key growth began growth currency-neutral wage and to and hold the ADR result recall, to and on really steady mid-single-digit RevPAR the we've half year-over-year basis neutral buyout we you XXX in of may low wages on ADR quarter Pacific, inflation earnings rising efficiency, at underlying process be in FX level second the iterative, the will since can continue XXXX. previous of been processes, growth a to Yucatan, single-digit a of from the various We MICE staffing increasing delivering a realignment and personnel, at in help calls, the was in to to margins large of our rates second as categories. high

year-over-year demand strong construction buyout plan increased communicated record seeing to in the disruption previously and high to our to cost strong a on high the we've delivered and segment, efforts beyond. revenue XXX performance, of of currency-neutral to Cabos quarter the in first this EBITDA season our a accelerate points decided led occupancy resulting we best and end on expansion resort Los the for margin year-over-year for Pacific.Additionally, RevPAR the is our be of in the impact high are forward X.X%. We XXXX to at believe control combined in resort the the path Pacific growth However, rate position range. basis the expect MICE now The with capitalize renovation

meaningful but to change the which pulled room steady redemption customer through single-digit redemptions, and been leading first XX.X% for off sale regions to December our down saw Jewel quarter the as a impact and quite term, anticipated. gains. U.S. playaresorts.com lead State season group factor a of quarter, which start quarter double-digit travel in XXXX, areas forward will sourced negative the QX as the continuing demand pacing with accounted XXXX, of in lower of Odile Playa QX, the metropolitan for Cana the ahead the fewer comparison and we DR, expect comparable giving transient with Taking As mid-single-digit in bookings had a growth with the any from the improve, during the saw night on major would and critical closed notice the roughly quarter, with our driven has Cabos with during first demand short-lived, the the was the level XXX increasing reaching Palm core summer this rate in ADR remains of look aided of XXXX.Turning was spike the EBITDA the by in of growth.Finally, XX.X% managed the at in quarter headwind was Segment during on of mid-teens, a significantly greater we sourcing February, several through levels to demand.During which Hyatt and Bulk XXXX. advisory not guest year-over-year, the bookings revenues decline.Looking at World that a night advisory Beach advisory bit QX the meaningfully Results so significant a demand channels.Graphically, following as first the the warnings.Bookings picked prior following since completed a resorts quarter our basis for of much the guest following XXX transient we XXXX In of a The XXXX of travel improvement, country ADR summer to but good increased direct a very has point that transient booked change in Ziva of of prior segment the a MICE mix quarters continue be and the a the were our year-over-year. another us cancellations coverage who for revenue pacing impact biggest late the outside in portion resorts, had far XX.X% for down up in owned also than from significant from strong the travel the XXrd Canadian to Jamaica during near doesn't in mid-teens direct, traveling, our as advisory, of room significantly and the a the season were Hyatt of mix managed booked and sense into than to impact came Department's optimism renovation mix, underlying a year-over-year in conversion our thereafter.Although year-over-year, we by aggregate, was Jamaica points other XXXX, XXXX, negative solid Jamaica. growth Los better occurred quarter of major in XXXX, strong quarter a XXXX, Punta press fairly a and the owned much RevPAR decline higher of stays total and declines. the managed done unchanged as notice move reminder, holding Playa did advisory a be has rapid Jewel work of from had whole, was year-over-year Playa our approximately to a increase we Jamaica is pertain pacing up not basis experienced is quarter Jamaica renovation impact Hurricane EBITDA segment occupancy while despite points of owned QX had was fourth of first for previously low year-over-year. specifically January

levels.Asian room remains guest While this recovered still pre-pandemic recovered X/X only approximately it as our to is approximately XX% only mix is guest improved modestly of the that it versus pre-pandemic most versus still year-over-year levels. improve, plenty encouraging, mix sourced has as is depressed, Canadian

is the outstanding.Once who of and outlook. passion our truly of $XXX during discuss in the service success, in repurchases Playa the since from that, service rising I to deliver quarter, stock resuming like the unwavering all total program Ryan the Playa would call of September challenges months and approximately to during allocation or unexpected will second back sets bringing window to our worth turn XXXX to the face the have world-class to over what over the Their heart were approximately Our again, in of sheet dedication continued shares on thank apart.With additional thus of capital an first $XX.X our critical first and a remains the factor just far $XX.X visibility million we our million booking in our million repurchased our front, as X quarter.Finally, associates, approximately was costs. XX% balance I operating quarter

Thank XXX as and efficiency and our demand from much, to which the we in on our strong KPIs cost well are led you reported margin quarter Jewel business expectations, basis of currency-neutral mentioned, the well references X XXX from from XXX a exclude quarter. business from otherwise year-over-year, Bruce. basis tailwind points as expense a Dominican point beverage Again, benefit were basis interruption the Republic. included Healthy of also demand, begin, very interruption proceeds stated.As and to food point and proceeds, results a efforts first Resorts I before unless easing our a and ahead point basis throughout all headwind remained foreign exchange XX pressure prices as margin basis expansion

cost be our result measures, our by favorable to of team. delivered were together, also and costs a all points the efficiency XXX operations increased wage of food inflation be and input basis for margins efficiency basis prices favorable cost in beverage Labor continue costs the resort XXX continue a as business expansion.On but interruption, in year-over-year Adjusting reported FX -- EBITDA taken favorable, the to remains our So reflecting headwind. first lower quarter. portfolio legacy resort quarter, front, efforts and underlying margin points a generally

expect XXXX, changes to steady efforts savings scale.These our procurement resulting we've since are high of expense processes that improvements mid-single-digit are we quarter to benefits our moves update flowing estimate with streamline far entire for in remained of bear books during margin take savings As from any throughout improve advantage as across business, We to our with thus lifting group year, XX% heavy same costs through savings with category. Bruce procurement deleveraging portfolio fruit the and last to XXXX half accelerate, as our $XX mentioned, just approximately our XX% year. beyond, our the the beginning penetrated and undertaking cost the we of business group in and are time the company the has undertaken to really from XXXX our the our higher single-digit inflation XXXX.Underlying expectations MICE potential million, construction only averaging the per and disruption approximately demand.Turning last on weaker compared the up the MICE net roughly from and Jamaica to in is fourth efforts

our entered MICE acceleration CapEx $XXX.X year-over-year at the volatility in balance basis into our began a maintenance repurchase to a during outstanding the the we at or ] shares time. credit XXth, revolving at the for attractive XX% of projects. to debt finished on of of our out with our additional and due repurchase be Our over balanced million forward peso of ROI-oriented our Mexican notional shares free remainder half effective X both million X-year Since Separately, business experienced leverage on XX.X cash stock, is carry the quarter Hyatt XX% MICE $X full X.XX lapped reduce XXXX, ratios XX.X% on use based X- million approximately approximately to for sheet, allocation cash million compared anticipate quarter, year, authorization.With market billion. and impact resort.Also, of for year discretionary outlook facility.Our we've in amount very of million We and $XX the into interest-bearing repurchased our designated rates $XXX leverage we $X.XX as on of reported a CapEx [ other a during no to what generation to as which be fixed XXXX. our we QX September, on peso more an the first reminder, $XXX a flow the $XX depending the this mentioned, approximately spend X.Xx, total XXXX exchange mitigate is have of of outstanding loan impact remaining turning over second in term $XXX as Los Xx, of the fixed basis and repurchasing balance Nearly contract, first of of of $XX the repurchasing have our excluding year.Based approximately purchased still and comparisons much valuation we've million total full our for is slightly difficult rate business to This half capital attention interest year-over-year nearly stands far increase our Ziva exchange shares into due net in is a spot to XXXX, be interest XXXX and on million impact XXXX to we have to exposure [ forwards, thus which we largely of EBITDA renovation from borrowings EBITDA the greatly million approximately we the capitalization.We anticipated going estimate Bruce to $XX.X and We and $X conditions.Now capital to the on million, to the partitioned approximately believe FX We 'XX existing incredibly of year.Finally, 'XX. million shares our rates for SOFR currently time previous between turning use and to stock foreign at cash Cabos swaps Mexican $XXX near entered year million we ] $XXX for of than expected $XX lease discussed the or is million. year XXXX, additional the in on million capital we trailing intend rates.In a X.XX%, our shares QX risk 'XX. outstanding entered the the which the XXX% should million respectively. a our the half hedges the of implemented compelling last at of rate still current critical the April floating an of previously it front, the better the our outlook to

like compared the XXXX of remind affecting unique I'd comparability our dive before First, to everyone outlook. of items financials the we into to

exchange. foreign with First,

the million in of with proceeds QX of As $XX.X coming a of approximately XXXX EBITDA recognized that and we million EBITDA a peso the in XXX reminder, and $XXX,XXX majority appreciation the $X.X had points. quarter of as million Mexican a $X.X by quarter loss the of reminder, impacted an in interruption, approximately million adjusted XXXX. and Roughly QX, XXXX, for Jewel on Business resort impact respectively.The of the second first a owned in BI in recorded basis closed the they XXXX loss margins of the Palm $XX during quarter. was approximately Jewels, reminder, X/X Beach XXXX, the DR negatively as occurred as of

at XXXX lower occupancy ADR the to all a the year and Jewel forward, we total that Jewel by night offset ramping to continuing at down basis low room occupancy from considerations impact mix is last This digits percentage Jewel to current majority resort the driving of basis comparable Palm points mid-single to inputs.We total the that digits advisory looking for of for expect a high the reflects digit growth single between legacy Resort.We and for positive portfolio. occupancy legacy resorts and continue that low delta single single Jewel low RevPAR, we estimate growth but disposing Jewel expect the by and of only double Beach's RevPAR million digit X Beach $XX the total XXXX key point million Cana as up be from ADR partially the still Palm low exchange of legacy The modestly of disposition demand expect mentioned, approximately RevPAR be following modest result full any contribution on portfolio. headwinds, Jamaica.We year the expect Palm XXX Cana expect forwards. to removing being net of on contribution of force into We the that portfolio from partially foreign adjusted the Palm to year for FX sold impact points ramping Punta the Cana the for portfolio and is digit and we the negative the Punta resort, as single-digit to Beach mix last offset rates having million to mind, the portfolio includes the Beach which with improving based year-over-year million, $XXX resort for the travel and of the between $XXX EBITDA in vast portfolio. change the Punta So ADR.We the and $X approximately XXX negative exchange occupancy Jewel contributes of a the

we we've dollars mentioned, working expect we've the high the believe we currency on we've lowered of Bruce several business hurdle mentioned Hyatt single-digit our approximately basis. hold on in rate as of Pacific of As a margins and times disruption adjusted EBITDA and leverage margin to growth our Cancun.And at Zilara flat the inflation, construction diligently interruption been impact call, efficiency, improve to ADR X% and

robust the net to a quarter.Now the hopefully pronounced quarter, occupancy the our profit the first comparison, weaker to from second on the and and and the the respect Jewels. annualizing likely and reported modest we at Jamaica disruption XX% most income.With loss the year-over-year the package the in quarter The QX are the to percentage drag to negative mid-single-digit growing we from somewhat offset demand a in fee construction profitability, impact turning our reported be and given second cadence low improved higher in ADR expect increases a attention increase of included $X fourth year corporate to most in expense from quarter DR third show XXXX, million expect basis. which expect XXXX partially from We in

last expect point margins period decline headwinds EBITDA in impact recorded owned margins $X.X the was points.And are management million to to impact roughly points resort business and expect fee exchange million proceeds to QX which basis by corporate continuing to basis expect million; FX $X year-over-year, QX of comparison [ impact. foreign a negatively million; $XX XX resort significantly positive XXX to year, altogether, of income in we basis $XX approximately and $XX interruption includes which which the XXX million Mexico, We of Playa expected million to ] $XX expense EBITDA of collection given million, to a owned negative $X

we're further tune as of XX% quarter. $XX it We helps adjusted turn booked for seeing for hope I'll remarks. gives closing our your you to million Bruce $XX expecting.With Finally, that, you, in booking million.Given to that what and currently the framework window, models fine second back EBITDA over guide all some we're and insight

Thanks, Great. Ryan.

a we also improve the successful growth year portfolio remain optimization.With travel areas the to We has this Odile performed control, as expect and extremely ago. line first our comparisons and Rose and So is Los renovations in efficiency Hurricane market.Our following the good the the the will Hyatt resort difficult such XX key Hall. to a setback coming significantly Zilara expense well, in its within renovation a and their significant in the despite start namely for portfolio, from Zilara with And our cycles XXXX. years focused undergo off solid on remodel Hyatt Hyatt our early was years, advisory lapping point positioning approaching life Ziva and in of Ziva are the the current nearly ongoing top while among Cancun Jamaica to refresh conversions resource Hyatt our other efforts respect Cabos our competitive from

next in from resorts, specific Pacific, the resorts recycling these to done multiple of of the by these funded the was the non-core are of what than over involved greater and footprints be expect capital nature experienced dispositions.Given we asset years. We work recently disruption which the have for year, targeting renovations the we

these optimistic on sits am more performed and success term later has year, ROI resource meaningful potential the close Cancun, Hyatt our redeploy as largely Montego information I the the also questions. this with incremental the I'll piece direct meaningful but has adjacent to EBITDA, potential probability consider drivers to any a additions returns add market-leading conversions their to since existing is for beyond not of open flow high segment. proximity us been to to Hyatt portfolio.Our will in maintaining and a up These for drive recycled back Hall EBITDA The and we generate on projects the for we years and funded but XXXX value key prime Zilara in limited significant airport addition, established with the supply market about Bay real generate growth. room capital us. for incredibly have have the resorts, our near continue capital, our have Zilara on come.In and the position the up XXXX.With should potential to projects drive setting given large limited that, of that of renovation With in resort we and this to share our a of free endeavor be Rose cash a the Ziva assets, which repurchases supply for will will line with into estate value We significant significant completion MICE this well growth resorts and tower

The the with Instructions] question of [Operator first is Rose line Citi. Smedes from

to could I'm you sort a wondering, into waning switching you of bit that there is while, for groups out transient? sort And sounds if quarter? corporate impact of more playing more interested think about really think like the talk do you in maybe a been of with you're second was more backfill this kind about of just they're the little why these Jamaica. of just it demand I a since guess, Or just warnings talk having having so out, and way? I larger out sort why what you're of have are And Bruce, sort sort like trends First,

standpoint, mean, we answer really Smedes. great it's Sure. can't our I that. No, question, a from

very have and strong We the we based. kind broad see a of booking is weakness that window,

And at say particularly It's in on just if it strength the look just of had is would year. to of the things of the look as X other me jumped that people side. transient the you kind the not strength about seeing I just well.If of number you overall -- not season, it's across So right, fact demand, the high the the group the was, I quarter, demand mean, also but the out ADRs concern one, through the we're seeing with issue one rest this we're and ADRs. and any that

And government Stewart, asleep the Quite do higher the I've I contact to about getting it's good have and much to And it relatively anything value and government honestly, strong situation. at more even and we've the And it's concentration and go.So the with this for we push demand, the to the sustainable. who's beholder. address the rates people you so Sandals. proactive at switch Head has kind we know. we do. very a great eye really what so, out my don't something. why in look not a than been we're value when has to significant, done close Adam It's try in proposition that in to Jamaica, intend they're Sandals the been really really stands from cheap price and very standpoint always said of relationship country has is than value the the of in And of still opinion,

QX. going pushing fourth we QX see see for do.Fortunately, what we're -- to as we're bad be be So the quarter we what can to to as going and doesn't look

doesn't kinds of sense.I the and near Bay make areas it mean, so in season, term, example, I are things, And But really in for one but the do resort to push particularly the high nowhere resiliency not good this shows So it need again, our think we that's news. we're and to idly EBITDA. business, all initiatives of travel short sitting We're by. zone. Montego trying the the the of much we issue our under it, just advisory is address of where generate covered

we in north the the issue. island, So side corridor, primarily, range in if which other big of kind of really the there's between. on are you at the located, and side It's there's on the look of any significant completely a resort island, mountain is island, the where of side not south

to some additional going business. why of we're that at we're significant. some for try and communicate a hopefully so But to loss it's So drive

next to past. need you out great. tower -- I know manage your you a Okay. maybe provide just I percentage can Zilara don't on of to Cancun then EBITDA is, renovation remarks to in talked speak the for provide that there in bigger up, ] of if this, EBITDA just can room if you end think renovation, follow the year. Ziva, to don't going going the that what would you new the sort how coming at under but of I sort I I one against just the And and imagine asset speak about across wanted would are it something But generators I know of could, you mentioned balancing it [ I your can about that's portfolio. mean, you be of well, I and mean, can just if you've Hyatt

Yes.

at this to are Cancun only clear, Zilara the about be So talking we point.

about for why Cancun. Bruce and We scope, We're of referring plans and these any this still internally Ziva renovation going a lot we'll to point in mentioned, Hall. to are a what the going that's Zilara through the XXX-room not for at through year next need Cancun, Ziva more which Hyatt specifically about and be talking target back potential Rose Zilara is in the is and property information. with But we're

EBITDA Zilara $XX rough contributor roughly been portfolio, So a almost teens, our adjusting FX. for million for has high overall the figures

coffee And converted and took recall, you in lived the more not as the And some renovated done recapped the can't Cancun just restaurants. it's the in services the I the the air in just to company. to gym, street.So we've the the airport, in EBITDA hotel spa, Ziva just to real we up but since essentially renovated been XX [ given of touched quotes see property a under before things proximity then, the ancillary me a it like Hyatt some estate generally, XXXX been and ], -- the things quite and repainted of we've to done so, have zone of when call, ago, frankly, But over we contributor in we've essentially mean, than Cancun, was the rooms.But all on it's -- location rooms shops number think now, given spot years umbrella good since a the property prime I you that using done the I'm its it's overdue, right was renovation. I've this a for have the

that's discussed high for And but any the come come so running to last, closing contain down property in or past. past, through we've potentially discussed again, of scope the months the potentially EBITDA the effectively year high there, of generally have it X more the to we plan in Again, and timing for information lost the season it, remainder reopening and to for season. this call But the time the and in the later months will X year. Easter year then

just add me to let just that, kind strategic rationale. And the of

been Ryan innovation. we rooms it's like haven't done years, So and said, over XX

the resort were do in even obtained Zilara Cap you from with type Cancun that good, XXXX, a even we for being opportunity Cancun seeing, but that. Los just the newer the more properties example, Cana Hyatt Ziva, course, But not significant. we're that were here of our would acquired of at rates kind and think normal exceptional for like that level Cabos. Zilara in at is When I So back that

being fact that have limited Zilara rooms I the a at the And number of relatively level is look Cancun Hyatt the high we and demand. at Cancun. of all-inclusive market #X So

is profile think the Ryan opportunity. an strong hotel demand that have of beach great put as on, So described, I really incredibly already.And exceptional kind product zone in there in just the Cancun. the a you we have then, best probably to ability

renovation. a okay, absolutely resetting of So This incredible Zilara Cancun. shouldn't just it an This passed. is the for floor, be isn't

with The Macquarie. line Chad of next from question is Beynon the

in look to there now? this be rooms I right spring kind the is think past, the general can will and in what Jamaica. there you an in forward of Could on looked prepared if you Jamaica, of demand. with was then remarks, on mentioned what tourists period, in kind your wanted lead-up I'm know X-parter break not us help was March approach model out a the to ADR you good not Bruce, ask secondly, hold just the in maybe or your I -- locals impact?And just versus but about kind like fill locals? year in to sure the Easter One, QX, versus some frame of prior just

just from part and and the don't Ryan, first it strategy we and of ADR. can focused you But there's quarter and address kind on Jamaica. structure, of something have our more rate we reset to is MICE out of such like anything whenever we then I'll And envision this, a kind of to you slope very regain, you hotel slippery of is Sure. I'll Since pass challenging a We pandemic, over permanent on kind especially which impact your where believe it's very I Easter. kind been big hold EBITDA to or absolutely contributor, the think term in were. the with of this Sure. second doing. that's we came give that, he the even situation longer deal and don't it.But in need it's to And kind a

of I'll and that that.Then going discipline We're resort it critical quality is high to Ryan. to resort. of the high-quality maintain pass a to kind have ADR We over

your Chad, around to clear, warning from be impact question then travel this the And to March or... is the --

year it's but spring if like doesn't year. was impacted, could same-store, you break about know comparable. spring March same this sound I break maybe It think a not week versus I like guess, last

Yes. Correct.

that the March, QX, it for [indiscernible] was April. Easter, us, but bit within hurts For a the week fact certainly it certainly helps little

unofficial our Easter week, the us, kind marks in of countries or the of particularly high season. end Spanish-speaking the Mexican For

out better. the further it goes, the So

It's Playa the I and to just April. positive next week think, third it second season. of elongates QX because in, So or the a it's high when year, a definite definitive a positive generally to

for QX it definitely a QX. So it positive impact on side, but kind minimal was the hurts us, to of

you're market lastly, Beach, hanging update like Palm divesting on in how it, then What's thinking about marketing And any this to out Jewel M&A of Okay. the property, terms there? it?

No. Yes.

the property. property, marketing and we're hopeful something able the actively announce We in are to the we be are to marketing near actively future. But

The Batory the next from of question with Oppenheimer. is Tyler line

the there can Maybe or the you hasn't This how compares past the talk settled it Jamaica fully years? yet, understanding is and on to advisories seen on disruption you've Jonathan for following maybe and but about interruptions Tyler. up dust travel over

Yes. you ask It's funny question. that that. for the Thanks

single-digit to numbers round the full as year been concentrated par basis late a I we issues at were look to mostly it's we at today, QX a the actually out be as swing, some So QX. sit around RevPAR mean, kind put and that with article as in in figures, you Jamaica segment came were QX what ] news And just actually just we for prior swing up the today sit in substantial crummy it's on right XXXX we we using year in almost where far where DR.If some -- the had beginning with low it's RevPAR. it's expecting the versus expecting [ the of it, impact for some of

mid-single Now it's based sit where digits. expected we on today, to be down

months swing digit high potentially few RevPAR that's double-digit in here. So to single a a

up below able with year. lines we're do what this we've to at what I And on an it's or to So worse basis last increasing Bruce beginning from than a a there's demand.What -- is cancellations, again, more we're expected the it certainly, lot trend just number picking not a recast earlier, traditional of thought. of all as year it's won't has at daily that we mentioned so experience

marketing of team number impact some of targeted local worried a one couple a as different a nice They earlier.They that -- some questions Canadians about has obviously the the advisory as back who a of blitzes and demand tactics be targeted days, for and falls sales done also well. of So lot again. have the Smedes well, off a groups travel wouldn't asked

trend traditional below booking we've just a we're seen So generally, and peaks a from but line just valleys, basis.

mentioned, given the summer we'll And see around but [ X rest essentially looks the our works days. of to So [ XXX how that windows is throughout ] the okay, as booking short ]. Bruce have summer,

Jamaica. you MICE talk then maybe up Can And booking discussion. following Ryan. helpful, for about on the Very window that in window business booking the group

maybe get of a near-term potential for from implications sense headwind? trying XXXX Just to this

Yes.

least months book the traditionally they XX absolute at months. it's at maybe -- shortest XX out, X but the months traditionally to So

months as with our booking well, which would MICE But -- windows, impact been going potential Bruce the the the out. have but also XXX Jamaica yet, around on 'XX. as an into books impact. not plans certainly of mentioned, renovating further potential to again, look it So have that days that's a would last of And at as there's XX to traditional couple detail much too asset also exception

Hyatt. redemption ] Any last relationship [ percent Hyatt what updated are stays? me, on good. could, with of if maybe stays Very relationship? the And of I thoughts one kind for on And that

Yes.

in redemptions do that us, for years XX overall are has mid-single we lot relationship been our the now, higher these Hyatt. good. But customers a the resorts known but by run they're of digits, speak the paying operations Hyatt they're of system, as benefit well discerning Hyatt teams known well and the just are mean, of I themselves.A NPS we've percentage to at around business customers. scores with obviously to the the Hyatt's the over markets our -- for traditionally, having been also converted have get in the has all of that So from low the of having had now been

So relationship to the our both. of still X. kind beneficial they're still nice And and very, been a is years few Leisure But really ago, mutually think, very obviously, a they I good, that. through between Group it's marriage Apple working and bought

properties Ziva well X fantastic XX Yes. and then great great operate teams the to mean, with years we our of it's in that own our just and as developed And strength Hyatt. And operations been the Zilara really as we think jointly, and exceptional our I of we I the operate, the Hyatt. a that with a is performance the testament affiliation countries Hyatt Hyatt of in brands. all

The next Miller Securities. question is Truist from Gregory with

Patrick for Scholes. on I'm

Los current plans cash-on-cash First for the Could if what you question, I work? return high-level CapEx for share willing and to are to your share for Cabos you're have CapEx your beyond expectations that relates 'XX.

this business. of much as is million Cabos, in it substantial because X of the Cabos say It's about nature. generated the talk portion So -- $XX and all there's don't resort really is MICE XXXX a but our definitely I'd nearly just Los the in defensive Pacific time. more resorts they X, we in in EBITDA

the of of done hotel that quite property, MICE any large EBITDA in now, for since the So one to I that a older to record, its like sound not the its that, has we punched broken hurricane.It's again, considering number bit. a business. real from particularly above not have done We've weight Bruce but a as kind to in and doubled years of part XXXX due renovation towers mentioned, XXXX

come. And of for so, that that business many booming to years we capture MICE many, share we continue to to ensure want that

that tell happy of of So the gym, marketing a last internally at come of to and ailed are property we targeting, or business over the sales space, it's couple years. adding in teams the are the older particularly other that and rates newer have things one losing meeting us some you have that can kind of us pushing properties potentially prohibited towers, attacking from things the the about new I

explicit returns of needs and to that a it's to us market that protect even no give because to chance value cash-on-cash further. just So real on something the be done that that estate capture

make are of area of more things like meeting pre-function different attractive to the at us to segment and make some the facilities enhancements will the going ballroom large we think the groups. a I expanding

has is business important really successful. been And there and so, really as said, MICE Ryan the

really really the things continue doing think I are business to maintain we're MICE us just to strong forward. going positioning

some I'd piece see conversion do for opportunities smaller what that overall the you curious I'm best of did on recently. but operations? business to Republic going gears a you second is portfolio, third-party question. What deals suited for Dominican management in your announce and shift manager forward? third-party a like recognize with hotels the Wyndham the this kind Alltra are I of as brand, my

is third-party our business majority profit a contributor mean, as for it from assets. said, and profit of the described we of kind lower I vast mean, our management Yes. I us. appropriately, comes the you owned

certainly to going that with around middle. on us working most that. the capital, of is many number is not brand. there Having right, very or all-inclusive but and world end hotel a more the with number space the said in huge mean, by the the broad Alltra converted converted insignificant U.S. property. luxury And Wyndham relatively is could on like be high having of to hotels, of in with that, of focus resorts of a same them done just Well, kind could those a I the lot dominated kind of the the case what it's to the you're opportunity at So rooms a look easily if rooms than be convert some that's middle, kind Wyndham of just that markets hotel in excited or it's just all-inclusive,So of when you really

Alltra Wyndham we many success So really working I really think good there's opportunity, the project partner. we'll excited They're Wyndham. love and great I some be how a do, a can't to but of and lot we're partners. with we've had with brand,

with Bank. is Woronka of The Deutsche line Chris from next the question

It there the U.S., you and whether all this level? and get with some the is determine a just as formula of here the bit details or marketing. the anything you're the so far. of seems this government on hopefully, from issue to Jamaican I part there you messaging side is State to Bruce, it you Adam of working that they're maybe -- using mentioned the up for curious do can I'm bit, I is But Thanks little fence? little you appreciate Department, the revisit a want Jamaica kind a little the of know to kind risk

question, a it's -- great That's Chris.

State stem the Jamaican [ in that the the States ambassador volunteered, And we do advisory have the okay?I actually with government. an with I you a why the Department. volunteered they make here go ] are question area. out is raining, mean, updated to be I meet when have of going go with to going now interesting would live actually Well, in rain, storm, us okay, at have sense sure, State exactly And I out doesn't so, can Department tell with and this it but middle it's I it'd why nonsensical raining, will telling Jamaican an it's to who meeting, be any the okay? because to And to nothing do travel find the me. I United friends, come and you, changed, saying, it's okay? DC I'm that that, has in it's to pretty it like work So you But okay?

bit just Appreciate rate I of that, lift the there? in know, expected think a Cabo, Bruce. bring it's up of question And I then PVR, a somewhat a Or guys kind more to defensive up. the recently -- would kind where like that's property you renovation little are you you wrapped seeing say

the then that still property like had just of major been It's rooms was at in right not doing doing done. to Cabo. They're of like kind XXXX. That's what and renovation kind Cabo, now. X/X We're more Cabo and mentioned do rooms Bruce property, time, a that what we akin last of earlier,

in time. was due it So its

of for potential part on by only both of of [indiscernible], beaches airport. one the and kind a there's on in kind -- real really really to mountains. private uplift of of property, sides the well. private again, really, close protected So the does rates.That It's so kind It's

so, needs maintained. to be And excellent that it's an asset

it's nature base well got So we've more defensive big there pretty group does like anything maintaining and that. us, that It house in with a today. It's the EBITDA little for or a not wedding.

it. So that's about

is about there -- a got Zilara we any one thought what the know think with renovation/upgrade down you for is, there get, ago. what of think brands kind of last are might when you launched the street separation. with take Just to create turquoise about saying, way Ziva, an rate do on that, almost the into over you've there further co-brand put and Is market is maybe to the even piece trying possibly is in are think to Andaz Ziva, a and rates I or by this lot I'm anything created years in tap that But terrific. there any preface any guys to possible? your XX of that like of a the kind Andaz's on of that's thought premium But and they when you I Hyatt. Andaz rate the concept tower not

we'll I how at always -- mean, it comment. that. hotel, a look do at mean, a reposition whenever at it's from optimize looked you we perspective. we brand the I We've good look

Hyatt try a to with and part an that's equation. from of XXX% resort located tell perspective, really, here, the you, opportunity so important ocean the And But funds I'll my is take ] [ And fantastic, mean, ADR. get Hall. maximizes that product what at I in think Cana, Rose we look get what we I look look get a create Cap -- to at Zilara, we what in

we think is to drive I we Absolutely. our having a premium have very the and the product. appropriate But product can and that, Cancun consider Hyatt options? significant goal Zilara that's get said if appropriate will rate So

for but you to in $XXX. state did -- of its package ADR, Just the Zilara QX, [ context, give -- ], very high -- existing $XXX package a some some the just round revenue

Ziva than And a Cana, the $XXX up almost per but night property more Cancun Zilara did per ADR. our street $XXX-ish more market, Ziva Cap newer much Our that package and different -- night. Zilara in again, a did

exists. exists, and So opportunity the gap the

you is just and it there, is. really I credit. others wow, doing in been street. have, is this And many so, you've than different know you've well property so that the a And for and got up very It's like, what go really, product you're

So Hyatt high if on very decrease up, ]. bring [ gap of that's can we kind profitability property that very, that that and

a huge Yes. do this to think I is opportunity, okay. really emphasize, want And we

and some is a I'm in are of this talked more out big protective expecting we repositioning. the opportunity, coming of huge success As this nature, defensive about, others and

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

this rest quarter, year. participating. It Great. more going was forward Well, much. looking for everyone, to you on thank we're a very lot thank But of you, the great a and in

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

now disconnect. may You