Q2 2024 Playa Hotels & Resorts NV Earnings Call Transcript
Key Points
- Second-quarter results exceeded expectations, driven by strong performance in the Yucatán and Dominican Republic segments.
- Playa's owned resort EBITDA was $75.1 million, despite a $1.4 million foreign currency exchange headwind.
- Expense efficiencies were broad-based, particularly in insurance, which saw a significant sequential improvement.
- Direct bookings increased, with 47.4% of Playa owned and managed transient revenues booked directly, up 10 basis points year over year.
- Repurchased approximately $37 million worth of Playa stock during the second quarter, demonstrating strong capital allocation.
- Renovation work in the Pacific segment led to a decline in occupancy and flat ADR year over year, with an estimated full-year construction disruption impact of $15 million to $19 million.
- Jamaica segment faced a material decline in resort EBITDA due to a 20% RevPAR decline, exacerbated by a U.S. State Department travel advisory.
- Hurricane Beryl had a meaningful impact on demand, estimated to affect EBITDA by $6 million to $8 million across all segments.
- Labor costs were a headwind due to ongoing wage inflation across markets.
- MICE group business for 2025 is down approximately 25% compared to the previous year, partly due to renovation work in the Pacific Coast.
Good day and welcome to the Playa Hotels and Resorts Q2 2024 earnings call. (Operator Instructions) [This conference is being recorded].
I would now like to turn the conference over to Ryan Hymel. Please go ahead.
Thank you very much, Nick. Good morning, everyone, and welcome to Playa Hotels and Resorts second-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.
Forward-looking statements made today are effective only as of today, and the company undertakes no obligation to update forward-looking statements. For a discussion of some of the factors that could cause our actual results to differ, please review the Risk Factors section of our quarterly report on Form 10-Q, which we filed with the
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