Playa Hotels & Resorts Announces Third-Quarter Earnings

Playa Hotels & Resorts N.V. announced its third-quarter earnings last week.

It was a mixed bag for the lodging operator.

To wit:

• Net Loss was $10.5 million compared to $2.2 million in 2022
• Adjusted Net Loss was $9.7 million compared to Adjusted Net Income of $5.9 million in 2022
• Net Package RevPAR increased 4.8 percent over 2022 to $269.50, driven by a 9.4 percent increase in Net Package ADR, partially offset by a 3.1 percentage point decrease in Occupancy
• Comparable Net Package RevPAR increased 0.4 percent over 2022 to $262.12, driven by an 8.1 percent increase in Net Package ADR, partially offset by a 5.4 percentage point decrease in Occupancy
• Owned Resort EBITDA decreased 8.0 percent versus 2022 to $52.8 million
• Owned Resort EBITDA Margin decreased 3.3 percentage points versus 2022 to 26.2 percent, negatively impacted by approximately 390 basis points due to the appreciation of the Mexican Peso and positively impacted by 50 basis points from business interruption insurance proceeds and recoverable expenses. Excluding these impacts, Owned Resort EBITDA Margin would have been 29.6 percent, an increase of 0.1 percentage points compared to 2022
• Adjusted EBITDA decreased 9.7 percent versus 2022 to $40.5 million, negatively impacted by approximately $7.8 million due to the appreciation of the Mexican Peso and positively impacted by a $1.0 million benefit from business interruption insurance related to the disruption caused by Hurricane Fiona in our Dominican Republic segment in the second half of 2022
• Adjusted EBITDA Margin decreased 3.1 percentage points versus 2022 to 19.8 percent, negatively impacted by approximately 390 basis points due to the appreciation of the Mexican Peso and positively impacted by 50 basis points from business interruption insurance proceeds and recoverable expenses. Excluding these impacts, Adjusted EBITDA Margin would have been 23.2 percent, an increase of 0.3 percentage points compared to 2022
• Comparable Adjusted EBITDA decreased 27.1 percent versus 2022 to $24.5 million
• Comparable Adjusted EBITDA Margin decreased 5.8 percentage points versus 2022 to 15.6 percent

If it all sounds too technical, that’s what we mean by a mixed bag.

It could have been better for the hotel owner, but it could have been a lot worse. Most hotels in the Caribbean were spared the wrath of Hurricane Fiona.

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