Forward-Looking Statements

Transcription

1 Financial Supplement Three Months and Nine Months Ended September 30, 2018 November 7, 2018

2 Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. You can identify these forward-looking statements by the use of terminology such as outlook, believes, expects, potential, continues, may, will, should, could, seeks, approximately, predicts, intends, plans, estimates, anticipates or the negative version of these words or other comparable words or phrases. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled Risk Factors in the Registration Statement, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC s website at Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this presentation and in Playa s filings with the SEC. While forward-looking statements reflect Playa s good faith beliefs, they are not guarantees of future performance. Playa disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to us (or to third parties making the forward-looking statements). Use of non-gaap Financial Measures This presentation includes non-gaap financial measures, including Adjusted EBITDA. Please refer to the preliminary prospectus that is part of the Registration Statement, for detailed definitions of these measures, reconciliations of these measures to the nearest comparable GAAP measures and cautionary information on the use of non-gaap measures, as well as to the Appendix to this presentation for an Adjusted EBITDA reconciliation to GAAP net income. Third-Party Information This presentation also contains information and statistics relating to the travel and tourism industry and the all-inclusive segment in certain markets. Playa has derived such information and data from third-party reports or other sources without independent verification. No assurance can be given regarding the accuracy or appropriateness of such information and data. You should not place undue reliance on such information and data in this presentation. 2

3 Financial Overview 3

4 FINANCIAL OVERVIEW Consolidated Statistics Three Months Ended September 30, 2018 Total Portfolio Total Portfolio 250 (0.6%) $223 $ % $175 $ pts 78.5% 79.2% 50 0 Total Net Package RevPAR Net Package ADR Occupancy 4

5 USD Millions FINANCIAL OVERVIEW Three Months Ended September 30, 2018 Results Total Portfolio Total Portfolio Total Portfolio Resort EBITDA in Mexico decreased 13.1% to $21.4 million $150 $125 $100 $ % $137.7 Resort EBITDA in the Dominican increased 31.2% to $7.2 million Resort EBITDA in increased 267.3% to $6.7 million Total corporate expenses increased $1.8 million compared to the prior year. Corporate Expense is comprised of: $4.4 million of corporate ownership expense $75 $4.9 million of management company expense $50 $25 $ % $26.0 The $4.9 million of management company expense is offset by $6.8 million of management fee income, resulting in net management company income of $1.9 million Total Net Revenue (1) Adjusted EBITDA Adjusted EBITDA increased 7.0% to $26.0 million over the comparable period in 2017 (1) Represents revenue from the sale of all-inclusive packages, which include room accommodations, food and beverage services and entertainment activities, net of compulsory tips paid to employees in Mexico and and net of cost reimbursements. Government mandated compulsory tips in the Dominican are not included in this adjustment as they are already excluded from revenue in accordance with U.S. GAAP. 5

6 USD USD Millions USD Millions FINANCIAL OVERVIEW Three Months Ended September 30, 2018 Operating Statistics Total Portfolio Net Revenue Resort EBITDA $70 $60 $50 $40 $30 $20 $10 (4.3%) $59.6 $ % 2.1% $27.6 $26.1 $15.9 $ % $36.7 $13.1 $25 $20 $15 $10 $5 (11.2%) $20.8 $18.5 (23.7%) 31.2% 267.3% $7.2 $6.7 $5.5 $3.8 $2.9 $1.8 Net Package RevPAR EBITDA Margin $250 $200 $150 $100 (3.0%) $209 $ % $158 $ % $124 $132 (10.6%) $206 $184 50% 40% 30% 20% (2.5 pts) 34.9% 32.4% (6.0 pts) 23.7% 17.7% 5.1 pts 26.0% 20.9% 4.3 pts 18.2% 13.9% $50 10% 0% (1) Yucatán: Hyatt Ziva Cancún, Dreams Puerto Aventuras, Secrets Capri, Panama Jack Cancún, Panama Jack Playa del Carmen, Hyatt Zilara Cancún, THE Royal Playa del Carmen (2) Pacific: Hyatt Ziva Los Cabos, Hyatt Ziva Puerto Vallarta (3) Caribbean: Dreams La Romana, Dreams Palm Beach, Dreams Punta Cana (4) : Hyatt Ziva & Hyatt Zilara Rose Hall, Hilton Rose Hall, Jewel Runaway Bay, Jewel Dunn s River, Jewel Paradise Cove, Jewel Grande 6

7 FINANCIAL OVERVIEW Consolidated Statistics Three Months Ended September 30, 2018 Comparable Portfolio (1) Comparable Portfolio 250 (0.1%) $223 $ % $175 $ pts % 79.9% 50 0 Comparable Net Package RevPAR Comparable Net Package ADR Comparable Occupancy (1) For the three months ended September 30, 2018 the comparable portfolio excludes the non-comparable resorts which included: Hilton Rose Hall Resort & Spa, Jewel Runaway Bay Beach & Golf Resort, Jewel Dunn s River Beach Resort, and Jewel Paradise Cove Beach Resort & Spa, which were acquired on June 1,

8 USD Millions FINANCIAL OVERVIEW Three Months Ended September 30, 2018 Results Comparable Portfolio Comparable Portfolio Comparable Portfolio $150 $125 $ % $114.8 $116.4 Resort EBITDA in Mexico decreased 13.1% to $21.4 million Resort EBITDA in the Dominican increased 31.2% to $7.2 million Resort EBITDA in increased 16.1% to $2.1 million Total corporate expenses increased $1.8 million compared to the prior year. Corporate Expense is comprised of: $4.4 million of corporate ownership expense $75 $4.9 million of management company expense $50 $25 (11.8%) $24.3 $21.5 The $4.9 million of management company expense is offset by $5.6 million of management fee income, resulting in net management company income of.7 million Adjusted EBITDA decreased 11.8% to $21.5 million over the comparable period in 2017 Comparable Net Revenue (1) Comparable Adjusted EBITDA (1) Represents revenue from the sale of all-inclusive packages, which include room accommodations, food and beverage services and entertainment activities, net of compulsory tips paid to employees in Mexico and and net of cost reimbursements. Government mandated compulsory tips in the Dominican are not included in this adjustment as they are already excluded from revenue in accordance with U.S. GAAP. 8

9 USD USD Millions USD Millions FINANCIAL OVERVIEW Three Months Ended September 30, 2018 Operating Statistics Comparable Portfolio Net Revenue Resort EBITDA $70 $60 (4.3%) $59.6 $57.1 $25 $20 (11.2%) $20.8 $18.5 $50 $40 $30 $20 2.1% $15.9$ % $27.6 $ % $15.4 $13.1 $15 $10 $5 (23.7%) $3.8 $ % $7.2 $ % $1.8 $2.1 $10 Net Package RevPAR EBITDA Margin $250 $200 $150 $100 (3.0%) $209 $ % $158 $ % $124 $ % $228 $206 50% 40% 30% 20% (2.5 pts) 34.9% 32.4% 23.7% (6.0 pts) 17.7% 5.1% 26.0% 20.9% (0.1 pts) 13.9% 13.8% $50 10% 0% (1) Yucatán: Hyatt Ziva Cancún, Dreams Puerto Aventuras, Secrets Capri, Panama Jack Cancún, Panama Jack Playa del Carmen, Hyatt Zilara Cancún, THE Royal Playa del Carmen (2) Pacific: Hyatt Ziva Los Cabos, Hyatt Ziva Puerto Vallarta (3) Dominican : Dreams La Romana, Dreams Palm Beach, Dreams Punta Cana (4) : Hyatt Ziva & Hyatt Zilara Rose Hall, Hilton Rose Hall, Jewel Runaway Bay, Jewel Dunn s River, Jewel Paradise Cove, Jewel Grande 9

10 FINANCIAL OVERVIEW Consolidated Statistics Nine Months Ended September 30, 2018 Total Portfolio Total Portfolio 300 (2.2%) 250 (1.4%) $263 $257 $217 $ pts % 83.2% 50 0 Total Net Package RevPAR Net Package ADR Occupancy 10

11 USD Millions FINANCIAL OVERVIEW Nine Months Ended September 30, 2018 Results Total Portfolio Total Portfolio Total Portfolio Resort EBITDA in Mexico decreased 10.9% to $107.1 million $500 $400 $ % $452.6 Resort EBITDA in the Dominican increased 12.5% to $35.2 million Resort EBITDA in increased 119.3% to $25.4 million Total corporate expenses increased $3.0 million compared to the prior year. Corporate Expense is comprised of: $300 $200 $ % $141.9 $12.0 million of corporate ownership expense $14.4 million of management company expense The $14.4 million of management company expense is offset by $22.8 million of management fee income, resulting in net management company income of $8.4 million $100 Adjusted EBITDA increased 1.5% to $141.9 million over the comparable period in 2017 Total Net Revenue (1) Adjusted EBITDA (1) Represents revenue from the sale of all-inclusive packages, which include room accommodations, food and beverage services and entertainment activities, net of compulsory tips paid to employees in Mexico and and net of cost reimbursements. Government mandated compulsory tips in the Dominican are not included in this adjustment as they are already excluded from revenue in accordance with U.S. GAAP. 11

12 USD USD Millions USD Millions FINANCIAL OVERVIEW Nine Months Ended September 30, 2018 Operating Statistics Total Portfolio Net Revenue Resort EBITDA $250 $200 $150 $100 $50 (4.4%) $209.3 $200.0 (3.4%) $67.4 $ % $96.9 $99.5 $120 (9.9%) $100 $93.1 $83.8 $ % (14.4%) 12.5% $60 $87.1 $35.2 $40 $27.2 $31.3 $49.1 $23.3 $ % $11.6 $25.4 Net Package RevPAR EBITDA Margin $300 $250 $200 $150 (3.3%) $248 $240 (2.1%) $221$ % $160$164 (6.7%) $249 $232 60% 50% 40% 30% (2.6 pts) 44.5% 41.9% (4.6 pts) 3.1 pts 40.4% 35.8% 35.4% 32.3% 5.6 pts 29.2% 23.6% $100 20% $50 10% 0% (1) Yucatán: Hyatt Ziva Cancún, Dreams Puerto Aventuras, Secrets Capri, Panama Jack Cancún, Panama Jack Playa del Carmen, Hyatt Zilara Cancún, THE Royal Playa del Carmen (2) Pacific: Hyatt Ziva Los Cabos, Hyatt Ziva Puerto Vallarta (3) Caribbean: Dreams La Romana, Dreams Palm Beach, Dreams Punta Cana (4) : Hyatt Ziva & Hyatt Zilara Rose Hall, Hilton Rose Hall, Jewel Runaway Bay, Jewel Dunn s River, Jewel Paradise Cove, Jewel Grande 12

13 FINANCIAL OVERVIEW Consolidated Statistics Nine Months Ended September 30, 2018 Comparable Portfolio (1) Comparable Portfolio 300 (0.8%) % $263 $261 $217 $ % 1.0 pts 83.6% 50 0 Comparable Net Package RevPAR Comparable Net Package ADR Comparable Occupancy (1) For the nine months ended September 30, 2018 the comparable portfolio excludes the non-comparable resorts which included: Hilton Rose Hall Resort & Spa, Jewel Runaway Bay Beach & Golf Resort, Jewel Dunn s River Beach Resort, and Jewel Paradise Cove Beach Resort & Spa, which were acquired on June 1,

14 USD Millions FINANCIAL OVERVIEW Nine Months Ended September 30, 2018 Results Comparable Portfolio $500 $400 $300 $200 $100 Comparable Portfolio 0.2% $422.7 $423.4 (3.8%) $139.8 $134.5 Comparable Portfolio Resort EBITDA in Mexico decreased 10.9% to $107.1 million Resort EBITDA in the Dominican increased 12.5% to $35.2 million Resort EBITDA in increased 55.8% to $18.1 million Total corporate expenses increased $3.0 million compared to the prior year. Corporate Expense is comprised of: $12.0 million of corporate ownership expense $14.4 million of management company expense The $14.4 million of management company expense is offset by $21.1 million of management fee income, resulting in net management company income of $6.7 million Adjusted EBITDA decreased 3.8% to $134.5 million over the comparable period in 2017 Comparable Net Revenue (1) Comparable Adjusted EBITDA (1) Represents revenue from the sale of all-inclusive packages, which include room accommodations, food and beverage services and entertainment activities, net of compulsory tips paid to employees in Mexico and and net of cost reimbursements. Government mandated compulsory tips in the Dominican are not included in this adjustment as they are already excluded from revenue in accordance with U.S. GAAP. 14

15 USD USD Millions USD Millions FINANCIAL OVERVIEW Nine Months Ended September 30, 2018 Operating Statistics Comparable Portfolio $250 $225 $200 $175 $150 $125 $100 $75 $50 $25 $350 $300 $250 $200 $150 $100 $50 (4.4%) $209.3 $200.0 $248$240 $67.4 $65.1 $221$217 $99.5 $96.9 (3.3%) Net Revenue (3.4%) Net Package RevPAR (2.1%) 2.6% 2.5% $160 $ % $57.9 $ % $249 $288 $120 $100 $80 $60 $40 $20 60% 50% 40% 30% 20% 10% 0% $93.1 $ % 41.9% Resort EBITDA $35.2 $27.2 $31.3 $23.3 EBITDA Margin 40.4% 35.8% 35.4% 32.3% (1) Yucatán: Hyatt Ziva Cancún, Dreams Puerto Aventuras, Secrets Capri, Panama Jack Cancún, Panama Jack Playa del Carmen, Hyatt Zilara Cancún, THE Royal Playa del Carmen (2) Pacific: Hyatt Ziva Los Cabos, Hyatt Ziva Puerto Vallarta (3) Dominican : Dreams La Romana, Dreams Palm Beach, Dreams Punta Cana (4) : Hyatt Ziva & Hyatt Zilara Rose Hall, Hilton Rose Hall, Jewel Runaway Bay, Jewel Dunn s River, Jewel Paradise Cove, Jewel Grande (9.9%) (2.6 pts) (14.4%) (4.6 pts) 12.5% 3.1 pts 55.8% $18.1 $ pts 31.2% 23.6% 15

16 FINANCIAL OVERVIEW Debt Overview Per Credit Agreement As of September 30, 2018 Playa Hotels & Resorts N.V. ($ in millions) Maturity Applicable LTM Amount in USD millions Date # of Years Balance Rate Interest (4) Revolving credit facility (1) Apr $ - 0.5%.4 Term loan (2) Apr % $42.5 Senior notes - 0.0% $5.5 Total debt $ % $48.4 Less: cash and cash equivalents (3) (137.7) Net debt $861.4 Less: Cap Cana spending to date ($109.4) Adjusted net debt $752.0 Pro-Forma Sagicor LTM Adjusted EBITDA $192.4 Pro-Forma Sagicor As Credit stats of 9/30/2018 Total debt to LTM EBITDA 5.2x Net debt to LTM EBITDA 4.5x LTM EBITDA to cash interest 4.0x Credit stats - Adjusting for Cap Cana Spend Net debt to LTM EBITDA 3.9x (1) As of September 30, 2018, the total borrowing capacity under our revolving credit facility was $100.0 million. The interest rate on outstanding balances of our revolving credit facility is L+300 bps with no LIBOR floor. As of September 30, 2018, the commitment fee on undrawn balances of our revolving credit facility is 0.5% (2) The interest rate on our term loan is L+275 bps with a LIBOR floor of 1%. The interest rate was 5.0% as of September 30, 2018, which includes the LIBOR rate that was locked in on September 28, 2018 for the 1-month period of September 28, 2018 to October 31, 2018 and the effective interest rate for the three months ended September 30, 2018 was 4.84%. Effective March 29, 2018, we entered into two interest rate swaps to mitigate the long term interest rate risk inherent in our variable rate Term Loan. The interest rate swaps have an aggregate fixed notional value of $800.0 million. The fixed rate paid by us is 2.85% and the variable rate received resets monthly to the one-month LIBOR rate (3) Based on cash balances on hand as of September 30, 2018 (4) Represents last twelve months cash interest paid not including amortization on deferred financing costs or the discount / premium on debt 16

17 Cap Cana Update 17

18 REPOSITIONING & CAPITAL PROJECTS HYATT ZIVA & ZILARA CAP CANA Construction Project Status and Update 18

19 REPOSITIONING & CAPITAL PROJECTS HYATT ZIVA & ZILARA CAP CANA Construction Project Status and Update Photos of the construction site 19

20 REPOSITIONING & CAPITAL PROJECTS HYATT ZIVA & ZILARA CAP CANA Construction Project Status and Update Photos of the construction site 20

21 REPOSITIONING & CAPITAL PROJECTS HYATT ZIVA & ZILARA CAP CANA Construction Project Status and Update Hyatt Zilara Model Room 21

22 REPOSITIONING & CAPITAL PROJECTS HYATT ZIVA & ZILARA CAP CANA Construction Project Status and Update Hyatt Zilara Model Room 22

23 Renovation Renderings 23

24 REPOSITIONING & CAPITAL PROJECTS HILTON LA ROMANA Renovation Renderings Hilton La Romana Standard King Room 24

25 REPOSITIONING & CAPITAL PROJECTS HILTON LA ROMANA Renovation Renderings Hilton La Romana Standard Double Room 25

26 REPOSITIONING & CAPITAL PROJECTS HILTON ROYAL PLAYA DEL CARMEN Renovation Renderings Hilton Royal Playa Del Carmen Standard King Room 26