The following is a summary of the Playa Hotels & Resorts N.V. (PLYA) Q3 2024 Earnings Call Transcript:

Financial Performance:

• Playa Hotels & Resorts reported strong Q3 2024 results with owned resort EBITDA of $36.6 million, including a benefit from business interruption insurance proceeds of approximately $700,000.

• Foreign currency exchange provided a tailwind, notably a $2.9 million benefit from the favorable USD-Mexican peso rate.

• Adjusted for extraordinary items, underlying owned resort EBITDA declined about 36% across the total portfolio and about 39% for the legacy portfolio due to the impact of Hurricane Barrel, construction disruptions, and a U.S. State Department Travel Advisory affecting the Jamaican segment.

Business Progress:

• Playa Hotels & Resorts continued strategic renovations, notably in the Pacific segment, planning to complete most renovations ahead of the holiday season. Expected completion of remaining works is early 2025.

• The company sold non-core assets, including the Jewel Punta Cana Resort and the Jewel Palm Beach Resort, to focus on profitability and operational efficiency.

• Recovery in bookings and demand normalization post-Hurricane Barrel across several geographic segments, notably Jamaica.

• The company has made significant repurchases of its own stock, enhancing shareholder value.

Opportunities:

• The completion of strategic renovations and recovery in areas affected by the hurricane and advisory disruptions present an opportunity for increased profitability and market share growth.

• Continued strong management of direct booking channels, leveraging Playaresorts.com, and diversifying guest demographics bolster competitive positioning and generate potential for ADR increases.

Risks:

• The substantial impact of Hurricane Barrel and ongoing construction disruptions pose significant operational risks, affecting overall profitability and capacity into Q4.

• U.S. State Department Travel Advisory on Jamaica significantly disrupted recovery momentum, impacting demand and operational normalization.

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