Playa Hotels & Resorts ( (PLYA) ) has released its Q3 earnings. Here is a breakdown of the information Playa Hotels & Resorts presented to its investors.
Playa Hotels & Resorts, a prominent operator and developer of all-inclusive beachfront resorts in Mexico and the Caribbean, recently released its third-quarter 2024 financial results, showcasing a mix of progress and challenges. The company, known for managing renowned hospitality brands, offers comprehensive resort experiences across popular vacation destinations.
In the latest report, Playa Hotels & Resorts demonstrated significant improvements in net income figures for the nine months ending September 30, 2024, while facing setbacks in the third quarter. The company reported a net income of $64.8 million for the nine-month period, a rise from $52.8 million in the prior year. However, the third quarter saw a net loss of $2.7 million, an improvement from the $10.5 million loss in the same quarter last year.
Key highlights include a decrease in overall occupancy rates for the third quarter, leading to a decline in Net Package RevPAR by 6.4% to $252.12. Despite these challenges, Playa managed to improve its Adjusted Net Income to $0.3 million from a loss of $9.7 million the previous year. The company also faced a substantial decrease in Owned Resort EBITDA, which fell by 30.7% to $36.6 million, and a drop in Adjusted EBITDA by 38% to $25.1 million, mainly due to lower occupancy and ongoing renovation disruptions.
Looking ahead, Playa Hotels & Resorts is optimistic about demand recovery, especially in Jamaica, as disruptive renovation works are nearing completion. The company anticipates a strong recovery in profits and has actively engaged in share repurchase programs, reflecting confidence in its future performance. The management expects to achieve an Adjusted EBITDA of $250-255 million by the end of 2024, banking on improving demand and a favorable foreign exchange environment.
