Playa Hotels & Resorts N.V. (NASDAQ:PLYA) Q4 2019 Earnings Conference Call - Final Transcript

Feb 28, 2020 • 09:00 am ET

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Playa Hotels & Resorts N.V. (NASDAQ:PLYA) Q4 2019 Earnings Conference Call - Final Transcript

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Presentation
Operator
Operator

Ladies and gentlemen, thank you for standing by, and welcome to the Fourth Quarter Earnings. [Operator Instructions]

With that, I would now like to hand the conference over to your speaker today, Mr. Ryan Hymel. Thank you. Please go ahead, sir.

Executive
Ryan Hymel

Thank you very much, Myra. Good morning, everyone, and welcome to Playa Hotels & Resorts Fourth Quarter 2019 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 discussion of some of the factors that could cause our actual results to differ, please review the Risk Factors section of our Annual Report on Form 10-K, which we filed at the end of February with the Securities and Exchange Commission.

We've updated our Investor Relations website, at investors.playaresorts.com, with today's presentation and recent releases.

In addition, a reconciliation to GAAP of the non-GAAP financial measures we discuss on this call were included in yesterday's press release.

On today's call, Bruce Wardinski, Playa's Chairman and Chief Executive Officer, will provide some comments on the fourth quarter and key operational highlights. I will then address our fourth quarter results and the 2020 outlook. Bruce will then wrap up the call with some concluding remarks before we turn it over to Q&A.

With that, I'll turn it over to Bruce.

Executive
Bruce Wardinski

Great. Thanks, Ryan. Good morning, everyone, and thanks for joining us. We appreciate your interest in Playa. I'll begin today by reviewing several of our fourth quarter strategic accomplishments and then give some high-level thoughts on the operating environment, as well as give an update on our near-term initiatives and outlook. I'll then turn the call over to Ryan to discuss our fourth quarter results and our 2020 outlook in detail.

Now, turning to our fourth quarter results. At a high-level, our fourth quarter fundamentals were largely as expected. If you recall, on our last earnings call, we mentioned that we had begun to see signs of stabilization in the Yucatan Peninsula, particularly in Cancun. Strong close-in bookings led to a moderate decline in RevPAR in Q4 in the Yucatan segment with Cancun posting positive growth and Playa del Carmen continuing to drag down segment results. We believe the close-in bookings were driven by pent-up demand following weak bookings in September due to Hurricane Dorian.

The Pacific was down in line with our expectations, as we telegraphed on the last call, given the softer Group booked position. Jamaica also suffered from a difficult Group comparison in the fourth quarter but was additionally impacted by weaker overall market visitation and difficult comparisons.

Turning to the Dominican Republic, and the market recovery there that continues to progress positively. In the fourth quarter, we experienced a 29.8% drop in comparable RevPAR