Playa Hotels & Resorts reports Q4 adjusted EPS 4c, consensus 2c

Reports Q4 revenue $227.15M, consensus $223.15M. CEO Bruce Wardinski said, “Q4 capped off a record year for Playa. Our Q4 results exceeded our expectations, as demand accelerated through the quarter, with December Occupancy in the catan and Jamaica exceeding the December 2018 and 2019 average. We were effectively able to drive ADR as demand accelerated, leading to higher than anticipated Adjusted EBITDA for Q4. While foreign exchange rate headwinds persisted, our operations teams continued to improve our efficiency efforts in procurement and staffing…The high season momentum has carried into 2024, with our pacing remaining steady as we begin the new year driven by strength in MICE groups. For FY 2024, we are anticipating Adjusted EBITDA to be $250M-$275M with continued growth in ADR and Occupancy year-over-year but we expect ongoing headwinds from foreign exchange rates as well as higher construction disruption related to our renovation work we began in 2023. With our net leverage at a modest 3x and our expectation of continuing to generate a meaningful amount of free cash flow in 2024, we remain committed to returning cash to shareholders via share repurchases while pursuing growth opportunities within our footprint.”