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Playa Hotels & Resorts (PLYA)
NASDAQ:PLYA
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Playa Hotels & Resorts
(NASDAQ:PLYA)
72Outperform
Positive Factors
Acquisition
The acquisition is seen as a favorable move that unlocks value for PLYA shareholders.
Portfolio Expansion
Hyatt noted that the deal allows it to broaden its portfolio while also providing value through an expanded management platform for all-inclusive resorts.
Valuation
The $13.50 acquisition price represents a 10.75x multiple on the NTM EBITDA estimate, indicating a favorable valuation compared to historical averages.
Negative Factors
Investment Rating
Analyst is lowering investment rating to Hold from Buy.
Stock Rating
Given PLYA shares are trading near the acquisition price, the rating is being moved to Perform from Outperform.
Playa Hotels & Resorts (PLYA) vs. S&P 500 (SPY)
Market Cap
$1.65B
Dividend YieldN/A
Average Volume (3M)3.37M
Price to Earnings (P/E)26.7
Beta (1Y)0.67
Revenue Growth-9.78%
EPS Growth7.43%
CountryUS
Employees13,000
SectorConsumer Cyclical
Sector Strength60
IndustryGambling, Resorts & Casinos
Share Statistics
EPS (TTM)0.37
Shares Outstanding123,013,380
10 Day Avg. Volume2,742,430
30 Day Avg. Volume3,370,619
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.00
Price to Cash Flow (P/CF)0.00
P/FCF Ratio0.00
Enterprise Value/Market Cap1.50
Enterprise Value/RevenueN/A
Enterprise Value/Gross Profit5.63
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$13.50Price Target Upside0.45% Upside
Rating ConsensusHold
Number of Analyst Covering2
Playa Hotels & Resorts Business Overview & Revenue Model
Company DescriptionPlaya Hotels & Resorts N.V., together with its subsidiaries, owns, develops, and operates resorts in prime beachfront locations in Mexico and the Caribbean. As of December 31, 2021, it owned a portfolio of 22 resorts with 8,366 rooms located in Mexico, Jamaica, and the Dominican Republic. The company was founded in 2006 and is headquartered in Fairfax, Virginia.
How the Company Makes MoneyPlaya Hotels & Resorts generates revenue primarily through the operation and management of all-inclusive resorts. The company's key revenue streams include room bookings, which encompass accommodation fees and ancillary services such as food and beverage offerings, spa services, and on-site entertainment. Playa also enters into strategic partnerships with major hospitality brands like Hyatt and Hilton, leveraging their brand recognition and loyalty programs to attract a broader customer base. Additionally, Playa benefits from economies of scale and cost efficiencies achieved through its portfolio, enhancing profitability. The company may also derive income from resort management fees and potential development projects or property sales.
Playa Hotels & Resorts Financial Statement Overview
Summary
Playa Hotels & Resorts has shown a strong recovery post-pandemic, with improved revenue and gross profit margin, although recent revenue decline poses a challenge. The elimination of debt enhances financial stability, and positive operating cash flow indicates strong operational performance. However, the decrease in stockholders' equity and fluctuating free cash flow growth highlight areas for improvement.Income Statement
Playa Hotels & Resorts has shown a consistent recovery in revenue since the pandemic, with a significant revenue growth rate from 2020 to 2023. The gross profit margin in the latest period was strong at 100%, indicating efficient cost management. However, there was a decline in revenue from 2023 to 2024. Net profit margin improved over the years but remains modest, suggesting room for profitability enhancement.68
Positive
Balance Sheet
The company has strengthened its financial position, eliminating total debt by 2024, which improves financial stability. The equity ratio is moderate, indicating a healthy balance between equity and liabilities. Return on Equity has improved, reflecting better utilization of shareholders' funds. However, the stockholders' equity has decreased from previous years, which may pose risks if not managed properly.75
Positive
Cash Flow
Operating cash flow has been positive and growing, indicating strong cash generation from operations. The free cash flow growth has fluctuated, but recent figures are positive, providing a cushion for future investments. The operating cash flow to net income ratio suggests efficient conversion of income into cash, though free cash flow to net income ratio shows variability, reflecting investment levels.70
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 938.57M | 977.50M | 856.26M | 534.64M | 273.19M | Gross Profit |
| 440.40M | 461.06M | 387.53M | 201.85M | 61.17M | EBIT |
| 173.91M | 175.00M | 129.77M | -1.02M | -135.59M | EBITDA |
| 238.37M | 255.58M | 207.91M | 57.27M | -98.83M | Net Income Common Stockholders |
| 73.81M | 53.85M | 56.71M | -89.68M | -262.37M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 189.28M | 272.52M | 283.94M | 270.09M | 146.92M | Total Assets |
| 1.82B | 1.93B | 2.07B | 2.06B | 2.10B | Total Debt |
| 1.08B | 1.07B | 1.07B | 1.14B | 1.25B | Net Debt |
| 888.11M | 797.58M | 781.51M | 869.23M | 1.10B | Total Liabilities |
| 1.34B | 1.38B | 1.40B | 1.43B | 1.53B | Stockholders Equity |
| 481.89M | 554.80M | 664.86M | 630.83M | 568.14M |
| Cash Flow | Free Cash Flow | |||
| 16.25M | 89.95M | 129.01M | 12.00M | -137.30M | Operating Cash Flow |
| 113.12M | 136.37M | 158.23M | 29.64M | -99.94M | Investing Cash Flow |
| -33.19M | 50.53M | -27.15M | 73.40M | 29.41M | Financing Cash Flow |
| -163.17M | -198.33M | -140.71M | 17.67M | 222.46M |
Playa Hotels & Resorts Technical Analysis
Positive
13.44
Price Trends
13.36
Positive
12.84
Positive
10.63
Positive
Market Momentum
0.03
Positive
61.28
Neutral
65.00
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PLYA, the sentiment is Positive. The current price of 13.44 is above the 20-day moving average (MA) of 13.42, above the 50-day MA of 13.36, and above the 200-day MA of 10.63, indicating a bullish trend. The MACD of 0.03 indicates Positive momentum. The RSI at 61.28 is Neutral, neither overbought nor oversold. The STOCH value of 65.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PLYA.
Playa Hotels & Resorts Risk Analysis
Playa Hotels & Resorts disclosed 47 risk factors in its most recent earnings report. Playa Hotels & Resorts reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Playa Hotels & Resorts Peers Comparison
Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
76 Outperform | $1.47B | 15.73 | 18.31% | 1.50% | 3.84% | 19.95% | |
72 Outperform | $1.65B | 26.68 | 11.21% | ― | -9.78% | 7.43% | |
70 Outperform | $3.47B | 115.66 | 1.90% | ― | 18.40% | -84.43% | |
61 Neutral | $6.66B | 11.77 | 3.06% | 3.96% | 2.60% | -21.54% | |
61 Neutral | $2.01B | 10.39 | 9.43% | 4.82% | 4.61% | 9.16% | |
52 Neutral | $2.31B | 56.18 | 25.40% | ― | 14.07% | ― | |
48 Neutral | $2.34B | ― | -10.27% | ― | 5.51% | 92.46% |
* Consumer Cyclical Sector Average
Performance Comparison
PLYA
Playa Hotels & Resorts
13.44
4.68
53.42%
VAC
Marriott Vacations Worldwide Corporation
64.65
-31.07
-32.46%
MLCO
Melco Resorts & Entertainment
5.99
-1.86
-23.69%
MCRI
Monarch Casino & Resort
80.02
13.33
19.99%
PENN
Penn National Gaming
15.64
-0.44
-2.74%
HGV
Hilton Grand Vacations
38.97
-3.15
-7.48%
Playa Hotels & Resorts Earnings Call Summary
Earnings Call Date:May 05, 2025
(Q4-2024)
| % Change Since: 0.00%|
Next Earnings Date:Jul 31, 2025
Earnings Call Sentiment Neutral
The earnings call presented a mixed sentiment. On the positive side, the agreement with Hyatt and strong fourth-quarter performance were significant achievements, along with improvements in direct booking and guest mix. However, the impact of Hurricane Barrel, challenges in Jamaica, and construction disruptions in the Pacific Coast posed notable challenges.Q4-2024 Updates
Positive Updates
Agreement with Hyatt Hotels Corporation
Playa Hotels & Resorts entered into an agreement with Hyatt Hotels Corporation, where Hyatt will acquire all outstanding shares of Playa for $13.50 per share in cash. This transaction is considered an outstanding result for shareholders.
Strong Fourth Quarter Performance
Results exceeded expectations due to strong demand across all segments and a phenomenal holiday season. Owned resort EBITDA was $67.1 million, with better than expected ADR growth in the Pacific Coast, Yucatan, and Dominican Republic.
Increase in Direct Booking
During Q4 2024, 47.6% of Playa owned and managed transient revenues were booked direct, up 30 basis points year over year. The direct sourcing mix improved by over 20 percentage points compared to 2019, enhancing competitive advantage.
Geographical Guest Mix Improvement
South American, European, and Canadian guest mix improved significantly year over year, with European and South American guest mix at 175% versus pre-pandemic levels.
Negative Updates
Impact of Hurricane Barrel
Hurricane Barrel continued to impact performance, with underlying owned resort EBITDA growth down approximately 15% for the total portfolio in Q4 2024.
Challenges in Jamaica
The US State Department travel advisory impacted the Jamaican segment, resulting in a 50% decline in resort EBITDA in Q4 2024, and an approximate $25 to $30 million impact for the fiscal year.
Construction Disruption in Pacific Coast
Ongoing renovation work caused year-over-year occupancy decline, with underlying profits in the Pacific Coast falling by 19.6% for the fiscal year.
Company Guidance
During the fourth quarter of 2024, Playa Hotels & Resorts exceeded expectations despite numerous challenges, including Hurricane Barrel and construction disruptions on the Pacific Coast. The company's owned resort EBITDA reached $67.1 million, bolstered by $1.1 million in business interruption insurance proceeds and a $2 million foreign currency exchange tailwind, contributing to a 200 basis points margin improvement. Despite a 15% decrease in underlying owned resort EBITDA growth, segments like the Dominican Republic reported a 9% profit increase, while Jamaica faced a significant 50% decline in resort EBITDA. Revenue from direct bookings increased to 47.6% of transient revenues, reflecting a strategic focus on direct channels. Additionally, Playa repurchased approximately $25 million in stock, marking a cumulative $376 million since September 2022, and capital expenditures for the year were lower than anticipated. The company's guest mix saw improvements from South American, European, and Canadian visitors, with efforts to normalize their American guest mix to pre-pandemic levels.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.