Playa Hotels & Resorts N.V. Reports First Quarter 2022 Results

Playa Hotels & Resorts N.V. (NASDAQ: PLYA) announced results of operations for the three months ended March 31, 2022.

Three Months Ended March 31, 2022 Results

Net Income was $42.7 million compared to a Net Loss of $69.7 million in 2021
Adjusted Net Income⁽¹⁾ was $31.8 million compared to an Adjusted Net Loss of $50.9 million in 2021
Net Package RevPAR increased 207.2% over 2021 to $280.78, driven by a 40.8 percentage point increase in Occupancy and a 34.3% increase in Net Package ADR
Owned Resort EBITDA increased 1,237.5% versus 2021 to $87.5 million
Owned Resort EBITDA Margin increased 32.7 percentage points versus 2021 to 41.4%
Adjusted EBITDA increased 3,171.6% versus 2021 to $76.9 million
Adjusted EBITDA Margin increased 39.4 percentage points versus 2021 to 36.1%

_{(1) Adjusted Net Income/(Loss) excludes special items, which are those items deemed not to be reflective of ongoing operations. See "Definitions of Non-U.S. GAAP Measures and Operating Statistics" for a description of how we compute Adjusted Net Income/(Loss) and other non-GAAP financial figures included in this press release.}

"Playa once again exceeded our expectations, despite the brief disruption at the start of the quarter from the Omicron variant. Our first quarter occupancy rate reached a post-pandemic high and our ADR reached an all-time high, with fundamental momentum building through the quarter.

The Dominican Republic occupancy surpassed our Mexican resorts during the quarter as the recovery continues to broaden. We are very encouraged by the recent announcement that Jamaica has dropped its COVID-19 testing requirement to enter the country, as this change bodes well for the segment as we move into the second half of 2022 and into 2023.

Our bookings pace remained extraordinarily strong during the first quarter, leading to the second half of 2022 booked revenue position remaining well ahead of last year, even as we lap 2021's unprecedented surge in bookings. Playa's compelling value proposition for a high-quality travel experience continues to resonate with consumers."

– Bruce D. Wardinski, Chairman and CEO of Playa Hotels & Resorts

Financial and Operating Results

The following tables set forth information with respect to the operating results of our total portfolio and comparable portfolio for the three months ended March 31, 2022 and 2021 ($ in thousands):

Total Portfolio

	Three Months Ended March 31,
	2022	2021	Change
Occupancy	72.4%	31.6%	40.8 pts
Net Package ADR	$ 388.07	$ 288.88	34.3%
Net Package RevPAR	$ 280.78	$ 91.40	207.2%
Total Net Revenue ⁽¹⁾	$ 213,225	$ 75,296	183.2%
Owned Net Revenue ⁽²⁾	$ 211,661	$ 74,827	182.9%
Owned Resort EBITDA ⁽³⁾	$ 87,537	$ 6,545	1,237.5%
Owned Resort EBITDA Margin	41.4%	8.7%	32.7 pts
Other corporate	$ 11,651	$ 9,394	24.0%
Management Fee Revenue	$ 1,057	$ 344	207.3%
Adjusted EBITDA ⁽⁴⁾	$ 76,943	$ (2,505)	3,171.6%
Adjusted EBITDA Margin	36.1%	(3.3)%	39.4 pts

Comparable Portfolio ⁽⁵⁾

	Three Months Ended March 31,
	2022	2021	Change
Occupancy	72.4%	32.9%	39.5 pts
Net Package ADR	$ 388.07	$ 291.50	33.1%
Net Package RevPAR	$ 280.78	$ 95.82	193.0%
Total Net Revenue ⁽¹⁾	$ 213,226	$ 74,187	187.4%
Owned Net Revenue ⁽²⁾	$ 211,662	$ 73,718	187.1%
Owned Resort EBITDA ⁽³⁾	$ 87,511	$ 7,054	1,140.6%
Owned Resort EBITDA Margin	41.3%	9.6%	31.7 pts
Other corporate	$ 11,651	$ 9,394	24.0 %
Management Fee Revenue	$ 1,057	$ 344	207.3%
Adjusted EBITDA ⁽⁴⁾	$ 76,917	$ (1,996)	3,953.6%
Adjusted EBITDA Margin	36.1%	(2.7)%	38.8 pts

_{(1) Total Net Revenue represents revenue from the sale of all-inclusive packages, which include room accommodations, food and beverage services and entertainment activities, net of compulsory tips paid to employees, as well as revenue from other goods, services and amenities not included in the all-inclusive package. Government mandated compulsory tips in the Dominican Republic are not included in this adjustment as they are already excluded from revenue in accordance with U.S. GAAP. A description of how we compute Total Net Revenue and a reconciliation of Total Net Revenue to total revenue can be found in the section "Definitions of Non-U.S. GAAP Measures and Operating Statistics" below. Total Net Revenue also includes all Management Fee Revenue.}

_{(2) Owned Net Revenue excludes Management Fee Revenue and MICE (meetings, incentives, conventions and events) revenue.}

_{(3) A description of how we compute Owned Resort EBITDA and a reconciliation of net income to Owned Resort EBITDA can be found in the section "Definitions of Non-U.S. GAAP Measures and Operating Statistics" below.}

_{(4) A description of how we compute Adjusted EBITDA and a reconciliation of net income to Adjusted EBITDA can be found in the section "Definitions of Non-U.S. GAAP Measures and Operating Statistics" below.}

_{(5) For the three months ended March 31, 2022, the comparable portfolio excludes the Dreams Puerto Aventuras, which was sold in February 2021, and Capri Resort which was sold in June 2021.}

Balance Sheet

As of March 31, 2022, we held $299.8 million in cash and cash equivalents, excluding $24.4 million of restricted cash. Total interest-bearing debt was $1,142.7 million, comprised of our Senior Secured Term Loan due 2024 and Property Loan due 2025. Effective March 29, 2018, we entered into two interest rate swaps to fix LIBOR at 2.85% on $800.0 million of our variable rate Term Loan. As of March 31, 2022, there was no balance outstanding on our $85.0 million Revolving Credit Facility.

Playa is a leading owner, operator and developer of all-inclusive resorts in prime beachfront locations in popular vacation destinations in Mexico and the Caribbean. As of March 31, 2022, Playa owned and/or managed a total portfolio consisting of 22 resorts (8,366 rooms) located in Mexico, Jamaica, and the Dominican Republic. In Mexico, Playa owns and manages Hyatt Zilara Cancún, Hyatt Ziva Cancún, Wyndham Alltra Cancún, Wyndham Alltra Playa del Carmen, Hilton Playa del Carmen All-Inclusive Resort, Hyatt Ziva Puerto Vallarta and Hyatt Ziva Los Cabos. In Jamaica, Playa owns and manages Hyatt Zilara Rose Hall, Hyatt Ziva Rose Hall, Hilton Rose Hall Resort & Spa, Jewel Grande Montego Bay Resort & Spa and Jewel Paradise Cove Beach Resort & Spa. In the Dominican Republic, Playa owns and manages the Hilton La Romana All-Inclusive Family Resort, the Hilton La Romana All-Inclusive Adult Resort, Hyatt Zilara Cap Cana and Hyatt Ziva Cap Cana. Playa owns two resorts in the Dominican Republic that are managed by a third-party and manages five resorts on behalf of third-party owners.

The following table shows a reconciliation of Net Package Revenue, Net Non-package Revenue, Management Fee Revenue and Total Net Revenue to total revenue for the three months ended March 31, 2022 and 2021 ($ in thousands):

Total Portfolio

	Three Months Ended March 31,
	2022	2021
Net Package Revenue
Comparable Net Package Revenue	$ 180,026	$ 61,438
Non-comparable Net Package Revenue	—	645
Net Package Revenue	180,026	62,083

Net Non-package Revenue
Comparable Net Non-package Revenue	32,143	12,405
Non-comparable Net Non-package Revenue	(1)	464
Net Non-package Revenue	32,142	12,869

Management Fee Revenue
Comparable Management Fee Revenue	1,057	344
Non-comparable Management Fee Revenue	—	—
Management Fee Revenue	1,057	344

Total Net Revenue
Comparable Total Net Revenue	213,226	74,187
Non-comparable Total Net Revenue	(1)	1,109
Total Net Revenue	213,225	75,296
Compulsory tips	4,397	1,937
Cost Reimbursements	1,952	513
Total revenue	$ 219,574	$ 77,746

Playa Hotels & Resorts N.V.

Reconciliation of Net Income to EBITDA, Adjusted EBITDA and Owned Resort EBITDA

($ in thousands)

The following is a reconciliation of our U.S. GAAP net income (loss) to EBITDA, Adjusted EBITDA, Owned Resort EBITDA and Comparable Owned Resort EBITDA for the three months ended March 31, 2022 and 2021 ($ in thousands):

	Three Months Ended March 31,
	2022	2021
Net income (loss)	$ 42,747	$ (69,745)
Interest expense	9,168	18,167
Income tax provision (benefit)	1,614	(1,951)
Depreciation and amortization	19,500	20,883
EBITDA	73,029	(32,646)
Other expense ^(a)	514	706
Share-based compensation	3,356	3,179
Transaction expense ^(b)	191	579
Severance expense^(c)	—	1,287
Other tax expense^(d)	240	163
Impairment loss ^(e)	—	24,011
Loss on sale of assets	—	273
Non-service cost components of net periodic pension cost ^(f)	(387)	(57)
Adjusted EBITDA	76,943	(2,505)
Other corporate	11,651	9,394
Management fee income	(1,057)	(344)
Owned Resort EBITDA	87,537	6,545
Less: Non-comparable Owned Resort EBITDA	26	(509)
Comparable Owned Resort EBITDA ^(g)	$ 87,511	$ 7,054

_{(a) Represents changes in foreign exchange and other miscellaneous expenses or income.}

_{(b) Represents expenses incurred in connection with corporate initiatives, such as: system implementations, debt refinancing costs; other capital raising efforts; and strategic initiatives, such as the launch of a new resort or possible expansion into new markets.}

_{(c) Represents expenses incurred for employee terminations.}

_{(d) Relates primarily to a Dominican Republic asset/revenue tax, which is an alternative tax to income tax in the Dominican Republic. We eliminate this expense from Adjusted EBITDA because it is substantially similar to the income tax provision or benefit we eliminate from EBITDA.}

_{(e) Represents the property and equipment impairment loss on the Capri Resort recognized upon classification of the resort as held for sale in connection with the agreement for the sale of the property executed on March 31, 2021.}

_{(f) Represents the non-service cost components of net periodic pension cost recorded within other expense in the Condensed Consolidated Statement of Operations. We include these costs or benefits in Adjusted EBITDA as they are considered part of our ongoing resort operations.}

_{(g) Comparable resorts for the three months ended March 31, 2022 exclude the Dreams Puerto Aventuras, which was sold in February 2021, and Capri Resort, which was sold in June 2021.}

Playa Hotels & Resorts N.V.

Reconciliation of Net Income to Adjusted Net Income

($ in thousands)

The following table reconciles our net income (loss) to Adjusted Net Income (Loss) for the three months ended March 31, 2022 and 2021 ($ in thousands):

	Three Months Ended March 31,
	2022	2021
Net income (loss)	$ 42,747	$ (69,745)
Reconciling items
Transaction expense	191	579
Change in fair value of interest rate swaps ^(a)	(11,127)	(2,637)
Impairment loss	—	24,011
Severance expense	—	1,287
Total reconciling items before tax	(10,936)	23,240
Income tax provision for reconciling items	—	(4,442)
Total reconciling items after tax	(10,936)	18,798
Adjusted net income (loss)	$ 31,811	$ (50,947)

_{(a) Represents the change in fair value, excluding interest paid and accrued, of our interest rate swaps recognized as interest expense in our Condensed Consolidated Statements of Operations.}

The following table presents the impact of Adjusted Net Income (Loss) on our diluted earnings or loss per share for the three months ended March 31, 2022 and 2021 ($ in thousands):

	Three Months Ended March 31,
	2022	2021
Adjusted net income (loss)	$ 31,811	$ (50,947)

Earnings (loss) per share - Diluted	$ 0.26	$ (0.43)
Total reconciling items impact per diluted share	(0.07)	0.12
Adjusted earnings (loss) per share - Diluted	$ 0.19	$ (0.31)

Playa Hotels & Resorts N.V. Condensed Consolidated Balance Sheet ($ in thousands, except share data) (unaudited)

	As of March 31,	As of December 31,
	2022	2021
ASSETS
Cash and cash equivalents	$ 299,802	$ 270,088
Restricted cash	24,363	23,489
Trade and other receivables, net	61,660	45,442
Accounts receivable from related parties	12,927	7,981
Inventories	18,801	18,076
Prepayments and other assets	38,912	38,640
Property and equipment, net	1,569,739	1,584,574
Goodwill, net	61,654	61,654
Other intangible assets	7,340	7,632
Total assets	$ 2,095,198	$ 2,057,576
LIABILITIES AND SHAREHOLDERS' EQUITY
Trade and other payables	$ 160,474	$ 160,222
Payables to related parties	7,312	5,050
Income tax payable	980	828
Debt	942,553	944,847
Related party debt	195,161	194,472
Derivative financial instruments	8,515	22,543
Other liabilities	30,136	29,882
Deferred tax liabilities	70,470	68,898
Total liabilities	$ 1,415,601	$ 1,426,742
Commitments and contingencies
Shareholders' equity
Ordinary shares (par value €0.10; 500,000,000 shares authorized, 167,986,071 shares issued and 165,778,067 shares outstanding as of March 31, 2022 and 166,646,284 shares issued and 164,438,280 shares outstanding as of December 31, 2021)	18,670	18,518
Treasury shares (at cost, 2,208,004 shares as of March 31, 2022 and December 31, 2021)	(16,697)	(16,697)
Paid-in capital	1,180,584	1,177,380
Accumulated other comprehensive loss	(16,011)	(18,671)
Accumulated deficit	(486,949)	(529,696)
Total shareholders' equity	679,597	630,834
Total liabilities and shareholders' equity	$ 2,095,198	$ 2,057,576

Playa Hotels & Resorts N.V. Condensed Consolidated Statements of Operations ($ in thousands, except share data) (unaudited)

	Three Months Ended March 31,
	2022	2021
Revenue
Package	$ 184,109	$ 63,894
Non-package	32,456	12,995
Management fees	1,057	344
Cost reimbursements	1,952	513
Total revenue	219,574	77,746
Direct and selling, general and administrative expenses
Direct	106,840	60,221
Selling, general and administrative	37,239	24,668
Depreciation and amortization	19,500	20,883
Reimbursed costs	1,952	513
Impairment loss	—	24,011
Loss on sale of assets	—	273
Direct and selling, general and administrative expenses	165,531	130,569
Operating income (loss)	54,043	(52,823)
Interest expense	(9,168)	(18,167)
Other expense	(514)	(706)
Net income (loss) before tax	44,361	(71,696)
Income tax (provision) benefit	(1,614)	1,951
Net income (loss)	$ 42,747	$ (69,745)

Earnings (loss) per share
Basic	$ 0.26	$ (0.43)
Diluted	$ 0.26	$ (0.43)
Weighted average number of shares outstanding during the period - Basic	165,743,382	160,827,261
Weighted average number of shares outstanding during the period - Diluted	166,888,129	160,827,261

Playa Hotels & Resorts N.V. Consolidated Debt Summary - As of March 31, 2022 ($ in millions)

	Maturity			Applicable Rate	LTM Interest ⁽⁵⁾
Debt	Date	# of Years	Balance	Applicable Rate	LTM Interest ⁽⁵⁾
Revolving credit facility ($68.0 million) ⁽¹⁾	Jan-24	1.8	$ —	4.15%	$ 0.4
Revolving credit facility ($17.0 million) ⁽¹⁾	Apr-22	0.1	—	3.15%	—
Term loan ⁽²⁾	Apr-24	2.1	939.3	5.40%	58.5
Term loan (Additional $93.3 million) ⁽³⁾	Apr-24	2.1	93.3	9.30%	8.8
Property loan	Jul-25	3.3	110.0	9.25%	10.3
Total debt			$ 1,142.7	6.10%	$ 78.0
Unamortized discount			(3.9)
Unamortized debt issuance costs			(7.0)
Total book value of debt			1,131.8
Less: cash and cash equivalents ⁽⁴⁾			(299.8)
Net debt			$ 832.0

_{(1) As of March 31, 2022, the total available borrowing capacity under our Revolving Credit Facility was $85.0 million. The interest rate on any outstanding balances of our $68.0 million Revolving Credit Facility is L+400 bps with no LIBOR floor. The interest rate on any outstanding balances of our $17.0 million Revolving Credit Facility is L+300 bps with no LIBOR floor. As of March 31, 2022, the commitment fee on undrawn balances of our Revolving Credit Facility was 0.5%.}

_{(2) The interest rate on our Term Loan is L+275 bps with a LIBOR floor of 1.0%. The interest rate on our Term Loan was 5.40% as of March 31, 2022, which includes the LIBOR rate that was locked in March for the one-month period. Effective March 29, 2018, we entered into two interest rate swaps to mitigate the long-term interest rate risk inherent in our variable rate Term Loan. The interest rate swaps have an aggregate fixed notional value of $800.0 million. The fixed rate paid by us is 2.85% and the variable rate received resets monthly to the one-month LIBOR rate.}

_{(3) Effective June 12, 2020, we entered into $94.0 million of additional senior secured credit facility term loans. On July 27, 2021, we repaid $0.7 million of the principal balance. The remaining $93.3 million is broken into three tranches: $35.0 million term loan at a fixed rate of 11.4777%, $31.0 million term loan at a fixed rate of 11.4777%, and $27.3 million term loan at our option of either a base rate plus a margin of 2.00% or LIBOR plus 3.00% with a LIBOR floor of 1.0%. The weighted average interest rate is 9.30%.}

_{(4) Represents unrestricted cash balances as of March 31, 2022.}

_{(5) Represents last twelve months' interest expense and commitment fee. The amortization of deferred financing costs and discounts is excluded.}

Playa Hotels & Resorts N.V. Reportable Segment Operating Statistics - Three Months Ended March 31, 2022 and 2021

		Occupancy			Net Package ADR			Net Package RevPAR			Owned Net Revenue			Owned Resort EBITDA			Owned Resort EBITDA Margin
*Total Portfolio*	Rooms	2022	2021	Pts Change	2022	2021	% Change	2022	2021	% Change	2022	2021	% Change	2022	2021	% Change	2022	2021	Pts Change
Yucatán Peninsula	2,126	71.9%	41.8%	30.1 pts	$ 429.45	$ 290.91	47.6%	$ 308.75	$ 121.66	153.8%	$ 68,629	$ 33,603	104.2%	$ 29,458	$ 7,174	310.6%	42.9%	21.3%	21.6 pts
Pacific Coast	926	66.6%	28.0%	38.6 pts	$ 454.61	$ 311.06	46.1%	$ 302.89	$ 87.20	247.4%	29,104	8,621	237.6%	12,544	485	2,486.4%	43.1%	5.6%	37.5 pts
Dominican Republic	2,644	77.3%	26.0%	51.3 pts	$ 324.26	$ 282.27	14.9%	$ 250.68	$ 73.33	241.9%	69,664	20,881	233.6%	28,377	1,666	1,603.3%	40.7%	8.0%	32.7 pts
Jamaica	1,428	67.6%	26.3%	41.3 pts	$ 415.11	$ 279.87	48.3%	$ 280.54	$ 73.57	281.3%	44,264	11,722	277.6%	17,158	(2,780)	717.2%	38.8%	(23.7)%	62.5 pts
Total Portfolio	7,124	72.4%	31.6%	40.8 pts	$ 388.07	$ 288.88	34.3%	$ 280.78	$ 91.40	207.2%	$ 211,661	$ 74,827	182.9%	$ 87,537	$ 6,545	1,237.5%	41.4%	8.7%	32.7 pts

		Occupancy			Net Package ADR			Net Package RevPAR			Owned Net Revenue			Owned Resort EBITDA			Owned Resort EBITDA Margin
*Comparable Portfolio*	Rooms	2022	2021	Pts Change	2022	2021	% Change	2022	2021	% Change	2022	2021	% Change	2022	2021	% Change	2022	2021	Pts Change
Yucatán Peninsula	2,126	71.9%	48.0%	23.9 pts	$ 429.46	$ 297.02	44.6%	$ 308.75	$ 142.50	116.7%	$ 68,630	$ 32,494	111.2%	$ 29,432	$ 7,683	283.1%	42.9%	23.6%	19.3 pts
Pacific Coast	926	66.6%	28.0%	38.6 pts	$ 454.61	$ 311.06	46.1%	$ 302.89	$ 87.20	247.4%	29,104	8,621	237.6%	12,544	485	2,486.4%	43.1%	5.6%	37.5 pts
Dominican Republic	2,644	77.3%	26.0%	51.3 pts	$ 324.26	$ 282.27	14.9%	$ 250.68	$ 73.33	241.9%	69,664	20,881	233.6%	28,377	1,666	1,603.3%	40.7%	8.0%	32.7 pts
Jamaica	1,428	67.6%	26.3%	41.3 pts	$ 415.11	$ 279.87	48.3%	$ 280.54	$ 73.57	281.3%	44,264	11,722	277.6%	17,158	(2,780)	717.2%	38.8%	(23.7)%	62.5 pts
Total Comparable Portfolio	7,124	72.4%	32.9%	39.5 pts	$ 388.07	$ 291.50	33.1%	$ 280.78	$ 95.82	193.0%	$ 211,662	$ 73,718	187.1%	$ 87,511	$ 7,054	1,140.6%	41.3%	9.6%	31.7 pts

Highlights

Yucatán Peninsula

Comparable Owned Net Revenue for the three months ended March 31, 2022 increased $36.1 million, or 111.2%, compared to the three months ended March 31, 2021. The increase was due to the following:
• an increase in demand as a result of increased vaccination levels, easing of government travel restrictions, and pent-up demand for leisure travel compared to the three months ended March 31, 2021, when we experienced severely reduced occupancy as a result of the COVID-19 pandemic;
• an increase in Occupancy of 23.9 percentage points compared to the three months ended March 31, 2021, driven by the factors listed above as well as an increase in guests sourced from Canada and Asia;
• an increase in Net Package ADR as a result of pent-up demand and pricing discipline to coincide with investments in guest satisfaction at our resorts;
• continued sequential improvement in Net Non-package Revenue with our highest spend per guest on record in the first quarter of 2022; and
• an $18.01 favorable Net Package ADR impact due to the change in billing methodology of an OTA, which requires Playa to present this revenue gross of commissions under U.S. GAAP.
Compared to 2019, Comparable Net Package ADR for the three months ended March 31, 2022 increased by $108.37, or 33.8%. Excluding the aforementioned adjustment for the OTA billing methodology, the increase would have been $90.36, or 28.1%.

Comparable Owned Resort EBITDA for the three months ended March 31, 2022 increased $21.7 million, or 283.1%, compared to the three months ended March 31, 2021. The increase was a result of the on-going revenue recovery, particularly the strong Comparable Net Package ADR increases and cost control practices which partially offset occupancy-related increases in resort operating expenses compared to the three months ended March 31, 2021, when we experienced severely reduced occupancy as a result of the COVID-19 pandemic.
Compared to 2019, Comparable Owned Resort EBITDA for the three months ended March 31, 2022 increased by $1.9 million, or 6.9%.

Pacific Coast

Owned Net Revenue for the three months ended March 31, 2022 increased $20.5 million, or 237.6%, compared to the three months ended March 31, 2021. The increase was due to the following:
• an increase in demand as a result of increased vaccination levels, easing of government travel restrictions, and pent-up demand for leisure travel compared to the three months ended March 31, 2021, when we experienced severely reduced occupancy as a result of the COVID-19 pandemic;
• an increase in Occupancy of 38.6 percentage points compared to the three months ended March 31, 2021, driven by the factors listed above as well as an increase in group room nights, which were only modestly below our first quarter 2019 group room night mix;
• an increase in Net Package ADR as a result of pent-up demand and pricing discipline to coincide with investments in guest satisfaction at our resorts;
• continued sequential improvement in Net Non-package Revenue with our highest spend per guest on record in the first quarter of 2022; and
• a $15.03 favorable Net Package ADR impact due to the change in billing methodology of an OTA, which requires Playa to present this revenue gross of commissions under U.S. GAAP.
Compared to 2019, Net Package ADR for the three months ended March 31, 2022 increased by $106.76, or 30.7%. Excluding the aforementioned adjustment for the OTA billing methodology, the increase would have been $91.73, or 26.4%.

Owned Resort EBITDA for the three months ended March 31, 2022 increased $12.1 million, or 2,486.4%, compared to the three months ended March 31, 2021. The increase was a result of the on-going revenue recovery, particularly the strong Net Package ADR increases and cost control practices which partially offset occupancy-related increases in resort operating expenses compared to the three months ended March 31, 2021, when we experienced severely reduced occupancy as a result of the COVID-19 pandemic.
Compared to 2019, Owned Resort EBITDA for the three months ended March 31, 2022 increased by $0.2 million, or 1.3%.

Dominican Republic

Owned Net Revenue for the three months ended March 31, 2022 increased $48.8 million, or 233.6%, compared to the three months ended March 31, 2021. The increase was due to the following:
• an increase in demand as a result of increased vaccination levels, easing of government travel restrictions, and pent-up demand for leisure travel compared to the three months ended March 31, 2021, when we experienced severely reduced occupancy as a result of the COVID-19 pandemic;
• an increase in Occupancy of 51.3 percentage points compared to the three months ended March 31, 2021, driven by the factors listed above as well as an increase in guests sourced from Canada and Europe;
• an increase in Net Package ADR as a result of pent-up demand and pricing discipline to coincide with investments in guest satisfaction at our resorts, partially offset by our externally managed properties, whose rates remain significantly depressed versus our Playa-managed properties; and
• continued sequential improvement in Net Non-package Revenue.
Compared to 2019, Net Package ADR for the three months ended March 31, 2022 increased by $90.60, or 38.8%. This increase was driven by the opening of the premium-positioned Hyatt Ziva and Hyatt Zilara Cap Cana resorts in the fourth quarter of 2019 and the renovation of the Hilton La Romana All-Inclusive Resort in 2019.

Owned Resort EBITDA for the three months ended March 31, 2022 increased $26.7 million, or 1,603.3%, compared to the three months ended March 31, 2021. The increase was a result of the on-going revenue recovery, particularly the strong Net Package ADR increases and cost control practices which partially offset occupancy-related increases in resort operating expenses compared to the three months ended March 31, 2021, when we experienced severely reduced occupancy as a result of the COVID-19 pandemic.
Compared to 2019, Owned Resort EBITDA for the three months ended March 31, 2022 increased by $14.9 million, or 110.8%. Our Playa-managed properties increased $20.0 million, or 617.1%, driven by the opening of the premium-positioned Hyatt Ziva and Hyatt Zilara Cap Cana resorts in the fourth quarter of 2019 and the renovation of the Hilton La Romana All-Inclusive Resort in 2019.
The segment's performance was weighed down by our two externally managed properties, which have lagged behind our globally branded resorts in the segment with respect to rate gains and, as a result, are yielding significantly lower margins. Owned Resort EBITDA of our externally managed properties decreased $5.1 million, or 49.6%, compared to the three months ended March 31, 2019.

Jamaica

Owned Net Revenue for the three months ended March 31, 2022 increased $32.5 million, or 277.6%, compared to the three months ended March 31, 2021. The increase was due to the following:
• an increase in demand as a result of increased vaccination levels, easing of government travel restrictions, and pent-up demand for leisure travel compared to the three months ended March 31, 2021, when we experienced severely reduced occupancy as a result of the COVID-19 pandemic;
• an increase in Occupancy of 41.3 percentage points compared to the three months ended March 31, 2021, driven by the factors listed above as well as an increase in guests sourced from Canada and Europe;
• an increase in Net Package ADR as a result of pent-up demand and pricing discipline to coincide with investments in guest satisfaction at our resorts;
• continued sequential improvement in Net Non-package Revenue with our highest spend per guest on record in the first quarter of 2022.
Compared to 2019, Net Package ADR for the three months ended March 31, 2022 increased by $64.64, or 18.4%. The recovery in Jamaica continues to improve but remains depressed due to more stringent COVID-19 related travel restrictions compared to the other regions where we operate.

Owned Resort EBITDA for the three months ended March 31, 2022 increased $19.9 million, or 717.2%, compared to the three months ended March 31, 2021. The increase was a result of the on-going revenue recovery, particularly the strong Net Package ADR increases and cost control practices which partially offset occupancy-related increases in resort operating expenses compared to the three months ended March 31, 2021, when we experienced severely reduced occupancy as a result of the COVID-19 pandemic.
Compared to 2019, Owned Resort EBITDA for the three months ended March 31, 2022 decreased by $7.2 million, or 29.5%. The recovery in Jamaica continued to improve, but remained depressed as this segment suffered the greatest impact from the Omicron variant with disrupted bookings in January as a result of more stringent COVID-19 related travel restrictions. This segment finished the quarter relatively flat compared to the end of 2021.

SOURCE Playa Management USA, LLC

Playa Hotels & Resorts N.V. Reports First Quarter 2022 Results

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