Playa Hotel & Resorts. Presenters: Bruce Wardinski, Chairman and Chief Executive Officer Ryan Hymel, Chief Financial Officer

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Transcription:

Playa Hotel & Resorts Presenters: Bruce Wardinski, Chairman and Chief Executive Officer Ryan Hymel, Chief Financial Officer

This document contains information confidential and proprietary to Playa Hotels & Resorts N.V. ( Playa ) and its affiliates. The information may not be used, disclosed or reproduced without the prior written authorization of Playa, and those so authorized may only use the information for the purpose of its evaluation consistent with authorization. Reproduction of any section of this document must include this legend. Forward-Looking Statements This presentation may contain forward-looking statements within the meaning of Section 27A of the Securities Act of 1933 and Section 21E of the Securities Exchange Act of 1934. Forward-looking statements relate to expectations, beliefs, projections, future plans and strategies, anticipated events or trends and similar expressions concerning matters that are not historical facts. You can identify these forward-looking statements by the use of terminology such as outlook, believes, expects, potential, continues, may, will, should, could, seeks, approximately, predicts, intends, plans, estimates, anticipates or the negative version of these words or other comparable words or phrases. Such forward-looking statements are subject to various risks and uncertainties, including those described under the section entitled Risk Factors in the Registration Statement, as such factors may be updated from time to time in our periodic filings with the SEC, which are accessible on the SEC s website at www.sec.gov. Accordingly, there are or will be important factors that could cause actual outcomes or results to differ materially from those indicated in these statements. These factors should not be construed as exhaustive and should be read in conjunction with the other cautionary statements that are included in this presentation and in Playa s filings with the SEC. While forward-looking statements reflect Playa s good faith beliefs, they are not guarantees of future performance. Playa disclaims any obligation to publicly update or revise any forward-looking statement to reflect changes in underlying assumptions or factors, new information, data or methods, future events or other changes after the date of this press release, except as required by applicable law. You should not place undue reliance on any forward-looking statements, which are based only on information currently available to us (or to third parties making the forward-looking statements). Use of non-gaap Financial Measures This presentation includes non-gaap financial measures, including Adjusted EBITDA. Please refer to the preliminary prospectus that is part of the Registration Statement, for detailed definitions of these measures, reconciliations of these measures to the nearest comparable GAAP measures and cautionary information on the use of non-gaap measures, as well as to the Appendix to this presentation for an Adjusted EBITDA reconciliation to GAAP net income. Third-Party Information This presentation also contains information and statistics relating to the travel and tourism industry and the all-inclusive segment in certain markets. Playa has derived such information and data from third-party reports or other sources without independent verification. No assurance can be given regarding the accuracy or appropriateness of such information and data. You should not place undue reliance on such information and data in this presentation. 2

COMPANY OVERVIEW Who Is Playa? Playa is a leading owner, operator and developer of all-inclusive resorts in prime beachfront locations Los Cabos Puerto Vallarta Cancún / Riviera Maya Jamaica Punta Cana La Romana 20 All-Inclusive Resorts 7,769 Total room count 47.9% 2018 Q1 Owned Resort EBITDA Margin $274 2018 Q1 Net Package RevPAR Includes Playa s two management contract resorts 3

COMPANY OVERVIEW What Makes Playa Unique? 1 Premier Collection of All-Inclusive Resorts in Desirable Locations 2 All-Inclusive Business Model Drives Premium Margins and Strong Free Cash Flow 3 Differentiated Model, Resilient Through Cycles 4 Strategic Partnerships with Global World-Renowned Brands 5 Proven Track Record of High Returns on Capital Projects 4

COMPANY OVERVIEW What is Playa s Strategy? Execute as the preferred partner of global world-renowned brands in the all-inclusive resort segment Playa Brands vs. Other Brands 5

COMPELLING GROWTH STRATEGY 1 2 3 4 5 Organic Growth Conversion Repositioning Rebranding Renovations and Expansions Acquisitions, Joint Ventures and Minority Investments New Development Focus on nonpackage / ancillary sales Increase direct bookings Playa Vacation Club (future) Incorporate additional brands with existing and pipeline assets Strong track record of successful rebranding with Hyatt Renovations and expansion of newly acquired Sagicor assets Prioritizing CAPEX spending to lowest risk and highest return projects Leverage brand relationships and expertise in a highly fragmented industry Evaluate external management and investment opportunities Identify opportunities that can generate strong ROIC Existing land bank to develop additional resorts Hyatt Ziva Puerto Vallarta Spa Hyatt Ziva Cancún Hyatt Zilara Cancún Hilton Rose Hall Hyatt Ziva Cap Cana 6

PLAYA S PATH TO $300M EBITDA Bridge $320 2021 $300 $280 2020 $10 - $12 $7 - $9 $7 - $9 $260 $21 - $23 $240 $220 $200 $180 $160 $140 $171 $2 - $6 2018 $6 - $8 $185 to $179 $4 - $6 $173 - $178 2019 $20- $21 $4 - $5 $218 to $208 $33 - $36 $277 to $262 $307 to $287 $120 $100 MM 2017 Actual Playa Portfolio Sagicor Portfolio (2) (3) (3) 2018E Adjusted EBITDA Playa Portfolio Sagicor Portfolio Hyatt Cap Cana 2019E Adjusted EBITDA Recurring Portfolio Hyatt Cap Cana 2020E Adjusted EBITDA Recurring Portfolio Hyatt Cap Cana Hyatt Ziva Palmyra 2021E Adjusted EBITDA Playa portfolio includes Playa properties and changes to Corporate Expense (2) Sagicor Portfolio in 2018 only represents a partial year EBITDA contributions in low season (3) Includes Playa properties, Sagicor acquired properties, 3 rd Party Management Contracts and Corporate Expense 7

PLAYA S OUTLOOK ROADMAP Capital Investment Project Assumptions Panama Jack Playa Del Carmen Panama Jack Cancún Hyatt Ziva & Zilara Rose Hall Hyatt Ziva & Zilara Cap Cana Royal Playa Del Carmen Hyatt Ziva Cancún Hyatt Zilara Cancún Hilton Rose Hall Jewel Grande / Hyatt Ziva Palmyra Estimated Year 2017 2017 2017 2017-2019 2018 2019 2019 2019 2019-2020 Renovation Expansion Rebranding / Reposition N/A Remain Operational During Renovation N/A N/A Estimated Stabilized Year 2019 2019 2019 2022-2023 2021-2022 2021-2022 2021-2022 2021-2022 2023-2024 Renovations completed in 2017 8

EXPANSIONS & RENOVATIONS Anticipated Expansion/Renovations Timeline 2018 Royal Playa del Carmen renovation and conversion with minimal disruption 2019 Hilton Rose Hall 80 100 room expansion with minimal disruption 2019 Hyatt Zilara Cancún complete renovation and 70-80 room expansion 2020 Hyatt Ziva Rose Hall repositioned as a Hyatt Zilara 2019 Hyatt Ziva Cancún 100-125 room expansion with minimal disruption 2019 Hyatt Ziva & Zilara Cap Cana 750-room resort opens 2019-2020 Hyatt Ziva Palmyra 300 room development 9

PLAYA HOTELS & RESORTS Pro-forma Room Count After Transaction and Planned Expansion & Development (2021) (2) Brands (by rooms) Owned & Managed by Playa Managed by AMResorts Management Contracts 3% 7% 27% 25% 3% 6% (3) 14% 16% EBITDA (by country) Los Cabos Puerto Vallarta Cancún / Riviera Maya Jamaica Punta Cana La Romana Jamaica 21% Mexico 53% Dominican Republic 26% Strong presence in leading destinations with more than 20 hotels in Mexico and the Caribbean Room count of all pro-forma Playa-owned properties (excludes management contracts) (2) 8,815 estimated total rooms post-development (includes Sagicor transaction and Hyatt Ziva/Zilara Cap Cana planned expansions) (3) Royal Playa del Carmen still being considered for new branding 10

COMPETITIVE ADVANTAGES Continued outperformance with Hyatt properties Locations Strategic Alliance Overview Positive Impact Hyatt Zilara Cancún Hyatt Ziva Cancún Partnership with Hyatt to develop and operate all-inclusive resorts under Hyatt Ziva and Zilara brands Sole franchisee of Hyatt all-inclusive brands Playa owns and manages the properties Opportunity to expand into additional markets ADR ($) Pre $225 2013A Post $326 2017A $263 Hyatt Ziva / Zilara Rose Hall Key Benefits RevPAR ($) $169 Hyatt Ziva Puerto Vallarta Hyatt Ziva Los Cabos Hyatt brand drives visitation Hyatt distribution channel is a driver of higher occupancy and rates Improved business economics Higher average rate and number of groups Improvement in TripAdvisor ratings Adjusted EBITDA ($M) (2) 2013A $31 2017A $84 2013A 2017A The Hyatt partnership has helped deliver substantial growth to Playa s performance and significant runway remains for All-Inclusive model. Includes Hyatt Ziva Cancún, Hyatt Zilara Cancún, Hyatt Ziva Los Cabos & Hyatt Ziva Puerto Vallarta. ADR & RevPAR calculated Year-to-Date as of 12/31/2013 and 12/31/2017. (2) Please refer to the Appendix for a reconciliation of Adjusted EBITDA to the most comparable GAAP Measure. 11

In millions $ COMPETITIVE ADVANTAGES Playa Success Stories: Real 4-pack Acquisition Occupancy Package ADR Resort EBITDA 95% $350 $30 93% $325 $300 $25 91% $275 $20 89% $250 $15 87% $225 $200 $10 85% 2013 2014 2015 2016 $175 2013 2014 2015 2016 $5 2013 2014 2015 2016 Panama Jack Cancun (formerly Gran Caribe Real) Panama Jack Playa Del Carmen (formerly Gran Porto Real) Hyatt Zilara Cancun THE Royal Playa del Carmen The acquisition demonstrates Playa s ability to: Identify premium assets with upside potential Implement yield management and operational oversight strategies to maximize profitability Negotiate a complex transaction which involved a mix of consideration to accommodate the needs of different selling parties Structure an advantageous package to finance the transaction 12

COMPETITIVE ADVANTAGES Incremental High Return Projects Drive Organic Growth Low Cost Capital Projects Driving Attractive Returns on Investment Dreams La Romana Dreams Palm Beach Actionable Projects Underway or Contemplated: Gran Porto and Caribe Panama Jack Conversion Invested $3.0 million for 128 room upgrade in 2014 Invested $3.0 million for 120 room upgrade in 2014 Hyatt Ziva Puerto Vallarta Preferred Tower Preferred room conversion Addition of preferred lounge, pool and bar Generated return on investment of 29.7% in 2015 Preferred room conversion Addition of preferred lounge and pool Generated return on investment of 30.0% in 2015 Hyatt Ziva & Zilara Rose Hall Rooms, Spa and Airport Lounge Hyatt Zilara Cancύn Spa Please refer to the Appendix for a reconciliation of Adjusted EBITDA to the most comparable GAAP Measure. Note: Return on investment is calculated as incremental revenue from investment divided by total project costs. 13

In $ millions COMPETITIVE ADVANTAGES Internalization of Management Contracts Substantial opportunity to grow asset light by adding resorts under management Playa plans to leverage its management platform to add a capital-light growth component to its business model Combines the benefit of owned assets generating robust cash flow with managed assets generating high returns on invested capital Playa is currently pursuing third-party management contracts Resort Asset-light growth opportunity Overview of Externally Managed Assets Contract Expiration Dreams La Romana 2017 Secrets Capri 2022 Dreams Puerto Aventuras 2022 Dreams Palm Beach 2022 Dreams Punta Cana 2022 Resorts were all converted to Hyatt Ziva brand by 2016 $35.0 $30.0 $25.0 $20.0 $15.0 $10.0 $5.0 $- Contract Internalization Opportunity Successful history of internalization of Barceló and AMResorts contracts: Barceló Los Cabos (2013) Dreams Puerto Vallarta (2014) Dreams Cancύn (2015) Potential savings from management fees Potential upside from internalization of distribution could provide additional high-margin savings 138% $10.6 $25.2 Hyatt Ziva Los Cabos (formerly Barcelo) Adjusted EBITDA Growth from Hyatt conversion & management internalization $3.5 $9.1 Hyatt Ziva Puerto Vallarta (formerly Dreams) 2013A 158% 2017A 384% $6.6 $32.0 Hyatt Ziva Cancun (formerly Dreams) 14

Appendix 15

PORTFOLIO OVERVIEW Yucatan Peninsula Hyatt Zilara Cancún 1 2 Hyatt Ziva Cancún Panama Jack Cancún 3 Panama Jack Playa del Carmen 4 5 6 THE Royal Playa del Carmen Secrets Capri Dreams Puerto Aventuras 7 1 2 3 4 5 6 7 Significant Year Built Renovations Rooms Hyatt Zilara Cancún Cancún, Mexico 2006 / 2013 307 Hyatt Ziva Cancún Cancún, Mexico 1975 / 2015 547 Panama Gran Caribe Jack Real Cancún Cancún, Mexico 1985 / 2017 2009 458 470 Panama Gran Porto Jack Real Playa del Carmen Playa del Carmen, Mexico 1996 / 2017 2012 287 THE Royal Playa del Carmen Playa del Carmen, Mexico 2002 / 2009 513 Secrets Capri Riviera Maya, Mexico 2003 / 2003 291 Dreams Puerto Aventuras Riviera Maya, Mexico 1991 / 2009 305 Includes renovations, repositionings and expansions. 16

PORTFOLIO OVERVIEW Pacific Coast & Dominican Republic Hyatt Ziva Puerto Vallarta 8 Hyatt Ziva Los Cabos 9 10 Dreams La Romana Dreams Palm Beach 11 12 Dreams Punta Cana Sanctuary Cap Cana 13 8 9 Year Built Signficant Renovation Rooms Hyatt Ziva Puerto Vallarta Puerto Vallarta, Mexico 1969 2014 335 Hyatt Ziva Los Cabos Cabo San Lucas, Mexico 2077 2015 591 10 Dreams La Romana La Romana, Dominican Republic 1997 2008 756 11 Dreams Palm Beach Punta Cana, Dominican Republic 1994 2008 500 12 Dreams Punta Cana Punta Cana, Dominican Republic 2004 2004 620 13 Playa Owned Resort Sanctuary Cap Cana Punta Cana, Dominican Republic 184 Includes renovations, repositionings and expansions. Management Contract 17

PORTFOLIO OVERVIEW Jamaica 13 Hyatt Ziva & Zilara Rose Hall Jamaica 14 Hilton Rose Hall 16 17 Jewel Runaway Bay Jewel Dunn s River 18 19 20 Jewel Paradise Cove Jewel Grande 14 15 16 17 18 19 20 (2) Year Built Significant Renovation Rooms Hyatt Ziva Rose Hall Montego Bay, Jamaica 2000 2017 364 Hyatt Zilara Rose Hall Montego Bay, Jamaica 2000 2017 344 Hilton Rose Hall Montego Bay, Jamaica 1974 2017 495 Jewel Runaway Bay Ocho Rios, Jamaica 1960 2014 268 Jewel Dunn's River Ocho Rios, Jamaica 1958 2015 250 Jewel Paradise Cove Ocho Rios, Jamaica 1999 2013 225 Jewel Grande Montego Bay, Jamaica 2010 129 Playa Owned Resort Management Contract Includes renovations, repositionings and expansions. (2) Hyatt Ziva Rose Hall includes 88 room tower acquired with Sagicor transaction Source: http://www.travelweekly.com for all Sagicor properties 18

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