Playa Hotels & Resorts BV — Investor Day (July 2018)
33 slides from Playa Hotels & Resorts BV's investor day presentation, Jul 9, 2018
Slide 1: Playa Hotels & Resorts Investor Day July 2018
July 2018 Playa Hotels & Resorts PLYA Investor Day Exhibit 99.1
Slide 2: Confidentiality and Forward-Looking Statements
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
Slide 3: Agenda
Agenda 1. Company Overview 2. Sales & Marketing Overview 3. Financial Overview 4. Appendix
Slide 4: Company Overview
Company Overview
Slide 5: Company Overview
Company Overview 20 All-Inclusive Resorts 7,769 Total room count $274 2018 Q1 Net Package RevPAR 47.9% 2018 Q1 Owned Resort EBITDA Margin Includes Playa’s two management contract resorts (1) (1) Playa is a leading owner, operator and developer of all-inclusive resorts in prime beachfront locations J
Slide 6: Playa's History
Playa’s History Company Timeline Formation Transactions August 2013: Barceló equity swap and acquisition of 8 resorts from our prior parent August 2013: Acquisition of Real Resorts (and management company) Acquisition of the Ritz-Carlton Rose Hall in Jamaica $400mm Senior Secured Credit Facility ($3
Slide 7: Playa's History
Playa’s History Company Timeline April 2017: Completion of refinancing of Playa’s Senior Secured Credit Facility, including: Upsize of TLB to $530mm Call $115mm of Senior Notes Increase of Revolving Credit Facility to $100mm June/July 2017: Exchanged all Public and Private Warrants from merger for 6
Slide 8: Playa's History
Playa’s History Company Timeline 2016 2017 2018 December 2017: Panama Jack Cancún & Panama Jack Playa del Carmen re-open under their new branding after complete renovation and conversion February 2018: Playa reached an agreement with Sagicor Group Jamaica Limited for the acquisition of five all-incl
Slide 9: Playa's Strategy: Playa Brands vs. Other Brands
Soon to be rebranded Playa’s Strategy Playa Brands vs. Other Brands Company Overview Execute as the preferred partner of global world-renowned brands in the all-inclusive resort segment
Slide 10: Compelling Growth Strategy
Compelling Growth Strategy Organic Growth Conversion Repositioning Rebranding Renovations and Expansions Acquisitions, Joint Ventures and Minority Investments New Development Focus on non-package / ancillary sales Increase direct bookings Playa Vacation Club (future) Incorporate additional brands wi
Slide 11: Playa's Business Model vs. Industry Business Model
Company Overview Playa’s Business Model vs. Industry Business Model Preferred partner with global world-renowned brands in the all-inclusive market Drive higher RevPAR, driven by ADR Dramatically cheaper cost of distribution then tour operators More favorable OTA contracts Higher non-package spend O
Slide 12: Significant Opportunity To Expand In Current Markets
Internationally Branded (1) Unbranded 4 3 1 1 2 6 1 Playa Hotels Significant Opportunity To Expand In Current Markets 213 Totals 801 21% 19% 18% 14% 24% 32% 39% 15% % Branded Total Hotels 1014 Market Conditions Source: Tri[pAdvisor (1) As defined as a name that is known and used in more than one cou
Slide 13: Market Conditions: Steady arrival growth in all Playa markets
Market Conditions Steady arrival growth in all Playa markets International Airport Arrivals In Playa’s Markets Sources: ASUR Aeropuerto Del Sureste Banco Central Del La Republica Dominicana Grupo Aeroportuario Del Pacifico (in thousand’s) CAGR: 13% CAGR: 12% CAGR: 7% CAGR: 6% CAGR: 10%
Slide 14: Market Conditions: Accelerating Travel & Tourism Growth
Market Conditions Accelerating Travel & Tourism Growth Sources: World Travel & Tourism Council (1) Includes Mexico, Jamaica and Dominican Republic Visitor Export Dollars in Playa’s Key Markets Are Growing (1) ($ in billions) 2012-2018 CAGR: 12% 2018-2028 CAGR: 5%
Slide 15: Sales & Marketing Overview
Sales & Marketing Overview
Slide 16: Sales & Marketing Strategy: The Questions
THE QUESTIONS: Playa’s main objective is to dominate the All-Inclusive space by partnering with global brands How do we get to 50% direct? What will be gained from new branding relationships? Why is Playa the best choice for these global brands to partner with? How will Playa leverage other untapped
Slide 17: Direct To Consumer: How Do We Get To 50% Direct?
2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 % DIRECT 17% 18% 20% 23% 25% 32% 38% 42% 45% 50% 50% Partner with global brands to access millions of loyal customers and grow consumer direct Leverage highly converting loyalty marketing promotions Leverage existing partnerships. (I.e. Banks, Airlin
Slide 18: Direct To Consumer: Booking Platform with SynXis
Partnered with SynXis to create a booking platform to sell the global brands on Playaresorts.com. “Estimated $50M in revenue through Playaresorts.com over the next 12-18 months.” FEATURES & BENEFITS Direct connect to Meta sites Comprehensive Customer Loyalty & repurchase platform Ability to sell exc
Slide 19: What Will Be Gained From New Branding Relationships?
THE STRATEGIC PLAN Loyalty Members Brand Access Current Properties Rooms in Pipeline 110 MM 30 6591 465K 74 MM 14 5339 355K 10 MM 14 728 70K 35 MM 12 6853 79K Immediate access to over 225MM loyalty members, with 55 billion unused loyalty points the equivalent of over $1.1 billion 225+ MILLION Ziva &
Slide 20: Potential Branding Relationships: Additional Gains
Hyatt Ziva & Zilara all-inclusive resorts are the #1 desired point redemption option with Hyatt. Leverage global brands volume purchase agreements with OTA’s to lower commission cost Playa becomes the centralized access point and booking channel for global brands offering customers an array of inter
Slide 21: Why Is Playa the Best Choice for Global Brands?
WHY IS PLAYA THE BEST CHOICE FOR THESE GLOBAL BRANDS TO PARTNER WITH? “The Perfect Partnership” Desire to enter the all-inclusive space to expand brand offerings Majority of revenue is derived from franchise fees Asset light and adverse to owning real estate Lack operational expertise in all-inclusi
Slide 22: Hyatt Ziva & Zilara Meetings & Incentive Business Case
Prior to partnering with Hyatt, Playa Meetings & Incentives Business was $12M annually with no ADR premium Through the partnership Playa’s Meetings & Incentives Business has grown to $50M with $500 ADR’s, a 20% premium above other business segments. Hyatt brings legitimacy and access to Fortune 1000
Slide 23: Financial Overview
Financial Overview
Slide 24: Current Capital Structure
Financial Overview Current Capital Structure In May 2018, Playa successfully added an additional $100M to Term Loan B upon closing the Sagicor Deal Concurrently, Playa was able to refinance our Term Loan B to LIBOR + 275 from LIBOR + 325 which nearly offset any additional interest expense on the add
Slide 25: Benefits for Owners of All-Inclusive
Benefits for Owners of All-Inclusive Greater Share of Customer Wallet Generate Additional Revenue Through High-Margin Premium Services Predictable Revenue and Occupancy Guests book and pay further in advance with fewer cancelations More accurate planning of resources (e.g. in F&B) leads to the effic
Slide 26: Capital Investment Project Assumptions
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 - 2019 2018 2019 2019 2019 2019 -2020 Renovation Expansion Rebranding / Reposition N/A Remain Operational During Renovation N/A N/A Estimat
Slide 27: Anticipated Expansion/Renovations Timeline
Anticipated Expansion/Renovations Timeline Expansions & Renovations 2018 Royal Playa del Carmen renovation and conversion with minimal disruption 2019 Hyatt Ziva Cancún 100-125 room expansion with minimal disruption 2019 Hyatt Zilara Cancún complete renovation and 70-80 room expansion 2019 Hyatt Ziv
Slide 28: Playa's Path to $300M EBITDA Bridge
Playa portfolio includes Playa properties and changes to Corporate Expense Sagicor Portfolio in 2018 only represents a partial year EBITDA contributions in low season Includes Playa properties, Sagicor acquired properties, 3rd Party Management Contracts and Corporate Expense EBITDA Bridge (1) $173 -
Slide 29: Pro-forma Room Count After Transaction and Planned Expansion
Strong presence in leading destinations with more than 20 hotels in Mexico and the Caribbean Brands (by rooms) (1) EBITDA (by country) Owned & Managed by Playa Managed by AMResorts Jamaica Los Cabos Puerto Vallarta Cancún / Riviera Maya Punta Cana La Romana Pro-forma Room Count After Transaction and
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CONFIDENTIAL | 8
Slide 31: Experienced Leadership
Experienced Leadership Bruce Wardinski, CEO, Long History Of Maximizing Returns To Investors In The Real Estate Industry History of Creating Shareholder Value Crestline Capital Highland Hospitality Starts at Marriott Marriott establishes Host Marriott Formation of Crestline Capital Sale of Crestline
Slide 32: Experienced Leadership
Experienced Leadership Years in Industry Time at Playa Previous Experience 43 years 10 years Joined Playa in 2008 as CEO of Playa Resort Management Extensive career at Marriott, holding numerous leadership positions in the U.K., Germany and Mexico, as well as in many Middle Eastern and African marke
Slide 33: Reconciliation of EBITDA & Adjusted EBITDA For Playa Only
Reconciliation of EBITDA & Adjusted EBITDA For Playa Only