Playa Hotels & Resorts BV — Merger or Acquisition (February 2018)
28 slides from Playa Hotels & Resorts BV's merger presentation, Feb 27, 2018
Slide 1: 2018 Sagicor Transaction
2018 Sagicor Transaction Exhibit 99.1
Slide 2: Forward-Looking Statements
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 strate
Slide 3: Playa Overview
Playa Overview
Slide 4: Playa is positioned to be the leader in an emerging high-growth sector
Playa is positioned to be “the” leader in an emerging high-growth sector Playa’s Strategic Vision Operational Excellence Scale advantages and all-inclusive know-how to drive outstanding results and customer satisfaction Portfolio of Iconic Brands and Resorts Develop properties that resonate with con
Slide 5: The Playa Journey
Sustained Growth The Playa Journey Portfolio of 13 hotels with Jamaica, Ziva Cancun and Ziva Los Cabos closing for renovations Launched multiple brands Partnership with Hyatt Capital to expand Continued optimization Launched Panama Jack brand resorts Entered third party management business Cap Cana
Slide 6: Playa's Accomplishments in 2017
Playa’s Accomplishments in 2017 STRATEGIC INITIATIVES FINANCIAL IMPROVEMENTS Term Loan B Add-on December 2017 Added $380mm to our existing Term Loan to pay off remaining $360mm of Senior Notes ($10mm annual interest savings) Launch of Panama Jack Brand Resorts January 2017 January licensing agreemen
Slide 7: Sagicor Transaction Overview
Sagicor Transaction Overview
Slide 8: Transaction Overview
Transaction Overview Sagicor Portfolio Montego Bay Int’l. Airport Existing Playa Resort Jamaica Hilton Rose Hall Jewel Runaway Bay Jewel Dunn’s River Jewel Palmyra \ Jewel Grande Jewel Paradise Cove 1 1 2 2 3 3 4 5 4 5 Partial transaction of existing Jewel Grande 88 room tower expected to be reposit
Slide 9: Strategic Rationale
Strategic Rationale Sagicor Transaction Strong Fit with Our Proven Transaction Playbook Improve Playa’s Brand Portfolio Clear Additional Value to be Realized Strengthens Our Jamaica Presence World-class beachfront assets Attractive and growing markets Great beachfront assets that can benefit from ou
Slide 10: Sagicor Transaction Summary
Sagicor Transaction Playa’s development track record and management expertise, strong regional presence, long-term customer relationships, and powerful brands will contribute to significantly improving the Sagicor portfolio’s performance Transaction Summary Agreement with Sagicor Group Jamaica Limit
Slide 11: Combined Brand Portfolio
Combined Brand Portfolio Transaction Increases Number of High Quality Brands Under Management Expands total addressable market and positions Playa to drive additional Hilton and Jewel Resorts demand through direct bookings 5 – Star Luxury Boutique 4 – Star 5 – Star Luxury All-Inclusive New Brands |
Slide 12: Hilton Rose Hall Resort Expansion/Renovations
Expansion/Renovations Potential investment in the renovation and upgrade of certain equipment located at the back of the house of the resort in 2018 Potential expansion of the property by adding 80 rooms expected to open in 2020. The hotel will not need to close and minimal disruption is expected Cu
Slide 13: Jewel Runaway Bay Beach & Golf Resort Redevelopment
Expansion/Renovations Potential full renovation and conversion to Panama Jack Potential to add 250 new rooms Potential expected to close in July 2018 and to reopen in September 2019 as the new Panama Jack Runaway Bay resort with a total inventory of 518 rooms Current estimate of discretionary capita
Slide 14: Jewel Dunn's River Beach Resort Redevelopment
Expansion/Renovations Potential full renovation and conversion to Panama Jack The hotel currently features two low-rise double-loaded buildings with a total of 54 guestrooms Potential for these buildings to be torn down and replaced with a new tower to include a total of 104 rooms built Potentially
Slide 15: Jewel Paradise Cove Beach Resort Redevelopment
Expansion/Renovations Potential 30-room expansion and new spa expected in 2020 Current estimate of discretionary capital investment to be spent over the next 3 to 4 years is $4.5M and is still subject to Board approval $150k/key Expected stabilized year range is 2021 - 2022 Jewel Paradise Cove Beach
Slide 16: Jewel Grande Repositioned As Hyatt Ziva Palmyra
Expansion/Renovations Potential construction of a 300-room Hyatt Ziva resort on the 4.5-acre developable site, which is located adjacent to Playa’s Hyatt Rose Hall resort complex Potential construction is expected to begin in Q1 2019 with the new resort estimated to open in Q1 2021 Current estimate
Slide 17: Playa's Existing Hyatt Ziva Repositioned as Hyatt Zilara
Expansion/Renovations During the second half of 2020, Playa’s existing Hyatt Ziva Rose Hall will be repositioned as a Hyatt Zilara Estimated investment of $5M ($13k/key) As a result, existing Hyatt Rose Hall hotel will be a Hyatt Zilara only – next to the new Hyatt Ziva that will be built on 4.5-acr
Slide 18: Rose Hall Site Layout
Existing Playa-Owned Hyatt Ziva & Zilara Rose Hall Jewel Grande (88-room tower) Hyatt Ziva Palmyra developable site (300 rooms) Future Site of Hyatt Ziva Palmyra Jewel Grande management contract Sagicor Portfolio
Slide 19: Anticipated Expansion/Renovations Timeline
Anticipated Expansion/Renovations Timeline Sagicor Portfolio 2018 Hilton Rose Hall equipment renovation Late 2019 Jewel Runaway Bay conversion to Panama Jack hotel and 250-room expansion 2020 Jewel Dunn’s River conversion to Panama Jack hotel and 50-room expansion 2020 Jewel Paradise Cove 30-room ex
Slide 20: Strong presence in leading destinations in Mexico and the Caribbean
Strong presence in leading destinations with more than 20 hotels in Mexico and the Caribbean Location (by rooms) (1) Brands (by rooms) (1) 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
Slide 21: Summary Financials
Summary Financials
Slide 22: Existing Properties: Historical & Pro-forma / Fully Stabilized Portfolio
4 Existing Properties: Historical & Pro-forma / Fully Stabilized Portfolio (1) (1) (1) (1) (1) (1) (1) (1) Historical data from 2016 & 2017 includes only the 4 existing resorts acquired in this transaction and the internalization of management fees originally paid to third party 2018PF includes the
Slide 23: Playa Sees Meaningful Improvement Opportunities
Playa Sees Meaningful Improvement Opportunities Sagicor Portfolio vs. Playa Portfolio (1) 103% increase over Sagicor on average basis 15.7 percentage point increase over Sagicor on average basis Sagicor Hotels Playa Hotels (1) EBITDA/Room and EBITDA Margin are based on 2017 Estimates Sagicor financi
Slide 24: Playa Has Significant Experience in Improving Acquired & Managed Properties
Playa Has Significant Experience in Improving Acquired & Managed Properties Only includes Hyatt Ziva Cancύn, Hyatt Zilara Cancύn, Hyatt Ziva Puerto Vallarta, and Hyatt Ziva Los Cabos; actual results may differ materially from estimates. When acquired the Ritz Carlton Jamaica was not a positive EBITD
Slide 25: Accretive Transaction for Short-Term and Long-Term Success
Accretive Transaction for Short-Term and Long-Term Success Sagicor Portfolio Attractive Transaction Valuation (4) Increases Total Addressable Market Panama Jack Rebranding Playa Operational Expertise Hyatt Expansion Pipeline of high ROIC opportunities $50M land bank à for additional density at two r
Slide 26: Investment Highlights
Investment Highlights All-Inclusive Market Leader 2 2 Premier Collection of All-Inclusive Resorts in Desirable Locations 1 Robust Internal Growth Opportunity 4 5 Increases footprint in Jamaica’s growing all-inclusive market Extends the position of Panama Jack as the premier beach destination brand f
Slide 27: Appendix
Appendix
Slide 28: Reconciliation of EBITDA & Adjusted EBITDA For Playa Only
Reconciliation of EBITDA & Adjusted EBITDA For Playa Only 28
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