TRANSFORMING THE ALL-INCLUSIVE SECTOR
HYATT ZILARA & HYATT ZIVA CAP CANA
CANCUN
CAP CANA
LA ROMANA
LOS CABOS
MONTEGO BAY
OCHO RIOS
PLAYA DEL CARMEN
PUERTO VALLARTA
RUNAWAY BAY
We Are Playa Hotels & Resorts
By being the only publicly traded company in the US sector, we are bringing together two worlds that have never spoken before, the US equity markets and the all-inclusive segment.
Our unique expertise in operating all-inclusive resorts together with strategic alliances with Hyatt and Hilton gives Playa a unique opportunity to drive exceptional growth for your business.
Working together, Playa Hotels & Resorts is the key to connect your business to a robust platform with global reach and help you leverage your investment.
About Playa Hotels & Resorts
OUR STORY
Since 2006, Playa Hotels & Resorts has become the leading owner, operator, manager and developer of all-inclusive beach resorts. Playa has continued to be a top international luxury resort and leisure company recognized for turning extensive management and investment expertise into real value for our stakeholders, employees and the local communities in which we are located.
GRAND OPENINGS AND MILESTONES
Hyatt Ziva Los Cabos & Hyatt Zilara Cancun
Hyatt Zilara & Hyatt Ziva Rose Hall
Hyatt Ziva Puerto Vallarta
The Grans & The Royal
Hyatt Ziva Cancun
HYATT ZIVA LOS CABOS
Panama Jack Resorts
HILTON ALLIANCE
2019
Hyatt Zilara & Hyatt Ziva Cap Cana
Hilton Playa del Carmen
Hilton La Romana
About Playa Hotels & Resorts
OUR PROPERTIES
Playa Hotels & Resorts portfolio consists of owned, operated and managed all-inclusive resorts in prime oceanfront locations in Mexico, Jamaica and The Dominican Republic. These all-inclusive resorts include adults-only properties exclusively for guests 18 years and older as well as all-ages properties with no age limitations. Each provides guests with innovative, all-inclusive healthy lifestyle experiences.
OWNED & OPERATED BY PLAYA HOTELS & RESORTS
Hyatt Zilara Cancun
Hyatt Ziva Cancun
Hyatt Zilara Rose Hall
Hyatt Ziva Rose Hall
Hyatt Ziva Los Cabos
Hyatt Ziva Puerto Vallarta
Hyatt Zilara Cap Cana (Nov, 2019)
Hyatt Ziva Cap Cana (Nov, 2019)
Panama Jack Resorts Cancun
Panama Jack Resorts Playa del Carmen
Hilton La Romana - Punta Cana, an All-Inclusive Adult Resort
Hilton La Romana - Punta Cana, an All-Inclusive Resort
Hilton Playa del Carmen, an All-inclusive Resort
Hilton Rose Hall Resort & Spa
Jewel Runaway Bay Beach & Golf Resort
Jewel Dunn’s River Beach Resort & Spa
Jewel Paradise Cove Beach Resort & Spa
MANAGED BY PLAYA HOTELS & RESORTS
Sanctuary Cap Cana
Jewel Grande Montego Bay Resort & Spa
MANAGED BY A THIRD PARTY
Dreams Puerto Aventuras
Dreams Palm Beach
Dreams Punta Cana
Secrets Capri Riviera
BY THE NUMBERS
EBITDA BY REGION
CANCUN & RIVIERA MAYA DOMINICAN REPUBLIC
BRANDS BY ROOM (%)
JAMAICA
LOCATIONS
SEE INSET
SEE INSET
MEXICO
PACIFIC OCEAN
JAMAICA
DOMINICAN REPUBLIC
CARIBBEAN SEA
JAMAICA
DOMINICAN REPUBLIC
About Playa Hotels & Resorts
COMPETITIVE ADVANTAGES OF THE ALL-INCLUSIVE MODEL
GENERATE ADDITIONAL REVENUE THROUGH HIGH-MARGIN PREMIUM SERVICES
High-margin premium services not included in the all-inclusive package (Guests are more likely to buy upgrades at the resort since their stay is paid in advance):
• Spa
• Fine wine/premium alcohol
• Wedding packages
• Room upgrades
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 efficient use of labor and less waste
• Leverage economies of scale
GREATER SHARE OF CUSTOMER WALLET
All-inclusive price includes:
• Room
• Food & Beverage
• Entertainment
HIGH CUSTOMER SATISFACTION
• Value for money - less expensive than purchasing items a la carte
• Total cost certainty
• Convenient one-stop shopping
HIGHER EBITDA MARGINS
LTM 9/30/2018 ADJUSTED EBITDA MARGINS
RAPIDLY GROWING ALL-INCLUSIVE SEGMENT
TOTAL HOTEL ROOMS (AMOUNT IN THOUSANDS) CAGR Growth from 1990-2018
Why Playa Hotels & Resorts?
Playa has decades of experience in the all-inclusive sector as the owner, operator, manager and developer of 23 luxury resorts throughout Mexico and the Caribbean.
Transparency is at our core and our approach is collaborative. We go beyond what is required as a publicly traded company (nasdaq:plya) and provide custom, in-depth, timely reporting and analysis.
Unmatched in Hospitality Management – only Playa enables access to global consumer brands and their 100 Million+ loyalty members, like Hyatt and Hilton.
• Ability to drive 8-10 points of incremental occupancy
• Ability to drive sustainable ADRs that are 10-15% higher than other management companies
• Immediate recognition and trust
Only Playa offers the ability to select among several global consumer brands such as Hyatt, Hilton or Panama Jack Resorts – or – the option to retain your existing brand and have Playa serve as your provider of management services.
HYATT ZIVA PUERTO VALLARTA
PlayaAccess™
The only management company to offer a suite of custom solutions to owners featuring proprietary platforms for your business such as:
• GuestDirect
• MeetingsPlus
• RevPower
• TADirect
Proven track record of producing meaningful results within 90 days of reopening and/or rebranding.
Long-term record of delivering sustainable results.
GuestDirect
Playa delivers the highest percentage of low-cost consumer direct business of any management company
PlayaAccess™
Playa’s high ADR meetings & events specialty group business
TADirect
Access to Playa’s internally negotiated rates with major OTAs/TOs
RevPower
Playa’s cutting-edge technology platform designed to maximize Rev Par, specifically designed for all-inclusive resorts
Professional All-Inclusive Operating Platform
Each resort is associated with our robust operating platform supported by experts geographically located close to our operations. Our management team produces unparalleled returns and is consistently recognized with the top awards in the hospitality industry from both consumers and trade.
From development to daily activities, we ensure instant brand recognition and a minimized operational cost to run your hotel effectively while increasing profit margins.
STRATEGIC BRANDING ALLIANCES
Strategic relationship with the largest hotel companies such as Hyatt, Hilton and Panama Jack.
Our Business Model
UNIQUE EXPERTISE IN OPERATING ALL-INCLUSIVE RESORTS
A robust operating platform supported by the most experienced team with more than 30 years of experience in the all-inclusive sector.
DESIGN & CONSTRUCTION EXPERTISE
We generate asset value for your portfolio. Playa brings differentiation since product inception.
All-Inclusive
KEY DIFFERENTIAL THROUGH WORLDWIDE DISTRIBUTION
We are the key to connect your business to an affordable distribution channel and give you the platform you need to reach your business goal.
A GLOBAL PLATFORM DESIGNED EXCLUSIVELY FOR THE ALL-INCLUSIVE MARKET
We transformed the way we do business. We are the only company to grant our partners access to reservation systems from Hyatt and Hilton.
Hilton and Hyatt’s selection of Playa as its strategic partner in the development and management of all-inclusive resorts throughout the Caribbean, Mexico and Latin America not only reflects their confidence and conviction in Playa’s best-in-class stewardship of all-inclusive resorts, but it also provides unique advantages to both parties.
HILTON PLAYA DEL CARMEN
Strategic Branding Alliances
Advantages
1
LOYALTY PROGRAMS
• Immediate access to Hyatt and Hilton’s more than 100 million loyalty members
• Hyatt’s Loyalty members spend 29% more per stay
• Hilton’s direct business represent about 75% of their overall business
2
RESERVATION SYSTEM
• Minimized customer acquisition cost
• Ability to take advantage of Playa’s low negotiated OTA/TO rates –which vertically integrated companies are not incentivized to do
3
GREATER VISIBILITY
• Ability to reach a new audience, who may not be familiar with the all-inclusive concept.
4
HIGHER RETURN ON INVESTMENT
• Branded hotels have higher rates of group business
• The consumer direct model has the potential to generate an ROI that is nearly 2X that of an OTA
HYATT ZILARA CANCUN
Unique Expertise
Why Playa’s Shared Services Center?
1
SCALABLE PLATFORM
2
3
4
5
6
7
Playa’s SSC is a scalable platform capable to provide services to a greater number of existing processes within the company.
PEOPLE’S TALENT
Playa’s employees have developed the expertise needed on each process which led to higher efficiencies in terms of time and quality of the service provided
COMMON SUPPORT SERVICES INFRASTRUCTURE
Playa’s SSC has a global resolution system, that is adaptable to the different needs of the customer.
SIGNIFICANT COST SAVINGS
Cost reduction is reached by technology implementation, elimination of redundant work and infrastructure and process standardization.
GREATER FLEXIBILITY
The service provided by Playa’s SSC is flexible and adaptive to changes.
DOCUMENTED PROCEDURES
Processes have been defined and documented in order to have well -policies and non-volatile activities.
EFFICIENT RESPONSE TIMES
Response times provided by Playa’s team are very competitive compared to the market.
SERVICE DELIVERY CULTURE
8 in Operating All-Inclusive Resorts
Playa is focused on quality service delivery since its beginning establishing SLAs that measure the efficiency of timings and quality.
PANAMA JACK RESORT CANCUN
Key Differential
THROUGH WORLDWIDE DISTRIBUTION
By partnering with US global hotel brands such as Hyatt and Hilton we have reinvented the traditional all-inclusive model.
Our distribution channel gives us a lower customer acquisition cost and immediate exposure to new customers, raising your bottom line from day one.
A Global Platform
REVENUE MANAGEMENT
Sophisticated software and integrated reservation system to deliver reliable and long-term pricing strategies as well as operational oversight approaches to maximize profitability
LOYALTY PROGRAMS
We are the only all-inclusive company partnered with US. global brands that can guarantee immediate access to Loyalty Programs from Hyatt and Hilton
LOWER CUSTOMER ACQUISITION COST
We are the key to connect your business to an affordable distribution channel that will not only improve margins but enable immediate exposure to new customers.
SALES
Dedicated inside and field sales teams in place in the US, Canada, Mexico, LATAM and GSA representation in the UK, Germany and Italy as well as Call Centers in the US and Mexico.
Designed exclusively for the All-Inclusive Market to boost hotels’ revenue, reduce cost and maximize the value of your investment.
Design & Construction Expertise
OUR EXPERIENCE
3,634 ROOMS RENOVATED
OUR APPROACH
OVER
Half a Billion INVESTED
37% CASH ON CASH RETURN
Working together from start to finish in open communication and effective collaboration to create and maximize the value of your real estate. Our unique expertise in the all-inclusive sector combined with global brand partners in the construction field guarantees owners a minimized construction cost and streamlined schedule.
AND
— MOST RECENT DEVELOPMENT IN CAP CANA
Being the first US branded all-inclusive resorts in Cap Cana, Hyatt Ziva and Zilara (750 rooms) development is a remarkable milestone for our company and it shows Playa’s commitment to expand its footprint in the region with high quality and well differentiated resort concepts.
HYATT ZILARA
HYATT ZIVA
Value Creation
CREATING VALUE THROUGH BRANDING PARTNERSHIPS
CURRENT BRANDED LOCATIONS
HYATT ZILARA CANCUN
HYATT ZIVA PUERTO VALLARTA
HYATT ZILARA AND HYATT ZIVA ROSE HALL
HYATT ZIVA CANCUN
HYATT ZIVA LOS CABOS
Playa’s
44.8%
55.5%
167.2%
Value Creation
HYATT ZIVA CANCUN: FORMERLY THE DREAMS CANCUN
OPPORTUNITY: Renovation and rebranding
APPROACH: Under-performing resort in a competitive location was converted to a lucrative all-inclusive multi award-winning resort
RESULTS:
• RevPAR CAGR growth of 15% in the last 5 years
• GOP Margin CAGR growth of 10% in the last 5 years
• EBITDA Growth per Key of 25% in the last 5 years
PANAMA JACK RESORTS CANCUN: FORMERLY THE GRAN CARIBE CANCUN
OPPORTUNITY: Lifestyle brand creation
APPROACH: Playa leveraged its all-inclusive expertise and created a new hotel identity recognized today as a top family resort destination
RESULTS:
• Consumer direct business increased 65% in first year of rebranding
• Proactive sales strategy increased group bookings with higher rates
SANCTUARY CAP CANA
OPPORTUNITY: New management agreement
APPROACH: Leveraged hotel NOI and established consumer direct channels to quickly build brand awareness and increase revenue production
RESULTS:
• Immediate upside in margins by lowering commissions with third party vendors
• Direct booking growth with higher ADRs, increasing overall revenue to the bottom line
24% CONSUMER DIRECT BUSINESS
JEWEL GRANDE MONTEGO BAY RESORT & SPA
OPPORTUNITY: Acquisition of an under-managed resort
APPROACH: Immediately increased consumer and trade awareness across all distribution channels and optimized margins through revenue management
RESULTS:
• 2019 Q1/Q2 forecasted revenue already exceeds total 2018 revenue by 150%
• Jewel Grande will surpass budgeted occupancy, ADR and net revenues for full year 2019
51% CONSUMER DIRECT BUSINESS
Playa Cares
A COMMITMENT TO OUR PEOPLE
We train, hear and work hand-in-hand with our associates to offer the best opportunities for professional growth. We take care and motivate our associates and, in turn, they take care of your guests. With a turnover rate lower than the industry average, we thereby attract and retain talent, creating an exciting and consistent atmosphere in our resorts.
HILTON LA ROMANA
Playa Gives Back
Over the course of any given year, the associates of Playa Hotels & Resorts dedicate a significant amount of time and effort to making an impact on the local community and giving back to the destinations in which we live. Whether it’s restoration, reforestation or beach cleanup, the number of lives impacted by these actions are insurmountable.
CORPORATE BEACH CLEANUP
GRANVILLE HYATT ZILARA & HYATT ZIVA ROSE HALL
ACCIÓN ANIMAL & SOS EL ARCA RESCUE GROUPS
HILTON PLAYA DEL CARMEN & PANAMA JACK RESORTS PLAYA DEL CARMEN
MELIPONA BEES PANAMA JACK RESORTS CANCUN
WETLANDS RESTORATION HYATT ZIVA LOS CABOS
Our Resorts
HYATT ZILARA CANCUN
310 Rooms | Adults-Only Cancun, Mexico
HYATT ZIVA ROSE HALL
277 Rooms | All-Ages Montego Bay, Jamaica
HYATT ZILARA CAP CANA OPENING NOVEMBER 2019
375 Rooms | Adults-Only Cap Cana, Dominican Republic
PLAYA DEL CARMEN
287 Rooms | All-Ages
Playa Del Carmen, Mexico
HYATT ZIVA CANCUN
547 Rooms | All-Ages Cancun, Mexico
HYATT ZIVA LOS CABOS
591 Rooms | All-Ages Los Cabos, Mexico
HYATT ZIVA CAP CANA OPENING NOVEMBER 2019
375 Rooms | All-Ages Cap Cana, Dominican Republic
323 Rooms | Adults-Only
Cap Cana, Dominican Republic
344 Rooms | Adults-Only Montego Bay, Jamaica
HYATT ZIVA PUERTO VALLARTA
335 Rooms | All-Ages Puerto Vallarta, Mexico
458 Rooms | All-Ages Cancun, Mexico
JEWEL GRANDE MONTEGO BAY RESORT & SPA
217 Rooms | All-Ages Montego Bay, Jamaica
PANAMA JACK RESORTS
HYATT ZILARA ROSE HALL
PANAMA JACK RESORTS CANCUN
SANCTUARY CAP CANA
JEWEL RUNAWAY BAY
BEACH & GOLF RESORT
268 Rooms | All-Ages Runaway Bay, Jamaica
HILTON PLAYA DEL CARMEN
513 Rooms | Adults-Only
Playa Del Carmen, Mexico
HILTON LA ROMANA
412 Rooms | All-Ages La Romana, Dominican Republic
JEWEL DUNN’S RIVER
BEACH RESORT & SPA
250 Rooms | Adults-Only Ocho Rios, Jamaica
HILTON ROSE HALL RESORT & SPA
495 Rooms | All-Ages Montego Bay, Jamaica
SECRETS CAPRI RIVIERA
291 Rooms | Adults-Only Riviera Maya, Mexico
500 Rooms | All-Ages
Dominican Republic
JEWEL PARADISE COVE
BEACH RESORT & SPA
225 Rooms | Adults-Only Runaway Bay, Jamaica
HILTON LA ROMANA
350 Rooms | Adults-Only La Romana, Dominican Republic
DREAMS PUERTO AVENTURAS
305 Rooms | All-Ages
Riviera Maya, Mexico
620 Rooms | All-Ages
DREAMS PALM BEACH
Punta Cana,
DREAMS PUNTA CANA
Punta Cana, Dominican Republic
Let’s Talk
One of the key attributes that sets Playa apart is the extraordinary importance we place on the value of – and trust in – personal relationships and face to face contacts. Everyone on the Playa team is dedicated to creating value and serving the needs of shareholders and stakeholders.
We welcome the opportunity to speak with you.
CHAIRMAN AND CHIEF EXECUTIVE OFFICER
Kevin Froemming
EXECUTIVE VICE PRESIDENT AND CHIEF MARKETING OFFICER
CHIEF OPERATING OFFICER
EXECUTIVE VICE PRESIDENT AND CHIEF FINANCIAL OFFICER
EXECUTIVE VICE PRESIDENT AND CHIEF DEVELOPEMENT OFFICER
EXECUTIVE VICE PRESIDENT AND GENERAL COUNSEL
Matthew Cohen
Bruce Wardinski
Alex Stadlin
Fernando Mulet
Ryan Hymel
Playa’s Commitment
AN EMPHASIS ON LONG-TERM RELATIONSHIPS WITH OUR OWNERS
Our commitment to maintaining open communication and transparency in our results has been generating stable long-term relationships with our partners. We implement decisions made with you and by working together we have been consistently helping owners meet their business goals.
