Playa Hotels & Resorts N.V. (NASDAQ:PLYA) Q1 2023 Earnings Call Transcript

Chris Woronka: Hey. Good morning guys. Thanks for all the detail so far. Just had a question on the – going back to the Jewel sales, I think you guys gave some potential disruption impact. Well, I guess the question will be that when properties are known to be marketed for sale, sometimes it’s tough to get not only customers, but employees, right. It’s just kind of a tough process for the uncertainty. So, I mean, how – I guess, how – what kind of level of conviction do you have in those disruption numbers?

Ryan Hymel: Yes. So, I think we feel pretty good. So, when you think about it like this, like there is a few contributing factors to kind of how we are seeing the Jewel play out for the rest of the year. So one, you heard us talk about on the last call, the timing and just the overall process of the takeover from those properties essentially at the very beginning of high season, essentially empty and the fact that we needed to do some very small renovation work while the properties were empty in the first couple of months of the year, but certainly not ideal. And that, as you can imagine, leads us to missing obviously, the high season as well as our summer selling window, particularly the Europeans. We have said it on the call, our booking window has remained at a little over three months.

So one, that makes it hard to sell for kind of the near-term that people are traditionally booking three-ish plus months out and then Europeans, which these two properties index higher to, they roughly in the kind of Q2 and Q3 indexed about 25% European business and they traditionally booked even a little bit further out. So, then – and then one other thing that we did want to point out, while scheduled seats into all of our destinations are pretty robust and good in Q2 and Q3, we have seen a reduction in airlift into Punta Cana from Europe. Not exactly sure why, but that also impacts these two properties for the summer, just given again, their higher indexed European customers. And then as you mentioned, there is always going to be some disruption.

There are going to be some partners and so are operators and others that know they are up for sale and are always going to assume the worst that potentially whomever you sell it to may shut it down. So, there are always going to be some apprehension there. But obviously, we are pretty focused on making sure that these essentially can do as best they possibly can while they are under our ownership. I mean as recently as this morning, I got some updates from the sales and marketing team on some of the strategies and overnight things they put in place and starting to see some pickup for the summer time. So, we still have a long way to go, but I can trust that Bruce is pretty focused on making sure that we make the most out of them while they are still on our care.

Chris Woronka: Sure. Great. Thanks Ryan. And then second one, as we think about your customer mix kind of normalizing and maybe it’s more of a ‘24 thing at this point. But can we talk a little bit about channel, channel mix? And does this mean you eventually take a little bit more OTA business back, or how do you think that all blends into what you are expecting for ADR this year? Thanks.