Hotel Management Network

Playa Hotels & Resorts Q2 2024 profit slips nearly 57% year-on-year

Total revenue for Q2 2024 was $235.47m, a decrease from $248.04m in Q2 2023.

Playa Hotels & Resorts has reported a net income of $13.17m for the second quarter (Q2) of 2024, a 56.64% decrease from $20.63m in the same period of the previous year.

The company’s adjusted net income for Q2 2024 was $15.88m, down from $21.01m in Q2 2023.

Basic earnings per share (EPS) in Q2 2024 were $0.10, compared with $0.14 in Q2 2023 while diluted EPS dipped to $0.10 from $0.13.

Total revenue for the quarter ending 30 June 2024 was $235.47m, a decrease from $248.04m in Q2 2023.

Operating income in Q2 2024 was $37.91m, versus $49.78m in Q2 2023.

Adjusted EBITDA fell to $63.69m from $72.12m over this period.

Appreciation of the Mexican peso, including the effects of foreign currency forward contracts, is said to have hit the company’s performance negatively by nearly $1.4m.

This was partially offset by a positive impact of $1m from business interruption insurance proceeds and recoverable expenses.

In Q2 2023, adjusted earnings before interest, taxes, depreciation, and amortisation (EBITDA) benefited from a $4.3m positive impact from similar insurance proceeds and recoverable expenses.

Comparable net package revenue per available room (RevPAR) decreased by 1.9%, from $326.65 in Q2 2023 to $320.46 in Q2 2024.

This decline was driven by a 2.9%-point drop in occupancy, partially mitigated by a 1.9% increase in net package average daily rate (ADR).

In Q1 2024, the company reported a net income of $54.34m, representing a 75.76% decline from Q2 2024.

Revenue in Q2 2024 was down by 21.67% from $300.63m in Q1 2024.

For the first half (H1) of 2024, Playa Hotels & Resorts recorded a net income of $67.51m, up from $63.35m in H1 2023.

Total revenue for H1 2024 was $536.11m, compared with $521.84m in H1 2023, while operating income increased to $128.20m from $126.75m a year ago.

Playa Hotels & Resorts chairman and CEO Bruce D. Wardinski said: “Given the impact from Hurricane Beryl and the construction disruption in the Pacific Coast, we now expect our FY 2024 Adjusted EBITDA to be near the low end of our $250m-$275m guidance range.”