Business segments

3 Months Ended

Mar. 31, 2025

We consider each one of our owned resorts to be an operating segment, none of which meets the threshold for a reportable segment. We also allocate resources and assess operating performance based on individual owned resorts. Our operating segments meet the aggregation criteria and thus, we report four separate reportable segments by geography: (i) Yucatán Peninsula, (ii) Pacific Coast, (iii) Dominican Republic and (iv) Jamaica.

Our operating segments are components of the business that are managed discretely and for which discrete financial information is reviewed regularly by our Chief Executive Officer, Chief Financial Officer and Chief Operating Officer, all of whom collectively represent our chief operating decision maker (“CODM”). Financial information for each reportable segment is reviewed by the CODM to assess performance and make decisions regarding the allocation of resources.

Our CODM evaluates the performance of our segments on adjusted earnings before interest expense, income tax provision, and depreciation and amortization expense, corporate expenses, The Playa Collection revenue and management fees (“Owned Resort EBITDA”) and the performance of our business primarily on adjusted EBITDA.

The following table presents segment Owned Net Revenue, defined as total revenue less compulsory tips paid to employees, cost reimbursements, management fees, The Playa Collection revenue, and other miscellaneous revenue not derived from segment operations, and a reconciliation to total revenue for the three months ended March 31, 2025 and 2024 ($ in thousands):


	Three Months Ended March 31,
		2025		2024
Owned net revenue
Yucatán Peninsula		$	93,181	$	95,988
Pacific Coast		35,048		44,296
Dominican Republic		80,598		81,612
Jamaica		52,454		64,642
Segment owned net revenue		261,281		286,538
Other revenues		260		420
Management fees		(3,884)		2,534
The Playa Collection		1,449		1,020
Cost reimbursements		1,775		2,889
Compulsory tips		6,406		7,234
Total revenue		$	267,287	$	300,635

The following tables present significant segment expenses for each of our reportable segments and a reconciliation from Owned Net Revenue to Owned Resort EBITDA for the three months ended March 31, 2025 and 2024 ($ in thousands):


	Three Months Ended March 31, 2025
	Yucatán Peninsula		Pacific Coast		Dominican Republic		Jamaica
Owned Net Revenue	$	93,181	$	35,048	$	80,598	$	52,454
Less:
Salaries and wages	18,454		6,584		9,609		8,530
Food and beverage	7,396		2,599		6,907		6,064
Utilities	2,535		1,071		3,013		2,924
Franchise and license fees	5,069		2,299		5,002		2,834
Sales and marketing	5,939		2,691		2,984		2,091
Property insurance	2,458		1,132		1,896		1,739
Other segment items(1)	12,351		4,645		10,517		10,264
Owned Resort EBITDA	$	38,979	$	14,027	$	40,670	$	18,008


	Three Months Ended March 31, 2024
	Yucatán Peninsula		Pacific Coast		Dominican Republic		Jamaica
Owned Net Revenue	$	95,988	$	44,296	$	81,612	$	64,642
Less:
Salaries and wages	19,066		8,261		11,399		8,705
Food and beverage	8,184		3,716		8,263		6,807
Utilities	2,899		1,361		3,705		3,237
Franchise and license fees	5,063		2,784		4,396		3,062
Sales and marketing	6,585		2,852		3,534		2,756
Property insurance	2,367		1,092		2,142		1,659
Other segment items(1)	11,771		5,089		10,403		11,340
Owned Resort EBITDA	$	40,053	$	19,141	$	37,770	$	27,076

________

(1) Other segment items for each reportable segment include administrative and general costs (including credit card commissions and centralized service costs), repairs and maintenance, departmental expenses (including guest costs and music and entertainment costs), and owner expenses (including corporate allocated costs).

The following table presents segment Owned Resort EBITDA and a reconciliation to net income before tax for the three months ended March 31, 2025 and 2024 ($ in thousands):


	Three Months Ended March 31,
		2025		2024
Owned Resort EBITDA
Yucatán Peninsula		$	38,979	$	40,053
Pacific Coast		14,027		19,141
Dominican Republic		40,670		37,770
Jamaica		18,008		27,076
Total Owned Resort EBITDA		111,684		124,040
Interest expense		(19,961)		(23,128)
Depreciation and amortization		(19,440)		(18,672)
(Loss) gain on sale of assets		(626)		36
Other expense		(151)		(793)
Severance expense		(452)		—
Share-based compensation		(4,395)		(3,759)

Transaction expenses		(3,373)		(1,037)
Contract termination fees		(6,208)		—
Non-service cost components of net periodic pension cost (1)		171		259
Corporate and other (2)		(11,763)		(10,568)
Net income before tax		$	45,486	$	66,378

________

(1) Represents the non-service cost components of net periodic pension cost or benefit recorded within other expense in the Condensed Consolidated Statements of Operations. We include these costs in calculating Adjusted EBITDA as they are considered part of our ongoing resort operations.

(2) Includes management fee revenue, The Playa Collection revenue, and corporate expenses. Corporate expenses include corporate salaries and benefits, professional fees, corporate rent and insurance, corporate travel, software licenses, board fees and other miscellaneous corporate expenses.

The following table presents segment property and equipment, gross and a reconciliation to total property and equipment, net as of March 31, 2025 and December 31, 2024 ($ in thousands):


	As of March 31,		As of December 31,
	2025		2024
Segment property and equipment, gross
Yucatán Peninsula	$	701,301	$	692,443
Pacific Coast	371,234		361,077
Dominican Republic	459,853		457,647
Jamaica (1)	418,629		414,804
Total segment property and equipment, gross	1,951,017		1,925,971
Corporate property and equipment, gross	6,990		6,987
Accumulated depreciation	(576,897)		(558,628)
Total property and equipment, net	$	1,381,110	$	1,374,330

________

(1) Property and equipment of the Jewel Paradise Cove Beach Resort & Spa is included within assets held for sale in the Condensed Consolidated Balance Sheet as of December 31, 2024.

The following table presents segment capital expenditures and a reconciliation to total capital expenditures for the three months ended March 31, 2025 and 2024 ($ in thousands):


	Three Months Ended March 31,
	2025		2024
Segment capital expenditures
Yucatán Peninsula	$	9,507	$	2,021
Pacific Coast	9,671		2,528
Dominican Republic	2,406		1,554
Jamaica	3,960		3,175
Total segment capital expenditures (1)	25,544		9,278
Corporate	738		874
Total capital expenditures (1)	$	26,282	$	10,152

________

(1) Represents gross additions to property and equipment

- Definition

The entire disclosure for reporting segments including data and tables. Reportable segments include those that meet any of the following quantitative thresholds a) it's reported revenue, including sales to external customers and intersegment sales or transfers is 10 percent or more of the combined revenue, internal and external, of all operating segments b) the absolute amount of its reported profit or loss is 10 percent or more of the greater, in absolute amount of 1) the combined reported profit of all operating segments that did not report a loss or 2) the combined reported loss of all operating segments that did report a loss c) its assets are 10 percent or more of the combined assets of all operating segments.

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+ Details

Playa Hotels & Resorts N.V. 10-Q