Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2020 | May 04, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Mar. 31, 2020 | |
Document Transition Report | false | |
Entity File Number | 1-38012 | |
Entity Registrant Name | Playa Hotels & Resorts N.V. | |
Entity Incorporation, State or Country Code | P7 | |
Entity Tax Identification Number | 98-1346104 | |
Entity Address, Address Line One | Prins Bernhardplein 200 | |
Entity Address, Postal Zip Code | 1097 JB | |
Entity Address, City or Town | Amsterdam, | |
Entity Address, Country | NL | |
Country Region | 31 | |
City Area Code | 20 | |
Local Phone Number | 571 12 02 | |
Title of 12(b) Security | Ordinary Shares, €0.10 par value | |
Trading Symbol | PLYA | |
Security Exchange Name | NASDAQ | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | true | |
Entity Ex Transition Period | true | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 129,312,573 | |
Entity Central Index Key | 0001692412 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q1 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 69,610 | $ 20,931 |
Trade and other receivables, net | 61,912 | 71,250 |
Accounts receivable from related parties | 5,436 | 5,401 |
Inventories | 17,197 | 16,649 |
Prepayments and other assets | 43,816 | 44,691 |
Property and equipment, net | 1,915,097 | 1,929,914 |
Goodwill, net | 62,166 | 78,339 |
Other intangible assets | 8,400 | 8,408 |
Deferred tax assets | 20,568 | 21,381 |
Total assets | 2,204,202 | 2,196,964 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Trade and other payables | 171,825 | 181,603 |
Payables to related parties | 9,791 | 7,620 |
Income tax payable | 2,276 | 3,252 |
Debt | 1,063,472 | 1,040,658 |
Derivative financial instruments | 53,349 | 31,932 |
Other liabilities | 31,180 | 24,307 |
Deferred tax liabilities | 99,628 | 97,941 |
Total liabilities | 1,431,521 | 1,387,313 |
Commitments and contingencies (see Note 7) | ||
Shareholders' equity | ||
Ordinary shares (par value €0.10; 500,000,000 shares authorized, 131,465,397 shares issued and 129,274,693 shares outstanding as of March 31, 2020, and 130,967,671 shares issued and 129,121,576 shares outstanding as of December 31, 2019) | 14,270 | 14,215 |
Treasury shares (at cost, 2,190,704 shares as of March 31, 2020 and 1,846,095 shares as of December 31, 2019) | (16,622) | (14,088) |
Paid-in capital | 1,004,256 | 1,001,088 |
Accumulated other comprehensive loss | (39,745) | (24,642) |
Accumulated deficit | (189,478) | (166,922) |
Total shareholders' equity | 772,681 | 809,651 |
Total liabilities and shareholders' equity | $ 2,204,202 | $ 2,196,964 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - € / shares | Mar. 31, 2020 | Dec. 31, 2019 |
Statement of Financial Position [Abstract] | ||
Ordinary shares, par value (in Euros per share) | € 0.10 | € 0.10 |
Ordinary shares, authorized (in shares) | 500,000,000 | 500,000,000 |
Ordinary shares, issued (in shares) | 131,465,397 | 130,967,671 |
Ordinary shares, outstanding (in shares) | 129,274,693 | 129,121,576 |
Treasury shares, at cost (in shares) | 2,190,704 | 1,846,095 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Revenue | ||
Total revenue | $ 177,228 | $ 195,796 |
Direct and selling, general and administrative expenses | ||
Direct | 97,898 | 93,743 |
Selling, general and administrative | 33,832 | 31,828 |
Pre-opening | 0 | 89 |
Depreciation and amortization | 24,959 | 22,311 |
Reimbursed costs | 950 | 588 |
Goodwill impairment loss | 16,173 | 0 |
Direct and selling, general and administrative expenses | 173,812 | 148,559 |
Operating income | 3,416 | 47,237 |
Interest expense | (20,955) | (14,194) |
Other expense | (3,906) | (602) |
Net (loss) income before tax | (21,445) | 32,441 |
Income tax (provision) benefit | (1,111) | 10,547 |
Net (loss) income | $ (22,556) | $ 42,988 |
Earnings per share | ||
(Losses) earnings per share - Basic (in dollars per share) | $ (0.17) | $ 0.33 |
(Losses) earnings per share - Diluted (in dollars per share) | $ (0.17) | $ 0.33 |
Weighted average number of shares outstanding during the period - Basic (in shares) | 129,286,708 | 130,540,057 |
Weighted average number of shares outstanding during the period - Diluted (in shares) | 129,286,708 | 130,770,356 |
Package | ||
Revenue | ||
Total revenue | $ 153,055 | $ 169,792 |
Non-package | ||
Revenue | ||
Total revenue | 22,578 | 24,482 |
Management fees | ||
Revenue | ||
Total revenue | 645 | 934 |
Cost reimbursements | ||
Revenue | ||
Total revenue | $ 950 | $ 588 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Statement of Comprehensive Income [Abstract] | ||
Net (loss) income | $ (22,556) | $ 42,988 |
Other comprehensive loss, net of taxes | ||
Unrealized loss on interest rate swaps | (15,048) | (5,858) |
Pension obligation loss | (55) | (151) |
Total other comprehensive loss | (15,103) | (6,009) |
Comprehensive (loss) income | $ (37,659) | $ 36,979 |
Condensed Consolidated Statem_3
Condensed Consolidated Statements of Shareholders' Equity - USD ($) $ in Thousands | Total | Ordinary Shares | Treasury Shares | Paid-In Capital | Accumulated Other Comprehensive Loss | Accumulated Deficit |
Beginning balance (in shares) at Dec. 31, 2018 | 130,440,126 | 54,608 | ||||
Beginning balance at Dec. 31, 2018 | $ 839,841 | $ 14,161 | $ (394) | $ 992,297 | $ (3,658) | $ (162,565) |
Shareholders' Equity | ||||||
Net (loss) income | 42,988 | 42,988 | ||||
Other comprehensive loss | (6,009) | (6,009) | ||||
Share-based compensation (in shares) | 249,044 | |||||
Share-based compensation, net of tax withholdings | 2,748 | $ 29 | 2,719 | |||
Repurchase of ordinary shares (in shares) | (198,179) | (198,179) | ||||
Repurchase of ordinary shares | (1,522) | $ (1,522) | ||||
Ending balance (in shares) at Mar. 31, 2019 | 130,490,991 | 252,787 | ||||
Ending balance at Mar. 31, 2019 | 878,046 | $ 14,190 | $ (1,916) | 995,016 | (9,667) | (119,577) |
Beginning balance (in shares) at Dec. 31, 2019 | 129,121,576 | 1,846,095 | ||||
Beginning balance at Dec. 31, 2019 | 809,651 | $ 14,215 | $ (14,088) | 1,001,088 | (24,642) | (166,922) |
Shareholders' Equity | ||||||
Net (loss) income | (22,556) | (22,556) | ||||
Other comprehensive loss | (15,103) | (15,103) | ||||
Share-based compensation (in shares) | 493,226 | 4,500 | ||||
Share-based compensation, net of tax withholdings | $ 3,189 | $ 55 | $ (34) | 3,168 | ||
Repurchase of ordinary shares (in shares) | (340,109) | (340,109) | (340,109) | |||
Repurchase of ordinary shares | $ (2,500) | $ (2,500) | ||||
Ending balance (in shares) at Mar. 31, 2020 | 129,274,693 | 2,190,704 | ||||
Ending balance at Mar. 31, 2020 | $ 772,681 | $ 14,270 | $ (16,622) | $ 1,004,256 | $ (39,745) | $ (189,478) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | |||
Net (loss) income | $ (22,556) | $ 42,988 | |
Adjustments to reconcile net income to net cash provided by operating activities | |||
Depreciation and amortization | 24,959 | 22,311 | |
Amortization of debt discount and issuance costs | 339 | 339 | |
Share-based compensation | 3,223 | 2,748 | |
Loss on derivative financial instruments | 6,369 | 2,017 | |
Goodwill impairment loss | 16,173 | 0 | |
Deferred income taxes | 2,500 | (13,605) | |
Amortization of key money | (206) | (34) | |
Other | (471) | 487 | |
Changes in assets and liabilities: | |||
Trade and other receivables, net | 9,880 | (4,077) | |
Accounts receivable from related parties | (35) | (1,272) | |
Inventories | (545) | (938) | |
Prepayments and other assets | 946 | (2,765) | |
Trade and other payables | (13,596) | (11,523) | |
Payables to related parties | 2,171 | 2,648 | |
Income tax payable | (976) | 273 | |
Other liabilities | (1,450) | 5,126 | |
Net cash provided by operating activities | 26,725 | 44,723 | |
INVESTING ACTIVITIES | |||
Capital expenditures | (6,434) | (48,348) | |
Receipt of key money | 8,500 | 1,000 | $ 6,500 |
Purchase of intangibles | (56) | (677) | |
Proceeds from disposal of property and equipment | 3 | 5 | |
Property damage insurance proceeds | 0 | 2,009 | |
Net cash provided by (used in) investing activities | 2,013 | (46,011) | |
FINANCING ACTIVITIES | |||
Repayment of Term Loan | (2,525) | (2,525) | |
Proceeds from borrowings on revolving credit facility | 40,000 | 0 | |
Repayments of borrowings on revolving credit facility | (15,000) | 0 | |
Repurchase of ordinary shares | (2,500) | (1,522) | |
Repurchase of shares for tax withholdings | (34) | 0 | |
Net cash provided by (used in) financing activities | 19,941 | (4,047) | |
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 48,679 | (5,335) | |
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | 20,931 | 116,353 | 116,353 |
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 69,610 | 111,018 | $ 20,931 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | |||
Cash paid for interest, net of interest capitalized | 14,034 | 11,460 | |
Cash paid for income taxes, net | 2,000 | 2,413 | |
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES | |||
Capital expenditures incurred but not yet paid | 4,083 | 540 | |
Intangible assets capitalized but not yet paid | 236 | 422 | |
Interest capitalized but not yet paid | 0 | 80 | |
Key money invoiced but not yet received | 0 | 1,500 | |
Right-of-use assets obtained in exchange for new operating lease liabilities | 0 | 1,393 | |
Par value of vested restricted share awards | $ 55 | $ 29 |
Organization, operations and ba
Organization, operations and basis of presentation | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Organization, operations and basis of presentation | Organization, operations and basis of presentation Background Playa Hotels & Resorts N.V. (“Playa” or the “Company”) is a leading owner, operator and developer of all-inclusive resorts in prime beachfront locations in popular vacation destinations. We own and/or manage a portfolio of 23 resorts located in Mexico, the Dominican Republic and Jamaica. Unless otherwise indicated or the context requires otherwise, references in our condensed consolidated financial statements (our “ Condensed Consolidated Financial Statements ”) to “we,” “our,” “us” and similar expressions refer to Playa and its subsidiaries. COVID-19 impact Due to the spread of the coronavirus (“COVID-19”) global pandemic and in response to related governmental restrictions and advisories, reductions in scheduled commercial airline service, and potential health risks to our employees and guests, we have temporarily suspended operations at all of our resorts starting in late March 2020 and intend to have our operations suspended for the months of April, May and June. We cannot predict when the effects of the pandemic will subside, and thus we cannot predict when we will be able to reopen our resorts or when our business will return to normalized levels. The longer and more severe the pandemic, the greater the material adverse effect the pandemic will have on our business, results of operations, cash flows, financial condition, access to credit markets and ability to service our indebtedness. Liquidity and ability to continue as a going concern As COVID-19 has had a significant adverse impact on our business and financial condition, we are taking several actions to help remedy our liquidity situation, which include the following: • we suspended operations at all of our resorts in late March 2020 following the implementation of restrictive travel bans; • significantly reduced staffing levels at the properties and at our corporate offices; • imposed compensation cuts throughout the entirety of the corporate offices; • plan to spend a minimal amount on marketing; • halted all non-essential corporate travel; • deferred all non-critical capital expenditures for the remainder of the year; • we are actively seeking to raise capital from the capital markets; and • pursuing the sale of resorts as means to improve our liquidity position. As of March 31, 2020 , we were in compliance with our financial maintenance covenants and obligations under our existing debt agreements. Even with the measures taken to improve our liquidity position, it is unlikely we will be in compliance with our financial maintenance covenants for periods after June 30, 2020 due to the effects of COVID-19. Our lenders have the right to declare us in default and accelerate the principal on our debt upon any covenant violation. We are currently in negotiations with our lenders to amend our existing debt agreements and waive our covenants for at least four full fiscal quarters. As the amendment may not be granted and is at the sole discretion of our lenders, there is substantial doubt about our ability to continue as a going concern as of the reporting date of these condensed consolidated financial statements. Although we provide no assurance that an amendment will be executed, we anticipate that we will agree to amended terms with our lenders prior to any covenant violations. We believe our plans to improve our liquidity situation and amend our existing debt agreements will be effectively implemented over the next twelve months and that those plans, if implemented, will mitigate the conditions that raise substantial doubt about our ability to continue as a going concern. Basis of preparation, presentation and measurement Our Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements as of and for the year ended December 31, 2019 , included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on February 27, 2020 (the “Annual Report”). In our opinion, the unaudited interim Condensed Consolidated Financial Statements have been prepared on the same basis as the annual Consolidated Financial Statements and include all adjustments, consisting of only normal recurring adjustments, necessary for fair presentation. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results of operations to be expected for the full year ended December 31, 2020 |
Significant accounting policies
Significant accounting policies | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Significant accounting policies Standards adopted Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Accounting Standard Update ( “ ASU ” ) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (as amended by ASU No. 2018-19) This standard amends current guidance on the impairment of financial instruments by adding an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes, as an allowance, its estimate of expected credit losses. January 2020 On January 1, 2020, we adopted ASU No. 2016-13. We determine our credit losses by applying an expected loss rate to the outstanding balance of accounts receivable for each of our reportable segments (refer to Note 15) and our corporate entities. The expected loss rates for our reportable segments and corporate entities were determined primarily using historical credit losses, which are not expected to differ from what is currently expected over the life of our trade receivables. The adoption of ASU No. 2016-13 was immaterial to our Condensed Consolidated Financial Statements for the three months ended March 31, 2020. Standards not yet adopted Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The standard simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. January 2021 We are in the process of evaluating the impact of ASU No. 2019-12. We expect the adoption of this standard to result in changes to deferred tax liabilities and deferred income tax expense for our resorts located in the Dominican Republic, which are subject to hybrid tax regimes. ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this update provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. January 2022 We are currently evaluating the impact of ASU No. 2020-04 on the Condensed Consolidated Financial Statements. We may elect to early adopt the standard prior to the discontinuation of LIBOR rates as of December 31, 2021. |
Revenue
Revenue | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Revenue | Revenue The following tables present our revenues disaggregated by geographic segment (refer to discussion of our reportable segments in Note 15 ) ( $ in thousands) : Three Months Ended March 31, 2020 Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Other Total Package revenue $ 56,727 $ 18,724 $ 31,367 $ 46,237 $ — $ 153,055 Non-package revenue 7,547 3,086 4,265 7,666 14 22,578 Management fees — — — — 645 645 Cost reimbursements — — — 596 354 950 Total revenue $ 64,274 $ 21,810 $ 35,632 $ 54,499 $ 1,013 $ 177,228 Three Months Ended March 31, 2019 Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Other Total Package revenue $ 64,301 $ 22,723 $ 28,524 $ 54,244 $ — $ 169,792 Non-package revenue 7,839 3,646 4,600 8,394 3 24,482 Management fees — — — — 934 934 Cost reimbursements — — — — 588 588 Total revenue $ 72,140 $ 26,369 $ 33,124 $ 62,638 $ 1,525 $ 195,796 Contract assets and liabilities We do not have any material contract assets as of March 31, 2020 and December 31, 2019 other than trade and other receivables on our Condensed Consolidated Balance Sheet . Our receivables are primarily the result of contracts with customers, which are reduced by an allowance for doubtful accounts that reflects our estimate of amounts that will not be collected. We record contract liabilities when cash payments are received or due in advance of guests staying at our resorts, which are presented as advance deposits (see Note 14 ) within trade and other payables on our Condensed Consolidated Balance Sheet |
Property and equipment
Property and equipment | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Property and equipment | Property and equipment The balance of property and equipment, net is as follows ($ in thousands ): As of March 31, As of December 31, 2020 2019 Property and equipment, gross Land, buildings and improvements $ 1,996,641 $ 1,976,214 Fixtures and machinery 82,568 81,437 Furniture and other fixed assets 230,797 228,533 Construction in progress 25,083 42,083 Total property and equipment, gross 2,335,089 2,328,267 Accumulated depreciation (419,992 ) (398,353 ) Total property and equipment, net $ 1,915,097 $ 1,929,914 Depreciation expense for property and equipment was $24.7 million and $22.1 million for the three months ended March 31, 2020 and 2019 , respectively. For the three months ended March 31, 2020 and 2019 , $0 million and $2.1 million of interest expense was capitalized on qualifying assets, respectively. Interest expense was capitalized on qualifying assets using the weighted-average interest rate of the debt. Assets held for sale Subsequent to quarter end, we entered into an agreement to sell the Jewel Dunn’s River Beach Resort & Spa and Jewel Runaway Bay Beach Resort & Waterpark for total consideration of approximately $60.0 million in cash. The sale is expected to close during the second quarter of 2020, however there is no assurance that we will complete the transaction. The Jewel Dunn’s River Beach Resort & Spa and Jewel Runaway Bay Beach Resort & Waterpark were classified as held for sale after March 31, 2020. Lessor contracts We rent certain real estate to third parties for office and retail space within our hotels. Our lessor contracts are considered operating leases and generally have a contractual term of one to three years . The following table presents our rental income for the three months ended March 31, 2020 and 2019 ($ in thousands) : Leases Financial Statement Classification Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Operating lease income (1) Non-package revenue $ 1,146 $ 1,471 ________ (1) Includes variable lease revenue, which is typically calculated as a percentage of our tenant's net sales. |
Income taxes
Income taxes | 3 Months Ended |
Mar. 31, 2020 | |
Income Tax Disclosure [Abstract] | |
Income taxes | Income taxes We are domiciled in The Netherlands and are taxed in The Netherlands with our other Dutch subsidiaries. Dutch companies are subject to Dutch corporate income tax at a general tax rate of 25% . During the first quarter of 2019, we implemented a new transfer pricing policy, where the intercompany pricing mechanics between our entities are based on the return on operating assets per applicable guidelines defined by the Organization for Economic Cooperation and Development. As a result, certain of our hotel entities that were previously in loss positions were expected to be profitable, which resulted in the release of their valuation allowances. The adverse economic effects of the COVID-19 pandemic (see Note 1) have caused us to reassess our tax positions. Due to the current environment, including the suspension of operations at our hotels, we concluded that the transfer pricing method will not apply temporarily, but will resume once operations are normalized. On March 27, 2020, the United States House of Representatives passed the Coronavirus Aid, Relief, and Economic Security Act (The CARES Act), also known as the Third COVID-19 Supplemental Relief Bill, and the President of the United States signed the legislation into law. We are currently analyzing The CARES Act and do not expect the provisions of the legislation to have a significant impact on our effective tax rate or our income tax payable and deferred income tax positions as of March 31, 2020. For the three months ended March 31, 2020 , our income tax expense was $1.1 million , compared to a $10.5 million income tax benefit for the three months ended March 31, 2019 . The increase in our income tax expense of $11.6 million was driven primarily by a non-recurring $13.6 million tax benefit from the valuation allowance release during the three months ended March 31, 2019 and a $3.2 million immaterial correction of a prior year error during the three months ended March 31, 2020 . The increase in income tax expense was partially offset by a $2.0 million increased tax benefit due to lower pre-tax book income from the tax paying entities and a $3.3 million decrease in the discrete tax expense associated with future tax liabilities of certain Dominican Republic entities. Two of our Dominican Republic entities, Playa Romana Mar B.V. and Playa Dominican Resorts B.V., which hold our Hilton La Romana All-Inclusive Resort and Hyatt Ziva and Hyatt Zilara Cap Cana resorts, respectively, were granted 15 -year tax exemptions by the Ministry of Finance of the Dominican Republic beginning in 2019. The tax exemption status of Inversiones Vilazul, S.A.S., which holds our Dreams Punta Cana resort, expired on December 31, 2019 . |
Related party transactions
Related party transactions | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions Relationship with Hyatt Hyatt is considered a related party due to its ownership of our ordinary shares and representation on our Board of Directors. We pay Hyatt fees associated with the franchise agreements of our resorts operating under the all-ages Hyatt Ziva and adults-only Hyatt Zilara brands and receive reimbursements for guests that pay for their stay using the World of Hyatt ® guest loyalty program. Relationship with Sagicor We issued 20,000,000 ordinary shares of our common stock to affiliates of Sagicor Group Jamaica Limited (“Sagicor”) as part of our business combination with certain affiliates of Sagicor in 2018. Sagicor is considered a related party due to its ownership of our ordinary shares by its affiliated entities and representation on our Board of Directors. We also pay Sagicor for insurance coverage for some of our Jamaica properties. Sagicor is also a part owner of the Jewel Grande Montego Bay Resort & Spa and compensates us as manager of the property. Relationship with Sabre We have a service agreement with Sabre Hospitality Solutions (“Sabre”), a division of Sabre GLBL Inc., for use of a central reservation and direct booking system. Sabre also provides call center services. Sabre is considered a related party as a former member of our Board of Directors, who resigned as a director in April 2020, serves on the board of Sabre Corporation, the parent company of Sabre GLBL Inc. Lease with our Chief Executive Officer One of our offices is owned by our Chief Executive Officer and we sublease the space at that location from a third party. Transactions with related parties Transactions between us and related parties during the three months ended March 31, 2020 and 2019 were as follows ( $ in thousands ): Three Months Ended March 31, Related Party Transaction 2020 2019 Hyatt Franchise fees (1) $ 5,516 $ 4,636 Sagicor Insurance premiums (1) $ 414 $ 751 Sagicor Cost reimbursements $ 722 $ — Sabre Booking and call center services (2) $ 214 $ — Chief Executive Officer Lease expense (2) $ 182 $ 146 ________ (1) Included in direct expense in the Condensed Consolidated Statements of Operations with the exception of certain immaterial fees associated with the Hyatt franchise agreements, which are included in selling, general, and administrative expense. (2) Included in selling, general, and administrative expense in the Condensed Consolidated Statements of Operations . |
Commitments and contingencies
Commitments and contingencies | 3 Months Ended |
Mar. 31, 2020 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and contingencies | Commitments and contingencies We are involved in various claims and lawsuits arising in the normal course of business, including proceedings involving tort and other general liability claims, and workers’ compensation and other employee claims. Most occurrences involving liability and claims of negligence are covered by insurance with solvent insurance carriers. We recognize a liability when we believe the loss is probable and reasonably estimable. We currently believe that the ultimate outcome of such lawsuits and proceedings will not, individually or in the aggregate, have a material effect on our Condensed Consolidated Financial Statements . The Dutch corporate income tax act provides the option of a fiscal unity, which is a consolidated tax regime wherein the profits and losses of group companies can be offset against each other. Our Dutch companies file as a fiscal unity, with the exception of Playa Romana B.V., Playa Romana Mar B.V. and Playa Hotels & Resorts N.V. Playa Resorts Holding B.V. is the head of our Dutch fiscal unity and is jointly and severally liable for the tax liabilities of the fiscal unity as a whole. |
Ordinary shares
Ordinary shares | 3 Months Ended |
Mar. 31, 2020 | |
Equity [Abstract] | |
Ordinary shares | Ordinary shares On December 14, 2018 , our Board of Directors authorized the repurchase of up to $100.0 million of our outstanding ordinary shares as market conditions and our liquidity warrant. The repurchase program is subject to certain limitations under Dutch law, including existing, repurchase authorization granted by our shareholders. Repurchases may be made from time to time in the open market, in privately negotiated transactions or by other means (including Rule 10b5-1 trading plans). Depending on market conditions and other factors, these repurchases may be commenced or suspended from time to time without prior notice. During the three months ended March 31, 2020 , we purchased 340,109 ordinary shares under the repurchase program. The shares repurchased are recorded as treasury shares on the Condensed Consolidated Balance Sheet as of March 31, 2020 . As of March 31, 2020 , our ordinary share capital consisted of 129,274,693 ordinary shares outstanding, which have a par value of €0.10 per share. In addition, 3,888,183 restricted shares and performance share awards and 24,320 restricted share units were outstanding under the 2017 Plan (as defined in Note 9 ). The holders of restricted shares and performance share awards are entitled to vote, but not dispose of, such shares until they vest. The holders of restricted share units are neither entitled to vote nor dispose of such shares until they vest. |
Share-based compensation
Share-based compensation | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Share-based compensation | Share-based compensation We adopted our 2017 Omnibus Incentive Plan (the “2017 Plan”) to attract and retain independent directors, executive officers and other key employees and service providers. As of March 31, 2020 , there were 6,182,611 shares available for future grants under the 2017 Plan. Restricted share awards consist of restricted shares and restricted share units that are granted to eligible employees, executives, and board members and consist of ordinary shares (or the right to receive ordinary shares). A summary of our restricted share awards from January 1, 2020 to March 31, 2020 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Unvested balance at January 1, 2020 2,157,336 $ 9.03 Granted 1,076,619 7.92 Vested (497,726 ) 8.32 Forfeited (24,440 ) 8.13 Unvested balance at March 31, 2020 2,711,789 $ 8.73 Performance share awards consist of ordinary shares that may become earned and vested based on the achievement of performance targets adopted by our Compensation Committee. The table below summarizes the key inputs used in the Monte-Carlo simulation to determine the grant date fair value of the total shareholder return performance awards ($ in thousands) : Performance Award Grant Date Percentage of Total Award Grant Date Fair Value by Component Volatility (1) Interest Rate (2) Dividend Yield January 2, 2020 Total Shareholder Return 50 % $ 1,334 24.87 % 1.58 % — % Adjusted EBITDA Comparison 50 % $ 2,187 — % — % — % ________ (1) Expected volatility was determined based on the historical share prices in our industry. (2) The risk-free rate was based on U.S. Treasury zero coupon issues with a remaining term equal to the remaining term of the measurement period. A summary of our performance share awards from January 1, 2020 to March 31, 2020 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Unvested balance at January 1, 2020 913,407 $ 7.22 Granted 552,395 6.38 Forfeited (265,088 ) 7.99 Unvested balance at March 31, 2020 1,200,714 $ 6.66 |
Earnings per share
Earnings per share | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Earnings per share | Earnings per share Basic and diluted earnings or losses per share (“EPS”) are as follows ( $ in thousands, except share data ): Three Months Ended March 31, 2020 2019 Numerator Net (loss) income $ (22,556 ) $ 42,988 Denominator Denominator for basic EPS - weighted-average number of shares outstanding 129,286,708 130,540,057 Effect of dilutive securities Unvested restricted share awards — 230,299 Denominator for diluted EPS - adjusted weighted-average number of shares outstanding 129,286,708 130,770,356 EPS - Basic $ (0.17 ) $ 0.33 EPS - Diluted $ (0.17 ) $ 0.33 For the three months ended March 31, 2020 and 2019 , 1,200,714 and 781,045 shares of unvested performance-based equity awards, respectively, were not included in the computation of diluted EPS after assumed conversions as the performance criteria were not met as of the end of the respective reporting period. For the three months ended March 31, 2020 and 2019 , 2,711,789 and 535,059 shares of unvested restricted share awards, respectively, were not included in the computation of diluted EPS as their effect would have been anti-dilutive. For the three months ended March 31, 2020 and 2019 , outstanding earnout warrants to acquire a total of 2,987,770 |
Debt
Debt | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our debt consists of the following ($ in thousands) : As of March 31, As of December 31, 2020 2019 Debt obligations Term Loan (1) $ 983,923 $ 986,448 Revolving Credit Facility (2)(3) 85,000 60,000 Total debt obligations 1,068,923 1,046,448 Unamortized discount and debt issuance costs Discount on Term Loan (2,041 ) (2,168 ) Unamortized debt issuance costs on Term Loan (3,410 ) (3,622 ) Total unamortized discount and debt issuance costs (5,451 ) (5,790 ) Total debt $ 1,063,472 $ 1,040,658 ________ (1) Borrowings under the Term Loan bear interest at floating rates equal to one-month London Interbank Offered Rate (“LIBOR”) plus 2.75% (where the applicable LIBOR rate has a 1.0% floor). The interest rate was 3.75% and 4.55% as of March 31, 2020 and December 31, 2019 , respectively. Effective March 29, 2018 , we entered into two interest rate swaps to fix LIBOR at 2.85% on $800.0 million of our Term Loan (see Note 12 ). (2) The commitment fee on the undrawn balance of our Revolving Credit Facility was 0.5% as of March 31, 2020 and December 31, 2019. The commitment fee may range from 0.5% to 0.25% depending on certain leverage ratios. (3) Draws under the Revolving Credit Facility bear interest at one-month LIBOR plus 3.0% . Financial maintenance covenants Our Senior Secured Credit Facility requires us to meet a springing leverage ratio financial maintenance covenant, but only if the aggregate amount outstanding on our Revolving Credit Facility exceeds 35% of the aggregate revolving credit commitments as defined in our Senior Secured Credit Facility (the “Covenant Trigger”). On March 19, 2019 , we entered into the Third Amendment to Amended & Restated Credit Agreement (the “Third Amendment”) to exclude the lesser of $50.0 million and the aggregate amount of revolving credit commitments borrowed in connection with the Hyatt Ziva and Hyatt Zilara Cap Cana development project from both the calculation of the Covenant Trigger, as well as the springing leverage ratio, in each case, for the quarterly testing periods ended June 30, 2019 through and including March 31, 2020. Beginning with the quarterly testing period ended June 30, 2020 , both of the Covenant Trigger and the springing leverage ratio will be calculated based on the provisions in the Senior Secured Credit Facility as if the Third Amendment had not taken place. We were in compliance with all applicable covenants as of March 31, 2020 |
Derivative financial instrument
Derivative financial instruments | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative financial instruments | Derivative financial instruments Interest rate swaps Effective March 29, 2018 , we entered into two interest rate swaps to mitigate the interest rate risk inherent to our floating rate debt. The interest rate swaps are not for trading purposes and have fixed notional values of $200.0 million and $600.0 million . The fixed rate paid by us is 2.85% and the variable rate received resets monthly to the one-month LIBOR rate, which results in us fixing LIBOR at 2.85% on $800.0 million of our Term Loan. The interest rate swaps mature on March 31, 2023. On March 20, 2019 , we elected to adopt hedge accounting and designate our interest rate swaps as cash flow hedges. Prior to our adoption of hedge accounting, the change in fair value of our interest rate swaps was recognized through interest expense in the Condensed Consolidated Statements of Operations . Following the adoption, the change in the fair value of our interest rate swaps that qualifies as effective cash flow hedges was recorded through other comprehensive loss (“OCI”) in the Condensed Consolidated Statements of Comprehensive (Loss) Income . Unrealized gains and losses in accumulated other comprehensive loss (“AOCI”) are reclassified to interest expense as interest payments are made on our variable rate debt. On February 29, 2020 our interest rate swaps were ineffective due to the decrease in interest rates and all subsequent changes in fair value were recognized through interest expense in the Condensed Consolidated Statements of Operations . The following tables present the effect of our interest rate swaps, net of tax, in the Condensed Consolidated Statements of Comprehensive (Loss) Income and Condensed Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019 ($ in thousands) : 2020 2019 AOCI from our cash flow hedges as of January 1 $ 20,164 $ — Change in fair value 16,956 5,834 Reclassification from AOCI to interest expense (1) (1,908 ) 24 OCI related to our cash flow hedges for the three months ended March 31 15,048 5,858 AOCI from our cash flow hedges as of March 31 $ 35,212 $ 5,858 ________ (1) As of March 31, 2020 , the total amount expected to be reclassified from AOCI to interest expense during the next twelve months is $11.7 million . Derivative Liabilities for Ineffective Hedges Financial Statement Classification Three Months Ended March 31, 2020 2019 Interest rate swaps (1) Interest expense $ 8,729 $ 2,715 ________ (1) Includes the change in fair value of our interest rate swaps and the cash interest paid for the monthly settlements of the derivative. The following tables present the effect of our interest rate swaps in the Condensed Consolidated Balance Sheet as of March 31, 2020 and December 31, 2019 ($ in thousands) : Derivative Liabilities for Effective Hedges Financial Statement Classification As of March 31, As of December 31, 2020 2019 Interest rate swaps Derivative financial instruments $ — $ 31,932 Derivative Liabilities for Ineffective Hedges Financial Statement Classification As of March 31, As of December 31, 2020 2019 Interest rate swaps Derivative financial instruments $ 53,349 $ — Derivative financial instruments expose us to credit risk in the event of non-performance by the counterparty under the terms of the interest rate swaps. We incorporate these counterparty credit risks in our fair value measurements (see Note 13 |
Fair value of financial instrum
Fair value of financial instruments | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Fair value of financial instruments | Fair value of financial instruments The objective of a fair value measurement is to estimate the price at which an orderly transaction to sell the asset or to transfer the liability would take place between market participants at the measurement date under current market conditions. U.S. GAAP establishes a hierarchical disclosure framework, which prioritizes and ranks the level of observability of inputs used in measuring fair value as follows: • Level 1: Unadjusted quoted prices in active markets for identical assets or liabilities. • Level 2: Unadjusted quoted prices for similar assets or liabilities in active markets, or unadjusted quoted prices for identical or similar assets or liabilities in markets that are not active, or inputs other than quoted prices that are observable for the asset or liability. • Level 3: Inputs are unobservable and reflect our judgments about assumptions that market participants would use in pricing an asset or liability. We believe the carrying value of our financial instruments, excluding our debt, approximate their fair values as of March 31, 2020 and December 31, 2019 . We did not have any Level 3 instruments during any of the periods presented in our Condensed Consolidated Financial Statements. The following table presents our fair value hierarchy for our financial liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 ($ in thousands) : March 31, 2020 Level 1 Level 2 Level 3 Fair value measurements on a recurring basis Interest rate swap $ 53,349 $ — $ 53,349 $ — December 31, 2019 Level 1 Level 2 Level 3 Fair value measurements on a recurring basis Interest rate swap $ 31,932 $ — $ 31,932 $ — The following tables present our fair value hierarchy for our financial liabilities not measured at fair value as of March 31, 2020 and December 31, 2019 ($ in thousands) : Carrying Value Fair Value As of March 31, 2020 Level 1 Level 2 Level 3 Financial liabilities not recorded at fair value Term Loan $ 978,472 $ — $ — $ 765,231 Revolving Credit Facility 85,000 — — 85,000 Total liabilities $ 1,063,472 $ — $ — $ 850,231 Carrying Value Fair Value As of December 31, 2019 Level 1 Level 2 Level 3 Financial liabilities not recorded at fair value Term Loan $ 980,658 $ — $ — $ 983,214 Revolving Credit Facility 60,000 — — 60,000 Total liabilities $ 1,040,658 $ — $ — $ 1,043,214 The following table summarizes the valuation techniques used to estimate the fair value of our financial instruments measured at fair value on a recurring basis and our financial instruments not measured at fair value: Valuation Technique Financial instruments recorded at fair value Interest rate swaps The fair value of the interest rate swaps is estimated based on the expected future cash flows by incorporating the notional amount of the swaps, the contractual period to maturity, and observable market-based inputs, including interest rate curves. The fair value also incorporates credit valuation adjustments to appropriately reflect nonperformance risk. The fair value of our interest rate swaps is largely dependent on forecasted LIBOR as of the measurement date. If, in subsequent periods, forecasted LIBOR exceeds 2.85% we will recognize a gain and future cash inflows. Conversely, if forecasted LIBOR falls below 2.85% in subsequent periods we will recognize a loss and future cash outflows. Financial instruments not recorded at fair value Term Loan The fair value of our Term Loan is estimated using cash flow projections over the remaining contractual period by applying market forward rates and discounting back at the appropriate discount rate. Revolving Credit Facility The valuation technique of our Revolving Credit Facility is consistent with our Term Loan. The fair value of the Revolving Credit Facility generally approximates its carrying value as the expected term is significantly shorter in duration. |
Other balance sheet items
Other balance sheet items | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Other balance sheet items | Other balance sheet items Trade and other receivables, net The following summarizes the balances of trade and other receivables, net as of March 31, 2020 and December 31, 2019 ($ in thousands) : As of March 31, As of December 31, 2020 2019 Gross trade and other receivables $ 62,158 $ 73,015 Allowance for doubtful accounts (1) (246 ) (1,765 ) Total trade and other receivables, net (2) $ 61,912 $ 71,250 ________ (1) We recognized an additional $0.8 million in bad debt expense during the year ended December 31, 2019 as a result of the bankruptcy of Thomas Cook, one of our travel partners. (2) The opening balance as of January 1, 2019 was $64.8 million . We have not experienced any significant write-offs to our accounts receivable during the three months ended March 31, 2020 and 2019 . Prepayments and other assets The following summarizes the balances of prepayments and other assets as of March 31, 2020 and December 31, 2019 ($ in thousands) : As of March 31, As of December 31, 2020 2019 Advances to suppliers $ 5,650 $ 7,865 Prepaid income taxes 12,630 12,412 Prepaid other taxes (1) 12,085 11,156 Right of use assets 5,480 5,673 Contract deposit (2) 2,700 2,700 Other assets 5,271 4,885 Total prepayments and other assets $ 43,816 $ 44,691 ________ (1) Includes recoverable value-added tax and general consumption tax accumulated by our Mexico and Jamaica entities, respectively. (2) Represents a cash deposit related to the Sanctuary Cap Cana management contract. The deposit will be used towards a purchase of a partial interest in Sanctuary Cap Cana if we are able to agree on terms. If the purchase is not completed, this amount, together with an additional $0.8 million due, will be treated as key money. Goodwill The gross carrying values and accumulated impairment losses of goodwill by reportable segment (refer to discussion of our reportable segments in Note 15 ) as of March 31, 2020 and December 31, 2019 are as follows ($ in thousands) : Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Total Balance at December 31, 2019 Gross carrying value $ 51,731 $ — $ — $ 32,776 $ 84,507 Accumulated impairment losses (6,168 ) — — — (6,168 ) Net carrying value 45,563 — — 32,776 78,339 Activity during the year Impairment losses — — — (16,173 ) (16,173 ) Balance at March 31, 2020 Gross carrying value 51,731 — — 32,776 84,507 Accumulated impairment losses (6,168 ) — — (16,173 ) (22,341 ) Net carrying value $ 45,563 $ — $ — $ 16,603 $ 62,166 As a result of COVID-19 and the temporary suspension of operations at our resorts (see Note 1), the forecasted future cash flows of our reporting units materially decreased during the first quarter of 2020. We performed an interim quantitative impairment analysis as of March 31, 2020 and recognized impairment losses at the following reporting units for the three months ended March 31, 2020 as we determined that their carrying values exceeded their fair value ($ in thousands) : Reporting Unit Reportable Segment Impairment Loss Jewel Runaway Bay Beach Resort & Waterpark Jamaica $ 6,946 Jewel Dunn’s River Beach Resort & Spa Jamaica $ 5,126 Jewel Paradise Cove Beach Resort & Spa Jamaica $ 4,101 Other intangible assets Other intangible assets as of March 31, 2020 and December 31, 2019 consisted of the following ( $ in thousands ): As of March 31, As of December 31, 2020 2019 Gross carrying value Casino and other licenses (1) $ 875 $ 875 Management contract 1,900 1,900 Enterprise resource planning system (2) 5,403 5,187 Other 3,422 3,346 Total gross carrying value 11,600 11,308 Accumulated amortization Management contract (166 ) (143 ) Enterprise resource planning system (2) (586 ) (437 ) Other (2,448 ) (2,320 ) Total accumulated amortization (3,200 ) (2,900 ) Net carrying value Casino and other licenses (1) 875 875 Management contract 1,734 1,757 Enterprise resource planning system (2) 4,817 4,750 Other 974 1,026 Total net carrying value $ 8,400 $ 8,408 ________ (1) Our casino licenses have indefinite lives. Accordingly, there is no associated amortization expense or accumulated amortization. (2) Represents software development costs incurred to develop and implement SAP as our integrated enterprise resource planning (“ERP”) system, of which $1.3 million and $2.6 million was placed into service in 2020 and 2019, respectively and are being amortized over a weighted-average amortization period of 7 years . Amortization expense for intangible assets was $0.3 million and $0.2 million for the three months ended March 31, 2020 and 2019 , respectively. Trade and other payables The following summarizes the balances of trade and other payables as of March 31, 2020 and December 31, 2019 ($ in thousands) : As of March 31, As of December 31, 2020 2019 Trade payables $ 42,477 $ 45,299 Advance deposits (1) 35,239 53,769 Withholding and other taxes payable 51,696 46,983 Interest payable 103 125 Payroll and related accruals 16,003 14,547 Accrued expenses and other payables 26,307 20,880 Total trade and other payables $ 171,825 $ 181,603 ________ (1) The opening balance as of January 1, 2019 was $57.3 million . Other liabilities The following summarizes the balances of other liabilities as of March 31, 2020 and December 31, 2019 ($ in thousands) : As of March 31, As of December 31, 2020 2019 Pension obligation (1)(2) $ 5,562 $ 6,764 Lease liabilities 6,032 6,208 Unfavorable ground lease liability 2,170 2,187 Key money (3) 16,491 8,225 Other 925 923 Total other liabilities $ 31,180 $ 24,307 ________ (1) For the three months ended March 31, 2020 and 2019 the service cost component of net periodic pension cost was $209.0 thousand and $186.0 thousand , respectively, and recorded within direct expense in the Condensed Consolidated Statements of Operations . (2) For the three months ended March 31, 2020 and 2019 the non-service cost components of net periodic pension cost were $551.2 thousand and $74.0 thousand , respectively, and recorded within other expense in the Condensed Consolidated Statements of Operations . (3) Represents the unamortized balance of key money received, which is amortized as a reduction to franchise fees within direct expenses in the Condensed Consolidated Statements of Operations . We received $8.5 million and $6.5 million in 2020 and 2019, respectively. |
Segment information
Segment information | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Segment information | Segment information 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 resorts. Our operating segments meet the aggregation criteria and thus, we present four separate reportable segments by geography: (i) Yucatán Peninsula, (ii) Pacific Coast, (iii) Dominican Republic and (iv) Jamaica. For the three months ended March 31, 2020 and 2019 , we have excluded the immaterial amounts of management fees , cost reimbursements and other from our segment reporting. Our operating segments are components of the business which 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 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. The performance of our business is evaluated primarily on adjusted earnings before interest expense , income tax (provision) benefit , and depreciation and amortization expense (“Adjusted EBITDA”), which should not be considered an alternative to net (loss) income or other measures of financial performance or liquidity derived in accordance with U.S. GAAP. The performance of our segments is evaluated on Adjusted EBITDA before corporate expenses and management fee income (“Owned Resort EBITDA”). We define Adjusted EBITDA as net (loss) income , determined in accordance with U.S. GAAP, for the period presented, before interest expense , income tax (provision) benefit , and depreciation and amortization expense, further adjusted to exclude the following items: (a) impairment loss; (b) other expense ; (c) pre-opening expenses; (d) share-based compensation; (e) other tax expense ; (f) transaction expenses; and (g) severance expenses. There are limitations to using financial measures such as Adjusted EBITDA and Owned Resort EBITDA. For example, other companies in our industry may define Adjusted EBITDA differently than we do. As a result, it may be difficult to use Adjusted EBITDA or similarly named financial measures that other companies publish to compare the performance of those companies to our performance. Because of these limitations, Adjusted EBITDA should not be considered as a measure of the income or loss generated by our business or discretionary cash available for investment in our business and investors should carefully consider our U.S. GAAP results presented in our Condensed Consolidated Financial Statements . The following table presents segment owned net revenue and a reconciliation to total revenue for the three months ended March 31, 2020 and 2019 ( $ in thousands ): Three Months Ended March 31, 2020 2019 Owned net revenue Yucatán Peninsula $ 62,317 $ 70,213 Pacific Coast 21,155 25,570 Dominican Republic 35,596 33,075 Jamaica 51,436 59,147 Segment owned net revenue (1) 170,504 188,005 Other 15 2 Management fees 645 934 Cost reimbursements 950 588 Compulsory tips 5,114 6,267 Total revenue $ 177,228 $ 195,796 ________ (1) Segment owned net revenue represents total revenue less compulsory tips paid to employees, cost reimbursements, management fees and other miscellaneous revenue not derived from segment operations. The following table presents segment Owned Resort EBITDA, Adjusted EBITDA and a reconciliation to net (loss) income for the three months ended March 31, 2020 and 2019 ( $ in thousands ): Three Months Ended March 31, 2020 2019 Owned Resort EBITDA Yucatán Peninsula $ 24,935 $ 32,159 Pacific Coast 8,872 12,387 Dominican Republic 7,789 13,463 Jamaica 19,073 24,348 Segment Owned Resort EBITDA 60,669 82,357 Other corporate (10,971 ) (8,506 ) Management fees 645 934 Total Adjusted EBITDA 50,343 74,785 Interest expense (20,955 ) (14,194 ) Depreciation and amortization (24,959 ) (22,311 ) Impairment loss (16,173 ) — Other expense (3,906 ) (602 ) Pre-opening expenses — (89 ) Share-based compensation (3,223 ) (2,748 ) Other tax expense (237 ) (359 ) Transaction expenses (586 ) (1,967 ) Severance expense (1,198 ) — Non-service cost components of net periodic pension cost (1) (551 ) (74 ) Net (loss) income before tax (21,445 ) 32,441 Income tax (provision) benefit (1,111 ) 10,547 Net (loss) income $ (22,556 ) $ 42,988 ________ (1) Represents the non-service cost components of net periodic pension cost 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. The following table presents segment property and equipment, gross and a reconciliation to total property and equipment, net as of March 31, 2020 and December 31, 2019 ($ in thousands) : As of March 31, As of December 31, 2020 2019 Segment property and equipment, gross Yucatán Peninsula $ 864,557 $ 865,900 Pacific Coast 288,157 288,358 Dominican Republic 675,124 667,120 Jamaica 501,081 499,569 Total segment property and equipment, gross 2,328,919 2,320,947 Other corporate 6,170 7,320 Accumulated depreciation (419,992 ) (398,353 ) Total property and equipment, net $ 1,915,097 $ 1,929,914 The following table presents segment capital expenditures and a reconciliation to total capital expenditures for the three months ended March 31, 2020 and 2019 ( $ in thousands ): Three Months Ended March 31, 2020 2019 Segment capital expenditures Yucatán Peninsula $ 1,580 $ 4,057 Pacific Coast 257 250 Dominican Republic 6,932 40,678 Jamaica 1,634 1,556 Total segment capital expenditures (1) 10,403 46,541 Other corporate 114 2,347 Total capital expenditures (1) $ 10,517 $ 48,888 ________ (1) |
Subsequent events
Subsequent events | 3 Months Ended |
Mar. 31, 2020 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events In preparing the interim Condensed Consolidated Financial Statements , there were no subsequent events since March 31, 2020 other than the following: Subsequent to March 31, 2020 , the global economy has continued to be severely impacted by the COVID-19 pandemic. Due to the spread of the COVID-19 pandemic and in response to related governmental restrictions and advisories, reductions in scheduled commercial airline service, and potential health risks to our employees and guests, we intend to maintain the temporary suspension of our operations through June 2020. We cannot predict when the effects of the pandemic will subside, and thus we cannot predict when we will be able to reopen our resorts or when our business will return to normalized levels. The longer and more severe the pandemic, and if there are repeat or cyclical outbreaks of the virus beyond the one being currently experienced, the greater the material adverse effect the pandemic will have on our business, results of operations, cash flows, financial condition, access to credit markets and ability to service our indebtedness. |
Significant accounting polici_2
Significant accounting policies (Policies) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Basis of preparation, presentation and measurement | Basis of preparation, presentation and measurement Our Condensed Consolidated Financial Statements have been prepared in accordance with accounting principles generally accepted in the United States of America (“U.S. GAAP”) for interim financial information. Certain information and disclosures normally included in financial statements prepared in accordance with U.S. GAAP have been condensed or omitted. Accordingly, these unaudited interim Condensed Consolidated Financial Statements should be read in conjunction with our Consolidated Financial Statements as of and for the year ended December 31, 2019 , included in our Annual Report on Form 10-K, filed with the Securities and Exchange Commission (the “SEC”) on February 27, 2020 (the “Annual Report”). In our opinion, the unaudited interim Condensed Consolidated Financial Statements have been prepared on the same basis as the annual Consolidated Financial Statements and include all adjustments, consisting of only normal recurring adjustments, necessary for fair presentation. The results of operations for the three months ended March 31, 2020 are not necessarily indicative of the results of operations to be expected for the full year ended December 31, 2020 , particularly given the impact of the COVID-19 pandemic noted above. All dollar amounts (other than per share amounts) in the following disclosures are in thousands of United States dollars, unless otherwise indicated. |
Standards adopted and Standards not yet adopted | Standards adopted Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Accounting Standard Update ( “ ASU ” ) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (as amended by ASU No. 2018-19) This standard amends current guidance on the impairment of financial instruments by adding an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes, as an allowance, its estimate of expected credit losses. January 2020 On January 1, 2020, we adopted ASU No. 2016-13. We determine our credit losses by applying an expected loss rate to the outstanding balance of accounts receivable for each of our reportable segments (refer to Note 15) and our corporate entities. The expected loss rates for our reportable segments and corporate entities were determined primarily using historical credit losses, which are not expected to differ from what is currently expected over the life of our trade receivables. The adoption of ASU No. 2016-13 was immaterial to our Condensed Consolidated Financial Statements for the three months ended March 31, 2020. Standards not yet adopted Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The standard simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. January 2021 We are in the process of evaluating the impact of ASU No. 2019-12. We expect the adoption of this standard to result in changes to deferred tax liabilities and deferred income tax expense for our resorts located in the Dominican Republic, which are subject to hybrid tax regimes. ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this update provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. January 2022 We are currently evaluating the impact of ASU No. 2020-04 on the Condensed Consolidated Financial Statements. We may elect to early adopt the standard prior to the discontinuation of LIBOR rates as of December 31, 2021. |
Significant accounting polici_3
Significant accounting policies (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Accounting Policies [Abstract] | |
Schedule of Standards Adopted and Standards Not Yet Adopted | Standards adopted Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters Accounting Standard Update ( “ ASU ” ) No. 2016-13, Financial Instruments-Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments (as amended by ASU No. 2018-19) This standard amends current guidance on the impairment of financial instruments by adding an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity recognizes, as an allowance, its estimate of expected credit losses. January 2020 On January 1, 2020, we adopted ASU No. 2016-13. We determine our credit losses by applying an expected loss rate to the outstanding balance of accounts receivable for each of our reportable segments (refer to Note 15) and our corporate entities. The expected loss rates for our reportable segments and corporate entities were determined primarily using historical credit losses, which are not expected to differ from what is currently expected over the life of our trade receivables. The adoption of ASU No. 2016-13 was immaterial to our Condensed Consolidated Financial Statements for the three months ended March 31, 2020. Standards not yet adopted Standard Description Date of Adoption Effect on the Financial Statements or Other Significant Matters ASU No. 2019-12, Income Taxes (Topic 740): Simplifying the Accounting for Income Taxes The standard simplifies the accounting for income taxes, eliminates certain exceptions within ASC 740, Income Taxes, and clarifies certain aspects of the current guidance to promote consistency among reporting entities. January 2021 We are in the process of evaluating the impact of ASU No. 2019-12. We expect the adoption of this standard to result in changes to deferred tax liabilities and deferred income tax expense for our resorts located in the Dominican Republic, which are subject to hybrid tax regimes. ASU No. 2020-04, Reference Rate Reform (Topic 848): Facilitation of the Effects of Reference Rate Reform on Financial Reporting The amendments in this update provide optional expedients and exceptions for applying generally accepted accounting principles (GAAP) to contracts, hedging relationships, and other transactions affected by reference rate reform if certain criteria are met. January 2022 We are currently evaluating the impact of ASU No. 2020-04 on the Condensed Consolidated Financial Statements. We may elect to early adopt the standard prior to the discontinuation of LIBOR rates as of December 31, 2021. |
Revenue (Tables)
Revenue (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Revenue from Contract with Customer [Abstract] | |
Disaggregation of Revenue | The following tables present our revenues disaggregated by geographic segment (refer to discussion of our reportable segments in Note 15 ) ( $ in thousands) : Three Months Ended March 31, 2020 Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Other Total Package revenue $ 56,727 $ 18,724 $ 31,367 $ 46,237 $ — $ 153,055 Non-package revenue 7,547 3,086 4,265 7,666 14 22,578 Management fees — — — — 645 645 Cost reimbursements — — — 596 354 950 Total revenue $ 64,274 $ 21,810 $ 35,632 $ 54,499 $ 1,013 $ 177,228 Three Months Ended March 31, 2019 Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Other Total Package revenue $ 64,301 $ 22,723 $ 28,524 $ 54,244 $ — $ 169,792 Non-package revenue 7,839 3,646 4,600 8,394 3 24,482 Management fees — — — — 934 934 Cost reimbursements — — — — 588 588 Total revenue $ 72,140 $ 26,369 $ 33,124 $ 62,638 $ 1,525 $ 195,796 |
Property and equipment (Tables)
Property and equipment (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Property, Plant and Equipment [Abstract] | |
Schedule of Property and Equipment, Net | The balance of property and equipment, net is as follows ($ in thousands ): As of March 31, As of December 31, 2020 2019 Property and equipment, gross Land, buildings and improvements $ 1,996,641 $ 1,976,214 Fixtures and machinery 82,568 81,437 Furniture and other fixed assets 230,797 228,533 Construction in progress 25,083 42,083 Total property and equipment, gross 2,335,089 2,328,267 Accumulated depreciation (419,992 ) (398,353 ) Total property and equipment, net $ 1,915,097 $ 1,929,914 |
Schedule of Rental Income | The following table presents our rental income for the three months ended March 31, 2020 and 2019 ($ in thousands) : Leases Financial Statement Classification Three Months Ended March 31, 2020 Three Months Ended March 31, 2019 Operating lease income (1) Non-package revenue $ 1,146 $ 1,471 ________ (1) Includes variable lease revenue, which is typically calculated as a percentage of our tenant's net sales. |
Related party transactions (Tab
Related party transactions (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Transactions between us and related parties during the three months ended March 31, 2020 and 2019 were as follows ( $ in thousands ): Three Months Ended March 31, Related Party Transaction 2020 2019 Hyatt Franchise fees (1) $ 5,516 $ 4,636 Sagicor Insurance premiums (1) $ 414 $ 751 Sagicor Cost reimbursements $ 722 $ — Sabre Booking and call center services (2) $ 214 $ — Chief Executive Officer Lease expense (2) $ 182 $ 146 ________ (1) Included in direct expense in the Condensed Consolidated Statements of Operations with the exception of certain immaterial fees associated with the Hyatt franchise agreements, which are included in selling, general, and administrative expense. (2) Included in selling, general, and administrative expense in the Condensed Consolidated Statements of Operations . |
Share-based compensation (Table
Share-based compensation (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Share Awards | A summary of our restricted share awards from January 1, 2020 to March 31, 2020 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Unvested balance at January 1, 2020 2,157,336 $ 9.03 Granted 1,076,619 7.92 Vested (497,726 ) 8.32 Forfeited (24,440 ) 8.13 Unvested balance at March 31, 2020 2,711,789 $ 8.73 |
Summary of Key Inputs Used in Monte-Carlo Simulation | The table below summarizes the key inputs used in the Monte-Carlo simulation to determine the grant date fair value of the total shareholder return performance awards ($ in thousands) : Performance Award Grant Date Percentage of Total Award Grant Date Fair Value by Component Volatility (1) Interest Rate (2) Dividend Yield January 2, 2020 Total Shareholder Return 50 % $ 1,334 24.87 % 1.58 % — % Adjusted EBITDA Comparison 50 % $ 2,187 — % — % — % ________ (1) Expected volatility was determined based on the historical share prices in our industry. (2) The risk-free rate was based on U.S. Treasury zero coupon issues with a remaining term equal to the remaining term of the measurement period. |
Summary of Performance Share Awards | A summary of our performance share awards from January 1, 2020 to March 31, 2020 is as follows: Number of Shares Weighted-Average Grant Date Fair Value Unvested balance at January 1, 2020 913,407 $ 7.22 Granted 552,395 6.38 Forfeited (265,088 ) 7.99 Unvested balance at March 31, 2020 1,200,714 $ 6.66 |
Earnings per share (Tables)
Earnings per share (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Earnings Per Share [Abstract] | |
Schedule of Basic and Diluted EPS | Basic and diluted earnings or losses per share (“EPS”) are as follows ( $ in thousands, except share data ): Three Months Ended March 31, 2020 2019 Numerator Net (loss) income $ (22,556 ) $ 42,988 Denominator Denominator for basic EPS - weighted-average number of shares outstanding 129,286,708 130,540,057 Effect of dilutive securities Unvested restricted share awards — 230,299 Denominator for diluted EPS - adjusted weighted-average number of shares outstanding 129,286,708 130,770,356 EPS - Basic $ (0.17 ) $ 0.33 EPS - Diluted $ (0.17 ) $ 0.33 |
Debt (Tables)
Debt (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Debt Disclosure [Abstract] | |
Schedule of Debt Components | Our debt consists of the following ($ in thousands) : As of March 31, As of December 31, 2020 2019 Debt obligations Term Loan (1) $ 983,923 $ 986,448 Revolving Credit Facility (2)(3) 85,000 60,000 Total debt obligations 1,068,923 1,046,448 Unamortized discount and debt issuance costs Discount on Term Loan (2,041 ) (2,168 ) Unamortized debt issuance costs on Term Loan (3,410 ) (3,622 ) Total unamortized discount and debt issuance costs (5,451 ) (5,790 ) Total debt $ 1,063,472 $ 1,040,658 ________ (1) Borrowings under the Term Loan bear interest at floating rates equal to one-month London Interbank Offered Rate (“LIBOR”) plus 2.75% (where the applicable LIBOR rate has a 1.0% floor). The interest rate was 3.75% and 4.55% as of March 31, 2020 and December 31, 2019 , respectively. Effective March 29, 2018 , we entered into two interest rate swaps to fix LIBOR at 2.85% on $800.0 million of our Term Loan (see Note 12 ). (2) The commitment fee on the undrawn balance of our Revolving Credit Facility was 0.5% as of March 31, 2020 and December 31, 2019. The commitment fee may range from 0.5% to 0.25% depending on certain leverage ratios. (3) Draws under the Revolving Credit Facility bear interest at one-month LIBOR plus 3.0% . |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Effects of Derivative Instruments on Condensed Consolidated Statements of Comprehensive (Loss) Income and Condensed Consolidated Statements of Operations Operations | The following tables present the effect of our interest rate swaps, net of tax, in the Condensed Consolidated Statements of Comprehensive (Loss) Income and Condensed Consolidated Statements of Operations for the three months ended March 31, 2020 and 2019 ($ in thousands) : 2020 2019 AOCI from our cash flow hedges as of January 1 $ 20,164 $ — Change in fair value 16,956 5,834 Reclassification from AOCI to interest expense (1) (1,908 ) 24 OCI related to our cash flow hedges for the three months ended March 31 15,048 5,858 AOCI from our cash flow hedges as of March 31 $ 35,212 $ 5,858 ________ (1) As of March 31, 2020 , the total amount expected to be reclassified from AOCI to interest expense during the next twelve months is $11.7 million . Derivative Liabilities for Ineffective Hedges Financial Statement Classification Three Months Ended March 31, 2020 2019 Interest rate swaps (1) Interest expense $ 8,729 $ 2,715 ________ (1) Includes the change in fair value of our interest rate swaps and the cash interest paid for the monthly settlements of the derivative. |
Schedule of Location and Fair Value of Derivative Instruments in Condensed Consolidated Balance Sheet | The following tables present the effect of our interest rate swaps in the Condensed Consolidated Balance Sheet as of March 31, 2020 and December 31, 2019 ($ in thousands) : Derivative Liabilities for Effective Hedges Financial Statement Classification As of March 31, As of December 31, 2020 2019 Interest rate swaps Derivative financial instruments $ — $ 31,932 Derivative Liabilities for Ineffective Hedges Financial Statement Classification As of March 31, As of December 31, 2020 2019 Interest rate swaps Derivative financial instruments $ 53,349 $ — |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Fair Value Disclosures [Abstract] | |
Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis | The following table presents our fair value hierarchy for our financial liabilities measured at fair value on a recurring basis as of March 31, 2020 and December 31, 2019 ($ in thousands) : March 31, 2020 Level 1 Level 2 Level 3 Fair value measurements on a recurring basis Interest rate swap $ 53,349 $ — $ 53,349 $ — December 31, 2019 Level 1 Level 2 Level 3 Fair value measurements on a recurring basis Interest rate swap $ 31,932 $ — $ 31,932 $ — |
Schedule of Financial Liabilities Not Measured at Fair Value | The following tables present our fair value hierarchy for our financial liabilities not measured at fair value as of March 31, 2020 and December 31, 2019 ($ in thousands) : Carrying Value Fair Value As of March 31, 2020 Level 1 Level 2 Level 3 Financial liabilities not recorded at fair value Term Loan $ 978,472 $ — $ — $ 765,231 Revolving Credit Facility 85,000 — — 85,000 Total liabilities $ 1,063,472 $ — $ — $ 850,231 Carrying Value Fair Value As of December 31, 2019 Level 1 Level 2 Level 3 Financial liabilities not recorded at fair value Term Loan $ 980,658 $ — $ — $ 983,214 Revolving Credit Facility 60,000 — — 60,000 Total liabilities $ 1,040,658 $ — $ — $ 1,043,214 |
Summary of Valuation Techniques | The following table summarizes the valuation techniques used to estimate the fair value of our financial instruments measured at fair value on a recurring basis and our financial instruments not measured at fair value: Valuation Technique Financial instruments recorded at fair value Interest rate swaps The fair value of the interest rate swaps is estimated based on the expected future cash flows by incorporating the notional amount of the swaps, the contractual period to maturity, and observable market-based inputs, including interest rate curves. The fair value also incorporates credit valuation adjustments to appropriately reflect nonperformance risk. The fair value of our interest rate swaps is largely dependent on forecasted LIBOR as of the measurement date. If, in subsequent periods, forecasted LIBOR exceeds 2.85% we will recognize a gain and future cash inflows. Conversely, if forecasted LIBOR falls below 2.85% in subsequent periods we will recognize a loss and future cash outflows. Financial instruments not recorded at fair value Term Loan The fair value of our Term Loan is estimated using cash flow projections over the remaining contractual period by applying market forward rates and discounting back at the appropriate discount rate. Revolving Credit Facility The valuation technique of our Revolving Credit Facility is consistent with our Term Loan. The fair value of the Revolving Credit Facility generally approximates its carrying value as the expected term is significantly shorter in duration. |
Other balance sheet items (Tabl
Other balance sheet items (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Schedule of Trade and Other Receivables, Net | The following summarizes the balances of trade and other receivables, net as of March 31, 2020 and December 31, 2019 ($ in thousands) : As of March 31, As of December 31, 2020 2019 Gross trade and other receivables $ 62,158 $ 73,015 Allowance for doubtful accounts (1) (246 ) (1,765 ) Total trade and other receivables, net (2) $ 61,912 $ 71,250 ________ (1) We recognized an additional $0.8 million in bad debt expense during the year ended December 31, 2019 as a result of the bankruptcy of Thomas Cook, one of our travel partners. (2) The opening balance as of January 1, 2019 was $64.8 million . |
Schedule of Prepayments and Other Assets | The following summarizes the balances of prepayments and other assets as of March 31, 2020 and December 31, 2019 ($ in thousands) : As of March 31, As of December 31, 2020 2019 Advances to suppliers $ 5,650 $ 7,865 Prepaid income taxes 12,630 12,412 Prepaid other taxes (1) 12,085 11,156 Right of use assets 5,480 5,673 Contract deposit (2) 2,700 2,700 Other assets 5,271 4,885 Total prepayments and other assets $ 43,816 $ 44,691 ________ (1) Includes recoverable value-added tax and general consumption tax accumulated by our Mexico and Jamaica entities, respectively. (2) Represents a cash deposit related to the Sanctuary Cap Cana management contract. The deposit will be used towards a purchase of a partial interest in Sanctuary Cap Cana if we are able to agree on terms. If the purchase is not completed, this amount, together with an additional $0.8 million due, will be treated as key money. |
Schedule of Goodwill | The gross carrying values and accumulated impairment losses of goodwill by reportable segment (refer to discussion of our reportable segments in Note 15 ) as of March 31, 2020 and December 31, 2019 are as follows ($ in thousands) : Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Total Balance at December 31, 2019 Gross carrying value $ 51,731 $ — $ — $ 32,776 $ 84,507 Accumulated impairment losses (6,168 ) — — — (6,168 ) Net carrying value 45,563 — — 32,776 78,339 Activity during the year Impairment losses — — — (16,173 ) (16,173 ) Balance at March 31, 2020 Gross carrying value 51,731 — — 32,776 84,507 Accumulated impairment losses (6,168 ) — — (16,173 ) (22,341 ) Net carrying value $ 45,563 $ — $ — $ 16,603 $ 62,166 three months ended March 31, 2020 as we determined that their carrying values exceeded their fair value ($ in thousands) : Reporting Unit Reportable Segment Impairment Loss Jewel Runaway Bay Beach Resort & Waterpark Jamaica $ 6,946 Jewel Dunn’s River Beach Resort & Spa Jamaica $ 5,126 Jewel Paradise Cove Beach Resort & Spa Jamaica $ 4,101 |
Schedule of Other Intangible Assets, Indefinite-Lived | Other intangible assets as of March 31, 2020 and December 31, 2019 consisted of the following ( $ in thousands ): As of March 31, As of December 31, 2020 2019 Gross carrying value Casino and other licenses (1) $ 875 $ 875 Management contract 1,900 1,900 Enterprise resource planning system (2) 5,403 5,187 Other 3,422 3,346 Total gross carrying value 11,600 11,308 Accumulated amortization Management contract (166 ) (143 ) Enterprise resource planning system (2) (586 ) (437 ) Other (2,448 ) (2,320 ) Total accumulated amortization (3,200 ) (2,900 ) Net carrying value Casino and other licenses (1) 875 875 Management contract 1,734 1,757 Enterprise resource planning system (2) 4,817 4,750 Other 974 1,026 Total net carrying value $ 8,400 $ 8,408 ________ (1) Our casino licenses have indefinite lives. Accordingly, there is no associated amortization expense or accumulated amortization. (2) Represents software development costs incurred to develop and implement SAP as our integrated enterprise resource planning (“ERP”) system, of which $1.3 million and $2.6 million was placed into service in 2020 and 2019, respectively and are being amortized over a weighted-average amortization period of 7 years . |
Schedule of Other Intangible Assets, Finite-Lived | Other intangible assets as of March 31, 2020 and December 31, 2019 consisted of the following ( $ in thousands ): As of March 31, As of December 31, 2020 2019 Gross carrying value Casino and other licenses (1) $ 875 $ 875 Management contract 1,900 1,900 Enterprise resource planning system (2) 5,403 5,187 Other 3,422 3,346 Total gross carrying value 11,600 11,308 Accumulated amortization Management contract (166 ) (143 ) Enterprise resource planning system (2) (586 ) (437 ) Other (2,448 ) (2,320 ) Total accumulated amortization (3,200 ) (2,900 ) Net carrying value Casino and other licenses (1) 875 875 Management contract 1,734 1,757 Enterprise resource planning system (2) 4,817 4,750 Other 974 1,026 Total net carrying value $ 8,400 $ 8,408 ________ (1) Our casino licenses have indefinite lives. Accordingly, there is no associated amortization expense or accumulated amortization. (2) Represents software development costs incurred to develop and implement SAP as our integrated enterprise resource planning (“ERP”) system, of which $1.3 million and $2.6 million was placed into service in 2020 and 2019, respectively and are being amortized over a weighted-average amortization period of 7 years . |
Schedule of Trade and Other Payables | The following summarizes the balances of trade and other payables as of March 31, 2020 and December 31, 2019 ($ in thousands) : As of March 31, As of December 31, 2020 2019 Trade payables $ 42,477 $ 45,299 Advance deposits (1) 35,239 53,769 Withholding and other taxes payable 51,696 46,983 Interest payable 103 125 Payroll and related accruals 16,003 14,547 Accrued expenses and other payables 26,307 20,880 Total trade and other payables $ 171,825 $ 181,603 ________ (1) The opening balance as of January 1, 2019 was $57.3 million . |
Schedule of Other Liabilities | The following summarizes the balances of other liabilities as of March 31, 2020 and December 31, 2019 ($ in thousands) : As of March 31, As of December 31, 2020 2019 Pension obligation (1)(2) $ 5,562 $ 6,764 Lease liabilities 6,032 6,208 Unfavorable ground lease liability 2,170 2,187 Key money (3) 16,491 8,225 Other 925 923 Total other liabilities $ 31,180 $ 24,307 ________ (1) For the three months ended March 31, 2020 and 2019 the service cost component of net periodic pension cost was $209.0 thousand and $186.0 thousand , respectively, and recorded within direct expense in the Condensed Consolidated Statements of Operations . (2) For the three months ended March 31, 2020 and 2019 the non-service cost components of net periodic pension cost were $551.2 thousand and $74.0 thousand , respectively, and recorded within other expense in the Condensed Consolidated Statements of Operations . (3) Represents the unamortized balance of key money received, which is amortized as a reduction to franchise fees within direct expenses in the Condensed Consolidated Statements of Operations . We received $8.5 million and $6.5 million in 2020 and 2019, respectively. |
Segment information (Tables)
Segment information (Tables) | 3 Months Ended |
Mar. 31, 2020 | |
Segment Reporting [Abstract] | |
Schedule of Segment Reporting Information | The following table presents segment owned net revenue and a reconciliation to total revenue for the three months ended March 31, 2020 and 2019 ( $ in thousands ): Three Months Ended March 31, 2020 2019 Owned net revenue Yucatán Peninsula $ 62,317 $ 70,213 Pacific Coast 21,155 25,570 Dominican Republic 35,596 33,075 Jamaica 51,436 59,147 Segment owned net revenue (1) 170,504 188,005 Other 15 2 Management fees 645 934 Cost reimbursements 950 588 Compulsory tips 5,114 6,267 Total revenue $ 177,228 $ 195,796 ________ (1) Segment owned net revenue represents total revenue less compulsory tips paid to employees, cost reimbursements, management fees and other miscellaneous revenue not derived from segment operations. The following table presents segment Owned Resort EBITDA, Adjusted EBITDA and a reconciliation to net (loss) income for the three months ended March 31, 2020 and 2019 ( $ in thousands ): Three Months Ended March 31, 2020 2019 Owned Resort EBITDA Yucatán Peninsula $ 24,935 $ 32,159 Pacific Coast 8,872 12,387 Dominican Republic 7,789 13,463 Jamaica 19,073 24,348 Segment Owned Resort EBITDA 60,669 82,357 Other corporate (10,971 ) (8,506 ) Management fees 645 934 Total Adjusted EBITDA 50,343 74,785 Interest expense (20,955 ) (14,194 ) Depreciation and amortization (24,959 ) (22,311 ) Impairment loss (16,173 ) — Other expense (3,906 ) (602 ) Pre-opening expenses — (89 ) Share-based compensation (3,223 ) (2,748 ) Other tax expense (237 ) (359 ) Transaction expenses (586 ) (1,967 ) Severance expense (1,198 ) — Non-service cost components of net periodic pension cost (1) (551 ) (74 ) Net (loss) income before tax (21,445 ) 32,441 Income tax (provision) benefit (1,111 ) 10,547 Net (loss) income $ (22,556 ) $ 42,988 ________ (1) Represents the non-service cost components of net periodic pension cost 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. The following table presents segment property and equipment, gross and a reconciliation to total property and equipment, net as of March 31, 2020 and December 31, 2019 ($ in thousands) : As of March 31, As of December 31, 2020 2019 Segment property and equipment, gross Yucatán Peninsula $ 864,557 $ 865,900 Pacific Coast 288,157 288,358 Dominican Republic 675,124 667,120 Jamaica 501,081 499,569 Total segment property and equipment, gross 2,328,919 2,320,947 Other corporate 6,170 7,320 Accumulated depreciation (419,992 ) (398,353 ) Total property and equipment, net $ 1,915,097 $ 1,929,914 The following table presents segment capital expenditures and a reconciliation to total capital expenditures for the three months ended March 31, 2020 and 2019 ( $ in thousands ): Three Months Ended March 31, 2020 2019 Segment capital expenditures Yucatán Peninsula $ 1,580 $ 4,057 Pacific Coast 257 250 Dominican Republic 6,932 40,678 Jamaica 1,634 1,556 Total segment capital expenditures (1) 10,403 46,541 Other corporate 114 2,347 Total capital expenditures (1) $ 10,517 $ 48,888 ________ (1) Includes capital expenditures incurred, but not yet paid. |
Organization, operations and _2
Organization, operations and basis of presentation - Narrative (Details) | 3 Months Ended |
Mar. 31, 2020resort | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |
Number of resorts in portfolio | 23 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 177,228 | $ 195,796 |
Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 153,055 | 169,792 |
Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 22,578 | 24,482 |
Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 645 | 934 |
Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 950 | 588 |
Other | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 1,013 | 1,525 |
Other | Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Other | Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 14 | 3 |
Other | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 645 | 934 |
Other | Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 354 | 588 |
Yucatán Peninsula | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 64,274 | 72,140 |
Yucatán Peninsula | Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 56,727 | 64,301 |
Yucatán Peninsula | Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 7,547 | 7,839 |
Yucatán Peninsula | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Yucatán Peninsula | Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Pacific Coast | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 21,810 | 26,369 |
Pacific Coast | Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 18,724 | 22,723 |
Pacific Coast | Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 3,086 | 3,646 |
Pacific Coast | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Pacific Coast | Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Dominican Republic | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 35,632 | 33,124 |
Dominican Republic | Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 31,367 | 28,524 |
Dominican Republic | Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 4,265 | 4,600 |
Dominican Republic | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Dominican Republic | Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Jamaica | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 54,499 | 62,638 |
Jamaica | Package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 46,237 | 54,244 |
Jamaica | Non-package revenue | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 7,666 | 8,394 |
Jamaica | Management fees | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | 0 | 0 |
Jamaica | Cost reimbursements | ||
Disaggregation of Revenue [Line Items] | ||
Total revenue | $ 596 | $ 0 |
Property and equipment - Schedu
Property and equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,335,089 | $ 2,328,267 |
Accumulated depreciation | (419,992) | (398,353) |
Total property and equipment, net | 1,915,097 | 1,929,914 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,996,641 | 1,976,214 |
Fixtures and machinery | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 82,568 | 81,437 |
Furniture and other fixed assets | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 230,797 | 228,533 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 25,083 | $ 42,083 |
Property and equipment - Narra
Property and equipment - Narrative (Details) - USD ($) $ in Thousands | 3 Months Ended | ||
Jun. 30, 2020 | Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |||
Depreciation expense | $ 24,700 | $ 22,100 | |
Interest expense capitalized on qualifying assets | 0 | 2,100 | |
Lessor, Lease, Description [Line Items] | |||
Proceeds from sale of assets held for sale | $ 3 | $ 5 | |
Minimum | |||
Lessor, Lease, Description [Line Items] | |||
Contractual term | 1 year | ||
Maximum | |||
Lessor, Lease, Description [Line Items] | |||
Contractual term | 3 years | ||
Assets Held for Sale | Jewel Dunn's River Beach Resort & Span and Jewel Runaway Bay Beach Resort & Waterpark | Subsequent Event | Forecast | |||
Lessor, Lease, Description [Line Items] | |||
Proceeds from sale of assets held for sale | $ 60,000 |
Property and equipment - Sche_2
Property and equipment - Schedule of Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Property, Plant and Equipment [Abstract] | ||
Operating lease income | $ 1,146 | $ 1,471 |
Income taxes - Narrative (Deta
Income taxes - Narrative (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)entity | Mar. 31, 2019USD ($) | |
Income Tax Examination [Line Items] | ||
Statutory income tax rate | 25.00% | |
Income tax expense (benefit) | $ 1,111 | $ (10,547) |
Increase in income tax expense | 11,600 | |
Non-recurring tax benefit from the valuation allowance release during prior period | 13,600 | |
Increased tax benefit due to lower pre-tax book income from tax paying entities | 2,000 | |
Decrease in discrete tax expense associated with future tax liabilities of certain Dominican Republic entities | $ 3,300 | |
Playa Romana Mar B.V. and Playa Dominican Resorts B.V. | Dominican Republic | ||
Income Tax Examination [Line Items] | ||
Number of entities granted tax exemption | entity | 2 | |
Tax exemption period granted | 15 years | |
Immaterial Correction of Prior Year Error | Adjustment | ||
Income Tax Examination [Line Items] | ||
Income tax expense (benefit) | $ (3,200) |
Related party transactions - Na
Related party transactions - Narrative (Details) | 12 Months Ended |
Dec. 31, 2018shares | |
Ordinary Shares | Sagicor | |
Related Party Transaction [Line Items] | |
Shares issued as part of purchase consideration (in shares) | 20,000,000 |
Related party transactions - Tr
Related party transactions - Transactions with Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Affiliated Entity | Hyatt | Franchise fees | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | $ 5,516 | $ 4,636 |
Affiliated Entity | Sagicor | Insurance premiums | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | 414 | 751 |
Affiliated Entity | Sagicor | Cost reimbursements | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | 722 | 0 |
Affiliated Entity | Sabre | Booking and call center services | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | 214 | 0 |
Chief Executive Officer | Lease expense | ||
Related Party Transaction [Line Items] | ||
Total transactions with related parties | $ 182 | $ 146 |
Ordinary shares - Narrative (D
Ordinary shares - Narrative (Details) | 3 Months Ended | ||
Mar. 31, 2020€ / sharesshares | Dec. 31, 2019€ / sharesshares | Dec. 14, 2018USD ($) | |
Class of Stock [Line Items] | |||
Amount of ordinary shares authorized for repurchase | $ | $ 100,000,000 | ||
Ordinary shares purchased under repurchase program (in shares) | 340,109 | ||
Ordinary shares, outstanding (in shares) | 129,274,693 | 129,121,576 | |
Ordinary shares, par value (in Euros per share) | € / shares | € 0.10 | € 0.10 | |
Restricted Shares and Performance Share Awards | |||
Class of Stock [Line Items] | |||
Shares outstanding (in shares) | 3,888,183 | ||
Restricted Share Units | |||
Class of Stock [Line Items] | |||
Shares outstanding (in shares) | 24,320 |
Share-based compensation - Nar
Share-based compensation - Narrative (Details) | Mar. 31, 2020shares |
Share-based Payment Arrangement [Abstract] | |
Shares available for future grants under the 2017 Plan (in shares) | 6,182,611 |
Share-based compensation - Sum
Share-based compensation - Summary of Restricted Stock and Performance Share Awards (Details) | 3 Months Ended |
Mar. 31, 2020$ / sharesshares | |
Restricted Share Awards | |
Number of Shares | |
Unvested balance at beginning of period (in shares) | shares | 2,157,336 |
Granted (in shares) | shares | 1,076,619 |
Vested (in shares) | shares | (497,726) |
Forfeited (in shares) | shares | (24,440) |
Unvested balance at end of period (in shares) | shares | 2,711,789 |
Weighted-Average Grant Date Fair Value | |
Unvested balance at beginning of period (in dollars per share) | $ / shares | $ 9.03 |
Granted (in dollars per share) | $ / shares | 7.92 |
Vested (in dollars per share) | $ / shares | 8.32 |
Forfeited (in dollars per share) | $ / shares | 8.13 |
Unvested balance at end of period (in dollars per share) | $ / shares | $ 8.73 |
Performance Share Awards | |
Number of Shares | |
Unvested balance at beginning of period (in shares) | shares | 913,407 |
Granted (in shares) | shares | 552,395 |
Forfeited (in shares) | shares | (265,088) |
Unvested balance at end of period (in shares) | shares | 1,200,714 |
Weighted-Average Grant Date Fair Value | |
Unvested balance at beginning of period (in dollars per share) | $ / shares | $ 7.22 |
Granted (in dollars per share) | $ / shares | 6.38 |
Forfeited (in dollars per share) | $ / shares | 7.99 |
Unvested balance at end of period (in dollars per share) | $ / shares | $ 6.66 |
Share-based compensation - Summ
Share-based compensation - Summary of Key Inputs (Details) $ in Thousands | Jan. 02, 2020USD ($) |
Total Shareholder Return | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Total Award | 50.00% |
Grant Date Fair Value by Component | $ 1,334 |
Volatility | 24.87% |
Interest Rate | 1.58% |
Dividend Yield | 0.00% |
Adjusted EBITDA Comparison | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |
Percentage of Total Award | 50.00% |
Grant Date Fair Value by Component | $ 2,187 |
Volatility | 0.00% |
Interest Rate | 0.00% |
Dividend Yield | 0.00% |
Earnings per share - Schedule
Earnings per share - Schedule of Basic and Diluted EPS (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Numerator | ||
Net (loss) income | $ (22,556) | $ 42,988 |
Denominator | ||
Denominator for basic EPS - weighted-average number of shares outstanding (in shares) | 129,286,708 | 130,540,057 |
Effect of dilutive securities | ||
Unvested restricted share awards (in shares) | 0 | 230,299 |
Denominator for diluted EPS - adjusted weighted-average number of shares outstanding (in shares) | 129,286,708 | 130,770,356 |
EPS - Basic (in dollars per share) | $ (0.17) | $ 0.33 |
EPS - Diluted (in dollars per share) | $ (0.17) | $ 0.33 |
Earnout Warrants | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Shares of common stock acquired by outstanding warrants (in shares) | 2,987,770 | 2,987,770 |
Unvested Performance-Based Equity Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings (losses) per share (in shares) | 1,200,714 | 781,045 |
Unvested Restricted Share Awards | ||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||
Anti-dilutive securities excluded from computation of earnings (losses) per share (in shares) | 2,711,789 | 535,059 |
Debt - Schedule of Debt Compone
Debt - Schedule of Debt Components (Details) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 29, 2018USD ($)contract | |
Debt obligations | |||
Total debt obligations | $ 1,068,923,000 | $ 1,046,448,000 | |
Unamortized discount and debt issuance costs | |||
Total unamortized discount and debt issuance costs | (5,451,000) | (5,790,000) | |
Total debt | 1,063,472,000 | 1,040,658,000 | |
Interest rate swaps | |||
Unamortized discount and debt issuance costs | |||
Number of interest rate swap contracts | contract | 2 | ||
Fixed rate | 2.85% | ||
Term Loan | |||
Debt obligations | |||
Total debt obligations | 983,923,000 | 986,448,000 | |
Unamortized discount and debt issuance costs | |||
Discount on Term Loan | (2,041,000) | (2,168,000) | |
Unamortized debt issuance costs on Term Loan | $ (3,410,000) | $ (3,622,000) | |
Effective interest rate | 3.75% | 4.55% | |
Notional amount | $ 800,000,000 | ||
Term Loan | LIBOR | |||
Unamortized discount and debt issuance costs | |||
Basis spread on variable rate | 2.75% | ||
Floor interest rate | 1.00% | ||
Line of Credit | Revolving Credit Facility | |||
Debt obligations | |||
Total debt obligations | $ 85,000,000 | $ 60,000,000 | |
Unamortized discount and debt issuance costs | |||
Commitment fee percentage | 0.50% | 0.50% | |
Line of Credit | Revolving Credit Facility | LIBOR | |||
Unamortized discount and debt issuance costs | |||
Basis spread on variable rate | 3.00% | ||
Maximum | Line of Credit | Revolving Credit Facility | |||
Unamortized discount and debt issuance costs | |||
Commitment fee percentage | 0.50% | ||
Minimum | Line of Credit | Revolving Credit Facility | |||
Unamortized discount and debt issuance costs | |||
Commitment fee percentage | 0.25% |
Debt - Narrative (Details)
Debt - Narrative (Details) - Revolving Credit Facility - Line of Credit - Third Amendment - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 19, 2019 | |
Debt Instrument [Line Items] | ||
Springing leverage ratio financial maintenance covenant requirement threshold, percent of aggregate revolving credit commitments | 35.00% | |
Maximum amount excluded from calculation of springing leverage ratio | $ 50,000,000 |
Derivative financial instrume_3
Derivative financial instruments - Narrative (Details) | Mar. 29, 2018USD ($)contract |
Term Loan | |
Derivative [Line Items] | |
Notional amount | $ 800,000,000 |
Interest rate swaps | |
Derivative [Line Items] | |
Number of interest rate swap contracts | contract | 2 |
Fixed rate | 2.85% |
Interest Rate Swap One | |
Derivative [Line Items] | |
Notional amount | $ 200,000,000 |
Interest Rate Swap Two | |
Derivative [Line Items] | |
Notional amount | $ 600,000,000 |
Derivative financial instrume_4
Derivative financial instruments - Effects on Comprehensive Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | $ 809,651 | $ 839,841 |
Total other comprehensive loss | (15,103) | (6,009) |
Ending balance | 772,681 | 878,046 |
Total amount expected to be reclassified from AOCI to interest expense during next twelve months | 11,700 | |
Cash Flow Hedges | ||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||
Beginning balance | 20,164 | 0 |
Change in fair value | 16,956 | 5,834 |
Reclassification from AOCI to interest expense | (1,908) | 24 |
Total other comprehensive loss | 15,048 | 5,858 |
Ending balance | $ 35,212 | $ 5,858 |
Derivative financial instrume_5
Derivative financial instruments - Effects on Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Interest rate swaps | Interest expense | Derivative Liabilities for Ineffective Hedges | ||
Derivative Instruments, Gain (Loss) [Line Items] | ||
Effects on Income Statement | $ 8,729 | $ 2,715 |
Derivative financial instrume_6
Derivative financial instruments - Location and Fair Value of Derivatives in Balance Sheet (Details) - Interest rate swaps - Derivative financial instruments - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Derivative Liabilities for Effective Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 0 | $ 31,932 |
Derivative Liabilities for Ineffective Hedges | ||
Derivatives, Fair Value [Line Items] | ||
Derivative liabilities | $ 53,349 | $ 0 |
Fair value of financial instr_3
Fair value of financial instruments - Schedule of Financial Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Fair value measurements on a recurring basis: | ||
Derivative financial instruments | $ 53,349 | $ 31,932 |
Fair Value Measurements on a Recurring Basis | Interest rate swap | ||
Fair value measurements on a recurring basis: | ||
Derivative financial instruments | 53,349 | 31,932 |
Fair Value Measurements on a Recurring Basis | Level 1 | Interest rate swap | ||
Fair value measurements on a recurring basis: | ||
Derivative financial instruments | 0 | 0 |
Fair Value Measurements on a Recurring Basis | Level 2 | Interest rate swap | ||
Fair value measurements on a recurring basis: | ||
Derivative financial instruments | 53,349 | 31,932 |
Fair Value Measurements on a Recurring Basis | Level 3 | Interest rate swap | ||
Fair value measurements on a recurring basis: | ||
Derivative financial instruments | $ 0 | $ 0 |
Fair value of financial instr_4
Fair value of financial instruments - Schedule of Financial Liabilities Not Measured at Fair Value (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Carrying Value | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | $ 1,063,472 | $ 1,040,658 |
Carrying Value | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 978,472 | 980,658 |
Carrying Value | Revolving Credit Facility | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 85,000 | 60,000 |
Fair Value | Level 1 | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | 0 |
Fair Value | Level 1 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | 0 |
Fair Value | Level 1 | Revolving Credit Facility | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | 0 |
Fair Value | Level 2 | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | 0 |
Fair Value | Level 2 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | 0 |
Fair Value | Level 2 | Revolving Credit Facility | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | 0 |
Fair Value | Level 3 | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 850,231 | 1,043,214 |
Fair Value | Level 3 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 765,231 | 983,214 |
Fair Value | Level 3 | Revolving Credit Facility | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | $ 85,000 | $ 60,000 |
Fair value of financial instr_5
Fair value of financial instruments - Valuation Techniques (Details) | Mar. 31, 2020 |
Interest rate swap | Forecasted LIBOR | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |
Derivative liability, measurement input threshold | 0.0285 |
Other balance sheet items - Sch
Other balance sheet items - Schedule of Trade and Other Receivables, Net (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 31, 2020 | Jan. 01, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Gross trade and other receivables | $ 73,015 | $ 62,158 | |
Allowance for doubtful accounts | (1,765) | (246) | |
Total trade and other receivables, net | 71,250 | $ 61,912 | $ 64,800 |
Additional bad debt expense recognized | $ 800 |
Other balance sheet items - S_2
Other balance sheet items - Schedule of Prepayments and Other Assets (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Advances to suppliers | $ 5,650 | $ 7,865 |
Prepaid income taxes | 12,630 | 12,412 |
Prepaid other taxes | 12,085 | 11,156 |
Right of use assets | 5,480 | 5,673 |
Contract deposit | 2,700 | 2,700 |
Other assets | 5,271 | 4,885 |
Total prepayments and other assets | 43,816 | $ 44,691 |
Additional amount due that will be treated as key money if purchase not completed | $ 800 |
Other balance sheet items - S_3
Other balance sheet items - Schedule of Goodwill (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill [Roll Forward] | ||
Gross carrying value as of beginning of period | $ 84,507 | |
Accumulated impairment losses as of beginning of period | (6,168) | |
Net carrying value as of beginning of period | 78,339 | |
Impairment losses | (16,173) | $ 0 |
Gross carrying value as of end of period | 84,507 | |
Accumulated impairment losses as of end of period | (22,341) | |
Net carrying value as of end of period | 62,166 | |
Yucatán Peninsula | ||
Goodwill [Roll Forward] | ||
Gross carrying value as of beginning of period | 51,731 | |
Accumulated impairment losses as of beginning of period | (6,168) | |
Net carrying value as of beginning of period | 45,563 | |
Impairment losses | 0 | |
Gross carrying value as of end of period | 51,731 | |
Accumulated impairment losses as of end of period | (6,168) | |
Net carrying value as of end of period | 45,563 | |
Pacific Coast | ||
Goodwill [Roll Forward] | ||
Gross carrying value as of beginning of period | 0 | |
Accumulated impairment losses as of beginning of period | 0 | |
Net carrying value as of beginning of period | 0 | |
Impairment losses | 0 | |
Gross carrying value as of end of period | 0 | |
Accumulated impairment losses as of end of period | 0 | |
Net carrying value as of end of period | 0 | |
Dominican Republic | ||
Goodwill [Roll Forward] | ||
Gross carrying value as of beginning of period | 0 | |
Accumulated impairment losses as of beginning of period | 0 | |
Net carrying value as of beginning of period | 0 | |
Impairment losses | 0 | |
Gross carrying value as of end of period | 0 | |
Accumulated impairment losses as of end of period | 0 | |
Net carrying value as of end of period | 0 | |
Jamaica | ||
Goodwill [Roll Forward] | ||
Gross carrying value as of beginning of period | 32,776 | |
Accumulated impairment losses as of beginning of period | 0 | |
Net carrying value as of beginning of period | 32,776 | |
Impairment losses | (16,173) | |
Gross carrying value as of end of period | 32,776 | |
Accumulated impairment losses as of end of period | (16,173) | |
Net carrying value as of end of period | $ 16,603 |
Other balance sheet items - S_4
Other balance sheet items - Schedule of Impairment Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Goodwill [Line Items] | ||
Impairment Loss | $ 16,173 | $ 0 |
Jamaica | ||
Goodwill [Line Items] | ||
Impairment Loss | 16,173 | |
Jamaica | Jewel Runaway Bay Beach Resort & Waterpark | ||
Goodwill [Line Items] | ||
Impairment Loss | 6,946 | |
Jamaica | Jewel Dunn’s River Beach Resort & Spa | ||
Goodwill [Line Items] | ||
Impairment Loss | 5,126 | |
Jamaica | Jewel Paradise Cove Beach Resort & Spa | ||
Goodwill [Line Items] | ||
Impairment Loss | $ 4,101 |
Other balance sheet items - S_5
Other balance sheet items - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||
Total accumulated amortization | $ (3,200) | $ (2,900) | |
Indefinite-lived Intangible Assets [Line Items] | |||
Total gross carrying value | 11,600 | 11,308 | |
Total net carrying value | 8,400 | 8,408 | |
Amortization expense for intangible assets | 300 | $ 200 | |
Casino and other licenses | |||
Indefinite-lived Intangible Assets [Line Items] | |||
Indefinite-Lived Intangible Assets | 875 | 875 | |
Management contract | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value, Finite-lived intangible assets | 1,900 | 1,900 | |
Total accumulated amortization | (166) | (143) | |
Net carrying value, Finite-lived intangible assets | 1,734 | 1,757 | |
Enterprise resource planning system | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value, Finite-lived intangible assets | 5,403 | 5,187 | |
Total accumulated amortization | (586) | (437) | |
Net carrying value, Finite-lived intangible assets | 4,817 | 4,750 | |
Finite-lived intangible assets placed into service during period | $ 1,300 | 2,600 | |
Estimated useful life | 7 years | ||
Other | |||
Finite-Lived Intangible Assets [Line Items] | |||
Gross carrying value, Finite-lived intangible assets | $ 3,422 | 3,346 | |
Total accumulated amortization | (2,448) | (2,320) | |
Net carrying value, Finite-lived intangible assets | $ 974 | $ 1,026 |
Other balance sheet items - S_6
Other balance sheet items - Schedule of Trade and Other Payables (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Trade payables | $ 42,477 | $ 45,299 | |
Advance deposits | 35,239 | 53,769 | $ 57,300 |
Withholding and other taxes payable | 51,696 | 46,983 | |
Interest payable | 103 | 125 | |
Payroll and related accruals | 16,003 | 14,547 | |
Accrued expenses and other payables | 26,307 | 20,880 | |
Total trade and other payables | $ 171,825 | $ 181,603 |
Other balance sheet items - S_7
Other balance sheet items - Schedule of Other Liabilities (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Pension obligation | $ 5,562,000 | $ 6,764,000 | |
Lease liabilities | 6,032,000 | 6,208,000 | |
Unfavorable ground lease liability | 2,170,000 | 2,187,000 | |
Key money | 16,491,000 | 8,225,000 | |
Other | 925,000 | 923,000 | |
Total other liabilities | 31,180,000 | 24,307,000 | |
Service cost component of net periodic pension cost | 209,000 | $ 186,000 | |
Non-service cost components of net periodic pension cost | 551,200 | 74,000 | |
Receipt of key money | $ 8,500,000 | $ 1,000,000 | $ 6,500,000 |
Segment information - Schedule
Segment information - Schedule of Net Revenue and Reconciliation to Gross Revenue (Details) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020USD ($)segment | Mar. 31, 2019USD ($) | |
Segment Reporting [Abstract] | ||
Number of reportable segments | segment | 4 | |
Segment Reporting Information [Line Items] | ||
Total revenue | $ 177,228 | $ 195,796 |
Management fees | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 645 | 934 |
Cost reimbursements | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 950 | 588 |
Yucatán Peninsula | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 64,274 | 72,140 |
Yucatán Peninsula | Management fees | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Yucatán Peninsula | Cost reimbursements | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Pacific Coast | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 21,810 | 26,369 |
Pacific Coast | Management fees | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Pacific Coast | Cost reimbursements | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Dominican Republic | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 35,632 | 33,124 |
Dominican Republic | Management fees | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Dominican Republic | Cost reimbursements | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Jamaica | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 54,499 | 62,638 |
Jamaica | Management fees | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 0 | 0 |
Jamaica | Cost reimbursements | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 596 | 0 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 170,504 | 188,005 |
Operating Segments | Yucatán Peninsula | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 62,317 | 70,213 |
Operating Segments | Pacific Coast | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 21,155 | 25,570 |
Operating Segments | Dominican Republic | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 35,596 | 33,075 |
Operating Segments | Jamaica | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 51,436 | 59,147 |
Segment Reconciling Items | Other | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 15 | 2 |
Segment Reconciling Items | Management fees | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 645 | 934 |
Segment Reconciling Items | Cost reimbursements | ||
Segment Reporting Information [Line Items] | ||
Total revenue | 950 | 588 |
Segment Reconciling Items | Compulsory tips | ||
Segment Reporting Information [Line Items] | ||
Total revenue | $ 5,114 | $ 6,267 |
Segment information - Schedul_2
Segment information - Schedule of Adjusted EBITDA and Reconciliation to Net Income (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Owned Resort EBITDA | ||
Total Adjusted EBITDA | $ 50,343,000 | $ 74,785,000 |
Management fees | 177,228,000 | 195,796,000 |
Interest expense | (20,955,000) | (14,194,000) |
Depreciation and amortization | (24,959,000) | (22,311,000) |
Impairment loss | (16,173,000) | 0 |
Other expense | (3,906,000) | (602,000) |
Pre-opening expenses | 0 | (89,000) |
Non-service cost components of net periodic pension cost | (551,200) | (74,000) |
Net (loss) income before tax | (21,445,000) | 32,441,000 |
Income tax (provision) benefit | (1,111,000) | 10,547,000 |
Net (loss) income | (22,556,000) | 42,988,000 |
Management fees | ||
Owned Resort EBITDA | ||
Management fees | 645,000 | 934,000 |
Yucatán Peninsula | ||
Owned Resort EBITDA | ||
Management fees | 64,274,000 | 72,140,000 |
Impairment loss | 0 | |
Yucatán Peninsula | Management fees | ||
Owned Resort EBITDA | ||
Management fees | 0 | 0 |
Pacific Coast | ||
Owned Resort EBITDA | ||
Management fees | 21,810,000 | 26,369,000 |
Impairment loss | 0 | |
Pacific Coast | Management fees | ||
Owned Resort EBITDA | ||
Management fees | 0 | 0 |
Dominican Republic | ||
Owned Resort EBITDA | ||
Management fees | 35,632,000 | 33,124,000 |
Impairment loss | 0 | |
Dominican Republic | Management fees | ||
Owned Resort EBITDA | ||
Management fees | 0 | 0 |
Jamaica | ||
Owned Resort EBITDA | ||
Management fees | 54,499,000 | 62,638,000 |
Impairment loss | (16,173,000) | |
Jamaica | Management fees | ||
Owned Resort EBITDA | ||
Management fees | 0 | 0 |
Operating Segments | ||
Owned Resort EBITDA | ||
Total Adjusted EBITDA | 60,669,000 | 82,357,000 |
Management fees | 170,504,000 | 188,005,000 |
Operating Segments | Yucatán Peninsula | ||
Owned Resort EBITDA | ||
Total Adjusted EBITDA | 24,935,000 | 32,159,000 |
Management fees | 62,317,000 | 70,213,000 |
Operating Segments | Pacific Coast | ||
Owned Resort EBITDA | ||
Total Adjusted EBITDA | 8,872,000 | 12,387,000 |
Management fees | 21,155,000 | 25,570,000 |
Operating Segments | Dominican Republic | ||
Owned Resort EBITDA | ||
Total Adjusted EBITDA | 7,789,000 | 13,463,000 |
Management fees | 35,596,000 | 33,075,000 |
Operating Segments | Jamaica | ||
Owned Resort EBITDA | ||
Total Adjusted EBITDA | 19,073,000 | 24,348,000 |
Management fees | 51,436,000 | 59,147,000 |
Other corporate | ||
Owned Resort EBITDA | ||
Total Adjusted EBITDA | (10,971,000) | (8,506,000) |
Segment Reconciling Items | ||
Owned Resort EBITDA | ||
Interest expense | (20,955,000) | (14,194,000) |
Depreciation and amortization | (24,959,000) | (22,311,000) |
Impairment loss | (16,173,000) | 0 |
Other expense | (3,906,000) | (602,000) |
Pre-opening expenses | 0 | (89,000) |
Share-based compensation | (3,223,000) | (2,748,000) |
Other tax expense | (237,000) | (359,000) |
Transaction expenses | (586,000) | (1,967,000) |
Severance expense | (1,198,000) | 0 |
Non-service cost components of net periodic pension cost | (551,000) | (74,000) |
Segment Reconciling Items | Management fees | ||
Owned Resort EBITDA | ||
Management fees | $ 645,000 | $ 934,000 |
Segment information - Schedul_3
Segment information - Schedule of Segment Property and Equipment and Reconciliation to Property and Equipment, Net (Details) (Details) - USD ($) $ in Thousands | Mar. 31, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Property and equipment, gross | $ 2,335,089 | $ 2,328,267 |
Accumulated depreciation | (419,992) | (398,353) |
Property and equipment, net | 1,915,097 | 1,929,914 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, gross | 2,328,919 | 2,320,947 |
Operating Segments | Yucatán Peninsula | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, gross | 864,557 | 865,900 |
Operating Segments | Pacific Coast | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, gross | 288,157 | 288,358 |
Operating Segments | Dominican Republic | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, gross | 675,124 | 667,120 |
Operating Segments | Jamaica | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, gross | 501,081 | 499,569 |
Other corporate | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, gross | $ 6,170 | $ 7,320 |
Segment information - Schedul_4
Segment information - Schedule of Segment Capital Expenditures and Reconciliation to Capital Expenditures (Details) (Details) - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2020 | Mar. 31, 2019 | |
Segment Reporting Information [Line Items] | ||
Total capital expenditures | $ 10,517 | $ 48,888 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 10,403 | 46,541 |
Operating Segments | Yucatán Peninsula | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 1,580 | 4,057 |
Operating Segments | Pacific Coast | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 257 | 250 |
Operating Segments | Dominican Republic | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 6,932 | 40,678 |
Operating Segments | Jamaica | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 1,634 | 1,556 |
Other corporate | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | $ 114 | $ 2,347 |