Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2020 | Jul. 31, 2020 | |
Cover [Abstract] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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 | 134,493,942 | |
Entity Central Index Key | 0001692412 | |
Current Fiscal Year End Date | --12-31 | |
Document Fiscal Year Focus | 2020 | |
Document Fiscal Period Focus | Q2 | |
Amendment Flag | false |
Condensed Consolidated Balance
Condensed Consolidated Balance Sheets - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
ASSETS | ||
Cash and cash equivalents | $ 251,022 | $ 20,931 |
Restricted cash | 27,919 | 0 |
Trade and other receivables, net | 26,867 | 71,250 |
Accounts receivable from related parties | 2,933 | 5,401 |
Inventories | 14,239 | 16,649 |
Prepayments and other assets | 45,963 | 44,691 |
Property and equipment, net | 1,805,242 | 1,929,914 |
Goodwill, net | 62,166 | 78,339 |
Other intangible assets | 8,555 | 8,408 |
Deferred tax assets | 22,358 | 21,381 |
Total assets | 2,267,264 | 2,196,964 |
LIABILITIES AND SHAREHOLDERS' EQUITY | ||
Trade and other payables | 121,238 | 181,603 |
Payables to related parties | 9,260 | 7,620 |
Income tax payable | 1,813 | 3,252 |
Debt | 1,251,877 | 1,040,658 |
Derivative financial instruments | 55,477 | 31,932 |
Other liabilities | 30,696 | 24,307 |
Deferred tax liabilities | 86,345 | 97,941 |
Total liabilities | 1,556,706 | 1,387,313 |
Commitments and contingencies (see Note 7) | ||
Shareholders' equity | ||
Ordinary shares (par value €0.10; 500,000,000 shares authorized, 136,684,273 shares issued and 134,485,477 shares outstanding as of June 30, 2020, and 130,967,671 shares issued and 129,121,576 shares outstanding as of December 31, 2019) | 14,861 | 14,215 |
Treasury shares (at cost, 2,198,796 shares as of June 30, 2020 and 1,846,095 shares as of December 31, 2019) | (16,642) | (14,088) |
Paid-in capital | 1,025,942 | 1,001,088 |
Accumulated other comprehensive loss | (36,667) | (24,642) |
Accumulated deficit | (276,936) | (166,922) |
Total shareholders' equity | 710,558 | 809,651 |
Total liabilities and shareholders' equity | $ 2,267,264 | $ 2,196,964 |
Condensed Consolidated Balanc_2
Condensed Consolidated Balance Sheets (Parenthetical) - € / shares | Jun. 30, 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) | 136,684,273 | 130,967,671 |
Ordinary shares, outstanding (in shares) | 134,485,477 | 129,121,576 |
Treasury shares, at cost (in shares) | 2,198,796 | 1,846,095 |
Condensed Consolidated Statemen
Condensed Consolidated Statements of Operations - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Revenue | ||||
Total revenue | $ 982 | $ 164,023 | $ 178,210 | $ 359,819 |
Direct and selling, general and administrative expenses | ||||
Direct | 20,380 | 92,582 | 118,278 | 186,325 |
Selling, general and administrative | 19,739 | 32,048 | 53,571 | 63,876 |
Pre-opening | 0 | 202 | 0 | 291 |
Depreciation and amortization | 22,400 | 25,908 | 47,359 | 48,219 |
Reimbursed costs | 458 | 2,949 | 1,408 | 3,537 |
Impairment loss | 25,268 | 0 | 41,441 | 0 |
Loss on sale of assets | 1,729 | 0 | 1,729 | 0 |
Gain on insurance proceeds | (2,950) | 0 | (2,950) | 0 |
Direct and selling, general and administrative expenses | 87,024 | 153,689 | 260,836 | 302,248 |
Operating (loss) income | (86,042) | 10,334 | (82,626) | 57,571 |
Interest expense | (20,916) | (10,666) | (41,871) | (24,860) |
Other income (expense) | 4,853 | 364 | 947 | (238) |
Net (loss) income before tax | (102,105) | 32 | (123,550) | 32,473 |
Income tax benefit | 14,647 | 1,008 | 13,536 | 11,555 |
Net (loss) income | $ (87,458) | $ 1,040 | $ (110,014) | $ 44,028 |
Earnings per share | ||||
(Losses) earnings per share - Basic (in dollars per share) | $ (0.67) | $ 0.01 | $ (0.85) | $ 0.34 |
(Losses) earnings per share - Diluted (in dollars per share) | $ (0.67) | $ 0.01 | $ (0.85) | $ 0.34 |
Weighted average number of shares outstanding during the period - Basic (in shares) | 130,466,383 | 130,421,695 | 129,876,545 | 130,480,549 |
Weighted average number of shares outstanding during the period - Diluted (in shares) | 130,466,383 | 130,815,177 | 129,876,545 | 130,789,467 |
Package | ||||
Revenue | ||||
Total revenue | $ 302 | $ 136,095 | $ 153,357 | $ 305,887 |
Non-package | ||||
Revenue | ||||
Total revenue | 240 | 24,428 | 22,818 | 48,910 |
Management fees | ||||
Revenue | ||||
Total revenue | (18) | 551 | 627 | 1,485 |
Cost reimbursements | ||||
Revenue | ||||
Total revenue | $ 458 | $ 2,949 | $ 1,408 | $ 3,537 |
Condensed Consolidated Statem_2
Condensed Consolidated Statements of Comprehensive (Loss) Income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Statement of Comprehensive Income [Abstract] | ||||
Net (loss) income | $ (87,458) | $ 1,040 | $ (110,014) | $ 44,028 |
Other comprehensive income (loss), net of taxes | ||||
Unrealized gain (loss) on interest rate swaps | 2,926 | (14,784) | (12,122) | (20,642) |
Pension obligation gain (loss) | 152 | (25) | 97 | (176) |
Total other comprehensive income (loss) | 3,078 | (14,809) | (12,025) | (20,818) |
Comprehensive (loss) income | $ (84,380) | $ (13,769) | $ (122,039) | $ 23,210 |
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 income (loss) | (6,009) | (6,009) | ||||
Share-based compensation, net of tax withholdings (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, 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 | 44,028 | |||||
Other comprehensive income (loss) | (20,818) | |||||
Ending balance (in shares) at Jun. 30, 2019 | 130,327,895 | 557,374 | ||||
Ending balance at Jun. 30, 2019 | 863,891 | $ 14,205 | $ (4,316) | 997,015 | (24,476) | (118,537) |
Beginning balance (in shares) at Mar. 31, 2019 | 130,490,991 | 252,787 | ||||
Beginning balance at Mar. 31, 2019 | 878,046 | $ 14,190 | $ (1,916) | 995,016 | (9,667) | (119,577) |
Shareholders' Equity | ||||||
Net (loss) income | 1,040 | 1,040 | ||||
Other comprehensive income (loss) | (14,809) | (14,809) | ||||
Share-based compensation, net of tax withholdings (in shares) | 141,491 | |||||
Share-based compensation, net of tax withholdings | 2,014 | $ 15 | 1,999 | |||
Repurchase of ordinary shares (in shares) | (304,587) | (304,587) | ||||
Repurchase of ordinary shares | (2,400) | $ (2,400) | ||||
Ending balance (in shares) at Jun. 30, 2019 | 130,327,895 | 557,374 | ||||
Ending balance at Jun. 30, 2019 | 863,891 | $ 14,205 | $ (4,316) | 997,015 | (24,476) | (118,537) |
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 income (loss) | (15,103) | (15,103) | ||||
Share-based compensation, net of tax withholdings (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) | ||||
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) |
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 | (110,014) | |||||
Other comprehensive income (loss) | (12,025) | |||||
Ending balance (in shares) at Jun. 30, 2020 | 134,485,477 | 2,198,796 | ||||
Ending balance at Jun. 30, 2020 | 710,558 | $ 14,861 | $ (16,642) | 1,025,942 | (36,667) | (276,936) |
Beginning balance (in shares) at Mar. 31, 2020 | 129,274,693 | 2,190,704 | ||||
Beginning balance at Mar. 31, 2020 | 772,681 | $ 14,270 | $ (16,622) | 1,004,256 | (39,745) | (189,478) |
Shareholders' Equity | ||||||
Net (loss) income | (87,458) | (87,458) | ||||
Other comprehensive income (loss) | 3,078 | 3,078 | ||||
Share-based compensation, net of tax withholdings (in shares) | 332,735 | 8,092 | ||||
Share-based compensation, net of tax withholdings | $ 2,699 | $ 38 | $ (20) | 2,681 | ||
Repurchase of ordinary shares (in shares) | 0 | |||||
Equity issuance, net (see Note 8) (in shares) | 4,878,049 | |||||
Equity issuance, net (see Note 8) | $ 19,558 | $ 553 | 19,005 | |||
Ending balance (in shares) at Jun. 30, 2020 | 134,485,477 | 2,198,796 | ||||
Ending balance at Jun. 30, 2020 | $ 710,558 | $ 14,861 | $ (16,642) | $ 1,025,942 | $ (36,667) | $ (276,936) |
Condensed Consolidated Statem_4
Condensed Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | Jun. 30, 2020 | Dec. 31, 2019 | Jun. 30, 2019 | |
CASH FLOWS FROM OPERATING ACTIVITIES | ||||||||||
Net (loss) income | $ (87,458) | $ (22,556) | $ 1,040 | $ 42,988 | $ (110,014) | $ 44,028 | ||||
Adjustments to reconcile net income to net cash provided by operating activities | ||||||||||
Depreciation and amortization | 22,400 | 25,908 | 47,359 | 48,219 | ||||||
Amortization of debt discount and issuance costs | 679 | 681 | ||||||||
Share-based compensation | 5,942 | 4,762 | ||||||||
Loss on derivative financial instruments | 11,423 | 1,122 | ||||||||
Impairment loss | 25,268 | 0 | 41,441 | 0 | ||||||
Deferred income taxes | (12,573) | (14,341) | ||||||||
Loss on sale of assets | 1,729 | 0 | 1,729 | 0 | ||||||
Amortization of key money | (439) | (110) | ||||||||
Other | (154) | 628 | ||||||||
Changes in assets and liabilities: | ||||||||||
Trade and other receivables, net | 44,462 | 1,743 | ||||||||
Accounts receivable from related parties | 2,855 | 1,504 | ||||||||
Inventories | 950 | (224) | ||||||||
Prepayments and other assets | 470 | (4,845) | ||||||||
Trade and other payables | (61,207) | (5,512) | ||||||||
Payables to related parties | 1,640 | 4,379 | ||||||||
Income tax payable | (1,439) | (984) | ||||||||
Other liabilities | (1,520) | 5,026 | ||||||||
Net cash (used in) provided by operating activities | (28,396) | 86,076 | ||||||||
INVESTING ACTIVITIES | ||||||||||
Capital expenditures | (7,414) | (92,038) | ||||||||
Receipt of key money | 8,500 | 2,500 | $ 6,500 | |||||||
Purchase of intangibles | (349) | (1,424) | ||||||||
Proceeds from the sale of assets, net | 58,125 | 6 | ||||||||
Property damage insurance proceeds | 0 | 2,009 | ||||||||
Net cash provided by (used in) investing activities | 58,862 | (88,947) | ||||||||
FINANCING ACTIVITIES | ||||||||||
Proceeds from debt issuances, net of discount | 199,600 | 0 | ||||||||
Issuance costs of debt | (8,677) | 0 | ||||||||
Proceeds from ordinary shares, net of issuance costs | 19,558 | 0 | ||||||||
Repayments of debt | (5,050) | (5,050) | ||||||||
Proceeds from borrowings on revolving credit facility | 40,000 | 0 | ||||||||
Repayments of borrowings on revolving credit facility | (15,333) | 0 | ||||||||
Repurchase of ordinary shares | (2,500) | (3,922) | ||||||||
Repurchase of ordinary shares for tax withholdings | (54) | 0 | ||||||||
Net cash provided by (used in) financing activities | 227,544 | (8,972) | ||||||||
INCREASE (DECREASE) IN CASH AND CASH EQUIVALENTS | 258,010 | (11,843) | ||||||||
CASH AND CASH EQUIVALENTS, BEGINNING OF THE PERIOD | 20,931 | 116,353 | 20,931 | 116,353 | 116,353 | |||||
CASH AND CASH EQUIVALENTS, END OF THE PERIOD | 278,941 | 104,510 | 278,941 | 104,510 | 20,931 | |||||
RECONCILIATION OF CASH, CASH EQUIVALENTS AND RESTRICTED CASH | ||||||||||
Cash and cash equivalents | $ 251,022 | $ 20,931 | $ 104,510 | |||||||
Restricted cash | 27,919 | 0 | 0 | |||||||
TOTAL CASH, CASH EQUIVALENTS AND RESTRICTED CASH | $ 278,941 | $ 20,931 | $ 104,510 | $ 116,353 | 278,941 | 104,510 | $ 116,353 | $ 278,941 | $ 20,931 | $ 104,510 |
SUPPLEMENTAL DISCLOSURES OF CASH FLOW INFORMATION | ||||||||||
Cash paid for interest, net of interest capitalized | 28,919 | 22,616 | ||||||||
Cash paid for income taxes, net | 2,040 | 4,990 | ||||||||
SUPPLEMENTAL DISCLOSURES OF NON-CASH INVESTING AND FINANCING ACTIVITIES | ||||||||||
Capital expenditures incurred but not yet paid | 1,590 | 5,813 | ||||||||
Intangible assets capitalized but not yet paid | 208 | 474 | ||||||||
Interest capitalized but not yet paid | 0 | 95 | ||||||||
Right-of-use assets obtained in exchange for new operating lease liabilities | 0 | 1,393 | ||||||||
Par value of vested restricted share awards | $ 93 | $ 44 |
Organization, operations and ba
Organization, operations and basis of presentation | 6 Months Ended |
Jun. 30, 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 21 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 temporarily suspended operations at all of our resorts from late March through June 2020. Our resorts began reopening in July, in stages, based on incremental easing of government restrictions and advisories and increases in scheduled commercial airline service. On July 1, 2020, we reopened 8 out of our 21 resorts and subsequently opened another 4 resorts. Currently, 12 out of our 21 resorts have reopened. We also implemented additional safety measures at our resorts to mitigate the potential health risks of COVID-19. Although we began operations in July, we cannot predict when our business will return to normalized levels because we cannot predict when all effects of the pandemic will subside. 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 debt. 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 took several actions to help remedy our liquidity situation, which include the following: • we temporarily suspended operations in late March and subsequently began opening our resorts, in stages, beginning in July; • closed on the sale of equity (see Note 8) and issuance of additional debt (see Note 11) as part of our capital raise efforts; • amended our Senior Secured Credit Facility to waive the existing financial maintenance covenants until the fiscal quarter ended September 30, 2021 (see Note 11); • sold two of our resorts operated under the Jewel brand for cash consideration (see Note 4); • significantly reduced staffing levels at the properties and at our corporate offices; • imposed compensation cuts throughout the entirety of our corporate offices; • adjusted our marketing spend; • canceled all non-essential corporate travel; • deferred all non-critical capital expenditures for the remainder of the year; and • continue to pursue the potential sale of certain of our non-core resorts. Due to the measures taken, we expect to be in compliance with all financial maintenance covenants and have sufficient liquidity to meet our obligations for at least twelve months from the date of this report. Accordingly, we believe that our plans to improve our liquidity situation have been effectively implemented and the conditions that previously raised substantial doubt about our ability to continue as a going concern have been mitigated. 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 and six months ended June 30, 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 | 6 Months Ended |
Jun. 30, 2020 | |
Accounting Policies [Abstract] | |
Significant accounting policies | Significant accounting policies Assets held for sale We classify a hotel as held for sale in the period during which we have made the decision to dispose of the hotel, a binding agreement to purchase the property has been signed under which the buyer has committed an amount of nonrefundable cash and no significant financing or other contingencies exist which could cause the transaction to not be completed in a timely manner. If these criteria are met, we perform the following steps: recognize an impairment loss if the fair value is lower than the carrying amount of the hotel and related assets; cease recording depreciation expense; and classify the assets and related liabilities as held for sale on the balance sheet. Any asset impairment is recorded within impairment loss in the Condensed Consolidated Statements of Operations . 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2020 Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Other Total Package revenue $ (165 ) $ (90 ) $ (178 ) $ 735 $ — $ 302 Non-package revenue 187 15 190 (172 ) 20 240 Management fees — — — — (18 ) (18 ) Cost reimbursements — — — 414 44 458 Total revenue $ 22 $ (75 ) $ 12 $ 977 $ 46 $ 982 Three Months Ended June 30, 2019 Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Other Total Package revenue $ 53,460 $ 19,770 $ 18,226 $ 44,639 $ — $ 136,095 Non-package revenue 8,400 3,155 4,394 8,465 14 24,428 Management fees — — — — 551 551 Cost reimbursements — — — 2,588 361 2,949 Total revenue $ 61,860 $ 22,925 $ 22,620 $ 55,692 $ 926 $ 164,023 Six Months Ended June 30, 2020 Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Other Total Package revenue $ 56,562 $ 18,634 $ 31,189 $ 46,972 $ — $ 153,357 Non-package revenue 7,734 3,101 4,455 7,494 34 22,818 Management fees — — — — 627 627 Cost reimbursements — — — 1,010 398 1,408 Total revenue $ 64,296 $ 21,735 $ 35,644 $ 55,476 $ 1,059 $ 178,210 Six Months Ended June 30, 2019 Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Other Total Package revenue $ 117,761 $ 42,493 $ 46,750 $ 98,883 $ — $ 305,887 Non-package revenue 16,239 6,801 8,994 16,859 17 48,910 Management fees — — — — 1,485 1,485 Cost reimbursements — — — 2,588 949 3,537 Total revenue $ 134,000 $ 49,294 $ 55,744 $ 118,330 $ 2,451 $ 359,819 Contract assets and liabilities We do not have any material contract assets as of June 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, As of December 31, 2020 2019 Property and equipment, gross Land, buildings and improvements $ 1,909,979 $ 1,976,214 Fixtures and machinery 80,909 81,437 Furniture and other fixed assets 229,751 228,533 Construction in progress 14,850 42,083 Total property and equipment, gross 2,235,489 2,328,267 Accumulated depreciation (430,247 ) (398,353 ) Total property and equipment, net $ 1,805,242 $ 1,929,914 Depreciation expense for property and equipment was $46.7 million and $47.7 million for the six months ended June 30, 2020 and 2019 , respectively, and $22.0 million and $25.6 million for the three months ended June 30, 2020 and 2019 , respectively. For the six months ended June 30, 2020 and 2019 , $0 million and $5.0 million of interest expense was capitalized on qualifying assets, respectively. For the three months ended June 30, 2020 and 2019 , $0 million and $2.9 million of interest expense was capitalized on qualifying assets, respectively. Interest expense was capitalized using the weighted-average interest rate of the debt. Sale of assets On May 22, 2020, we completed the sale of the Jewel Dunn’s River Beach Resort & Spa and Jewel Runaway Bay Beach Resort & Waterpark , which were reported within our Jamaica reportable segment, for $60.0 million in cash consideration. Upon classification as held for sale, we recorded an impairment loss of $25.3 million based on the sale price of the properties, which is considered an observable input other than quoted prices (Level 2) in the U.S. GAAP fair value hierarchy. The impairment is recorded within impairment loss in the Condensed Consolidated Statements of Operations . Upon closing, we received total cash consideration of $58.7 million , after customary closing costs, and recognized a $1.8 million loss within loss on sale of assets in the Condensed Consolidated Statements of Operations . Consistent with terms of our Existing Credit Agreement (as defined in Note 11), a portion of the net proceeds, after deducting incremental expenses and capital expenditures incurred across our portfolio for 18 months following the sale, will be used to prepay our Term Loan in the fourth quarter of 2021. Lessor contracts We rent certain real estate to third parties for office and retail space within our hotels. Our lessor contracts are considered operating leases and generally have a contractual term of one to three years . The following table presents our rental income for the three and six months ended June 30, 2020 and 2019 ($ in thousands) : Leases Financial Statement Classification Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Operating lease income (1) Non-package revenue $ — $ 1,245 Leases Financial Statement Classification Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Operating lease income (1) Non-package revenue $ 1,146 $ 2,716 ________ (1) Includes variable lease revenue, which is typically calculated as a percentage of our tenant's net sales. |
Income taxes
Income taxes | 6 Months Ended |
Jun. 30, 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 temporary suspension of operations at our hotels, we concluded that the transfer pricing method will not apply for the immediate future, 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 analyzed 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 June 30, 2020. For the three months ended June 30, 2020 , our income tax benefit was $14.6 million , compared to a $1.0 million income tax benefit for the three months ended June 30, 2019 . The increase in our income tax benefit of $13.6 million was driven primarily by an $8.1 million increased tax benefit due to lower pre-tax book income from our tax paying entities, a $1.2 million increase in the discrete tax benefit associated with future tax liabilities of certain Dominican Republic entities and a $5.8 million tax benefit associated with the sale of the Jewel Dunn’s River Beach Resort & Spa and Jewel Runaway Bay Beach Resort & Waterpark . The increased income tax benefit was partially offset by an $0.8 million increase in tax expense associated with foreign exchange rate fluctuations and a non-recurring $0.7 million tax benefit from the valuation allowance release during the three months ended June 30, 2019 . For the six months ended June 30, 2020 , our income tax benefit was $13.5 million , compared to an $11.6 million income tax benefit for the six months ended June 30, 2019 . The increase in our income tax benefit of $1.9 million was driven primarily by a $10.0 million increased tax benefit due to lower pre-tax book income from our tax paying entities, a $4.5 million increase in the discrete tax benefit associated with future tax liabilities of certain Dominican Republic entities, and a $5.8 million tax benefit associated with the sale of the Jewel Dunn’s River Beach Resort & Spa and Jewel Runaway Bay Beach Resort & Waterpark . The increased income tax benefit was partially offset by a $3.2 million increase in income tax expense from an immaterial correction of a prior year error, a non-recurring $14.3 million tax benefit from the valuation allowance release during the six months ended June 30, 2019 and an $0.8 million increase in tax expense associated with foreign exchange rate fluctuations. 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 | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Related party transactions | Related party transactions Relationship with Hyatt Hyatt Hotels Corporation (“Hyatt”) 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 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 Sagicor Group Jamaica Limited (“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 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 member of our Board of Directors 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 and six months ended June 30, 2020 and 2019 were as follows ( $ in thousands ): Three Months Ended June 30, Six Months Ended June 30, Related Party Transaction 2020 2019 2020 2019 Hyatt Franchise fees (1) $ 1,048 $ 4,902 $ 6,564 $ 9,538 Sagicor Insurance premiums (1) $ 119 $ 380 $ 533 $ 1,131 Sagicor Cost reimbursements $ 442 $ 2,807 $ 1,164 $ 2,807 Sabre Booking and call center services (2) $ 60 $ — $ 274 $ — Chief Executive Officer Lease expense (2) $ 196 $ 206 $ 378 $ 352 ________ (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 | 6 Months Ended |
Jun. 30, 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2020 , we did no t purchase any ordinary shares under the repurchase program. On June 12, 2020 , we issued 4,878,049 ordinary shares with a par value of €0.10 per share, in a private placement exempt from registration under the Securities Act of 1933, as amended, in connection with our capital raising efforts. We received $19.6 million in cash consideration, after customary closing costs. As of June 30, 2020 , our ordinary share capital consisted of 134,485,477 ordinary shares outstanding, which have a par value of €0.10 per share. In addition, 3,505,051 restricted shares and performance share awards and 22,656 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2020 , there were 6,226,580 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 June 30, 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 (838,553 ) 8.97 Forfeited (68,409 ) 8.95 Unvested balance at June 30, 2020 2,326,993 $ 8.54 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 June 30, 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 June 30, 2020 1,200,714 $ 6.66 |
Earnings per share
Earnings per share | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator Net (loss) income $ (87,458 ) $ 1,040 $ (110,014 ) $ 44,028 Denominator Denominator for basic EPS - weighted-average number of shares outstanding 130,466,383 130,421,695 129,876,545 130,480,549 Effect of dilutive securities Unvested restricted share awards — 393,482 — 308,918 Denominator for diluted EPS - adjusted weighted-average number of shares outstanding 130,466,383 130,815,177 129,876,545 130,789,467 EPS - Basic $ (0.67 ) $ 0.01 $ (0.85 ) $ 0.34 EPS - Diluted $ (0.67 ) $ 0.01 $ (0.85 ) $ 0.34 For the three and six months ended June 30, 2020 , 1,200,714 shares of unvested performance-based equity awards 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 and six months ended June 30, 2019 , 781,045 shares of unvested performance-based equity awards 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 and six months ended June 30, 2020 , 2,326,993 shares of unvested restricted share awards were not included in the computation of diluted EPS as their effect would have been anti-dilutive. For the three and six months ended June 30, 2019 , 273,811 and 312,424 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 and six months ended June 30, 2020 and 2019 , outstanding earnout warrants to acquire a total of 2,987,770 |
Debt
Debt | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Debt | Debt Our debt consists of the following ($ in thousands) : Outstanding Balance as of Interest Rate Maturity Date June 30, 2020 December 31, 2019 Revolving Credit Facilities Revolving Credit Facility (1) LIBOR + 3.00% April 27, 2022 $ 84,667 $ 60,000 Senior Secured Credit Facilities Term Loan (2) LIBOR + 2.75% April 27, 2024 $ 981,398 $ 986,448 Term A1 Loan 11.4777% April 27, 2024 35,000 — Term A2 Loan 11.4777% April 27, 2024 31,000 — Term A3 Loan (3) LIBOR + 3.00% April 27, 2024 28,000 — Total Term Loans (at stated value) 1,075,398 986,448 Unamortized discount (1,914 ) (2,168 ) Unamortized debt issuance costs (6,975 ) (3,622 ) Total Term Loans, net $ 1,066,509 $ 980,658 Property Loan Property Loan (at stated value) 9.25% July 1, 2025 $ 110,000 $ — Unamortized discount (4,400 ) — Unamortized debt issuance costs (4,899 ) — Total Property Loan, net $ 100,701 $ — Total debt, net $ 1,251,877 $ 1,040,658 ________ (1) Undrawn balances bear interest between 0.5% to 0.25% depending on certain leverage ratios. We had available balances of $0 million and $40.0 million as of June 30, 2020 and December 31, 2019 , respectively. The weighted-average interest rate on the outstanding balance of our Revolving Credit Facility was 3.18% and 4.72% as of June 30, 2020 and December 31, 2019 , respectively. (2) One-month London Interbank Offered Rate (“LIBOR”) rate is subject to a 1.0% floor. The interest rate was 3.75% and 4.55% as of June 30, 2020 and December 31, 2019 , respectively. Our two interest rate swaps fix LIBOR at 2.85% on $800.0 million of our Term Loan (see Note 12 ). (3) LIBOR rate is subject to a 1.0% floor. The interest rate was 4.00% as of June 30, 2020 . Fourth Amendment to Amended and Restated Credit Agreement On June 12, 2020 , we entered into the Fourth Amendment to the Amended & Restated Credit Agreement (the “Fourth Amendment”, and collectively with the unamended terms of the Senior Secured Credit Facility, the “Existing Credit Agreement”). The terms of the Senior Secured Credit Facility remain in effect except for the following terms modified by the Fourth Amendment: i. replace the total net leverage ratio requirement of the financial covenant with a minimum liquidity test until September 30, 2021 (the “Relief Period”); ii. modify the financial covenant for certain test dates after the Relief Period; and iii. add certain restrictions on, among other things, the incurrence of additional debt and making of investments, dispositions and restricted payments during the Relief Period. Additional Credit Facility On June 12, 2020 , we entered into an additional senior secured credit facility with an average interest rate of 9.25% that matures on April 27, 2024 and ranks pari passu with the Existing Credit Agreement (the “Additional Credit Facility”). The Additional Credit Facility consists of the following term loans: i. $35.0 million term loan at fixed rate of 11.4777% (the “Term A1 Loan”); ii. $31.0 million term loan at fixed rate of 11.4777% (the “Term A2 Loan”); and iii. $28.0 million term loan at our option of either a base rate plus a margin of 2.00% or LIBOR plus 3.00% (the “Term A3 Loan”). Term A3 Loan is a Eurocurrency loan subject to a 1.0% LIBOR floor consistent with the Existing Credit Agreement. We intend to use the proceeds from the Additional Credit Facility for general corporate purposes. The obligations under the Additional Credit Facility are collateralized in a manner that is substantially identical to the Existing Credit Agreement. Prior to the maturity date, the Additional Credit Facility does not require principal payments, but does include mandatory prepayment requirements for the Term A3 Loan that are consistent with the Existing Credit Agreement. Mandatory prepayments are required for certain asset sales, casualty events and condemnation events (the “Triggering Events”) that are not reinvested in our business where our total net leverage ratio is above 4.00 x. We may not voluntarily prepay any portion of the Additional Credit Facility prior to June 2023 without paying a make-whole premium equal to 100% of the interest that would have otherwise accrued from the date of such payment through June 2022 plus 50% of the interest that otherwise would have accrued from June 2022 to June 2023 . Subsequent to June 2023 , we may prepay any portion of the Additional Credit Facility without penalty. In connection with the Additional Credit Facility, we terminated the remaining $15.0 million of unused capacity of our Revolving Credit Facility under the Existing Credit Agreement. The Additional Credit Facility contains covenants, including a springing financial maintenance covenant, identical to those contained in the Existing Credit Agreement. Property Loan Agreement On June 12, 2020 , we entered into a property loan agreement in the amount of $110.0 million that has a fixed interest rate of 9.25% and matures on July 1, 2025 (the “Property Loan”). Prior to maturity, the Property Loan does not require principal payments. The Property Loan is collateralized by the mortgages of our Hyatt Ziva and Hyatt Zilara Cap Cana properties located in the Dominican Republic and the Hilton Rose Hall Resort & Spa located in Jamaica (collectively the “Properties”). We intend to use the proceeds of the Property Loan to finance the operation and management of the Properties and for general corporate purposes. During the term of the Property Loan, we are required to deposit certain cash reserves including reserves for operating expenses, debt service and certain property improvement plan required work. We will continue to fund the reserves until the Properties achieve a debt service coverage ratio of 1.50x for two consecutive calendar quarters. These reserves are presented as restricted cash on our Condensed Consolidated Balance Sheet , which had a balance of $27.9 million as of June 30, 2020 . Financial maintenance covenants We were in compliance with all applicable covenants as of June 30, 2020 . See a summary of our applicable covenants and restrictions below: Debt Covenant Terms Existing Credit Agreement We are required to maintain a minimum liquidity balance of $60.0 million through the Relief Period. If we have more than 35% drawn on the Revolving Credit Facility for periods subsequent to June 30, 2021, we will be subject to the following total net leverage ratio requirements: ▪ 6.50x for the period ended September 30, 2021; ▪ 6.00x for the period ended December 31, 2021; and ▪ 4.75x for periods thereafter. Term A1 Loan Same terms as the Existing Credit Agreement. Term A2 Loan No applicable debt covenants. Term A3 Loan No applicable debt covenants. Property Loan No applicable debt covenants other than the requirement to maintain a cash reserve until the Properties achieve a debt service coverage ratio of 1.50x for two consecutive quarters. |
Derivative financial instrument
Derivative financial instruments | 6 Months Ended |
Jun. 30, 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 $800.0 million of our Term Loan. The interest rate swaps mature on March 31, 2023. On March 20, 2019 , we elected to adopt hedge accounting and designate our interest rate swaps as cash flow hedges. Prior to our adoption of hedge accounting, the change in fair value of our interest rate swaps was recognized through interest expense in the Condensed Consolidated Statements of Operations . Following the adoption, the change in the fair value of our interest rate swaps that qualifies as effective cash flow hedges was recorded through other comprehensive loss (“OCI”) in the Condensed Consolidated Statements of Comprehensive (Loss) Income . Unrealized gains and losses in accumulated other comprehensive loss (“AOCI”) are reclassified to interest expense as interest payments are made on our variable rate debt. On February 29, 2020, our interest rate swaps were ineffective due to the decrease in interest rates and all subsequent changes in fair value were recognized through interest expense in the Condensed Consolidated Statements of Operations . The following tables present the effect of our interest rate swaps, net of tax, in the Condensed Consolidated Statements of Comprehensive (Loss) Income and Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 ($ 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 (1,908 ) 24 OCI related to our cash flow hedges for the three months ended March 31 15,048 5,858 Change in fair value — 14,648 Reclassification from AOCI to interest expense (1) (2,926 ) 136 OCI related to our cash flow hedges for the three months ended June 30 (2,926 ) 14,784 AOCI from our cash flow hedges as of June 30 $ 32,286 $ 20,642 ________ (1) As of June 30, 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Interest rate swaps (1) Interest expense $ 9,774 $ — $ 18,503 $ 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 June 30, 2020 and December 31, 2019 ($ in thousands) : Derivative Liabilities for Effective Hedges Financial Statement Classification As of June 30, As of December 31, 2020 2019 Interest rate swaps Derivative financial instruments $ — $ 31,932 Derivative Liabilities for Ineffective Hedges Financial Statement Classification As of June 30, As of December 31, 2020 2019 Interest rate swaps Derivative financial instruments $ 55,477 $ — 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 | 6 Months Ended |
Jun. 30, 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 June 30, 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 June 30, 2020 and December 31, 2019 ($ in thousands) : June 30, 2020 Level 1 Level 2 Level 3 Fair value measurements on a recurring basis Interest rate swap $ 55,477 $ — $ 55,477 $ — 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 June 30, 2020 and December 31, 2019 ($ in thousands) : Carrying Value Fair Value As of June 30, 2020 Level 1 Level 2 Level 3 Financial liabilities not recorded at fair value Term Loan $ 976,286 $ — $ — $ 876,693 Revolving Credit Facility 84,667 — — 84,802 Term A1 Loan 33,593 — — 35,201 Term A2 Loan 29,754 — — 31,178 Term A3 Loan 26,876 — — 29,040 Property Loan 100,701 — — 110,176 Total liabilities $ 1,251,877 $ — $ — $ 1,167,090 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 Loans and Property Loan The fair value of our Term Loans and Property Loan are 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 Loans. 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 | 6 Months Ended |
Jun. 30, 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 June 30, 2020 and December 31, 2019 ($ in thousands) : As of June 30, As of December 31, 2020 2019 Gross trade and other receivables (1) $ 27,447 $ 73,015 Allowance for doubtful accounts (2) (580 ) (1,765 ) Total trade and other receivables, net (3) $ 26,867 $ 71,250 ________ (1) Includes $3.0 million in receivables related to business interruption insurance claims as of June 30, 2020 . There were no such receivables as of December 31, 2019 . (2) 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. (3) The opening balance as of January 1, 2019 was $64.8 million . We have not experienced any significant write-offs to our accounts receivable during the three and six months ended June 30, 2020 and 2019 . Prepayments and other assets The following summarizes the balances of prepayments and other assets as of June 30, 2020 and December 31, 2019 ($ in thousands) : As of June 30, As of December 31, 2020 2019 Advances to suppliers $ 9,479 $ 7,865 Prepaid income taxes 11,352 12,412 Prepaid other taxes (1) 11,829 11,156 Right of use assets 5,285 5,673 Contract deposit (2) 2,700 2,700 Other assets 5,318 4,885 Total prepayments and other assets $ 45,963 $ 44,691 ________ (1) Includes recoverable value-added tax, general consumption tax and other sales tax accumulated by our Mexico, Jamaica, Netherlands and Dominican Republic entities. (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 $0.8 million due, will be treated as key money. Goodwill The gross carrying values and accumulated impairment losses of goodwill by reportable segment (refer to discussion of our reportable segments in Note 15 ) as of June 30, 2020 and December 31, 2019 are as follows ($ 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 June 30, 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 and second quarter of 2020. We performed an interim quantitative impairment analysis as of March 31, 2020 and recognized $16.2 million of goodwill impairment losses at the following reporting units within impairment loss in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2020 as we determined that their carrying values exceeded their fair value ($ 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 We recognized no additional goodwill impairment losses on our reporting units based on our interim quantitative impairment analysis as of June 30, 2020 . Other intangible assets Other intangible assets as of June 30, 2020 and December 31, 2019 consisted of the following ( $ in thousands ): As of June 30, 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) 5,544 5,187 Other 3,802 3,346 Total gross carrying value 12,121 11,308 Accumulated amortization Management contract (190 ) (143 ) Enterprise resource planning system (2) (763 ) (437 ) Other (2,613 ) (2,320 ) Total accumulated amortization (3,566 ) (2,900 ) Net carrying value Casino and other licenses (1) 875 875 Management contract 1,710 1,757 Enterprise resource planning system (2) 4,781 4,750 Other 1,189 1,026 Total net carrying value $ 8,555 $ 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 $0.7 million and $0.5 million for the six months ended June 30, 2020 and 2019 , respectively, and $0.4 million and $0.3 million for the three months ended June 30, 2020 and 2019 , respectively. Trade and other payables The following summarizes the balances of trade and other payables as of June 30, 2020 and December 31, 2019 ($ in thousands) : As of June 30, As of December 31, 2020 2019 Trade payables $ 22,724 $ 45,299 Advance deposits (1) 25,377 53,769 Withholding and other taxes payable 42,074 46,983 Interest payable 870 125 Payroll and related accruals 13,110 14,547 Accrued expenses and other payables 17,083 20,880 Total trade and other payables $ 121,238 $ 181,603 ________ (1) The opening balance as of January 1, 2019 was $57.3 million . Other liabilities The following summarizes the balances of other liabilities as of June 30, 2020 and December 31, 2019 ($ in thousands) : As of June 30, As of December 31, 2020 2019 Pension obligation (1)(2) $ 5,524 $ 6,764 Lease liabilities 5,850 6,208 Unfavorable ground lease liability 2,170 2,187 Key money (3) 16,257 8,225 Other 895 923 Total other liabilities $ 30,696 $ 24,307 ________ (1) For the six months ended June 30, 2020 and 2019 , the service cost component of net periodic pension cost was $0.4 million and $0.4 million , respectively. For the three months ended June 30, 2020 and 2019 , the service cost component of net periodic pension cost was $0.2 million and $0.2 million , respectively. These costs are recorded within direct expense in the Condensed Consolidated Statements of Operations . (2) For the six months ended June 30, 2020 and 2019 , the non-service cost components of net periodic pension benefit or cost were $1.3 million and $0.2 million , respectively. For the three months ended June 30, 2020 and 2019 , the non-service cost components of net periodic pension benefit or cost were $0.7 million and $0.2 million , respectively. These costs are recorded within other income (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 | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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 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 benefit , and depreciation and amortization expense, further adjusted to exclude the following items: (a) impairment loss; (b) other income (expense) ; (c) pre-opening expenses; (d) share-based compensation; (e) other tax expense ; (f) transaction expenses; (g) loss on sale of assets ; and (h) 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 and six months ended June 30, 2020 and 2019 ( $ in thousands ): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Owned net revenue Yucatán Peninsula $ 21 $ 59,772 $ 62,338 $ 129,985 Pacific Coast (74 ) 22,087 21,081 47,657 Dominican Republic 11 22,566 35,607 55,641 Jamaica 564 50,464 52,000 109,611 Segment owned net revenue (1) 522 154,889 171,026 342,894 Other 20 14 35 16 Management fees (18 ) 551 627 1,485 Cost reimbursements 458 2,949 1,408 3,537 Compulsory tips — 5,620 5,114 11,887 Total revenue $ 982 $ 164,023 $ 178,210 $ 359,819 ________ (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 and six months ended June 30, 2020 and 2019 ( $ in thousands ): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Owned Resort EBITDA Yucatán Peninsula $ (8,004 ) $ 21,151 $ 16,931 $ 53,310 Pacific Coast (2,816 ) 8,569 6,056 20,956 Dominican Republic (4,881 ) 5,043 2,908 18,506 Jamaica (8,097 ) 14,631 10,976 38,979 Segment Owned Resort EBITDA (23,798 ) 49,394 36,871 131,751 Other corporate (7,606 ) (9,887 ) (18,577 ) (18,393 ) Management fees (18 ) 551 627 1,485 Total Adjusted EBITDA (31,422 ) 40,058 18,921 114,843 Interest expense (20,916 ) (10,666 ) (41,871 ) (24,860 ) Depreciation and amortization (22,400 ) (25,908 ) (47,359 ) (48,219 ) Impairment loss (25,268 ) — (41,441 ) — Loss on sale of assets (1,729 ) — (1,729 ) — Other income (expense) 4,853 364 947 (238 ) Pre-opening expenses — (202 ) — (291 ) Share-based compensation (2,719 ) (2,014 ) (5,942 ) (4,762 ) Other tax expense (231 ) (443 ) (468 ) (802 ) Transaction expenses (289 ) (1,273 ) (875 ) (3,240 ) Severance expense (1,246 ) (133 ) (2,444 ) (133 ) Non-service cost components of net periodic pension (benefit) cost (1) (738 ) 249 (1,289 ) 175 Net (loss) income before tax (102,105 ) 32 (123,550 ) 32,473 Income tax benefit 14,647 1,008 13,536 11,555 Net (loss) income $ (87,458 ) $ 1,040 $ (110,014 ) $ 44,028 ________ (1) Represents the non-service cost components of net periodic pension (benefit) cost recorded within other income (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 June 30, 2020 and December 31, 2019 ($ in thousands) : As of June 30, As of December 31, 2020 2019 Segment property and equipment, gross Yucatán Peninsula $ 864,815 $ 865,900 Pacific Coast 287,850 288,358 Dominican Republic 672,769 667,120 Jamaica 405,322 499,569 Total segment property and equipment, gross 2,230,756 2,320,947 Other corporate 4,733 7,320 Accumulated depreciation (430,247 ) (398,353 ) Total property and equipment, net $ 1,805,242 $ 1,929,914 The following table presents segment capital expenditures and a reconciliation to total capital expenditures for the six months ended June 30, 2020 and 2019 ( $ in thousands ): Six Months Ended June 30, 2020 2019 Segment capital expenditures Yucatán Peninsula $ 2,348 $ 10,055 Pacific Coast 230 395 Dominican Republic 4,286 79,515 Jamaica 1,809 2,507 Total segment capital expenditures (1) 8,673 92,472 Other corporate 331 5,379 Total capital expenditures (1) $ 9,004 $ 97,851 ________ (1) |
Subsequent events
Subsequent events | 6 Months Ended |
Jun. 30, 2020 | |
Subsequent Events [Abstract] | |
Subsequent events | Subsequent events In preparing the interim Condensed Consolidated Financial Statements , there were no subsequent events since June 30, 2020 other than the following: Subsequent to June 30, 2020 , the global economy has continued to be severely impacted by the COVID-19 pandemic. We cannot predict when the effects of the pandemic will subside, and thus we cannot predict when we will be able to reopen all of our remaining resorts, whether our resorts will be permitted to remain open or when our business will return to normalized levels. There also can be no guarantee that when the effects of the pandemic subside that there will not be a later resurgence of the virus or that the demand for lodging, and consumer confidence in travel generally, will recover as quickly as other industries. The longer and more severe the pandemic, and the possibility of repeat or cyclical outbreaks of the virus beyond the one currently being 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) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 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. |
Assets held for sale | Assets held for sale We classify a hotel as held for sale in the period during which we have made the decision to dispose of the hotel, a binding agreement to purchase the property has been signed under which the buyer has committed an amount of nonrefundable cash and no significant financing or other contingencies exist which could cause the transaction to not be completed in a timely manner. If these criteria are met, we perform the following steps: recognize an impairment loss if the fair value is lower than the carrying amount of the hotel and related assets; cease recording depreciation expense; and classify the assets and related liabilities as held for sale on the balance sheet. Any asset impairment is recorded within impairment loss in the Condensed Consolidated Statements of Operations . |
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) | 6 Months Ended |
Jun. 30, 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) | 6 Months Ended |
Jun. 30, 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 June 30, 2020 Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Other Total Package revenue $ (165 ) $ (90 ) $ (178 ) $ 735 $ — $ 302 Non-package revenue 187 15 190 (172 ) 20 240 Management fees — — — — (18 ) (18 ) Cost reimbursements — — — 414 44 458 Total revenue $ 22 $ (75 ) $ 12 $ 977 $ 46 $ 982 Three Months Ended June 30, 2019 Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Other Total Package revenue $ 53,460 $ 19,770 $ 18,226 $ 44,639 $ — $ 136,095 Non-package revenue 8,400 3,155 4,394 8,465 14 24,428 Management fees — — — — 551 551 Cost reimbursements — — — 2,588 361 2,949 Total revenue $ 61,860 $ 22,925 $ 22,620 $ 55,692 $ 926 $ 164,023 Six Months Ended June 30, 2020 Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Other Total Package revenue $ 56,562 $ 18,634 $ 31,189 $ 46,972 $ — $ 153,357 Non-package revenue 7,734 3,101 4,455 7,494 34 22,818 Management fees — — — — 627 627 Cost reimbursements — — — 1,010 398 1,408 Total revenue $ 64,296 $ 21,735 $ 35,644 $ 55,476 $ 1,059 $ 178,210 Six Months Ended June 30, 2019 Yucatán Peninsula Pacific Coast Dominican Republic Jamaica Other Total Package revenue $ 117,761 $ 42,493 $ 46,750 $ 98,883 $ — $ 305,887 Non-package revenue 16,239 6,801 8,994 16,859 17 48,910 Management fees — — — — 1,485 1,485 Cost reimbursements — — — 2,588 949 3,537 Total revenue $ 134,000 $ 49,294 $ 55,744 $ 118,330 $ 2,451 $ 359,819 |
Property and equipment (Tables)
Property and equipment (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, As of December 31, 2020 2019 Property and equipment, gross Land, buildings and improvements $ 1,909,979 $ 1,976,214 Fixtures and machinery 80,909 81,437 Furniture and other fixed assets 229,751 228,533 Construction in progress 14,850 42,083 Total property and equipment, gross 2,235,489 2,328,267 Accumulated depreciation (430,247 ) (398,353 ) Total property and equipment, net $ 1,805,242 $ 1,929,914 |
Schedule of Rental Income | The following table presents our rental income for the three and six months ended June 30, 2020 and 2019 ($ in thousands) : Leases Financial Statement Classification Three Months Ended June 30, 2020 Three Months Ended June 30, 2019 Operating lease income (1) Non-package revenue $ — $ 1,245 Leases Financial Statement Classification Six Months Ended June 30, 2020 Six Months Ended June 30, 2019 Operating lease income (1) Non-package revenue $ 1,146 $ 2,716 ________ (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) | 6 Months Ended |
Jun. 30, 2020 | |
Related Party Transactions [Abstract] | |
Schedule of Related Party Transactions | Transactions between us and related parties during the three and six months ended June 30, 2020 and 2019 were as follows ( $ in thousands ): Three Months Ended June 30, Six Months Ended June 30, Related Party Transaction 2020 2019 2020 2019 Hyatt Franchise fees (1) $ 1,048 $ 4,902 $ 6,564 $ 9,538 Sagicor Insurance premiums (1) $ 119 $ 380 $ 533 $ 1,131 Sagicor Cost reimbursements $ 442 $ 2,807 $ 1,164 $ 2,807 Sabre Booking and call center services (2) $ 60 $ — $ 274 $ — Chief Executive Officer Lease expense (2) $ 196 $ 206 $ 378 $ 352 ________ (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) | 6 Months Ended |
Jun. 30, 2020 | |
Share-based Payment Arrangement [Abstract] | |
Summary of Restricted Share Awards | A summary of our restricted share awards from January 1, 2020 to June 30, 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 (838,553 ) 8.97 Forfeited (68,409 ) 8.95 Unvested balance at June 30, 2020 2,326,993 $ 8.54 |
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 June 30, 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 June 30, 2020 1,200,714 $ 6.66 |
Earnings per share (Tables)
Earnings per share (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Numerator Net (loss) income $ (87,458 ) $ 1,040 $ (110,014 ) $ 44,028 Denominator Denominator for basic EPS - weighted-average number of shares outstanding 130,466,383 130,421,695 129,876,545 130,480,549 Effect of dilutive securities Unvested restricted share awards — 393,482 — 308,918 Denominator for diluted EPS - adjusted weighted-average number of shares outstanding 130,466,383 130,815,177 129,876,545 130,789,467 EPS - Basic $ (0.67 ) $ 0.01 $ (0.85 ) $ 0.34 EPS - Diluted $ (0.67 ) $ 0.01 $ (0.85 ) $ 0.34 |
Debt (Tables)
Debt (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Debt Disclosure [Abstract] | |
Schedules of Debt Components and Covenants | See a summary of our applicable covenants and restrictions below: Debt Covenant Terms Existing Credit Agreement We are required to maintain a minimum liquidity balance of $60.0 million through the Relief Period. If we have more than 35% drawn on the Revolving Credit Facility for periods subsequent to June 30, 2021, we will be subject to the following total net leverage ratio requirements: ▪ 6.50x for the period ended September 30, 2021; ▪ 6.00x for the period ended December 31, 2021; and ▪ 4.75x for periods thereafter. Term A1 Loan Same terms as the Existing Credit Agreement. Term A2 Loan No applicable debt covenants. Term A3 Loan No applicable debt covenants. Property Loan No applicable debt covenants other than the requirement to maintain a cash reserve until the Properties achieve a debt service coverage ratio of 1.50x for two consecutive quarters. Our debt consists of the following ($ in thousands) : Outstanding Balance as of Interest Rate Maturity Date June 30, 2020 December 31, 2019 Revolving Credit Facilities Revolving Credit Facility (1) LIBOR + 3.00% April 27, 2022 $ 84,667 $ 60,000 Senior Secured Credit Facilities Term Loan (2) LIBOR + 2.75% April 27, 2024 $ 981,398 $ 986,448 Term A1 Loan 11.4777% April 27, 2024 35,000 — Term A2 Loan 11.4777% April 27, 2024 31,000 — Term A3 Loan (3) LIBOR + 3.00% April 27, 2024 28,000 — Total Term Loans (at stated value) 1,075,398 986,448 Unamortized discount (1,914 ) (2,168 ) Unamortized debt issuance costs (6,975 ) (3,622 ) Total Term Loans, net $ 1,066,509 $ 980,658 Property Loan Property Loan (at stated value) 9.25% July 1, 2025 $ 110,000 $ — Unamortized discount (4,400 ) — Unamortized debt issuance costs (4,899 ) — Total Property Loan, net $ 100,701 $ — Total debt, net $ 1,251,877 $ 1,040,658 ________ (1) Undrawn balances bear interest between 0.5% to 0.25% depending on certain leverage ratios. We had available balances of $0 million and $40.0 million as of June 30, 2020 and December 31, 2019 , respectively. The weighted-average interest rate on the outstanding balance of our Revolving Credit Facility was 3.18% and 4.72% as of June 30, 2020 and December 31, 2019 , respectively. (2) One-month London Interbank Offered Rate (“LIBOR”) rate is subject to a 1.0% floor. The interest rate was 3.75% and 4.55% as of June 30, 2020 and December 31, 2019 , respectively. Our two interest rate swaps fix LIBOR at 2.85% on $800.0 million of our Term Loan (see Note 12 ). (3) LIBOR rate is subject to a 1.0% floor. The interest rate was 4.00% as of June 30, 2020 . |
Derivative financial instrume_2
Derivative financial instruments (Tables) | 6 Months Ended |
Jun. 30, 2020 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Schedule of Effects of Derivative Instruments on Condensed Consolidated Statements of Comprehensive (Loss) Income and Condensed Consolidated Statements of Operations Operations | The following tables present the effect of our interest rate swaps, net of tax, in the Condensed Consolidated Statements of Comprehensive (Loss) Income and Condensed Consolidated Statements of Operations for the three and six months ended June 30, 2020 and 2019 ($ 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 (1,908 ) 24 OCI related to our cash flow hedges for the three months ended March 31 15,048 5,858 Change in fair value — 14,648 Reclassification from AOCI to interest expense (1) (2,926 ) 136 OCI related to our cash flow hedges for the three months ended June 30 (2,926 ) 14,784 AOCI from our cash flow hedges as of June 30 $ 32,286 $ 20,642 ________ (1) As of June 30, 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 June 30, Six Months Ended June 30, 2020 2019 2020 2019 Interest rate swaps (1) Interest expense $ 9,774 $ — $ 18,503 $ 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 June 30, 2020 and December 31, 2019 ($ in thousands) : Derivative Liabilities for Effective Hedges Financial Statement Classification As of June 30, As of December 31, 2020 2019 Interest rate swaps Derivative financial instruments $ — $ 31,932 Derivative Liabilities for Ineffective Hedges Financial Statement Classification As of June 30, As of December 31, 2020 2019 Interest rate swaps Derivative financial instruments $ 55,477 $ — |
Fair value of financial instr_2
Fair value of financial instruments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2020 and December 31, 2019 ($ in thousands) : June 30, 2020 Level 1 Level 2 Level 3 Fair value measurements on a recurring basis Interest rate swap $ 55,477 $ — $ 55,477 $ — 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 June 30, 2020 and December 31, 2019 ($ in thousands) : Carrying Value Fair Value As of June 30, 2020 Level 1 Level 2 Level 3 Financial liabilities not recorded at fair value Term Loan $ 976,286 $ — $ — $ 876,693 Revolving Credit Facility 84,667 — — 84,802 Term A1 Loan 33,593 — — 35,201 Term A2 Loan 29,754 — — 31,178 Term A3 Loan 26,876 — — 29,040 Property Loan 100,701 — — 110,176 Total liabilities $ 1,251,877 $ — $ — $ 1,167,090 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 Loans and Property Loan The fair value of our Term Loans and Property Loan are 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 Loans. 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) | 6 Months Ended |
Jun. 30, 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 June 30, 2020 and December 31, 2019 ($ in thousands) : As of June 30, As of December 31, 2020 2019 Gross trade and other receivables (1) $ 27,447 $ 73,015 Allowance for doubtful accounts (2) (580 ) (1,765 ) Total trade and other receivables, net (3) $ 26,867 $ 71,250 ________ (1) Includes $3.0 million in receivables related to business interruption insurance claims as of June 30, 2020 . There were no such receivables as of December 31, 2019 . (2) 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. (3) The opening balance as of January 1, 2019 was $64.8 million . |
Schedule of Prepayments and Other Assets | The following summarizes the balances of prepayments and other assets as of June 30, 2020 and December 31, 2019 ($ in thousands) : As of June 30, As of December 31, 2020 2019 Advances to suppliers $ 9,479 $ 7,865 Prepaid income taxes 11,352 12,412 Prepaid other taxes (1) 11,829 11,156 Right of use assets 5,285 5,673 Contract deposit (2) 2,700 2,700 Other assets 5,318 4,885 Total prepayments and other assets $ 45,963 $ 44,691 ________ (1) Includes recoverable value-added tax, general consumption tax and other sales tax accumulated by our Mexico, Jamaica, Netherlands and Dominican Republic entities. (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 $0.8 million due, will be treated as key money. |
Schedule of Goodwill | The gross carrying values and accumulated impairment losses of goodwill by reportable segment (refer to discussion of our reportable segments in Note 15 ) as of June 30, 2020 and December 31, 2019 are as follows ($ 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 June 30, 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 $16.2 million of goodwill impairment losses at the following reporting units within impairment loss in the Condensed Consolidated Statements of Operations for the three months ended March 31, 2020 as we determined that their carrying values exceeded their fair value ($ 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 |
Schedule of Other Intangible Assets, Indefinite-Lived | Other intangible assets as of June 30, 2020 and December 31, 2019 consisted of the following ( $ in thousands ): As of June 30, 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) 5,544 5,187 Other 3,802 3,346 Total gross carrying value 12,121 11,308 Accumulated amortization Management contract (190 ) (143 ) Enterprise resource planning system (2) (763 ) (437 ) Other (2,613 ) (2,320 ) Total accumulated amortization (3,566 ) (2,900 ) Net carrying value Casino and other licenses (1) 875 875 Management contract 1,710 1,757 Enterprise resource planning system (2) 4,781 4,750 Other 1,189 1,026 Total net carrying value $ 8,555 $ 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 June 30, 2020 and December 31, 2019 consisted of the following ( $ in thousands ): As of June 30, 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) 5,544 5,187 Other 3,802 3,346 Total gross carrying value 12,121 11,308 Accumulated amortization Management contract (190 ) (143 ) Enterprise resource planning system (2) (763 ) (437 ) Other (2,613 ) (2,320 ) Total accumulated amortization (3,566 ) (2,900 ) Net carrying value Casino and other licenses (1) 875 875 Management contract 1,710 1,757 Enterprise resource planning system (2) 4,781 4,750 Other 1,189 1,026 Total net carrying value $ 8,555 $ 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 $2.6 million was placed into service in 2020 and 2019, respectively and are being amortized over a weighted-average amortization period of 7 years . |
Schedule of Trade and Other Payables | The following summarizes the balances of trade and other payables as of June 30, 2020 and December 31, 2019 ($ in thousands) : As of June 30, As of December 31, 2020 2019 Trade payables $ 22,724 $ 45,299 Advance deposits (1) 25,377 53,769 Withholding and other taxes payable 42,074 46,983 Interest payable 870 125 Payroll and related accruals 13,110 14,547 Accrued expenses and other payables 17,083 20,880 Total trade and other payables $ 121,238 $ 181,603 ________ (1) The opening balance as of January 1, 2019 was $57.3 million . |
Schedule of Other Liabilities | The following summarizes the balances of other liabilities as of June 30, 2020 and December 31, 2019 ($ in thousands) : As of June 30, As of December 31, 2020 2019 Pension obligation (1)(2) $ 5,524 $ 6,764 Lease liabilities 5,850 6,208 Unfavorable ground lease liability 2,170 2,187 Key money (3) 16,257 8,225 Other 895 923 Total other liabilities $ 30,696 $ 24,307 ________ (1) For the six months ended June 30, 2020 and 2019 , the service cost component of net periodic pension cost was $0.4 million and $0.4 million , respectively. For the three months ended June 30, 2020 and 2019 , the service cost component of net periodic pension cost was $0.2 million and $0.2 million , respectively. These costs are recorded within direct expense in the Condensed Consolidated Statements of Operations . (2) For the six months ended June 30, 2020 and 2019 , the non-service cost components of net periodic pension benefit or cost were $1.3 million and $0.2 million , respectively. For the three months ended June 30, 2020 and 2019 , the non-service cost components of net periodic pension benefit or cost were $0.7 million and $0.2 million , respectively. These costs are recorded within other income (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) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2020 and 2019 ( $ in thousands ): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Owned net revenue Yucatán Peninsula $ 21 $ 59,772 $ 62,338 $ 129,985 Pacific Coast (74 ) 22,087 21,081 47,657 Dominican Republic 11 22,566 35,607 55,641 Jamaica 564 50,464 52,000 109,611 Segment owned net revenue (1) 522 154,889 171,026 342,894 Other 20 14 35 16 Management fees (18 ) 551 627 1,485 Cost reimbursements 458 2,949 1,408 3,537 Compulsory tips — 5,620 5,114 11,887 Total revenue $ 982 $ 164,023 $ 178,210 $ 359,819 ________ (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 and six months ended June 30, 2020 and 2019 ( $ in thousands ): Three Months Ended June 30, Six Months Ended June 30, 2020 2019 2020 2019 Owned Resort EBITDA Yucatán Peninsula $ (8,004 ) $ 21,151 $ 16,931 $ 53,310 Pacific Coast (2,816 ) 8,569 6,056 20,956 Dominican Republic (4,881 ) 5,043 2,908 18,506 Jamaica (8,097 ) 14,631 10,976 38,979 Segment Owned Resort EBITDA (23,798 ) 49,394 36,871 131,751 Other corporate (7,606 ) (9,887 ) (18,577 ) (18,393 ) Management fees (18 ) 551 627 1,485 Total Adjusted EBITDA (31,422 ) 40,058 18,921 114,843 Interest expense (20,916 ) (10,666 ) (41,871 ) (24,860 ) Depreciation and amortization (22,400 ) (25,908 ) (47,359 ) (48,219 ) Impairment loss (25,268 ) — (41,441 ) — Loss on sale of assets (1,729 ) — (1,729 ) — Other income (expense) 4,853 364 947 (238 ) Pre-opening expenses — (202 ) — (291 ) Share-based compensation (2,719 ) (2,014 ) (5,942 ) (4,762 ) Other tax expense (231 ) (443 ) (468 ) (802 ) Transaction expenses (289 ) (1,273 ) (875 ) (3,240 ) Severance expense (1,246 ) (133 ) (2,444 ) (133 ) Non-service cost components of net periodic pension (benefit) cost (1) (738 ) 249 (1,289 ) 175 Net (loss) income before tax (102,105 ) 32 (123,550 ) 32,473 Income tax benefit 14,647 1,008 13,536 11,555 Net (loss) income $ (87,458 ) $ 1,040 $ (110,014 ) $ 44,028 ________ (1) Represents the non-service cost components of net periodic pension (benefit) cost recorded within other income (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 June 30, 2020 and December 31, 2019 ($ in thousands) : As of June 30, As of December 31, 2020 2019 Segment property and equipment, gross Yucatán Peninsula $ 864,815 $ 865,900 Pacific Coast 287,850 288,358 Dominican Republic 672,769 667,120 Jamaica 405,322 499,569 Total segment property and equipment, gross 2,230,756 2,320,947 Other corporate 4,733 7,320 Accumulated depreciation (430,247 ) (398,353 ) Total property and equipment, net $ 1,805,242 $ 1,929,914 The following table presents segment capital expenditures and a reconciliation to total capital expenditures for the six months ended June 30, 2020 and 2019 ( $ in thousands ): Six Months Ended June 30, 2020 2019 Segment capital expenditures Yucatán Peninsula $ 2,348 $ 10,055 Pacific Coast 230 395 Dominican Republic 4,286 79,515 Jamaica 1,809 2,507 Total segment capital expenditures (1) 8,673 92,472 Other corporate 331 5,379 Total capital expenditures (1) $ 9,004 $ 97,851 ________ (1) Includes capital expenditures incurred, but not yet paid. |
Organization, operations and _2
Organization, operations and basis of presentation - Narrative (Details) - resort | Jul. 01, 2020 | May 21, 2020 | Aug. 05, 2020 | Aug. 05, 2020 | Jun. 30, 2020 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Number of resorts in portfolio | 21 | ||||
COVID-19 Pandemic | Sale of Assets | Two Resorts Operated Under Jewel Brand | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of resorts sold for cash consideration | 2 | ||||
Subsequent Event | COVID-19 Pandemic | |||||
Property, Plant and Equipment [Line Items] | |||||
Number of resorts reopened | 8 | 4 | 12 |
Revenue - Disaggregation of Rev
Revenue - Disaggregation of Revenue (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 982 | $ 164,023 | $ 178,210 | $ 359,819 |
Package revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 302 | 136,095 | 153,357 | 305,887 |
Non-package revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 240 | 24,428 | 22,818 | 48,910 |
Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (18) | 551 | 627 | 1,485 |
Cost reimbursements | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 458 | 2,949 | 1,408 | 3,537 |
Other | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 46 | 926 | 1,059 | 2,451 |
Other | Package revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Other | Non-package revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 20 | 14 | 34 | 17 |
Other | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (18) | 551 | 627 | 1,485 |
Other | Cost reimbursements | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 44 | 361 | 398 | 949 |
Yucatán Peninsula | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 22 | 61,860 | 64,296 | 134,000 |
Yucatán Peninsula | Package revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (165) | 53,460 | 56,562 | 117,761 |
Yucatán Peninsula | Non-package revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 187 | 8,400 | 7,734 | 16,239 |
Yucatán Peninsula | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Yucatán Peninsula | Cost reimbursements | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Pacific Coast | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (75) | 22,925 | 21,735 | 49,294 |
Pacific Coast | Package revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (90) | 19,770 | 18,634 | 42,493 |
Pacific Coast | Non-package revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 15 | 3,155 | 3,101 | 6,801 |
Pacific Coast | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Pacific Coast | Cost reimbursements | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Dominican Republic | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 12 | 22,620 | 35,644 | 55,744 |
Dominican Republic | Package revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (178) | 18,226 | 31,189 | 46,750 |
Dominican Republic | Non-package revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 190 | 4,394 | 4,455 | 8,994 |
Dominican Republic | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Dominican Republic | Cost reimbursements | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Jamaica | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 977 | 55,692 | 55,476 | 118,330 |
Jamaica | Package revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 735 | 44,639 | 46,972 | 98,883 |
Jamaica | Non-package revenue | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | (172) | 8,465 | 7,494 | 16,859 |
Jamaica | Management fees | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Jamaica | Cost reimbursements | ||||
Disaggregation of Revenue [Line Items] | ||||
Total revenue | $ 414 | $ 2,588 | $ 1,010 | $ 2,588 |
Property and equipment - Schedu
Property and equipment - Schedule of Property and Equipment, Net (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 2,235,489 | $ 2,328,267 |
Accumulated depreciation | (430,247) | (398,353) |
Total property and equipment, net | 1,805,242 | 1,929,914 |
Land, buildings and improvements | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 1,909,979 | 1,976,214 |
Fixtures and machinery | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 80,909 | 81,437 |
Furniture and other fixed assets | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | 229,751 | 228,533 |
Construction in progress | ||
Property, Plant and Equipment [Line Items] | ||
Property and equipment, gross | $ 14,850 | $ 42,083 |
Property and equipment - Narra
Property and equipment - Narrative (Details) - USD ($) $ in Thousands | May 22, 2020 | May 21, 2020 | Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 |
Property, Plant and Equipment [Abstract] | ||||||
Depreciation expense | $ 22,000 | $ 25,600 | $ 46,700 | $ 47,700 | ||
Interest expense capitalized on qualifying assets | $ 0 | $ 2,900 | 0 | 5,000 | ||
Lessor, Lease, Description [Line Items] | ||||||
Cash consideration from sale of assets held for sale, after customary closing costs | $ 58,125 | $ 6 | ||||
Minimum | ||||||
Lessor, Lease, Description [Line Items] | ||||||
Contractual term | 1 year | 1 year | ||||
Maximum | ||||||
Lessor, Lease, Description [Line Items] | ||||||
Contractual term | 3 years | 3 years | ||||
Sale of Assets | Jewel Dunn's River Beach Resort & Span and Jewel Runaway Bay Beach Resort & Waterpark | ||||||
Lessor, Lease, Description [Line Items] | ||||||
Cash consideration for sale of assets | $ 60,000 | |||||
Impairment loss recorded based on expected sale price of the properties | $ 25,300 | |||||
Cash consideration from sale of assets held for sale, after customary closing costs | 58,700 | |||||
Loss recognized upon closing of sale | $ 1,800 | |||||
Portion of net proceeds used to prepay Term Loan, deduction of incremental expenses and capital expenditures, period post sale | 18 months |
Property and equipment - Sche_2
Property and equipment - Schedule of Rental Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Property, Plant and Equipment [Abstract] | ||||
Operating lease income | $ 0 | $ 1,245 | $ 1,146 | $ 2,716 |
Income taxes - Narrative (Deta
Income taxes - Narrative (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)entity | Jun. 30, 2019USD ($) | |
Income Tax Examination [Line Items] | ||||
Statutory income tax rate | 25.00% | |||
Income tax expense (benefit) | $ (14,647) | $ (1,008) | $ (13,536) | $ (11,555) |
Increase in income tax benefit | 13,600 | 1,900 | ||
Increased tax benefit due to lower pre-tax book income from tax paying entities | 8,100 | 10,000 | ||
Increase in discrete tax benefit associated with future tax liabilities of certain Dominican Republic entities | 1,200 | 4,500 | ||
Tax benefit associated with sale of Jewel Dunn's River Beach Resort & Spa and Jewel Runaway Bay Beach Resort & Waterpark | 5,800 | 5,800 | ||
Increase in tax expense associated with foreign exchange rate fluctuations | 800 | 800 | ||
Non-recurring tax benefit from the valuation allowance release during prior period | $ 700 | $ 14,300 | ||
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 - Tr
Related party transactions - Transactions with Related Parties (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Affiliated Entity | Hyatt | Franchise fees | ||||
Related Party Transaction [Line Items] | ||||
Total transactions with related parties | $ 1,048 | $ 4,902 | $ 6,564 | $ 9,538 |
Affiliated Entity | Sagicor | Insurance premiums | ||||
Related Party Transaction [Line Items] | ||||
Total transactions with related parties | 119 | 380 | 533 | 1,131 |
Affiliated Entity | Sagicor | Cost reimbursements | ||||
Related Party Transaction [Line Items] | ||||
Total transactions with related parties | 442 | 2,807 | 1,164 | 2,807 |
Affiliated Entity | Sabre | Booking and call center services | ||||
Related Party Transaction [Line Items] | ||||
Total transactions with related parties | 60 | 0 | 274 | 0 |
Chief Executive Officer | Lease expense | ||||
Related Party Transaction [Line Items] | ||||
Total transactions with related parties | $ 196 | $ 206 | $ 378 | $ 352 |
Ordinary shares - Narrative (D
Ordinary shares - Narrative (Details) | Jun. 12, 2020USD ($)shares | Jun. 30, 2020€ / sharesshares | Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 12, 2020€ / shares | Dec. 31, 2019€ / sharesshares | Dec. 14, 2018USD ($) |
Class of Stock [Line Items] | |||||||
Amount of ordinary shares authorized for repurchase | $ | $ 100,000,000 | ||||||
Ordinary shares purchased under repurchase program (in shares) | 0 | ||||||
Ordinary shares issued (in shares) | 4,878,049 | ||||||
Ordinary shares, par value (in Euros per share) | € / shares | € 0.10 | € 0.10 | € 0.10 | ||||
Cash consideration, after customary closing costs, for issuance of common stock | $ | $ 19,600,000 | $ 19,558,000 | $ 0 | ||||
Ordinary shares, outstanding (in shares) | 134,485,477 | 129,121,576 | |||||
Restricted Shares and Performance Share Awards | |||||||
Class of Stock [Line Items] | |||||||
Shares outstanding (in shares) | 3,505,051 | ||||||
Restricted Share Units | |||||||
Class of Stock [Line Items] | |||||||
Shares outstanding (in shares) | 22,656 |
Share-based compensation - Nar
Share-based compensation - Narrative (Details) | Jun. 30, 2020shares |
Share-based Payment Arrangement [Abstract] | |
Shares available for future grants under the 2017 Plan (in shares) | 6,226,580 |
Share-based compensation - Sum
Share-based compensation - Summary of Restricted Stock and Performance Share Awards (Details) | 6 Months Ended |
Jun. 30, 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 | (838,553) |
Forfeited (in shares) | shares | (68,409) |
Unvested balance at end of period (in shares) | shares | 2,326,993 |
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 | 8.97 |
Forfeited (in dollars per share) | $ / shares | 8.95 |
Unvested balance at end of period (in dollars per share) | $ / shares | $ 8.54 |
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 | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Numerator | ||||||
Net (loss) income | $ (87,458) | $ (22,556) | $ 1,040 | $ 42,988 | $ (110,014) | $ 44,028 |
Denominator | ||||||
Denominator for basic EPS - weighted-average number of shares outstanding (in shares) | 130,466,383 | 130,421,695 | 129,876,545 | 130,480,549 | ||
Effect of dilutive securities | ||||||
Unvested restricted share awards (in shares) | 0 | 393,482 | 0 | 308,918 | ||
Denominator for diluted EPS - adjusted weighted-average number of shares outstanding (in shares) | 130,466,383 | 130,815,177 | 129,876,545 | 130,789,467 | ||
EPS - Basic (in dollars per share) | $ (0.67) | $ 0.01 | $ (0.85) | $ 0.34 | ||
EPS - Diluted (in dollars per share) | $ (0.67) | $ 0.01 | $ (0.85) | $ 0.34 | ||
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 | 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 | 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) | 2,326,993 | 273,811 | 2,326,993 | 312,424 |
Debt - Schedule of Debt Compone
Debt - Schedule of Debt Components (Details) | Jun. 12, 2020 | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Mar. 29, 2018USD ($)contract |
Debt Instrument [Line Items] | ||||
Total debt, net | $ 1,251,877,000 | $ 1,040,658,000 | ||
Interest rate swaps | ||||
Debt Instrument [Line Items] | ||||
Number of interest rate swap contracts | contract | 2 | |||
Fixed rate | 2.85% | |||
Senior Secured Credit Facilities | ||||
Debt Instrument [Line Items] | ||||
Total debt obligations | 1,075,398,000 | 986,448,000 | ||
Unamortized discount | (1,914,000) | (2,168,000) | ||
Unamortized debt issuance costs | (6,975,000) | (3,622,000) | ||
Total debt, net | 1,066,509,000 | 980,658,000 | ||
Notional amount | $ 800,000,000 | |||
Term Loan | Senior Secured Credit Facilities | ||||
Debt Instrument [Line Items] | ||||
Total debt obligations | $ 981,398,000 | $ 986,448,000 | ||
Effective interest rate | 3.75% | 4.55% | ||
Notional amount | $ 800,000,000 | |||
Term Loan | Senior Secured Credit Facilities | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.75% | |||
Floor interest rate | 1.00% | |||
Term A1 Loan | Senior Secured Credit Facilities | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 11.4777% | 11.4777% | ||
Total debt obligations | $ 35,000,000 | $ 0 | ||
Term A2 Loan | Senior Secured Credit Facilities | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 11.4777% | 11.4777% | ||
Total debt obligations | $ 31,000,000 | 0 | ||
Term A3 Loan | Senior Secured Credit Facilities | ||||
Debt Instrument [Line Items] | ||||
Total debt obligations | $ 28,000,000 | 0 | ||
Effective interest rate | 4.00% | |||
Term A3 Loan | Senior Secured Credit Facilities | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.00% | 3.00% | ||
Floor interest rate | 1.00% | 1.00% | ||
Property Loan | Secured Loan Agreement | ||||
Debt Instrument [Line Items] | ||||
Fixed interest rate | 9.25% | 9.25% | ||
Total debt obligations | $ 110,000,000 | 0 | ||
Unamortized discount | (4,400,000) | 0 | ||
Unamortized debt issuance costs | (4,899,000) | 0 | ||
Total debt, net | 100,701,000 | 0 | ||
Revolving Credit Facility | Line of Credit | ||||
Debt Instrument [Line Items] | ||||
Total debt obligations | 84,667,000 | 60,000,000 | ||
Available balance | $ 0 | $ 40,000,000 | ||
Weighted average interest rate on outstanding balance of debt | 3.18% | 4.72% | ||
Revolving Credit Facility | Line of Credit | Maximum | ||||
Debt Instrument [Line Items] | ||||
Interest on undrawn balances, depending on certain leverage ratios | 0.50% | |||
Revolving Credit Facility | Line of Credit | Minimum | ||||
Debt Instrument [Line Items] | ||||
Interest on undrawn balances, depending on certain leverage ratios | 0.25% | |||
Revolving Credit Facility | Line of Credit | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.00% |
Debt - Narrative (Details)
Debt - Narrative (Details) | Jun. 12, 2020USD ($)quarter | Jun. 30, 2020USD ($) | Dec. 31, 2019USD ($) | Jun. 30, 2019USD ($) |
Debt Instrument [Line Items] | ||||
Restricted cash | $ 27,919,000 | $ 0 | $ 0 | |
Term Loan | Additional Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Average interest rate | 9.25% | |||
Term Loan | Term A1 Loan | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 35,000,000 | |||
Fixed interest rate | 11.4777% | 11.4777% | ||
Term Loan | Term A2 Loan | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 31,000,000 | |||
Fixed interest rate | 11.4777% | 11.4777% | ||
Term Loan | Term A3 Loan | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 28,000,000 | |||
Minimum total net leverage ratio | 4 | |||
Term Loan | Term A3 Loan | Period through June 2022 | ||||
Debt Instrument [Line Items] | ||||
Prepayment premium, prior to June 2023, percentage of interest that would have otherwise accrued on amount prepaid | 100.00% | |||
Term Loan | Term A3 Loan | Period from June 2022 to June 2023 | ||||
Debt Instrument [Line Items] | ||||
Prepayment premium, prior to June 2023, percentage of interest that would have otherwise accrued on amount prepaid | 50.00% | |||
Term Loan | Term A3 Loan | Base Rate | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 2.00% | |||
Term Loan | Term A3 Loan | LIBOR | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.00% | 3.00% | ||
Floor interest rate | 1.00% | 1.00% | ||
Line of Credit | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Average interest rate | 3.18% | 4.72% | ||
Amount of debt terminated | $ 15,000,000 | |||
Line of Credit | Revolving Credit Facility | Period through June 2022 | ||||
Debt Instrument [Line Items] | ||||
Minimum total net leverage ratio | 6.50 | |||
Line of Credit | Revolving Credit Facility | Period from June 2022 to June 2023 | ||||
Debt Instrument [Line Items] | ||||
Minimum total net leverage ratio | 6 | |||
Line of Credit | LIBOR | Revolving Credit Facility | ||||
Debt Instrument [Line Items] | ||||
Basis spread on variable rate | 3.00% | |||
Secured Loan Agreement | Property Loan | ||||
Debt Instrument [Line Items] | ||||
Face amount of debt | $ 110,000,000 | |||
Fixed interest rate | 9.25% | 9.25% | ||
Requirement to continue making deposits into reserves, minimum debt service coverage ratio to terminate | 1.50 | |||
Threshold number of fiscal quarters to maintain minimum debt service coverage ratio for termination of requirement to continue making deposits into reserves | quarter | 2 |
Debt - Financial Maintenance Co
Debt - Financial Maintenance Covenants (Details) | Jun. 12, 2020USD ($)quarter |
Secured Loan Agreement | Property Loan | |
Debt Instrument [Line Items] | |
Requirement to continue making deposits into reserves, minimum debt service coverage ratio to terminate | 1.50 |
Threshold number of fiscal quarters to maintain minimum debt service coverage ratio for termination of requirement to continue making deposits into reserves | quarter | 2 |
Revolving Credit Facility | Line of Credit | |
Debt Instrument [Line Items] | |
Minimum liquidity balance | $ | $ 60,000,000 |
Total net leverage ratio requirement threshold, percentage drawn on Revolving Credit Facility | 35.00% |
Revolving Credit Facility | Line of Credit | Period ended September 30, 2021 | |
Debt Instrument [Line Items] | |
Minimum total net leverage ratio requirements | 6.50 |
Revolving Credit Facility | Line of Credit | Period ended December 31, 2021 | |
Debt Instrument [Line Items] | |
Minimum total net leverage ratio requirements | 6 |
Revolving Credit Facility | Line of Credit | Periods thereafter | |
Debt Instrument [Line Items] | |
Minimum total net leverage ratio requirements | 4.75 |
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 | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 772,681 | $ 809,651 | $ 878,046 | $ 839,841 | $ 809,651 | $ 839,841 |
Total other comprehensive income (loss) | 3,078 | (15,103) | (14,809) | (6,009) | (12,025) | (20,818) |
Ending balance | 710,558 | 772,681 | 863,891 | 878,046 | 710,558 | 863,891 |
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 | 20,164 | 0 | ||
Change in fair value | 0 | 16,956 | 14,648 | 5,834 | ||
Reclassification from AOCI to interest expense | (2,926) | (1,908) | 136 | 24 | ||
Total other comprehensive income (loss) | (2,926) | $ 15,048 | 14,784 | $ 5,858 | ||
Ending balance | $ 32,286 | $ 20,642 | $ 32,286 | $ 20,642 |
Derivative financial instrume_5
Derivative financial instruments - Effects on Income Statement (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Interest rate swaps | Interest expense | Derivative Liabilities for Ineffective Hedges | ||||
Derivative Instruments, Gain (Loss) [Line Items] | ||||
Effects on Income Statement | $ 9,774 | $ 0 | $ 18,503 | $ 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 | Jun. 30, 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 | $ 55,477 | $ 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 | Jun. 30, 2020 | Dec. 31, 2019 |
Fair value measurements on a recurring basis: | ||
Derivative financial instruments | $ 55,477 | $ 31,932 |
Fair Value Measurements on a Recurring Basis | Interest rate swap | ||
Fair value measurements on a recurring basis: | ||
Derivative financial instruments | 55,477 | 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 | 55,477 | 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 | Jun. 30, 2020 | Dec. 31, 2019 |
Carrying Value | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | $ 1,251,877 | $ 1,040,658 |
Carrying Value | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 980,658 | |
Carrying Value | Revolving Credit Facility | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 84,667 | 60,000 |
Carrying Value | Property Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 100,701 | |
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 | |
Fair Value | Level 1 | Revolving Credit Facility | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | 0 |
Fair Value | Level 1 | Property Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 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 | |
Fair Value | Level 2 | Revolving Credit Facility | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | 0 |
Fair Value | Level 2 | Property Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | |
Fair Value | Level 3 | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 1,167,090 | 1,043,214 |
Fair Value | Level 3 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 983,214 | |
Fair Value | Level 3 | Revolving Credit Facility | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 84,802 | $ 60,000 |
Fair Value | Level 3 | Property Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 110,176 | |
Term Loan | Carrying Value | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 976,286 | |
Term Loan | Fair Value | Level 1 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | |
Term Loan | Fair Value | Level 2 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | |
Term Loan | Fair Value | Level 3 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 876,693 | |
Term A1 Loan | Carrying Value | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 33,593 | |
Term A1 Loan | Fair Value | Level 1 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | |
Term A1 Loan | Fair Value | Level 2 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | |
Term A1 Loan | Fair Value | Level 3 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 35,201 | |
Term A2 Loan | Carrying Value | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 29,754 | |
Term A2 Loan | Fair Value | Level 1 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | |
Term A2 Loan | Fair Value | Level 2 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | |
Term A2 Loan | Fair Value | Level 3 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 31,178 | |
Term A3 Loan | Carrying Value | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 26,876 | |
Term A3 Loan | Fair Value | Level 1 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | |
Term A3 Loan | Fair Value | Level 2 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | 0 | |
Term A3 Loan | Fair Value | Level 3 | Term Loan | ||
Financial liabilities not recorded at fair value | ||
Total liabilities | $ 29,040 |
Fair value of financial instr_5
Fair value of financial instruments - Valuation Techniques (Details) | Jun. 30, 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 ($) | 12 Months Ended | ||
Dec. 31, 2019 | Jun. 30, 2020 | Jan. 01, 2019 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross trade and other receivables | $ 73,015,000 | $ 27,447,000 | |
Allowance for doubtful accounts | (1,765,000) | (580,000) | |
Total trade and other receivables, net | 71,250,000 | 26,867,000 | $ 64,800,000 |
Additional bad debt expense recognized | 800,000 | ||
Business Interruption Insurance Claims Receivable | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Gross trade and other receivables | $ 0 | $ 3,000,000 |
Other balance sheet items - S_2
Other balance sheet items - Schedule of Prepayments and Other Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | ||
Advances to suppliers | $ 9,479 | $ 7,865 |
Prepaid income taxes | 11,352 | 12,412 |
Prepaid other taxes | 11,829 | 11,156 |
Right of use assets | 5,285 | 5,673 |
Contract deposit | 2,700 | 2,700 |
Other assets | 5,318 | 4,885 |
Total prepayments and other assets | 45,963 | $ 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 ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | |
Goodwill [Roll Forward] | |||
Gross carrying value as of beginning of period | $ 84,507,000 | $ 84,507,000 | |
Accumulated impairment losses as of beginning of period | (6,168,000) | (6,168,000) | |
Net carrying value as of beginning of period | 78,339,000 | 78,339,000 | |
Impairment losses | $ 0 | (16,200,000) | (16,173,000) |
Gross carrying value as of end of period | 84,507,000 | 84,507,000 | |
Accumulated impairment losses as of end of period | (22,341,000) | (22,341,000) | |
Net carrying value as of end of period | 62,166,000 | 62,166,000 | |
Yucatán Peninsula | |||
Goodwill [Roll Forward] | |||
Gross carrying value as of beginning of period | 51,731,000 | 51,731,000 | |
Accumulated impairment losses as of beginning of period | (6,168,000) | (6,168,000) | |
Net carrying value as of beginning of period | 45,563,000 | 45,563,000 | |
Impairment losses | 0 | ||
Gross carrying value as of end of period | 51,731,000 | 51,731,000 | |
Accumulated impairment losses as of end of period | (6,168,000) | (6,168,000) | |
Net carrying value as of end of period | 45,563,000 | 45,563,000 | |
Pacific Coast | |||
Goodwill [Roll Forward] | |||
Gross carrying value as of beginning of period | 0 | 0 | |
Accumulated impairment losses as of beginning of period | 0 | 0 | |
Net carrying value as of beginning of period | 0 | 0 | |
Impairment losses | 0 | ||
Gross carrying value as of end of period | 0 | 0 | |
Accumulated impairment losses as of end of period | 0 | 0 | |
Net carrying value as of end of period | 0 | 0 | |
Dominican Republic | |||
Goodwill [Roll Forward] | |||
Gross carrying value as of beginning of period | 0 | 0 | |
Accumulated impairment losses as of beginning of period | 0 | 0 | |
Net carrying value as of beginning of period | 0 | 0 | |
Impairment losses | 0 | ||
Gross carrying value as of end of period | 0 | 0 | |
Accumulated impairment losses as of end of period | 0 | 0 | |
Net carrying value as of end of period | 0 | 0 | |
Jamaica | |||
Goodwill [Roll Forward] | |||
Gross carrying value as of beginning of period | 32,776,000 | 32,776,000 | |
Accumulated impairment losses as of beginning of period | 0 | 0 | |
Net carrying value as of beginning of period | $ 32,776,000 | 32,776,000 | |
Impairment losses | (16,173,000) | ||
Gross carrying value as of end of period | 32,776,000 | 32,776,000 | |
Accumulated impairment losses as of end of period | (16,173,000) | (16,173,000) | |
Net carrying value as of end of period | $ 16,603,000 | $ 16,603,000 |
Other balance sheet items - S_4
Other balance sheet items - Schedule of Impairment Loss (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2020 | |
Goodwill [Line Items] | |||
Impairment Loss | $ 0 | $ 16,200,000 | $ 16,173,000 |
Jamaica | |||
Goodwill [Line Items] | |||
Impairment Loss | $ 16,173,000 | ||
Jamaica | Jewel Runaway Bay Beach Resort & Waterpark | |||
Goodwill [Line Items] | |||
Impairment Loss | 6,946,000 | ||
Jamaica | Jewel Dunn’s River Beach Resort & Spa | |||
Goodwill [Line Items] | |||
Impairment Loss | 5,126,000 | ||
Jamaica | Jewel Paradise Cove Beach Resort & Spa | |||
Goodwill [Line Items] | |||
Impairment Loss | $ 4,101,000 |
Other balance sheet items - S_5
Other balance sheet items - Schedule of Other Intangible Assets (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Total accumulated amortization | $ (3,566) | $ (3,566) | $ (2,900) | ||
Indefinite-lived Intangible Assets [Line Items] | |||||
Total gross carrying value | 12,121 | 12,121 | 11,308 | ||
Total net carrying value | 8,555 | 8,555 | 8,408 | ||
Amortization expense for intangible assets | 400 | $ 300 | 700 | $ 500 | |
Casino and other licenses | |||||
Indefinite-lived Intangible Assets [Line Items] | |||||
Indefinite-Lived Intangible Assets | 875 | 875 | 875 | ||
Management contract | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying value, Finite-lived intangible assets | 1,900 | 1,900 | 1,900 | ||
Total accumulated amortization | (190) | (190) | (143) | ||
Net carrying value, Finite-lived intangible assets | 1,710 | 1,710 | 1,757 | ||
Enterprise resource planning system | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Gross carrying value, Finite-lived intangible assets | 5,544 | 5,544 | 5,187 | ||
Total accumulated amortization | (763) | (763) | (437) | ||
Net carrying value, Finite-lived intangible assets | 4,781 | 4,781 | 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 | 3,802 | $ 3,802 | 3,346 | ||
Total accumulated amortization | (2,613) | (2,613) | (2,320) | ||
Net carrying value, Finite-lived intangible assets | $ 1,189 | $ 1,189 | $ 1,026 |
Other balance sheet items - S_6
Other balance sheet items - Schedule of Trade and Other Payables (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 | Jan. 01, 2019 |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||
Trade payables | $ 22,724 | $ 45,299 | |
Advance deposits | 25,377 | 53,769 | $ 57,300 |
Withholding and other taxes payable | 42,074 | 46,983 | |
Interest payable | 870 | 125 | |
Payroll and related accruals | 13,110 | 14,547 | |
Accrued expenses and other payables | 17,083 | 20,880 | |
Total trade and other payables | $ 121,238 | $ 181,603 |
Other balance sheet items - S_7
Other balance sheet items - Schedule of Other Liabilities (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2020 | Jun. 30, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | Dec. 31, 2019 | |
Organization, Consolidation and Presentation of Financial Statements [Abstract] | |||||
Pension obligation | $ 5,524 | $ 5,524 | $ 6,764 | ||
Lease liabilities | 5,850 | 5,850 | 6,208 | ||
Unfavorable ground lease liability | 2,170 | 2,170 | 2,187 | ||
Key money | 16,257 | 16,257 | 8,225 | ||
Other | 895 | 895 | 923 | ||
Total other liabilities | 30,696 | 30,696 | 24,307 | ||
Service cost component of net periodic pension cost | 200 | $ 200 | 400 | $ 400 | |
Non-service cost components of net periodic pension (benefit) cost | $ 700 | $ (200) | 1,300 | (200) | |
Receipt of key money | $ 8,500 | $ 2,500 | $ 6,500 |
Segment information - Schedule
Segment information - Schedule of Net Revenue and Reconciliation to Gross Revenue (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2020USD ($) | Jun. 30, 2019USD ($) | Jun. 30, 2020USD ($)segment | Jun. 30, 2019USD ($) | |
Segment Reporting [Abstract] | ||||
Number of reportable segments | segment | 4 | |||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 982 | $ 164,023 | $ 178,210 | $ 359,819 |
Management fees | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | (18) | 551 | 627 | 1,485 |
Cost reimbursements | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 458 | 2,949 | 1,408 | 3,537 |
Yucatán Peninsula | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 22 | 61,860 | 64,296 | 134,000 |
Yucatán Peninsula | Management fees | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Yucatán Peninsula | Cost reimbursements | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Pacific Coast | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | (75) | 22,925 | 21,735 | 49,294 |
Pacific Coast | Management fees | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Pacific Coast | Cost reimbursements | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Dominican Republic | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 12 | 22,620 | 35,644 | 55,744 |
Dominican Republic | Management fees | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Dominican Republic | Cost reimbursements | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Jamaica | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 977 | 55,692 | 55,476 | 118,330 |
Jamaica | Management fees | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 0 | 0 | 0 | 0 |
Jamaica | Cost reimbursements | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 414 | 2,588 | 1,010 | 2,588 |
Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 522 | 154,889 | 171,026 | 342,894 |
Operating Segments | Yucatán Peninsula | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 21 | 59,772 | 62,338 | 129,985 |
Operating Segments | Pacific Coast | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | (74) | 22,087 | 21,081 | 47,657 |
Operating Segments | Dominican Republic | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 11 | 22,566 | 35,607 | 55,641 |
Operating Segments | Jamaica | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 564 | 50,464 | 52,000 | 109,611 |
Segment Reconciling Items | Other | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 20 | 14 | 35 | 16 |
Segment Reconciling Items | Management fees | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | (18) | 551 | 627 | 1,485 |
Segment Reconciling Items | Cost reimbursements | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | 458 | 2,949 | 1,408 | 3,537 |
Segment Reconciling Items | Compulsory tips | ||||
Segment Reporting Information [Line Items] | ||||
Total revenue | $ 0 | $ 5,620 | $ 5,114 | $ 11,887 |
Segment information - Schedul_2
Segment information - Schedule of Owned Resort EBITDA, Adjusted EBITDA and Reconciliation to Net (Loss) Income (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2020 | Mar. 31, 2020 | Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2020 | Jun. 30, 2019 | |
Owned Resort EBITDA | ||||||
Total Adjusted EBITDA | $ (31,422) | $ 40,058 | $ 18,921 | $ 114,843 | ||
Management fees | 982 | 164,023 | 178,210 | 359,819 | ||
Interest expense | (20,916) | (10,666) | (41,871) | (24,860) | ||
Depreciation and amortization | (22,400) | (25,908) | (47,359) | (48,219) | ||
Impairment loss | (25,268) | 0 | (41,441) | 0 | ||
Loss on sale of assets | (1,729) | 0 | (1,729) | 0 | ||
Other income (expense) | 4,853 | 364 | 947 | (238) | ||
Pre-opening expenses | 0 | (202) | 0 | (291) | ||
Non-service cost components of net periodic pension (benefit) cost | (700) | 200 | (1,300) | 200 | ||
Net (loss) income before tax | (102,105) | 32 | (123,550) | 32,473 | ||
Income tax benefit | 14,647 | 1,008 | 13,536 | 11,555 | ||
Net (loss) income | (87,458) | $ (22,556) | 1,040 | $ 42,988 | (110,014) | 44,028 |
Management fees | ||||||
Owned Resort EBITDA | ||||||
Management fees | (18) | 551 | 627 | 1,485 | ||
Yucatán Peninsula | ||||||
Owned Resort EBITDA | ||||||
Management fees | 22 | 61,860 | 64,296 | 134,000 | ||
Yucatán Peninsula | Management fees | ||||||
Owned Resort EBITDA | ||||||
Management fees | 0 | 0 | 0 | 0 | ||
Pacific Coast | ||||||
Owned Resort EBITDA | ||||||
Management fees | (75) | 22,925 | 21,735 | 49,294 | ||
Pacific Coast | Management fees | ||||||
Owned Resort EBITDA | ||||||
Management fees | 0 | 0 | 0 | 0 | ||
Dominican Republic | ||||||
Owned Resort EBITDA | ||||||
Management fees | 12 | 22,620 | 35,644 | 55,744 | ||
Dominican Republic | Management fees | ||||||
Owned Resort EBITDA | ||||||
Management fees | 0 | 0 | 0 | 0 | ||
Jamaica | ||||||
Owned Resort EBITDA | ||||||
Management fees | 977 | 55,692 | 55,476 | 118,330 | ||
Jamaica | Management fees | ||||||
Owned Resort EBITDA | ||||||
Management fees | 0 | 0 | 0 | 0 | ||
Operating Segments | ||||||
Owned Resort EBITDA | ||||||
Total Adjusted EBITDA | (23,798) | 49,394 | 36,871 | 131,751 | ||
Management fees | 522 | 154,889 | 171,026 | 342,894 | ||
Operating Segments | Yucatán Peninsula | ||||||
Owned Resort EBITDA | ||||||
Total Adjusted EBITDA | (8,004) | 21,151 | 16,931 | 53,310 | ||
Management fees | 21 | 59,772 | 62,338 | 129,985 | ||
Operating Segments | Pacific Coast | ||||||
Owned Resort EBITDA | ||||||
Total Adjusted EBITDA | (2,816) | 8,569 | 6,056 | 20,956 | ||
Management fees | (74) | 22,087 | 21,081 | 47,657 | ||
Operating Segments | Dominican Republic | ||||||
Owned Resort EBITDA | ||||||
Total Adjusted EBITDA | (4,881) | 5,043 | 2,908 | 18,506 | ||
Management fees | 11 | 22,566 | 35,607 | 55,641 | ||
Operating Segments | Jamaica | ||||||
Owned Resort EBITDA | ||||||
Total Adjusted EBITDA | (8,097) | 14,631 | 10,976 | 38,979 | ||
Management fees | 564 | 50,464 | 52,000 | 109,611 | ||
Other corporate | ||||||
Owned Resort EBITDA | ||||||
Total Adjusted EBITDA | (7,606) | (9,887) | (18,577) | (18,393) | ||
Segment Reconciling Items | ||||||
Owned Resort EBITDA | ||||||
Interest expense | (20,916) | (10,666) | (41,871) | (24,860) | ||
Depreciation and amortization | (22,400) | (25,908) | (47,359) | (48,219) | ||
Impairment loss | (25,268) | 0 | (41,441) | 0 | ||
Loss on sale of assets | (1,729) | 0 | (1,729) | 0 | ||
Other income (expense) | 4,853 | 364 | 947 | (238) | ||
Pre-opening expenses | 0 | (202) | 0 | (291) | ||
Share-based compensation | (2,719) | (2,014) | (5,942) | (4,762) | ||
Other tax expense | (231) | (443) | (468) | (802) | ||
Transaction expenses | (289) | (1,273) | (875) | (3,240) | ||
Severance expense | (1,246) | (133) | (2,444) | (133) | ||
Non-service cost components of net periodic pension (benefit) cost | (738) | 249 | (1,289) | 175 | ||
Segment Reconciling Items | Management fees | ||||||
Owned Resort EBITDA | ||||||
Management fees | $ (18) | $ 551 | $ 627 | $ 1,485 |
Segment information - Schedul_3
Segment information - Schedule of Segment Property and Equipment and Reconciliation to Property and Equipment, Net (Details) (Details) - USD ($) $ in Thousands | Jun. 30, 2020 | Dec. 31, 2019 |
Segment Reporting Information [Line Items] | ||
Property and equipment, gross | $ 2,235,489 | $ 2,328,267 |
Accumulated depreciation | (430,247) | (398,353) |
Property and equipment, net | 1,805,242 | 1,929,914 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, gross | 2,230,756 | 2,320,947 |
Operating Segments | Yucatán Peninsula | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, gross | 864,815 | 865,900 |
Operating Segments | Pacific Coast | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, gross | 287,850 | 288,358 |
Operating Segments | Dominican Republic | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, gross | 672,769 | 667,120 |
Operating Segments | Jamaica | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, gross | 405,322 | 499,569 |
Other corporate | ||
Segment Reporting Information [Line Items] | ||
Property and equipment, gross | $ 4,733 | $ 7,320 |
Segment information - Schedul_4
Segment information - Schedule of Segment Capital Expenditures and Reconciliation to Capital Expenditures (Details) (Details) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2020 | Jun. 30, 2019 | |
Segment Reporting Information [Line Items] | ||
Total capital expenditures | $ 9,004 | $ 97,851 |
Operating Segments | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 8,673 | 92,472 |
Operating Segments | Yucatán Peninsula | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 2,348 | 10,055 |
Operating Segments | Pacific Coast | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 230 | 395 |
Operating Segments | Dominican Republic | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 4,286 | 79,515 |
Operating Segments | Jamaica | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | 1,809 | 2,507 |
Other corporate | ||
Segment Reporting Information [Line Items] | ||
Total capital expenditures | $ 331 | $ 5,379 |