Playa Hotels & Resorts has filed an S-1 form with the U.S. Securities and Exchange Commission (SEC) regarding its initial public offering (IPO). No pricing details were given in the filing, but the offering is valued up to $100 million, although this number is usually just a placeholder. The company intends to list its shares on the Nasdaq Global Select Market under the symbol PLYA.
The underwriters for the offering are Merrill Lynch and Deutsche Bank.
This is a leading owner, operator and developer of all-inclusive resorts in prime beachfront locations in popular vacation destinations in Mexico and the Caribbean. Upon the completion of this offering, it will be the only publicly traded company focusing exclusively on the all-inclusive segment of the lodging industry.
Playa Hotels owns a portfolio consisting of 13 resorts (6,142 rooms) located in Mexico, the Dominican Republic and Jamaica.
All-inclusive resorts provide guests with an integrated experience through prepaid packages of room accommodations, food and beverage services and entertainment activities. This company believes that its properties are among the finest all-inclusive resorts in the markets they serve. All the resorts offer guests luxury accommodations, noteworthy architecture, extensive on-site activities and multiple food and beverage options. Guests also have the opportunity to purchase upgrades such as premium rooms, dining experiences, wines and spirits, and spa packages.
In terms of the finances, the company detailed in the filing:
For the year ended December 31, 2015, we generated net income of $9.7 million, total revenue of $408.3 million, Net Package RevPAR (as defined below) of approximately $179 and Adjusted EBITDA (as defined below) of $101.7 million. For the six months ended June 30, 2016, we generated net income of $46.4 million, total revenue of $287.3 million, Net Package RevPAR of approximately $218 and Adjusted EBITDA of $100.3 million. This represents increases from the six months ended June 30, 2015, during which we generated net income of $24.3 million, total revenue of $214.9 million, Net Package RevPAR of approximately $201 and Adjusted EBITDA of $68.0 million.
The company intends to use the net proceeds from this offering to repurchase its preferred shares from Hyatt, with the remainder going toward working capital and general corporate purposes.
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