Playa Hotels & Resorts N.V. (PLYA) Q4 2022 Earnings Call Transcript

Playa Hotels & Resorts N.V. (NASDAQ:PLYA) Q4 2022 Earnings Conference Call February 24, 2023 11:00 AM ET

Company Participants

Ryan Hymel - Chief Financial Officer

Bruce Wardinski - Chairman and Chief Executive Officer

Conference Call Participants

Patrick Scholes - Truist Securities

Dany Asad - Bank of America

Chad Beynon - Macquarie

Smedes Rose - Citi

Tyler Batory - Oppenheimer

Chris Woronka - Deutsche Bank

Operator

Good morning, everyone, and invited to nan Playa Hotels & Resorts Q4 2022 Earnings Conference Call. All participants will beryllium successful a listen-only mode. [Operator Instructions] Please besides statement today's arena is being recorded.

At this time, I'd for illustration to move nan level complete to Ryan Hymel. Please, spell ahead.

Ryan Hymel

Thank you, Jimmy. Good morning, everyone, and invited to Playa Hotels & Resorts Fourth Quarter 2022 Earnings Conference Call.

Before we begin, I'd for illustration to punctual participants that galore of our comments coming will beryllium considered forward-looking statements and are taxable to galore risks and uncertainties that whitethorn origin nan company's existent results to disagree materially from what has been communicated. Forward-looking statements made coming are effective only arsenic of today, and nan institution undertakes nary responsibility to update forward-looking statements.

For chat of immoderate of nan factors that could origin our existent results to differ, please reappraisal nan Risk Factors conception of our Annual Report connected Form 10-K, which we revenge past nighttime pinch nan SEC. We've updated our Investor Relations website astatine investors.playaresorts.com pinch nan company's caller releases.

In addition, reconciliation to GAAP of nan non-GAAP financial measures we talk connected this telephone were included successful yesterday's property release.

On today's call, Bruce Wardinski, Playa's Chairman and Chief Executive Officer, will supply comments connected nan 4th quarter, request trends and cardinal operational highlights. I will past reside our 4th fourth results and our outlook. Bruce will wrap up nan telephone pinch immoderate concluding remarks earlier we move it complete to Q&A.

With that, I'll move nan telephone complete to Bruce.

Bruce Wardinski

Great. Thanks, Ryan. Good morning, everyone, and convey you for joining us.

The 4th fourth capped disconnected Playa's best twelvemonth successful a comparatively short history arsenic we proceed to execute connected our strategical nonsubjective of expanding nan worth and work we supply our guests while yielding ADR appropriately arsenic request and consciousness of our high-quality resorts proceed to build.

Despite persistent fears of a imaginable slowdown successful leisure travel, our business performed good during nan 4th quarter, and our nett bookings for nan Playa owned and managed properties person reached caller play highs truthful acold successful 2023. We person seen nary noteworthy changes successful cancellation activity. But arsenic we person antecedently stated, we will set our costs and operating protocols accordingly if location were to beryllium a pullback successful impermanent demand.

Playa generated nan highest 4th fourth adjusted EBITDA and owned edifice EBITDA separator successful nan company's history, arsenic our compelling worth proposition continued to resonate pinch travelers arsenic evidenced by our ADR maturation compared to 2019, accelerating to astir 67% connected a reported ground aliases astir 46% connected a like-for-like basis, adjusted for portfolio operation and non-cash adjustments. I'd for illustration to statement that these ADR gains coincide pinch our ain and third-party NPS scores reaching caller highs, a existent testament to nan charismatic worth proposition of nan all-inclusive experience, peculiarly successful an inflationary world.

As I mentioned before, though our header ADR maturation compared to 2019 has been robust, nan header maturation successful nan 4th fourth benefited by astir 20 percent points from non-cash adjustments, plus dispositions of little ADR resorts and nan summation of our Hyatt Cap Cana resort. These are important considerations erstwhile contemplating our ADR maturation sustainability and nan compelling worth we proceed to connection our guests.

It is besides worthy noting that nan absolute underlying ADR dollar alteration versus 2019 during nan 2nd half of 2022 was little than $100. Strategically, we still judge that seeding immoderate occupancy successful favour of ADR, chiefly astatine our Hyatt resorts, is nan champion way guardant for Playa, arsenic it establishes america arsenic nan complaint leader from a competitory standpoint successful our respective markets, is much manageable from an operations position and improves nan wide impermanent experience.

Fourth 4th fundamentals exhibited a sequential acceleration successful maturation versus nan comparable play successful 2019. And connected a year-over-year basis, pinch patient occupancy and broad-based ADR spot starring to year-over-year separator betterment contempt nan difficult disbursal ostentation environment, lapping grounds 4th fourth margins from nan anterior twelvemonth and nan effect of hurricane-related closures -- edifice closures successful nan Dominican Republic.

Jamaica had different beardown 4th arsenic nan betterment accelerated during nan 4th fourth pinch underlying ADR maturation versus 2019, astir successful statement pinch nan Yucatan conception and occupancy levels higher than Q4 '18, '19 and '21. As a reminder, Jamaica removed COVID-related recreation restrictions requirements during nan 2nd 4th of 2022, and we anticipated that Jamaica would spot request accelerate arsenic this was our champion performing conception anterior to nan pandemic, and we didn't judge location were immoderate structural issues that would prohibit request from recovery. The gait of nan betterment successful Jamaica has been stellar, and we dream to transportation nan momentum going forward, peculiarly arsenic nan MICE conception location continues to recover. Aided by a higher operation of groups, I americium optimistic that nan betterment successful Jamaica has a patient runway.

In Mexico, nan Yucatan led nan measurement connected occupancy and saw underlying ADR maturation versus 2019 of astir 50%, while nan Pacific Coast reported different 4th of robust ADR growth, up 24% year-over-year, besides aided by nan highest 4th fourth group operation we person knowledgeable successful that segment.

In nan Dominican Republic, pursuing nan impermanent closure of respective resorts precocious successful September owed to nan effect of Hurricane Fiona, we reopened each of nan disruptive resorts mostly up of schedule during nan 4th quarter. The properties reopened amended than ever. And much importantly, we knowledgeable small to nary slippage successful booking demand.

Finally, complete nan past fewer months, we assumed guidance of nan 2 resorts successful nan DR that were antecedently managed by a 3rd statement connected our behalf and rebranded them arsenic nan Jewel Palm Beach and Jewel Punta Cana, respectively. As is usually nan case, location was important disruption during nan modulation process arsenic nan resorts were handed complete to america arsenic mostly blank slates pinch insignificant revenues connected nan book.

In addition, we decided to execute immoderate renewal activity during nan modulation play that is not materially costly from a superior perspective, but will require 1 of nan resorts to beryllium closed for a short play of clip successful nan first quarter. I will talk our plans for these resorts later connected nan call.

As of mid-February, our Playa owned and managed gross connected nan books, excluding nan 2 caller Jewel properties successful nan DR for some nan first and 2nd 4th is pacing up complete 30% year-over-year, pinch ADR gains accounting for astir one-third of nan increases. It is important to statement that these figures see nan effect from nan resorts we temporarily closed successful nan Dominican Republic arsenic a consequence of basal repair activity related to Hurricane Fiona.

During nan post-pandemic period, we began to acquisition a flimsy alteration successful our emblematic seasonal request patterns arsenic nan summertime play saw little of a dip successful ADR versus precocious season, which we judge would beryllium mostly structural and sticky going guardant because, frankly, we were antecedently excessively inexpensive comparative to nan merchandise offering and a much pronounced seasonality will apt reemerge arsenic a consequence of request pushing up precocious play pricing, not needfully arsenic a consequence of a driblet successful 3rd 4th pricing arsenic nan worth is now being amended recognized by nan consumer.

With that successful mind, our 3rd 4th gross connected nan books is pacing up complete 20% year-over-year, pinch ADR up precocious azygous digits, again, driving a important information of nan increase. We are pleased pinch our gross and ADR pacing, which person continued to build since our past net call. We are besides pacing good up of past twelvemonth successful nan MICE Group segment, pinch further imaginable to thrust much MICE business successful that conception successful nan 2nd half of nan year.

Shifting to bookings. Our attraction connected nonstop channels continues to salary off, and we are assured that Playa is connected target pinch our five-year scheme to summation transient user nonstop business to astatine slightest 50% by 2023. In aggregate, during nan 4th fourth of 2022, 43.2% of Playa managed room nights booked were booked direct, up 160 ground points year-over-year, increasing year-over-year for nan 2nd consecutive quarter. Excluding group business, astir 47% of our Playa managed room nights booked were generated via nonstop channels.

During nan 4th fourth of 2022, playaresorts.com accounted for astir 15% of our full Playa managed room nighttime bookings, continuing to beryllium a important facet successful our customer sourcing and ADR gains.

Taking a look astatine who is traveling, a small little than 40% of nan Playa managed room nighttime stays successful nan 4th came from our nonstop channels, arsenic our group and OTA operation improved year-over-year, though our OTA operation remained depressed compared to pre-pandemic levels.

Geographically, nan biggest alteration successful our impermanent operation during nan 4th fourth was nan resurgence of our Canadian impermanent mix, which was up astir 7 percent points year-over-year, nearing pre-pandemic Q4 operation levels.

Our U.S. impermanent operation was dependable year-over-year, remained importantly higher than nan pre-pandemic period.

Our European originated impermanent operation was down importantly year-over-year, but successful statement pinch pre-pandemic levels. If you recall, we had a alternatively ample surge successful European root guests during nan 4th fourth of 2021, peculiarly from Ukraine and Russia, which subsided during 2022.

Our Asian root impermanent operation improved modestly year-over-year but remained nan astir depressed arsenic it is only astir 20% to 25% recovery.

Our booking model of complete 3 months was somewhat longer than Q4 2019 arsenic a consequence of nan robust pacing figures we person been sharing pinch you successful our anterior net calls.

Once again, I would for illustration to sincerely convey each of our associates that person continued to present world-class work successful nan look of pandemic-related challenges. Their unwavering passion and dedication to work is what genuinely sets Playa apart.

Finally, connected nan superior allocation front, arsenic you whitethorn person seen, our Board of Directors reauthorized a $100 cardinal stock repurchase programme successful September of 2022, fixed nan betterment successful nan business, moderating leverage ratios and nan charismatic valuation of our stock. After nan reauthorization, we repurchased astir 7.8 cardinal shares during 2022 and different astir 1.5 cardinal shares successful 2023 aliases astir 5.5% of nan diluted shares outstanding arsenic of nan extremity of Q3 2022 for full proceeds of astir $56 million.

Given nan existent valuation of Playa stock, stock repurchases person played a bigger domiciled successful our superior allocation decisions versus ROI CapEx projects. Taking into information nan repurchases to day and nan company's expected rate generation, our Board of Directors precocious approved a caller $200 cardinal authorization to supply ample elasticity pinch respect to nan company's superior allocation. While we still afloat intend to prosecute superior projects, their hurdle becomes that overmuch higher erstwhile nan banal is truthful disconnected compared to fundamentals.

Also, arsenic portion of nan superior allocation framework, we person decided not to prosecute a important renewal and repositioning of nan 2 Jewel properties we precocious took complete successful nan DR, and alternatively person engaged a agent pinch nan extremity of trading nan properties successful 2023 and to usage nan proceeds to further money precocious privilege projects and to proceed to repurchase shares. In nan interim, we are assured that we tin return these properties to profitability arsenic we summation our income efforts.

With that, I will move nan telephone backmost complete to Ryan to talk nan equilibrium expanse and our outlook.

Ryan Hymel

Thank you, Bruce.

I'll statesman pinch our superior markets activity during nan 4th quarter. And I'm pleased to stock that we completed a refinancing of our full indebtedness stack during nan 4th quarter, replacing our erstwhile word indebtedness owed 2024, our spot indebtedness owed '25 and revolving in installments facility, replacing those pinch a caller $1.1 cardinal word indebtedness maturing successful January of '29 and a caller $225 cardinal revolving in installments facility, replacing our anterior $60 cardinal line. The caller superior building provides america pinch ample elasticity and liquidity to proceed investing successful high-return, all-inclusive projects, repurchasing shares and greatly improves our expertise to scheme our task runway going forward.

We vanished nan twelvemonth pinch a full rate equilibrium of $284 cardinal pursuing nan completion of nan refinancing. We presently person nary outstanding borrowings connected our revolving in installments facility, and our full outstanding interest-bearing indebtedness is $1.1 billion. Our nett leverage connected a trailing ground stands astatine 3.4 times. We expect our rate CapEx walk for afloat twelvemonth 2023 to beryllium astir $55 cardinal to $65 cardinal for nan year, walled retired betwixt astir $35 cardinal to $40 cardinal for attraction CapEx and nan remainder to much ROI-oriented projects.

On nan superior allocation front, arsenic Bruce mentioned, our Board of Directors reauthorized $100 cardinal stock repurchase programme backmost successful September of '22. And arsenic of January 31, we've repurchased $56 cardinal aliases 9.4 cardinal shares nether that authorization and person since accrued our authorization successful 2023, bringing our repurchase capacity to $200 million.

With our leverage complaint income good beneath 4 time, nan anticipated free rate travel procreation of nan business and nan charismatic valuation of our stock, we judge repurchasing shares is simply a very compelling usage of superior and intend to usage our discretionary superior disposable to repurchase shares going forward, depending, of course, connected marketplace conditions. We'll besides proceed to put successful our business to present worth to some our guests and shareholders, but nan barroom is precocious for caller projects connected a risk-adjusted ground fixed nan valuation of our stock.

Turning to our MICE Group business. Our 2023 nett MICE Group business connected nan books is astir $50 cardinal versus $40 cardinal astatine nan clip of our past net telephone and is good up of our last afloat twelvemonth 2019 MICE gross of $32 million. The immense mostly of nan MICE business connected nan books for 2023 is scheduled to enactment pinch america during nan first half of nan twelvemonth arsenic compared to astir two-thirds of 2022's MICE business being first half weighted. A important information of nan MICE business realized during nan 2nd half of 2022 was shorter lead clip business compared to emblematic MICE bookings during nan precocious season. Our income chimney and pacing for nan 2nd half stay healthy.

Now moving connected to nan fundamentals. Excluding nan effect from Hurricane Fiona connected our DR segment, our 4th fourth results exceeded our expectations arsenic a consequence of better-than-expected ADR, occupancy and little inflationary unit connected F&B and utilities. With respect to top-line, occupancy came successful supra our expectations, driven by close-in request successful nan Yucatan and Jamaica. Also came -- ADR besides came successful supra our expectations owed to better-than-anticipated ADR gains successful nan Dominican Republic astatine some our managed properties pursuing their reopening station Hurricane Fiona.

On nan costs front, arsenic Bruce mentioned, nan teams person done an fantabulous occupation navigating nan existent challenges of nan environment. Our edifice margins were good up of Q4 '18, '19 and '21 levels. And arsenic I mentioned connected our past net call, we began to spot stabilization successful F&B and utilities costs connected a per portion ground astir nan mediate of 2022, and we're hopeful that nan inflationary unit from these 2 areas would statesman to easiness arsenic we move into 2023 and thigh nan surge that occurred astir nan commencement of '22. We began a fewer signs of this during nan 4th quarter, driving a important information of nan upside to ain edifice EBITDA extracurricular of nan DR. Although it's bully to spot immoderate costs relief, these expenses tin beryllium volatile quarter-to-quarter.

I'd besides for illustration to constituent retired that we're forecasting our security premiums to summation substantially successful 2023 during our April renewal, and this statement whitethorn unit 2nd half margins. This anticipation is not only owed to our ain claims related to Hurricane Fiona, but respective incidents that plagued nan security manufacture successful 2022.

At nan conception level, arsenic Bruce mentioned, we knowledgeable broad-based spot successful Q4, excluding nan effect of Hurricane Fiona. Jamaica made much headway connected closing nan spread versus different segments pinch underlying maturation versus Q4 2019, conscionable awkward of nan Yucatan segment. Adjusting ADRs successful Jamaica for nan operation effect associated pinch plus sales, like-for-like ADRs successful Jamaica are still lagging comparable peers by astir 10 to 15 percent points. As a reminder, Jamaica sewage disconnected to a slower commencement successful nan opening of 2022 owed to nan Omnicron version having a disproportionate effect connected nan conception fixed its COVID testing requirements astatine nan time.

On nan separator front, Jamaica reopened 4th fourth -- reported grounds 4th fourth owned edifice EBITDA margins driven by accelerating ADR maturation and better-than-expected F&B and utilities expense. Keep successful mind erstwhile comparing results successful Jamaica for nan different segments that Jamaica mostly has higher operating costs successful our different segments and typically experiences higher ADRs arsenic well.

Now looking astatine different segments, nan Yucatan Peninsula continued to present beardown results pinch sequential occupancy improvements to a post-pandemic precocious of 81% and reported ADR gains of astir 72% versus Q4 '19 aliases 49% underlying ADR maturation erstwhile adjusted for OTA committee changes and operation effect from plus dispositions.

On a year-over-year basis, nan Yucatan conception ADR accrued astir 11% connected an underlying ground adjusted for OTA committee changes. These non-cash committee changes besides weighed connected year-over-year conception margins by astir 25 ground points arsenic were required to gross up some nan gross and disbursal nether U.S. GAAP, which should person a diminishing effect connected reported results arsenic we proceed to thigh nan implementation of nan alteration and nan betterment of nan OTA transmission mix.

F&B costs were again importantly amended than expected successful Yucatan, while utilities disbursal was comparable to past year. However, based connected existent spot rates for utilities, utilities should spot year-over-year betterment successful nan first half of '23. Margins were besides negatively impacted by astir 30 ground points to 50 ground points owed to nan timing of uneven expenses specified arsenic marque related fees and income and markets.

The Pacific Coast had different awesome 4th pinch underlying ADR gains of astir 80% versus 2019 aliases 24% year-over-year, starring to robust separator performance, arsenic again, F&B and utilities expenses were little of a headwind year-over-year. Adjusting for nan alteration successful OTA committee accounting, ADR grew conscionable nether 26% year-over-year successful nan 4th quarter.

In nan Dominican Republic, we reopened our Hilton and Hyatt properties a spot up of schedule conscionable successful clip for nan precocious season. The capacity retired of nan gross was rather strong, helping our Q4 results. As Bruce mentioned, we are fortunate that we knowledgeable very small request disruption connected nan bookings beforehand astatine those properties for 2023. We knowledgeable astir $13 cardinal of disruption related to Hurricane Fiona successful nan 4th quarter, successful statement pinch our anticipation of $13 cardinal to $15 cardinal effect earlier business interruption proceeds.

One point to note, owed to nan adjustments that impact VAT rates successful nan DR, we recorded an accommodation successful nan 4th fourth of 2022 to existent up non-income-based [perpetuity] and taxes for nan afloat year. This positively impacted Q4 reported ADR successful nan DR by conscionable complete $20 and full institution Q4 reported ADR by astir $6. Total owned edifice EBITDA margins were favorably impacted by astir 80 ground points arsenic a consequence of nan adjustment.

Now turning our attraction to our 2023 outlook. We expect our afloat twelvemonth adjusted EBITDA of astir $260 cardinal to $280 million, representing year-over-year maturation of debased double digits astatine nan midpoint, and this is driven by double-digit RevPAR maturation for nan year. For nan first 4th of 2023, we expect owned edifice EBITDA to beryllium betwixt $98 cardinal and $103 million, and that is inclusive of a $10 cardinal year-over-year resistance successful EBITDA from nan modulation of nan 2 Jewel properties successful nan Dominican Republic. To beryllium clear, I'm referring to $98 cardinal to $103 cardinal of owned edifice EBITDA earlier firm disbursal of astir $13 cardinal to $14 cardinal and includes interest income of astir $2 cardinal to $3 billion.

We expect our reported occupancy levels, inclusive of nan 2 DR jewels to beryllium successful nan debased 70%-s, reflecting nan rooms retired of work successful nan DR owed to nan closure of 1 of our dual properties. Occupancy astatine our different legacy-owned resorts is anticipated to beryllium astir 10 percent points higher during nan first quarter. With respect to Q1 ADR, we expect astir 20% year-over-year ADR maturation connected a reported basis. And fixed our booking window, we're astir 90% to 95% booked for nan first quarter.

Looking up to nan 2nd quarter, we expect reported occupancy successful nan debased to mid-70%-s, down somewhat year-over-year, which again includes nan mid-single-digit resistance from nan 2 Jewel properties successful nan DR. We expect Q2 ADR to turn high-single digits to low-double digits connected a year-over-year basis, and owned edifice EBITDA margins to grow year-over-year contempt a $5 cardinal year-over-year EBITDA resistance successful nan DR from nan 2 Jewel properties. Given our booking window, we were astir 50% booked for nan 2nd 4th astatine this time.

For nan 2nd half of 2023, we expect reported occupancy successful nan mid-70%s and year-over-year ADR maturation to beryllium up mid-single digits connected a reported basis. We expect owned edifice EBITDA margins to beryllium level up connected a year-over-year ground successful nan 2nd half, and nan 2 Jewels properties successful nan DR to beryllium a year-over-year tailwind to EBITDA successful nan 4th quarter, and astir neutral connected nan 3rd quarter. As we said before, commodities and security are wildcards arsenic we caput into nan 2nd half and are cardinal considerations erstwhile contemplating our afloat twelvemonth guidance.

Given nan number of moving parts to see for Playa, I deliberation it would beryllium champion to framework our guidance arsenic such. For nan bequest halfway and owned managed portfolio, which again excludes nan 2 Jewel properties successful nan DR, we expect debased double-digit ADR maturation for nan first half of nan twelvemonth and mid-single-digit year-over-year maturation successful nan backmost half. Occupancy levels for this halfway portfolio successful nan precocious 70%-s successful nan first half and mid-70%-s successful nan 2nd half. And owned edifice EBITDA separator description fixed nan aforementioned ADR gains and easing inflationary pressures.

As for nan Jewel Punta Cana and Jewel Palm Beach, we expect them to ramp from mid-teens occupancy successful nan first 4th to astir 50% successful nan 2nd quarter, which would get them adjacent breakeven connected an EBITDA ground adjacent nan extremity of nan 2nd 4th pursuing EBITDA nonaccomplishment successful nan first quarter. We expect these 2 properties to beryllium stabilized connected an occupancy and EBITDA dollars publication ground successful nan 2nd half of nan year. However, arsenic Bruce mentioned earlier, we're actively moving to waste these resorts.

So, to recap, pursuing nan -- nan pursuing are nan cardinal inputs to see arsenic you deliberation astir our 2023 outlook. As I and Bruce mentioned, we're presently pacing year-over-year ADR gains of 10% aliases much for nan first half of nan year. We'll beryllium lapping Omicron during nan first quarter, which impacted our Q1 2022 occupancy levels and ADR; thus, ADR maturation will beryllium apt higher successful Q1 than Q2, moreover aft adjusting for emblematic seasonality. We expect afloat twelvemonth occupancy to beryllium somewhat higher than 2022, adjusting for extraneous factors. We expect a amended ostentation complaint successful our costs handbasket arsenic compared to what we knowledgeable during 2022, though it will apt stay elevated. We person bully visibility connected our labour costs, and spot nan costs increases somewhat higher than what we knowledgeable successful 2022, but are experiencing little costs ostentation connected nutrient and beverage and utilities during nan first 4th of '23. And while we dream nan little prices persist, these categories tin again beryllium rather volatile. Our resorts are afloat staffed, and we person bully visibility connected wages and related growth.

We dream that model helps guideline you arsenic you fine-tune your models and springiness you further penetration to what we're seeing and expecting.

But now I'll move it backmost complete to Bruce for immoderate concluding remarks.

Bruce Wardinski

Great. Thanks, Ryan.

So, successful summary, I person conscionable a mates of comments. First, our results speak for themselves. Second, I publication a marketplace quote this greeting that I recovered really interesting. It said, "Big tech is out, and nan aged system is successful connected Wall Street." There's almost nary business older than lodging. We've been astir since nan opening of mankind. The logic why this quote resonates pinch maine and connected Playa is that while our business prospects looked really bully earlier nan pandemic, nan pandemic has changed everything.

People don't want to walk each time connected their machine screens. They're looking to acquisition life, and that's for each ages. Their expertise to recreation and activity remotely while doing it has allowed a batch of flexibility. They tin walk clip pinch group and they tin unrecorded their lives to nan fullest. In my mind, this is what Playa offers to our guests astatine a awesome value worth proposition, and I deliberation that's why our business is doing well.

With that, I'll unfastened up nan statement for immoderate questions.

Question-and-Answer Session

Operator

At this time, we will statesman nan question-and-answer session. [Operator Instructions] And our first mobility coming comes from Patrick Scholes from Truist Securities. Please spell up pinch your question.

Patrick Scholes

Hi, bully morning, everyone.

Bruce Wardinski

Good morning.

Ryan Hymel

Good morning.

Patrick Scholes

Lots of colour location connected quarterly expectations and margins, et cetera. But could you springiness immoderate much specifics on, astatine slightest granular percentage-wise connected wide for nan year, costs maturation -- costs and use maturation expectations arsenic good arsenic wide operating costs maturation including utilities and insurance? Thank you.

Ryan Hymel

On nan costs side, it's apt precocious azygous digits conscionable benignant of blended crossed nan board. We've sewage a number of different buckets of costs costs wrong our properties, right? You've benignant of sewage nan executive squad that's benignant of connected its ain benignant of net standard and things for illustration that. And then, you've sewage statement unit that are governed much by minimum costs increases from nan government. And past you've sewage national employees, which we discuss pinch connected an yearly basis. But telephone it blended connected nan labour front, benignant of precocious single-digit percentage.

As I mentioned earlier, I don't expect our F&B to move excessively materially from what it's been complete nan past quarter, peculiarly fixed immoderate of nan investments we've made successful that arena, adding immoderate staffing connected nutrient and beverage arsenic good arsenic purchasing, which is opening to commencement paying immoderate dividends from a costs betterment position and purchasing powerfulness arsenic we've grown.

And then, connected insurance, honestly, it's beautiful difficult. The Hurricane Ian was nan 3rd worst large wind successful history and full world insured spot losses successful 2022 was good complete $130 billion. So, without our claim, we were expecting a difficult year. So, benignant of built into our benignant of guidance scope is significant, telephone it, 50% summation successful our premium correct now. But it's still -- that's still a wildcard astatine this point. We'll person amended accusation connected our adjacent call.

Patrick Scholes

Okay. Thank you. And then, a follow-up question. You talked astir nan Asian customer being -- visitation being importantly down. I deliberation you said astir 75%. Historically, pre-COVID, what did that customer conception correspond arsenic a percent of your business?

Ryan Hymel

Around 4%.

Patrick Scholes

Okay. So, 4%, down 75%...

Ryan Hymel

Yes. So small. Primarily astatine our highest.

Patrick Scholes

Okay. A small opportunity for that. Okay. Thank you. I'm each set.

Ryan Hymel

Thank you, Patrick.

Bruce Wardinski

Thanks.

Operator

And our adjacent mobility comes from Dany Asad from Bank of America. Please spell up pinch your question.

Dany Asad

Hi. Good morning, everybody. Question connected -- is connected rate. So, for illustration astatine a precocious level, really do you guys deliberation astir lapping really beardown rates successful -- particularly successful your astir recovered markets, specifically thing astir for illustration Cancun?

And past again, strategically, really do you equilibrium this -- really do you benignant of equilibrium ADR maturation without perchance hurting Net Promoter Scores down nan statement arsenic you benignant of push complaint much and much and much successful your markets?

Ryan Hymel

Yes. That's nan important mobility is nan ground for our thesis coming retired of nan pandemic, and Bruce said his in installments has had america attraction connected ADR gains while providing exceptional service. And so, Bruce touched connected it earlier, our NPS scores, some internally and astatine nan brands are immoderate of nan highest ever. Bruce tin chime successful connected that successful a minute. But much importantly, it's thing we effort and hammer location each azygous time, whether it's connected these calls, externally aliases much importantly, internally.

When you look astatine -- yes, you look astatine immoderate of these percent gains complete pre-pandemic and they look large. But one, first and foremost, erstwhile you set for plus sales, you return retired nan effect of Cap Cana, and you return retired nan adjustments from accounting from a gross up from [indiscernible] commissions, those underlying percent gains while still beardown aren't ridiculous. And past much importantly, nan absolute dollar that we complaint personification much than they were spending successful 2019. As Bruce mentioned earlier, astatine slightest connected nan past half of this twelvemonth was astir $100, and it ranges anyplace from benignant of $50 to $60 to possibly up to $200 astatine immoderate of our higher-end properties.

But again, that includes nutrient and beverage, it includes awesome service, it includes alcohol. And again, you furniture that against everything other successful everyone else's life, that's much costly these days, nan worth proposition conscionable jumps disconnected nan page. And truthful that's been our attraction while making judge that we are still maintaining nan awesome customer restitution while still pushing rates arsenic overmuch arsenic we perchance can.

And astatine nan aforesaid time, to your constituent connected occupancy, I deliberation we've recovered a due saccharine spot pinch occupancy correct now. When you deliberation astir benignant of -- depending connected nan season, obviously, nan benignant of precocious 70%-s into nan debased 80%-s versus mid- to upper-80%- that we ran pre-pandemic, it conscionable makes everyone's life easier. First of all, it makes nan customers' acquisition better. It makes operating these hotels successful a rising inflationary situation easier, it's easier connected cost. And so, for america -- and if there's small things that we request to do from a CapEx position aliases maintenance, it conscionable makes it acold easier to do erstwhile nan properties aren't 100% full.

Don't get maine wrong, during Christmas, we're still 90%-plus full, but connected a year-round ground and precocious season, this is really we've decided to equilibrium maximum profitability while maintaining that impermanent experience.

Bruce Wardinski

Yes. And fto maine conscionable adhd in. I mean, I work together wholly pinch everything Ryan said. And erstwhile you deliberation astir it, what drives nan restitution of nan impermanent astatine an all-inclusive edifice aliases immoderate edifice is peculiarly astatine an all-inclusive resort, and I'd opportunity there's 2 main factors. Number one, it's nutrient and beverage; and number two, it's work from our staff.

So, if you spell backmost astatine nan opening of nan pandemic, we made a conscious determination to attraction connected complaint and not to benignant of dilute nan nutrient and beverage acquisition nor nan unit experience. So, from early on, we had very precocious levels of unit and that comes retired pinch what nan guests are experiencing. And arsenic Ryan said, we've consciously focused connected sacrificing a small spot of occupancy for a overmuch higher magnitude of rate. And what that does is that allows america to service nan impermanent moreover better. So, you don't person nan crowding astatine nan edifice aliases nan crowding astatine chairs astir nan excavation wherever you person to get up astatine six successful nan greeting and put a book aliases your sunglasses aliases sunscreen connected location and conflict pinch group to get a bully location connected nan formation aliases nan pool. And each of those things, they whitethorn sound silly aliases small, but they really do make nan experience.

The 1 that we've really, really focused connected is nutrient and beverage, and particularly astatine nan higher rated resorts. And if you look astatine going retired wherever group are successful nan United States, if they spell retired to a bully restaurant, and I'm not moreover talking ace expensive, conscionable a bully restaurant, nan costs is truthful overmuch higher than it was earlier nan pandemic. So, you're dropping a batch of money to spell out. Now spell to a edifice destination, spell to Miami, spell to Los Angeles, spell to Las Vegas, really overmuch you're going to walk to spell retired astatine night? People say, "Yes, okay, fine. The room complaint is benignant of reasonable, aliases high, but reasonable." But past by nan clip you decorativeness your 4 aliases 5 days aliases you're a week pinch your family, nan costs has conscionable grown exorbitantly. So, you get our experience.

And what happened during nan pandemic is erstwhile group couldn't recreation to different places. They couldn't spell to Europe aliases they couldn't spell to different destinations. They knowledgeable our resorts for nan very first time. And those group are coming back. And past connection of rima is spreading. And past you spot nan ratings connected TripAdvisor and others, and those are spreading and much group are coming. So, I don't spot this arsenic a fearfulness of not being capable to present it aliases our impermanent scores going down, I spot it arsenic an opportunity for our impermanent scores to spell up and to benignant of present this highly affirmative acquisition to a full caller group of customers, and that's what we're focused on.

Dany Asad

Got it. Thank you very much.

Ryan Hymel

Thanks, Dany.

Operator

Our adjacent mobility comes from Chad Beynon from Macquarie. Please spell up pinch your question.

Chad Beynon

Thanks for taking my question. Bruce, I wanted to -- and first off, acknowledgment for each nan guidance commentary, really helpful, Ryan. Bruce, your remark connected nan summertime benignant of becoming a regular play alternatively of an off-season. I wanted to drill into that a small bit. What gives you nan assurance that, that's benignant of changed for nan future? Is it conscionable nan pacing that you're seeing aliases benignant of what you saw successful '22? Obviously, you can't alteration nan weather, nan aerial capacity, et cetera, benignant of successful those basking aliases summertime months, but it really seems for illustration that's been a bully alteration for nan business model. So, conscionable immoderate much colour successful position of why you deliberation this is sustainable going forward? Thanks.

Bruce Wardinski

Sure, Chad. Great question. First of all, you deed nan nail connected nan caput connected nan first 1 is pacing, right? So, we spot it. So, nan first point is we spot it. Second, we had it past year. So, I person nary logic to deliberation it's not going to proceed again. And then, benignant of you mentioned you can't alteration nan upwind aliases nan airlift. Well, nan airlift is really good, okay. And nan airlines really person been flying into our markets beautiful powerfully since -- nan pandemic was still going connected done this betterment period. And why are they flying into our markets? Because nan customers want to spell there.

And so, I deliberation what you're seeing now is group who possibly would person gone to our resorts successful nan precocious season. But rather honestly, are priced retired of it a small bit. And so, now they're trading off. And I tin show you that because anecdotally, I person group who I cognize friends and family who are like, "Wow, I can't judge really precocious your rates are successful January and February. Is that for real?" And I'm like, "Oh, it's wholly for real." And they go, "Well, what you recommend?" And I said, "Well, you tin either waste and acquisition down to a somewhat little value constituent resort, aliases conjecture what? You tin spell successful May. You tin spell successful June. Great times of nan twelvemonth to go." And consequence of hurricanes isn't that high. And rather honestly, nan upwind is amended than successful galore of nan formation destinations you'll person successful nan United States. So, I deliberation group are now seeing really bully an acquisition they tin get astatine our resorts and they want to spell there. And truthful now it's like, "Okay, erstwhile is nan champion clip for me, a couple, a family, whoever to acquisition nan resort?"

And then, nan different point that we're benefiting from, and it's not conscionable successful nan summer, but it's besides successful nan enarthrosis seasons is what I alluded to successful nan full distant activity scenario, wherever conscionable group person truthful overmuch much elasticity coming retired of nan pandemic. And you cannot underestimate really large that is for group to beryllium capable to travel. And I really judge nan pandemic caused group to rethink their lives successful truthful galore ways. But 1 of them is nary 1 thought that thing arsenic elemental arsenic going connected a picnic could beryllium taken distant from that. And now they say, "Hey, who knows, possibly you person a pandemic adjacent year. Maybe we person thing other adjacent year. I want to spell connected vacation. I want to bask life." And that's what they're doing. They're going retired and enjoying life. And I deliberation that's going to continue. But we're seeing it chiefly successful our pacing, successful our bookings.

Ryan Hymel

Yes. Chad, we don't deliberation that Q3 will -- from an ADR perspective, we [have] (ph) reached Q1, but nan main constituent is that, that spread has closed and we've fundamentally reset a floor.

Chad Beynon

Okay. Perfect. Thank you. And then, separately, conscionable successful position of capital, you were benignant of rather clear arsenic you deliberation astir your grid of opportunities pinch caller projects, pinch stock repurchases, pinch renovations, you're benignant of leaning towards nan repos. On caller deals aliases renewal projects, has nan costs conscionable gotten to beryllium much expensive? Are location less deals retired there? Or are you simply conscionable benignant of reasoning astir your guidance, wherever nan banal is trading and that has conscionable accrued successful position of nan quality successful returns? Thanks.

Bruce Wardinski

Sure. It's -- number one, it was -- certainly, it's been nan latter, your past point, okay. So, if you spell backmost complete nan past fewer months and really attraction connected September erstwhile we made nan first announcement connected nan stock repurchases, we were conscionable trading astatine a value that was complete, arsenic we opportunity successful our script, a disconnect betwixt our operating fundamentals and nan worth of nan company. And so, I conscionable looked astatine that and we discussed it astatine nan Board level and guidance level, we conscionable felt there's nary amended spot to put our money than successful our ain stock. And so, it conscionable became nan baseline hurdle for doing anything. We said, "Okay, let's look astatine it from that perspective. We cognize what we've sewage here. Can we hit it?" And so, location are projects that tin hit it.

I mean, nan bully point successful our business is it's a very precocious free rate travel generating business. So, peculiarly wherever we tin adhd rooms, okay, we tin grow connected rooms, that generates a batch of free rate flow. And you've seen that historically. You cognize immoderate of our lawsuit studies pinch our ROI projects, especially, our description projects wherever we tin really thrust very important return. So, we look astatine those projects, we're going to support doing those projects.

When it comes to acquisitions aliases bigger benignant of opportunities, I will opportunity that group successful our conception are crossed nan committee doing well. I deliberation we're doing a small amended than many, but group are doing well. And so, location hasn't been this request to waste aliases desire to sell, because they deliberation their business is going beautiful darn well. And so, from our perspective, we'll attraction connected opportunities that we have, and location person been opportunities, and we picked up those third-party guidance contracts mostly owed to nan occurrence that we've been having, and others are seeing it arsenic an opportunity.

So, I deliberation we'll turn there, and we'll turn pinch nan ROI projects. And if an acquisition comes around, that makes consciousness for us, peculiarly 1 that involves rebranding and 1 that has -- does not person a precocious percent of nonstop sales, those are really nan places wherever we tin propulsion nan lever and dramatically alteration nan profit imaginable of a resort. And I deliberation we'll get much of those. And so, we deliberation they'll come. But successful nan meantime, if we deliberation there's a disconnect betwixt nan worth of our underlying business and nan banal price, you'll spot america proceed to bargain backmost our stock.

Chad Beynon

Thank you very much. Congrats connected wherever nan business is trending.

Bruce Wardinski

Okay. Thanks, Chad.

Ryan Hymel

Thanks, Chad.

Operator

Our adjacent mobility comes from Smedes Rose from Citi. Please spell up pinch your question.

Smedes Rose

Hi. Thanks. I conscionable wanted to inquire a small spot much astir your volition to waste nan 2 Jewel assets that you took backmost guidance on. And I guess, benignant of specifically, I mean, surely successful nan U.S., transaction measurement has gotten a batch much challenging. I mean, each nan worldly we cognize about. So, I'm conscionable benignant of funny what you deliberation nan process is for illustration and who benignant of are nan buyers for those kinds of assets successful this -- successful nan world we're successful correct now?

Bruce Wardinski

Sure. No, awesome question. So first of all, let's measurement backmost and spell into nan rationale for why we take to waste versus take to do thing other pinch them, okay. So, it benignant of goes connected nan past mobility astir benignant of nan opportunity pinch stock repurchases and pinch precocious ROI projects, right?

So, to renovate these 2 hotels, okay, would return a bully magnitude of money and much importantly than nan bully magnitude of money, a bully magnitude of time, okay. And then, erstwhile you look astatine nan returns that you'll make from those, while very attractive, okay, is it amended than doing stock repurchases aliases precocious ROI projects? It's arguable, right? But nan point is nan different opportunities are astir apt much likely. So, benignant of from a risk-adjusted basis, I tin look astatine stock repurchases aliases I tin look astatine these precocious ROI projects and say, "I'm highly definite my return is going to beryllium outstanding there." Okay?

On these others, it's going to beryllium a very bully return, but it's going to return a small time. In a normal world, I would spell do that. And that's historically what we person done, and we've done incredibly well. But successful benignant of this world, I said, "You cognize what? Why do we request to do that?" And so, if we waste nan assets, we'll get those proceeds, and we tin reallocate those proceeds into either stock repurchases aliases precocious ROI projects. So, I deliberation we'll make a higher return by selling.

Your -- nan 2nd constituent of your mobility is, who are they and comparing it to nan U.S., I deliberation it's very different than comparing it to nan U.S. market. The first large rumor pinch group buying -- well, there's 2 large issues, I think, successful buying hotels successful nan U.S. Number 1 is, what are nan business prospects of those hotels? And it's very different, right. If you're an municipality edifice aliases a business transient edifice versus a leisure resort, some person their complicating factors. Urban grew business transient. You're like, okay, erstwhile does that business travel back? How beardown is that business going to be? What's nan effect of agency occupancy, rates and cities? All of that. So that affects it.

Even connected resorts, it's a small different because they've been doing really good complete nan past mates of years. But past nan mobility is, really agelong is that sustainable? Are nan rates sustainable? What happens erstwhile group person to afloat unit and adhd backmost each nan services that they'd cut? We ne'er trim our services, okay. So, we don't person that issue. That rumor exists successful nan U.S. So, for those reasons, I deliberation trading successful nan U.S. is simply a small harder.

The different large one, okay, nan existent large 1 is debt, indebtedness financing and liking rates. And obviously, arsenic liking rates spell up, it makes nan hurdle spell up for immoderate purchaser of a hotel, truthful they're going to want a little value successful bid to meet their hurdle. Well, if you look astatine our segment, arsenic I mentioned, astir group successful our conception are doing well. The different point unsocial astir our conception is galore of nan players pinch either large family-owned companies, they don't person a batch of debt, and they don't needfully request immoderate indebtedness to get these assets. So, they could conscionable bargain them and past rebrand them into their brands. They're already successful markets wherever they are presently existing. So, nan expertise to transact is really easy.

The DR arsenic a marketplace is doing incredibly well, and they person been hitting period aft month, 4th aft quarter, grounds number of guests visiting nan country. So, I deliberation erstwhile you look astatine nan attractiveness of these 2 resorts to a wide assortment of imaginable buyers, I deliberation they're incredibly attractive. And so, I don't envision we're going to person a immense magnitude of trouble trading them astatine a bully value for Playa.

Smedes Rose

Is location immoderate benignant of scope you tin supply connected what you deliberation gross proceeds would be?

Bruce Wardinski

No, not astatine this time.

Ryan Hymel

Yes, it's going to dangle connected nan buyer, their building and things for illustration that and their duration. It really varies by purchaser successful our markets.

Smedes Rose

Okay. All right, convey you, guys.

Bruce Wardinski

Great. Thanks, Smedes.

Operator

Our adjacent mobility comes from Tyler Batory from Oppenheimer. Please spell up pinch your question.

Tyler Batory

Hey, bully morning. Thank you. A mates of speedy follow-ups connected nan guidance. So, nan afloat twelvemonth EBITDA scope that you gave, what's nan anticipation successful position of nan full resistance from nan Jewel properties...

Ryan Hymel

Assuming they were pinch america for nan afloat year, astir $13 million.

Tyler Batory

Okay. And then, nan comment, separator description year-over-year, was that meant to exclude those assets?

Ryan Hymel

No. So, for nan afloat year, we should still beryllium capable to person separator description moreover pinch that drag. The first quarter, my anticipation is that for a full portfolio, nan margins would perchance beryllium level to somewhat down. But if you excluded those Jewels, it would beryllium up. But opening successful Q2 and beyond, again, assuming they stay pinch america for nan afloat year, we should beryllium capable to thigh past year's margins.

Tyler Batory

Okay. Appreciate that. And then, nan Q1 complaint commentary, up 20% year-over-year, is that beautiful broad-based? Are location markets that are pacing substantially higher than that? Are different brands successful nan portfolio pacing higher aliases little than that arsenic well?

Ryan Hymel

Well, arsenic you tin imagine, Jamaica would beryllium connected nan higher extremity of nan range, obviously, because they're still lapping. If you recall, past twelvemonth successful nan first quarter, they still had nan regularisation astir entry. So, they would benignant of beryllium starring nan complaint there. But overmuch for illustration nan results successful nan 4th quarter, nan ADR spot is beautiful broad-based. I mean, for illustration I said, there's individual pockets wrong our segments that do amended than others. You've heard america talk successful nan past that for illustration Cancun spot will outperform [indiscernible] marketplace for a number of reasons and things for illustration that. But generally, it's reasonably broad-based crossed conception and crossed plus type.

Tyler Batory

Okay. And then, conscionable past one, a much strategical question. Any update connected nan picnic nine that you teased retired aliases discussed a mates of quarters ago? I'm not judge if that's...

Ryan Hymel

Yes. So, I tin jump successful there. Yes. So, we will -- opening successful 2023, we'll commencement to break that retired connected its ain line. It is buried pinch -- it's successful -- it offsets firm disbursal successful our net release, and we really footnote really overmuch it was. But essentially, only trading astatine 3 assets and nary of them were Hyatt successful 2022, we accrued a small nether $2 cardinal of revenue. As of today, it's now rolled retired astatine 4 aliases 5 resorts and nan scheme is successful nan schedule that it will beryllium rolled retired successful each of our resorts, including nan Hyatt by extremity of Q3, fundamentally early Q4 of this year.

So, my anticipation is you spot a bigger publication from that fee-driven business successful 2024. But our anticipation is you should person immoderate bully growth. Again, it's not monolithic dollar contribution, but connected a percent ground year-over-year successful 2023. So, we'll commencement -- while you tin find it and spot nan numbers, again, they weren't very large, but they should commencement to turn this twelvemonth and much meaningfully successful 2024. We're excited. Again, doing a mates of cardinal bucks astatine fundamentally 2 Wyndhams and Hilton Playa del Carmen successful 2022, and they weren't moreover being sold astir of nan year, if you benignant of extrapolate that out, it should make immoderate existent decent interest income for america successful nan future.

Tyler Batory

Okay. That's each from me. Thank you.

Bruce Wardinski

Thanks, Tyler.

Operator

And our adjacent mobility comes from Chris Woronka from Deutsche Bank. Please spell up pinch your question.

Chris Woronka

Hey, guys. Thanks for each nan specifications truthful far. So conscionable -- and congratulations connected a really bully 4th and year. So conscionable to possibly hit nan superior allocation equine to decease a small spot more. I admit nan guidance you've fixed connected everything from EBITDA to CapEx. And moreover earlier we would deliberation astir proceeds from nan Jewel dispositions, you're going to person a batch of free rate travel connected a nett basis. I mean, is location immoderate logic why you wouldn't proceed buying stock? I cognize you've done immoderate much successful year-to-date, but still a beautiful large disconnect. So, I mean, I cognize you don't want to accumulate cash. So, is location immoderate logic you wouldn't support buying backmost stock?

Ryan Hymel

Yes. No -- and that's precisely why nan Board authorized different $200 cardinal a mates of weeks agone erstwhile we announced it past night. And truthful that is peculiarly astatine today's valuations, it makes sense. And I won't repetition everything Bruce conscionable said, but nan barroom is precocious for different projects and different uses of cash, and it besides weighed into nan determination connected a portion of nan determination connected why we want to waste nan Jewels. And truthful no, there's nary logic why we wouldn't.

And then, arsenic acold arsenic different projects and things for illustration that, I alluded to spending a small spot supra and beyond attraction CapEx astatine a fewer different properties. It should beryllium small to nary disruption, and it's included successful nan guidance. But it's starting to walk money connected areas that still thrust nan customer experience. A small point that Zilara, Cancun and Ziva Puerto Vallarta and Ziva Cabos that we've been meaning to do. Again, not full-scale renovations, but it's starting to put immoderate of our money to activity that conscionable helps america play a small much discourtesy pinch complaint successful nan impermanent experience, which arsenic Bruce said very eloquently is nan sanction of nan crippled erstwhile it comes to our business and maintaining complaint integrity. So, it's still a accordant balance, but astatine multiples that we're trading at, it still makes consciousness to bargain backmost stock.

Chris Woronka

Okay. Very good. Thanks, Ryan. And then, erstwhile I look astatine you guys, I look astatine you much now really connected a TRevPAR ground because you're getting for illustration 15% of your full gross from non-package. What's nan opportunity there? I mean, I cognize you're by quality an all-inclusive company, but there's still plentifulness of add-ons group tin do. And tin you possibly conscionable springiness america a small spot of colour like, you've grown that complete time? How large tin that get? And possibly conscionable a small spot of item connected is that nan Hyatt aliases successful immoderate cases, Hilton customer, do they person a importantly higher publication to nan non-package? Thanks.

Ryan Hymel

Yes. The higher-end properties and specifically during higher play is simply a disproportionate contributor to conscionable nan wide non-tax expense. Many, galore years ago, we conscionable proved nan thesis that group paying a higher complaint don't want to walk arsenic overmuch connected ancillary products, it's successful truth nan opposite. So, arsenic you tin imagine, it's much opening of nan twelvemonth weighted.

There are immoderate things that we did passim nan pandemic and person layered connected sequentially since then. You've heard maine talk astir it, adding backstage transfers from nan resort, from nan airdrome that we weren't trading prior, really charging for cabanas and things for illustration that, that we've added and person been very successful. There are immoderate things that you person a finite amount. You person a finite magnitude of, what you telephone it, beds and curen rooms astatine your spa and things for illustration that, and you've heard maine joke successful nan past, location are definite times a day, group want to spell to nan spas, and there's different times a day, they'll ne'er want to spell to nan spa. So, location are immoderate things that arsenic acold arsenic nan number of items that you tin sell, you person a finite amount.

The area we're focusing connected now is really pricing optimization successful that area. Our income and trading squad and nan integer teams person really put together benignant of apps successful what they're calling a integer concierge that guests tin usage and it really will -- really do much move pricing for cabanas intra-week alternatively than conscionable 4th by 4th aliases period by one. Historically, we would waste for a cabana much expensively successful precocious play than we would successful October, for instance. Now we tin really waste it based connected request and trying to optimize nan net from those things. Same point pinch nan spa and others. So that's nan champion measurement to optimize it.

And erstwhile you person tally retired of further things to sell, because arsenic you said, it's a good line, you locomotion that you don't want to person personification consciousness for illustration they're nickel to dime erstwhile they show up astatine each inclusive. That's what our counterparts do successful different parts of nan world successful nan U.S. that we don't want to do.

And past lastly, nan different area wherever it tin turn arsenic a group has travel back, and it is evidently afloat back, but fixed nan pacing numbers I gave you, it's going to proceed to grow. That is different area of upside for non-package spend, conscionable purely because those groups are spending for events, space, large dinners connected nan beach, celebrations, and things for illustration that.

Chris Woronka

Okay. Thanks, Ryan. And conscionable sorry if I missed it, but connected nan Jewels connected nan sales, those are wholly unencumbered of your management. Is that correct of...

Ryan Hymel

They're being sold unencumbered, but again, it will dangle connected who we waste it to and what nan scheme is, whether we tin negociate it aliases not. Obviously, successful a cleanable world, if we tin clasp connected to management, we would do that. But it really conscionable depends connected nan buyer, nan value and nan structure.

Chris Woronka

Okay. Got you. Very good. Thanks, guys.

Ryan Hymel

Thanks, Chris.

Bruce Wardinski

Thanks, Chris.

Operator

And ladies and gentlemen, pinch that, we'll reason today's question-and-answer session. I'd for illustration to move nan level backmost complete to Bruce Wardinski for immoderate closing remarks.

Bruce Wardinski

Great. I deliberation we've covered everything exhaustively connected this call. So, acknowledgment for everyone for participating today. And I dream everyone has a bully weekend. Take care. Bye.

Operator

And ladies and gentlemen, nan convention has now concluded. We convey you for attending today's presentation. You whitethorn now disconnect your lines.