Jamaica leads revenue growth for Playa Hotels, hauls in $34b
HOTELS OPERATED locally by Playa under the Hilton, Hyatt and Jewel brands generated US$220 million ($34 billion) in revenue during 2023, bettering the previous year by 22 per cent.
It comes alongside continuing recovery in the travel market and an overall 17 per cent improvement in tourist visits to Jamaica, amounting to around 4.17 million people in 2023.
The performance of its local hotels ranked Jamaica as Playa Hotels & Resorts’ best last year, in percentage terms, followed by Dominica Republic, then Mexico’s Pacific Coast and its Yucatan Peninsula. It’s the third year of growth for the local operations, which grew 85 per cent in 2022, and 40 per cent in 2021. In 2020, hotels suffered a near shutdown with the start of the pandemic and the related border closures.
While Jamaica’s revenue growth outperformed all others, it’s not the most lucrative market for Playa. It falls behind Dominican Republic, which grew 10 per cent to US$253.7 million, as well as the Yucatan Peninsula, which improved by 9.0 per cent to US$306.3 million, but outpaces Pacific Coast, which rose by 10 per cent to US$141.6 million.
As a group, Playa generated US$921 million in revenue, reflecting a gain of 12 per cent, but ended with lower profit of US$54 million, down from US$57 million in 2022.
The local hotels account for 1,428 of the 7,095 rooms operated by the group. In Jamaica, the occupancy level climbed to 79 per cent in 2023 from 74 per cent in 2022 and 48 per cent in 2021.
“The fourth quarter capped off a record year for Playa, ”said the hotel management company’s Chairman and CEO, Bruce Wardinski, in its earnings report.
“Our fourth-quarter results exceeded our expectations, as demand accelerated through the quarter, with December Occupancy in the Yucatán and Jamaica exceeding the December 2018 and 2019 average,” Wardinski said.
Playa’s Jamaica portfolio comprises five properties: Hyatt Zilara Rose Hall, Hyatt Ziva Rose Hall, Hilton Rose Hall Resort & Spa, Jewel Grande Montego Bay Resort & Spa and Jewel Paradise Cove Beach Resort & Spa.