Good day, and welcome to the Playa Hotels Q3 2021 Earnings Conference Call. All participants will be in a listen only mode. Should you need assistance, please signal a conference specialist by pressing star then zero. After today's presentation, there will be an opportunity to ask questions. To ask a question, you may press star then one on a touchtone phone. To withdraw your question, please press star then two. Please note this event is being recorded. I would now like to turn the conference over to Ryan Hymel. Please go ahead. Thank you very much, Matt. Good morning, everyone, and welcome again to Playa Hotels & Resorts Q3 2021 Earnings Conference Call. Before we begin, I'd like to remind participants that many of our comments today will be considered forward-looking statements and are subject to numerous risks and uncertainties that may cause the company's actual results to differ materially from what has been communicated. Forward-looking statements made today are effective only as of today, and the company undertakes no obligation to update forward-looking statements. For discussion of some of the factors that could cause our actual results to differ, please review the Risk Factors section of our annual report on Form 10-K, which we filed last night with the SEC. We've updated our investor relations website at investors.playaresorts.com with the company's recent releases. In addition, a reconciliation to GAAP of the non-GAAP financial measures we discuss on this call were included in yesterday's press release. On today's call, Bruce Wardinski, Playa's Chairman and Chief Executive Officer, will provide some comments on the Q3 and key operational highlights. I will then address our Q3 results, our liquidity position, and our outlook. Bruce will then wrap up the call with some concluding remarks before we turn it over to Q&A. With that, I'll turn it over to Bruce. Great. Thanks, Ryan. Good morning, everyone, and thank you for joining us. As always, we appreciate your interest in Playa and hope that all of you are in good health and spirits as we near the holiday season. I'm sure most of you have had a chance to review our Q3 results reported last night, so let's get going with the discussion. The Q3 fundamentals once again accelerated sequentially, with occupancies picking up as flight capacity into our markets increased versus the Q2. The real standout was our substantial net package ADR gains compared to 2019 levels. Again, this isn't typical for our portfolio during the summer and fall months, but not much has been typical over the past 18 months. The sequential improvement was broad-based across our geographic markets and resorts as all of our Playa Managed resorts posted like-for-like ADR increases. As I mentioned on our last earnings call, we weren't quite sure what to expect on the pricing front as we moved into the back half of the year. The substantial revenue booked position, combined with pent-up demand, has allowed us to maintain pricing as opposed to cutting rates to fill rooms. With the high season approaching and a healthy amount of revenue already on the books, I'm optimistic that this trend will continue. While we did experience the typical seasonal slowdown in bookings toward the end of the summer, it is difficult to parse out how much was the result of increases in COVID cases related to the Delta variant versus what we would expect to see from normal booking seasonality. Just as a reminder, the Labor Day to Thanksgiving period is typically our slowest period of the year. In any case, the slowdown was fairly short-lived and bookings accelerated toward the end of the quarter and into Q4 so far as well. In fact, weekly revenue gains the past few weeks have reached prior peaks we achieved this spring. Looking at our segments, Mexico has led the way during the recovery, and our results there in the Q3 were once again the standout, with occupancies into the 60s for the quarter, the highest ADRs on an absolute basis, and excellent flow-through. Flight capacity into Cancún ramped up nicely during the Q3, resulting in September international passenger arrivals for the Cancún Airport exceeding 2019 levels for the first time since the beginning of the pandemic. The results in Mexico thus far are particularly encouraging as they are an indication of the profit potential for our other geographic locations as they normalize with increased airlift. Moving on to the Dominican Republic, where we experienced a healthy sequential increase in international passenger arrivals that drove our approximate 10 percentage point improvement in occupancy versus Q2. Once again, our flagship Hyatt Ziva and Zilara Cap Cana led the way as it has established itself as a rate leader in the market, with the resort's EBITDA margins nearing 40% for the Q3 with occupancy only in the high 50s. The resort's progress and ramp give us further confidence in achieving our goal of 12% to 15% stabilized cash-on-cash returns on our investment there. The segment's overall performance was weighed down by our two externally managed properties, which have lagged behind our globally branded resorts in the segment and also yield a significantly lower absolute ADR compared to our globally branded and Playa-managed resorts. Similar to the DR, Jamaica also posted increasing occupancy in ADR sequentially each month. The pace of flight capacity additions didn't build throughout the quarter as much as our other regions and remain significantly depressed. Demand here continues to build, though, as we look out to the Q4 and beyond. Our lead time is improving with the increase in revenue on the books commensurate with the expected increase in flight capacity in the Q4. We are very encouraged by the increased demand in Jamaica, which was our best performing segment prior to the pandemic, and we do not anticipate the market being structurally impaired or on weaker competitive footing despite its slower start after reopening last year. Our focus on direct channels continues to pay off, and we are confident that Playa is well on target with our five-year plan to increase consumer direct business to at least 50% by 2023. In aggregate, during the Q3 of 2021, 41.4% of room nights booked were booked direct, down 9.3 percentage points year-over-year, reflecting the relative strength of our direct channels, but also a significant acceleration in group and third party source business. During the Q3, playaresorts.com accounted for 18.7% of our total room night bookings, down 4.3 percentage points year over year. Looking at 2021 as a whole, as of October 15, playaresorts.com has generated approximately $110 million of bookings for 2021 compared to $52 million for the 2019 comparable period. This is a critical aspect of our business that I believe many overlook. We apply and drive a significant portion of our direct revenue in-house, which is now a major competitive advantage for our current portfolio and for potential managed resorts in the future. Finally, as a reminder, we anticipated that as the world slowly returned to normal, our mix of direct business would likely fall below 50%, but still believe it will remain higher than levels seen immediately prior to the pandemic and significantly higher on an absolute dollar basis. Though modest in dollars, non-package revenue continues to be another pleasant surprise of the recovery, driven by pent-up demand and an improved execution on our offerings. Again, it is difficult to gauge if the current levels of non-package spend are short-lived, particularly when customers start feeling more comfortable leaving the resorts, but this has been an area of focus for our resort general managers, given the very attractive margin profile. Finally, we recently announced a strategic partnership with Wyndham Hotels, which we believe will accelerate growth in the midscale and upper midscale segment of our portfolio by leveraging Wyndham's sizable database of customer relationships to increase exposure and awareness of the value proposition of the all-inclusive model. As part of our strategic alliance agreement, we will be converting two of our resorts in Mexico to the newly created Wyndham Alltra brand during the Q4, just in time for the high season. We look forward to sharing more with you on the potential here in the coming quarters. Once again, I would like to thank all of our associates that have continued to deliver world-class service, setting us apart from the competition and allowing Playa to realize tremendous rate gains as customers recognize that we offer a truly superior product. With that, I will turn the call back over to Ryan to discuss the balance sheet and our outlook. Thank you, Bruce. Good morning again, everyone. I will first give you an update on our liquidity and balance sheet, and then review the fundamentals of the Q3, and then finish it off with a discussion of forward bookings and market trends. We began the quarter with $238 million of unrestricted cash, and as I highlighted on our last earnings call, we had some unique cash outflows during the Q3 that totaled approximately $11 million, namely the $4.5 million VAT payment related to the sale of the Capri Hotel and $6.5 million down payment on our insurance policies. Given the improvement in our fundamentals, our core operating activities once again generated cash during the Q3. We finished the quarter with a total unrestricted cash balance of $232 million as of September 30. Also, as a reminder, we have just under $25 million of additional restricted cash on the balance sheet from our June 2020 financing. On the other side of the ledger, we currently have no outstanding borrowings on our revolving credit facility and total outstanding interest-bearing debt of $1.15 billion. We anticipate CapEx spend for full year 2021 to be approximately $21 million for the year, implying roughly $9 million for the Q4, as some of our intended Q3 spend slipped into the Q4. A little less than half of our full year 2021 CapEx will be spent on maintenance, with the remainder being spent on payments related to the project or the roughly $5 million PIP at the Hilton Rose Hall. Now turning our attention to MICE group business. Demand in this segment has remained incredibly strong, with the scarcity of meeting space forcing meeting planners to book further and further out. Our MICE business has rebounded nicely in the second half of 2021, and we currently anticipate about $5 million of MICE business to stay at our resorts during the Q4. The demand for 2022 and beyond is where we continue to see our greatest gains. With the meeting planners' confidence, desire, and ability to travel improving as we look ahead into next year, combined with two years of lost meetings, demand has far exceeded our expectations. Our 2022 MICE group business on the books is approximately $36 million and increasing, and compares to just under $30 million at the time of our last earnings call, which puts our current MICE revenue on the books well ahead of our final full year 2019 MICE revenue of $32 million, and also ahead of the $33 million we had on the books in early 2020 for that year prior to the onset of the pandemic. Nearly 90% of this MICE business is slated to stay in the first half of 2022, which is slightly more balanced than our MICE pacing at the time of our last call, as many of our incremental bookings have come in for the H2 of the year, given limited space. Our pacing for 2023 is also far ahead versus any comparable period in our history with over $15 million already on the books. The return of this MICE business should provide a nice base to help manage yields and drive improved profitability year-over-year, particularly at our resorts in Los Cabos, Rose Hall, and Cap Cana. With respect to advanced deposits, as of October eighth, we had roughly $37.5 million sitting with us versus just under $37 million at the last time of our last call, with roughly 34% of that related to stays in the Q4 of 2021 and 27% related to stays in Q1 of 2022. As a reminder, the majority of our leisure business is not paying advance at the time of booking. Now moving on to the fundamentals. Starting in the Yucatán, as Bruce mentioned, Q3 fundamentals improved sequentially versus Q2, despite normally being a seasonally slower period. The quarter continued the momentum seen in June, despite rising COVID cases in the country. ADR growth remained solid as the quarter progressed, aided by strong close-in demand. Once again, we believe it is extremely important to maintain price integrity and allocate inventory accordingly in a rising demand environment. We expect our Q4 occupancy to improve sequentially at a slightly higher absolute ADR to that reported in the Q3, representing a gain of roughly 30% versus 2019. Revenue on the books in the Yucatán for Q1 2022 is up over 30% versus 2019 at the same time for that respective year. ADR is also pacing up over 20% for Q1 2022 relative to the same point in time in 2019. In the Pacific, the segment reported our highest ADRs in the Q3, but our occupancy gains were more modest as compared to our other locations as this segment, particularly the Hyatt in Los Cabos, is still experiencing significantly depressed MICE revenue. Looking ahead, we expect our Q4 occupancy to improve sequentially at a similar absolute ADR to that reported in the Q3. Revenue on the books for Q1 2022 is up mid-teens, with ADRs also up mid-teens versus 2019. Turning to the Dominican Republic. As Bruce mentioned, the Ziva Zilara Cap Cana led the way in this segment, while our 2/3 party managed resorts are weighing on segment results. The DR segment revenue on the books for Q4 of 2021 at the Playa-owned and managed resorts is significantly ahead of 2019 levels at the same time of the year, driven obviously by the addition of the Ziva Zilara Cap Cana and the renovated Hilton La Romana. ADR on the books in the segment is also pacing nicely ahead of 2019 levels. The two externally managed resorts are behind 2019 in both revenue and ADR on the books for both quarters. We expect Q4 occupancy to improve sequentially at a similar absolute ADR in the DR as well. Finally, fundamentals in Jamaica ramped nicely during the quarter, but international arrivals into the destination continued to significantly lag 2019 levels and our other geographic segments. We are very happy to see that this segment has begun to stabilize, but expect the recovery here to continue to be choppy given the visibility on flights and continuing COVID-related travel restrictions. Currently, revenue on the books for Jamaica is lagging versus 2019 for the Q4 of 2021, with rates up high single digits. The primary driver of the drop in pacing was cancellations for the month of October, but pacing in November and December continued to improve, with December continuously adding net revenue almost every week since our last earnings call. Revenue on the books for the Q1 of 2022 is modestly ahead of where we were at the same time in 2019, with ADRs up mid-teens for the period. For the Q4, we expect occupancy to be similar to Q3 at a slightly higher ADR before hopefully ramping up more meaningfully in Q1 of 2022. Now taking a look at who is traveling, nearly 42% of the Playa managed room night stays in the quarter came from our direct channels as our group mix improved sequentially and OTA mix remained significantly depressed. Geographically, our U.S. sourcing increased 17 points to 72% of managed room nights, while South American sourced business increased 260 basis points. Given the current state of travel restrictions, our Canadian and Asian customer mix continues to essentially be zero as compared to nearly 10% of our mix in Q3 of 2019. Our booking window improved versus Q2 and narrowed the gap versus 2019 levels despite returning to a shorter penalty-free cancellation window during the quarter. Also, our length of stay improved during the quarter, nearly returning to 2019 levels, and this trend is expected to continue as we rely less on close-in bookings. In aggregate, our revenue on the books for Playa-owned and managed resorts for the Q4 of 2021 is currently pacing up in the high 20s versus where we were in 2019 at the same time, with the ADRs driving the bulk of the revenue increase. The Q1 of 2022 is also pacing ahead of where we were in Q4 of 2019 for Q1 of 2020, up around 40%, with ADRs driving roughly half the gain. As a reminder, these stats exclude the two externally managed assets in the Dominican Republic, which as I mentioned earlier, are both pacing behind 2019 for Q4 and for Q1. Also, these pacing figures obviously exclude resorts that we manage on behalf of third-party owners. Taken altogether, we expect our Q4 occupancy to continue to improve sequentially at similar to slightly higher ADRs than we saw in the Q3. On the cost front, while our Q3 margins were extraordinary compared to historical third quarters, we want you to be aware of the fact that achieving normal or pre-pandemic historical margin levels will be much more difficult in the Q1 of 2022, given the absolute productivity of our resorts on both rate and occupancy during what is traditionally our seasonally highest margin quarter. Said differently, it'll be tougher to lap those higher ADR margin quarters as compared to the slower seasonal periods like we just saw in the Q3. Also, we still expect incremental cost pressure, as we mentioned on our last call, in the upcoming quarters as a result of inflationary pressures on labor, utilities, and cost of goods, as well as the need for higher staffing levels to meet increasing demand and to deliver a premium experience for the premium rates we are currently yielding. Finally, as we mentioned on our last call, the change in billing methodology at our largest OTA partner that is impacting our ADR and cost in Mexico will be approximately 110 basis point drag on Yucatán margins, 60 basis point drag on Pacific segment margins, and 40 basis point drag on total company margins for the Q4 of 2021. Combining this with the previously mentioned cost pressures and more difficult comparisons will make it harder to achieve historical margin levels than it was in the Q3. With that, I'll turn it back over to Bruce for some closing remarks. Thanks, Ryan. In summary, we believe all the pieces necessary to have a successful high season are coming together. Namely, a healthy book position, normalizing flight capacity, increased vaccine penetration globally, and the resurgence of MICE business. Our focus on execution and service has placed us uniquely at the top of our markets to lead the way in pricing. Our new partnership with Wyndham is yet another exciting avenue for growth beyond the COVID recovery. We will continue to look for ways to leverage our expertise, leadership, and experience in the all-inclusive segment to create shareholder value. With that, I'll open up the line for any questions. We will now begin the question and answer session. To ask a question, you may press star then one on your touchtone phone. If you're using a speaker phone please pick up your handset before pressing the keys. In a time that your question has been addressed and would like to withdraw your question, please press star then two. At this time we will pause momentarily to assembly our roll. Our first question will come from Chris Woronka with Deutsche Bank. Please go ahead. Hey, good afternoon, guys, and thanks for all the data points thus far. Very, very helpful. You've talked a lot about the pent-up wedding business as being a pretty big driver for you next year. I wonder if you can maybe add a little bit of color around that in terms of the economics of it and just thinking about things like rate compression for non-wedding business and also kind of the out of room spend, what that looks like, if you get back to a higher mix of wedding than normal. Yeah. To be clear, we're talking more about meetings and incentive groups for next year. The wedding business that we saw drop off in 2020, we actually saw it come back more readily in 2021. If you think about the size of a destination wedding, they're typically not 400, you know, people weddings. Given this fact that all of our, you know, spots at our resorts for the ceremonies or even the receptions can be held outdoors, it made people feel a heck of a lot more comfortable and couples a heck of a lot more comfortable kind of continuing that wedding business this year. It's usually pretty good rates from that business, but also a lot of non-packaged spend because they're renting out, they're having a celebration on the beach or in one of the, you know, the outdoor spaces up on the roof, you know, depending on the property. It's a combination of both good ADRs and non-packaged spend that makes wedding business so appealing to us. Okay. Thanks, Ryan. That's helpful. On the direct bookings, so you're 42%, I think you mentioned, was the number for the quarter, and you were still able to get nicely higher rates even though the direct bookings fell a little bit year-over-year 'cause you got higher occ. Going forward, we get back to kind of that 50% longer range target. Do you think you can kind of maintain or expand these kind of rates, or is there something else? I'm just really talking about like for like from the direct channels. Should those rates continue to go higher from where you are today from the Hyatt and Hilton and apply that? Yeah. I think generally more long term, if the broader question is, you know, given that kind of leisure spend has been relatively inelastic during this period, can that stay given all the things we've done behind the scenes? We believe so. You know, one, like you said, just our continued push toward direct and when we eventually get to kind of run rate 50% direct, that should allow us to, you know, keep a big portion of those rate gains intact permanently, even if consumer sentiment or consumer demand changes. Also when you think about like just the relative value of our properties and you think about compared to what's happened in the U.S. domestically, you know, when we're talking, you know, in the Q3, for instance, you know, our rates were up over 19, almost 40%. That's, you know, on any given hotel, anywhere from $50 to $75 to $80. We're not talking about a $400 rate increase, right? We think it's far easier to keep these relative gains because I think we were probably a little too cheap to begin with. Yeah. Let me just say, you know, Chris, so it's a little confusing. You know, it looks like we were 50% and we went down to 40%, that's a negative. It's actually not a negative. When you parse through all the data, you know, and it's always complicated because, you know, nothing's consistent in this period we're in. You know, if you look on absolute dollars, right, and the absolute rate, it's actually, you know, doing great. The direct is great, and the part of the reason for the drop was because our group business went up. Well, what do we like about our group business? Typically, we get our highest rates out of our group business. You know, when you look at the potential of both our direct business, our group business, you know, as Ryan mentioned, you know, all of the increases in the higher numbers we're seeing for the MICE business and then rates, I think all of them are pointing upward. I don't see any negative. It's just like I said, it's just kind of the way the numbers blend. We anticipate that, right? We kept saying on the last couple, three calls that it was going to go down once the other channels turned on. All you're seeing now is the other channels turned on. We're super happy to have the group channel turn on. As you remember, it's basically for the last 18 months, it's basically been zero, right? For us to get back to groups, and Ryan mentioned the group hotels that will benefit the most, those hotels will do incredibly well as that group spigot, you know, gets turned on. I just wanna clarify that that 41% is not a negative. You have to look at the absolute and not just the percentage. Right. Got it. Understood. Thanks, thanks, Bruce. Last question is just on the Wyndham announcement with the Alltra brand. That's obviously a little bit different segment of the market than most of your, well, than all of your Hyatt and Hilton branded hotels. Is there any way to think about the TAM for that for you guys in terms of management contracts? I mean, it seems like that's. If we look at the worldwide or just Caribbean all-inclusive market, there's probably more hotels that fit into that bucket than in your higher end bucket. Just thoughts on potential for more management contracts that are going forward. Sure. No, it's a great question, Chris, and you analyzed it 100% correctly. Okay. We're so excited to be partnered with Wyndham. We love the name Wyndham Alltra. I think it's a really cool name, you know, and all the connotations that has with all-inclusive, ultra, all those kind of things, you know. But like you said, it's a huge segment. It is the biggest segment, right, in all-inclusive. We really didn't have any good brand, you know, partnership relationship to penetrate that segment, and now we do. You know, our arrangement with them is very favorable to us, you know, with some exclusivity rights for three years, and then the ability to extend that based on, you know, milestones that we hit. You know, that's our goal, right? Our goal is to, you know, successfully grow with Wyndham, just like we have with our other brand partners, you know, and really to be able to kind of thrive in a segment that is very different than what you know, correctly highlighted, you know, is occupied by the Hyatt Ziva, Zilara, and the Hilton brands. We just could not be more excited about this, and I think you're gonna see a lot of growth. Just to highlight what is our strategy, you know, is to be 100% branded. We have some opportunities there. You know, not all of our properties are, as you're well aware. Eventually those are all gonna be branded, you know, with one of our brand partners, and we may add one or two, you know, additional brand relationships in the future. You know, we wanna be, you know, the dominant player when it comes to brand partnerships in the all-inclusive space, and we're really excited that this Wyndham Alltra is going to really allow us to accomplish a lot. Okay. Terrific. Very helpful. Thanks, guys. Thanks, Chris. Our next question will come from Shaun Kelley with Bank of America. Please go ahead. Hey, good morning or good afternoon, everyone. Thanks for all the prepared remarks. You know, Bruce or Ryan, just wanted to ask a little bit about sort of the ADR level that you're seeing, which are, you know, obviously pretty phenomenal. If we go back to the commentary that we got in early September, I think right before our conference, you talked about, you know, ADRs at that time, I think exceeding 2019 levels by around 30%. Then, Ryan, if I sync it up, and I think I caught it correctly, then, you know, some of the commentary for heading into the Q1 is that number could be, you know, up 40%. But that may have been a pacing number. Could you just kind of, you know, maybe break down as we're moving into 2022, the trajectory for, you know, let's call it, you know, occupancy versus rate for, you know, what's remaining here in 2021, and then more importantly, kind of point us to 2022 and help us think about that mix. Yeah, sure. On from a Q4 perspective, we think just kind of taken all together, you know, comparative Q3, you'll see, you know, rates in our various segments be roughly the same as Q3 or step up slightly, you know, as you move into Q4 with occupancy moving up sequentially. Just given where we are and, you know, at any given point in this time of year, you've got roughly 95% to 98% of your Q4 booked. We feel pretty good about where things sit for Q4 at this point. Q1, you caught that correctly. That was a pacing number. You're right. The last time we spoke, we gave the numbers that Q1 was significantly ahead of 2019 levels, you know, booking for Q1 2020. As you would imagine, with the phenomena we've seen that we've pulled so much of this demand forward. As you approach the reference period, you expect that revenue on the books to contract some. Now, anybody can do that in any given year if they put out a low rate. They could build revenue on the books and then, you know, and say, "Hey, look where my book position is from a revenue perspective." That's not what we've been seeing. While that revenue on the books position has compressed, we've done so by not just maintaining rates, but by increasing it. When I look out to 2022, short of giving any guidance at this point, I would expect occupancy to continue to step up, not back to pre-COVID levels yet, but continue to step up at continued healthy rate gains. Helpful. Then just sort of going that layer deeper, I think I tried this one last quarter, but now we should be, you know, 90 days closer. How much typically would you have? You know, the Q1 is obviously very important seasonally to you. So how much would you typically have on the books for, you know, the Q1 right now? Can you give us a ballpark or a sense of that? Yeah. It's right in the mid-50s, right at this point. Right around mid-50s. mid 50%. Okay. Yeah. Thank you. Last question would be, I mean, obviously a bit slower of a comeback in Jamaica, but the sequential trends are supportive there as well. Can you just talk a little bit about what it's gonna take to get that market to fully recover and maybe, you know, timing around that or what visibility you might have for a bigger improvement in Jamaica? Yeah. I mean, you know, Shaun, I can't. You know, I don't have a crystal ball to say, you know, this is when it's gonna, you know, kind of pivot and pick up again. You know, just coincidentally, I was with the Jamaican Minister of Tourism last week, and, you know, they're doing a lot. I will say, you know, they're very aware of the situation and I hammered home to him, you know, that, hey, we're doing way better in Mexico and the Dominican than we are in your country. They're working on a number of initiatives, you know, to get things going, you know, back in the right direction. I think you're gonna see, you know, a positive trend there sooner rather than later, okay, is my prediction. The nice thing is, if you kind of look at where we sit today, right? I'll never say the best of all worlds because, you know, the last 18 to 20 months have shown us that you can't predict anything with certainty. You know, a lot of the you know, kind of indicators are pointing the right direction. You know, what's good about it for us is we're going into our best time of the year. You know, for things to be kind of all gelling and coming together well. You know, here in November, you know, going into, you know, our high season and into the Q1 of next year, you know, I couldn't really be happier. Let's just keep our fingers crossed nothing derails that, but I think that's gonna be the case. As you just build up the demand, and, you know, Ryan, you know, highlighted a lot of the numbers, you know, when things fill up, just like with the groups, right? If they fill up in Mexico and the Dominican, you know, it becomes, you know, the water balloon, and that business is gonna get pushed other places. Jamaica, you know, with its slower pace, is gonna fill up. So I'm optimistic about Jamaica. You know, as we've said before, you know, it was doing the best for us. It was the segment performing the best pre-pandemic, and there's no reason, you know, there's no fundamental reason for it not to continue to perform well in the future. Thank you very much. Thanks, Shaun. Our next question will come from Chad Beynon with Macquarie. Please go ahead. Hi. Good afternoon. Thanks for taking my question. I wanted to focus on the non-package side of things. I believe sequentially it grew $5 million to $6 million, and you kind of noted, you know, that as a positive in the quarter. Can you talk about how we should continue to see this ramping? Is there a certain type of customer? Ryan, you noted that customers are staying longer. I'd assume that's a positive for non-package. But just anything in terms of how we should think about this and given the pacing for MICE next year, should that even further accelerate this? Thanks. It's a great point on the MICE. At the MICE properties, that is a big help to those properties because typically these meetings incentive groups, you know, they're being brought by their companies, potentially with a partner or spouse, and so it's all paid for, so essentially a free vacation for them. The big group that's there is already doing, you know, large events on the beach or banquets or things like that, but then people have free time to then go spend money in the spa. I think it's a net positive to those resorts that have large meeting space, namely Rose Hall, Cabo, and Cap Cana. At the other properties, I would expect it to, you know, that acceleration to slow a little bit just because, as Bruce mentioned, you know, people, particularly in those resorts, like in downtown Cancún, Riviera Maya, people feel more comfortable leaving the resort and kind of wandering around, and they'll spend a little bit less, you know, at the properties. That said, we learned quite a bit during this pandemic. You know, we've talked about it, and I was in the last couple of calls, but just the way we sell cabanas and up charging and things like that, you know, there's a lot of that that we've learned in people's preferences. I think a lot of that's, you know, here to stay. I think we learned quite a bit, and we'll be able to maintain some of those gains, but I expect it to slow a little bit. Great. Thanks. Ryan, you talked about how we should think about the Q4 and even into the Q1. Just in terms of price integrity across the portfolio, what are you seeing there? More specifically in DR with Ziva and Zilara, are you able to charge the same ADR as some of the other leaders in that market? Are you already able to achieve what you kind of set out to when you open the property? Thanks. Yeah. The rate integrity is it's been the same since the beginning of this. Bruce has made it very clear internally, you know, to make sure that we allocate inventory accordingly. Like I said, you've proven out in what we've been able to show every single quarter with the booked position and the fact that rates that we're not giving up rate to do so, which is pretty exciting to see. As far as the other properties, particularly the brand new Ziva and Zilara, our expectation is we should be outperforming the market. Obviously, I don't have the data on the other resorts, but we care less about what the competitors are doing these days and more about, like, what the consumer is willing to pay for these higher end properties, which is, I think, the right thing to do. Yeah, Chad, I'll echo what Ryan said. You know, I mean, what we've really learned, you know, over the pandemic, and a lot of it is due to the mix of customers that we've had, and it changed, right? When Europe shut down, you know, a lot of people who would go to Europe for the summer, go to Europe for the winter vacations or the fall vacations or the spring vacations, right? Go to Europe all the time, and I'm one of those customers, right? They had to look for alternatives. Well, what was available to American, you know, travelers? Guess what? It was Mexico and the Caribbean. We got some new people. You know, because of that and because of our newly open and, you know, constructed like Hyatt Ziva and Hyatt Zilara in Cap Cana and the renovated Hiltons, you know, we had great offerings for people. Then the, you know, you get the online reviews, and the online reviews kept going up and up and up, and that allowed us to really focus on the service. We had the product focused on the service. Now we have this new customer, right? We're delivering on the new customer. The non-package spend, you know, kind of is an end product of that customer, right? Because that customer is used to spending more money. As well, you know, this is a very discerning customer, so, you know, they're not focused as much on rate. They're focused on, you know, what they're getting for the rate. That's what we've decided to do. As Ryan said, and that's really true, we're not looking. You know, as always the salespeople, "Well, our competitors are pricing at this and we have to price lower, right? Or we have to match them." I'm like, "Yeah, no, okay? That's not our game plan anymore." Our game plan is we are offering a superior product and we're gonna charge a superior price, okay? That's the game. Going forward, you know, in this world of scarcity, of, you know, kind of labor and other things that impact everybody in the world, as well as inflation, everything's going, you know, up in price. Why would we discount? You know, we're not gonna discount. The objective is let's keep premium pricing, okay? Let's continue to deliver an exceptional product and service level, and let's get customers we didn't have before. Going into this, you know, I was just recently in Europe, it's still not easy to travel to Europe, right? You can go there, but it's not easy. It's a heck more easy to go to one of our markets, and that's what we're gonna show you for the Q1. We're gonna bring people there. They're gonna have a great time, and very importantly, they're gonna pay a high rate. Thanks, Bruce. Thanks, Ryan. Appreciate it. Appreciate it. Our next question will come from Smedes Rose with Citi. Please go ahead. Pardon me, Smedes, your line might be muted. Our next question will come from Tyler Batory with Janney. Please go ahead. Hey, good afternoon. Thank you. Quick follow-up question on the commentary for the Q4. Are there occupancy limits in place right now, either government mandates or self-imposed that are perhaps putting a cap on how much or how full your resorts and your properties could be? No. That's a change from the last call. There are no more government mandated limits. We do have self-imposed limits that, you know, look, we'll still sell sellouts for group business and stuff like that. We make sure that, you know, we're using those self-imposed limits appropriately. We're still kind of ramping the business and making sure we do so smartly and more importantly, safely for the consumer and the guest experience. You know, just because the CDC still has the testing requirements to come back to the United States, we get, you know, a nice preview into, you know, positivity rates of everyone that we test to leave our resorts. It's nice to see the continued extremely low percentages for overall guests tested positive for COVID, and the last thing we wanna do is for that to change. You know, generally, depending on the hotel and the time of the year, we've self-imposed around 85%, but again, if we have a sellout for a big group, we're not gonna short ourselves there. Okay. Appreciate that. Just to tie the loop actually on the group side of things here, you know, the numbers you provided for 2022, quite strong. I mean, at this point, how much space do you even have available? I mean, I'm just trying to get a sense of how much higher those booking numbers could get. Also, if you could, talk about how Cap Cana is contributing to just driving that number overall higher as well. Yeah. Cap Cana just overall, and the numbers generally is about 40% of that overall business, you know, depending on the quarter or the time. You know, it's a brand new property. It essentially sells itself. It's spectacular. You know, you've been there, and it's done really, really well for us. I think obviously in the first half, I think I alluded to it earlier, the first half of the year, we're probably fairly booked, you know, for as far as meetings and incentive business. There's a little more room in the back half of the year, I think from that perspective. Okay, great. My last question is actually a follow-up on Cap Cana too. I mean, you talked about margin there. I think you said close to 40%, but occupancy only 50%. That's really quite good. You know, any change to your expectations in terms of you know, where margin could stabilize there, where EBITDA could stabilize there at that property? And any change now versus pre-COVID in terms of you know, your expectations for returns on that property? Yeah. No. I mean, we provided a range, and I think the midpoint of our range was, like, around 13% or 14% of our invested capital. Like, as of today, it just makes us more confident in the upper end of that range. Not ready to move it yet. You know, it still hasn't even had a full year open, you know, kind of post-COVID, but it just makes us all the more comfortable with what we've communicated. Okay, great. That's all for me. Thank you. Thanks, Tyler. Our next question will come from Patrick Scholes with Truist Securities. Please go ahead. Hi, good afternoon, everyone. Hey, Pat. I have a follow-up question on the Wyndham Alltra product. You had indicated in the earlier question, you know, possibly just managing or converting some existing properties that you have. But in the growth strategy, would it be possible that you would also be buying and converting properties and/or building from the ground up? Would those be in your strategy as well? Sure. Good question. Let's go through them. You know, the first one, management contracts, absolutely, 100%. I think you're gonna see some movement there. You know, we're our development guys are working really well with the Wyndham development guys. I think you're gonna see, you know, progress there. That's number one. Number two, conversion of some of our existing properties. Yes. You know, you look at some of our existing properties that are right at that mid price level. I think those would be, you know, super candidates to convert. We really didn't have the option to do it with Hyatt or Hilton brands, right? Because those properties weren't at that level, but they're, you know, they're really well-positioned. They're great properties, great beach, and so I think you're gonna see some conversions there. You know, on the third, you know, you had two, right? Acquisitions and ground up. Let me hit the easy one. Ground up, unlikely. Okay? No real need to do ground up in today's world, especially at that price point. I think, you know, as we said, this is the biggest segment in all-inclusive, and that means that there's a whole lot of existing properties out there. I think the conversion opportunity, you know, from an existing property, you know, that's really unbranded or under-branded to Wyndham Alltra is where we see, you know, the biggest growth opportunity for us and for Wyndham with their new brand. We're actively out there, you know, in discussions with people. When we made the announcement, it was really well-received in the industry. I think, again, you know, people who have properties at that price point didn't have ways to work with Playa, and they do now. There's a lot of excitement, and so I'm hopeful in the near future we'll be able to make more announcements about that. I hope that answers your question. It certainly does. Thank you very much. Okay. Thanks, Patrick. Our next question will come from Smedes Rose with Citi. Please go ahead. Hi. Thanks. Sorry about that earlier. I wanted to circle back on your Q4 remarks. Sorry to beat a dead horse here, but you gave some revenue improvement numbers, but then you said at the end of your remarks, Ryan, that you have some margin challenges. I guess my question is, would you expect to come in ahead of 4Q19 resort EBITDA in the Q4 of 2021? Or did some margin concerns offset your revenue improvement? Yeah, no, I think it should be close. I mean, the point we were trying to make is that Q3, just in general, on a you know very seasonal business such as ours, is our kind of lowest productivity from a rate and a margin perspective. So just said differently, it's just easier to beat 2019 levels. You know, Q4 traditionally is better from an ADR and better from a margin perspective. So subsequently, I would assume that and therefore imply that it's a little bit harder to beat those in the same manner that we did Q3. I kind of put all that together with the fact that I said I expect occupancy to improve sequentially and rate to be kind of similar to slightly up, it would imply that we could be around the same margins as 2019 there. The main point I was trying to get across was that 2021 becomes more difficult because Q1 2022 is a much higher productivity quarter. That's all. Okay. You mentioned for Q1 of 2022 that ADR is tracking at 20%, I think, versus Q1 of 2019. Is that on a same store number or is it, would that include the Cap Cana Hyatt? That includes Cap Cana. Okay, on a same store number, do you have what the ADR is tracking at versus- Yeah. 2 percentage points lower. Still, we're still doing pretty well even without Cap Cana. Okay. It's really being driven by that property, your overall absolute number. I'm saying it's around 20% with Cap Cana. You take out the renovation properties, it only drops down a couple percentage points. It's helping, but it's not the lion's share by any stretch. I misheard you. The last thing I just wanted to ask, you talked about labor inflationary costs. Are you seeing in these markets this is kind of what we're seeing in the U.S. in terms of shortages of labor and like, kind of lower skilled or hourly labor, you know, basically getting a higher bid here? Or kind of what are you seeing in your local markets? We're seeing inflationary cost pressures, like you see in the rest of the world, but we're not seeing shortages of labor for the same reason. I think we touched on a little bit last quarter that, you know, we saw a little bit harder in some of our destinations where the vaccine availability was lower, and particularly when COVID cases were rising, you know, three months ago. We saw it a little bit harder. Now, I mean, the big difference now from last time we spoke, you know, both the DR and Mexico, all of our associates were at, like, 99% penetration for vaccination rates. The last time we spoke in Jamaica, we were in, like, 30s or 40s, and today we're in the 70s to almost 80 at our properties. We've seen some nice. It makes it a lot easier to bring back some of the associates who are a little more worried. It has nothing to do with anything you see in the U.S. with an, you know, unemployment benefits being extended or something like that. We're not immune to similar cost and salary and wage inflation, you know, pressures that you see elsewhere. Okay. Thank you, guys. Thanks, Smedes. Thanks, Smedes. This concludes our question and answer session. I would like to turn the conference back over to Bruce Wardinski for any closing remarks. Great. Thanks. I'll be really quick. You know, we appreciate, you know, everyone's participation in our call today. We're super excited about what went on, you know, with our Q3 results. You know, as we've said today, going into Q4, more importantly, Q1 of next year, we're very optimistic. Hope everyone stays safe. You better book at playaresorts.com now because we're filling up. Thanks a lot. Bye-bye. The conference has now concluded. Thank you for attending today's presentation. You may now disconnect.