Good morning, and welcome to Playa Hotels & Resorts second quarter earnings conference call. All participants will be in listen-only mode. If you need assistance, please signal conference specialist by pressing the star key followed by zero. After today's presentation, there'll be an opportunity to ask questions. Please note that this event is being recorded. I'd like to turn the call over to Mr. Ryan Hymel. Please go ahead. Thank you very much, Nick. Good morning, everyone, and welcome to Playa Hotels & Resorts second quarter 2022 earnings conference call. Before we begin, I'd like to remind participants that many of our comments today will be considered forward-looking statements that 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 Securities and Exchange Commission. We've updated our investor relations website at investors.playaresorts.com with the company's recent releases. In addition, reconciliations 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 comments on the second quarter and key operational highlights. I will then address our second quarter results and our outlook. Bruce will wrap up the call with some concluding remarks before we turn it over to Q&A. With that, I'll tur n the call over to Bruce. Great. Thanks, Ryan. Good morning, everyone, and thank you for joining us. Business momentum continued during the second quarter as Playa generated the highest second quarter adjusted EBITDA in the company's history as our occupancy rate continued to rebuild and our ADR growth compared to 2019 accelerated to approximately 40%. As of July 24, our Playa owned and managed revenue on the books for the third quarter is pacing up nearly 35% year-over-year and nearly 75% versus 2019. In the fourth quarter is pacing up nearly 20% year-over-year and nearly 60% higher versus 2019. Based on our business on the books, we continue to expect our Q3 and Q4 ADR to grow at a high single digit rate year-over-year. We have not observed any meaningful changes to cancellation activity or booking demand, but we are prepared to adjust our costs and staffing appropriately if we were to see a pullback in the consumer demand environment. I want to remind everyone that not that long ago, we like many others in our industry, were forced to go to 0% occupancy and then slowly rebuild back to our baseline over the past two years. Any adjustments needed to adapt to a changing demand environment are quite fresh in our memory. We will act accordingly if the conditions call for it. With our book lead times at the healthiest levels we have ever experienced, we are confident in our ability to effectively manage through any potential slowdown, although we are not seeing anything on the horizon at this time. As we look ahead to the upcoming high season, we are pleased with our revenue and ADR pacing, which have continued to build since our last call, led by demand in the MICE segment. I still believe the recovery in leisure travel is far from complete, and the consumer trial and awareness of the all-inclusive experience also have a long runway. In today's inflationary environment, our relative value proposition has become incredibly compelling despite our ADR gains. This value continues to be reflected in our strong guest satisfaction scores and the pace of our bookings, which are significantly ahead of last year on both revenue and ADR for the second half of 2022. It is important to note that all of these positive trends are occurring without us recapturing a full customer de-demand dynamic yet. There are still groups of customers, particularly families with young children, that are not traveling yet due to lingering pandemic concerns, as evidenced by the modest uptick in bookings we experienced following the removal of the U.S. testing entry requirement. Additionally, to date, we have not seen a full recovery of our international markets, particularly Asia, certain parts of Europe, and our Canadian guests. Finally, I want to highlight that although our headline ADR growth compared to 2019 has been robust, I would like to remind everyone that the headline growth is benefiting approximately 3 percentage points from the non-cash OTA billing methodology change highlighted in our earnings release, approximately 13 percentage points from asset dispositions of lower ADR resorts and the addition of our Hyatt Cap Cana Resort. These are important considerations when con templating our ADR growth sustainability and the compelling value we continue to offer our guests. Strategically, we still believe that ceding some occupancy in favor of ADR, mainly at our Hyatt resorts, is the best path forward for Playa as it establishes us as the rate leader from a competitive standpoint in our respective markets and is more manageable from an operations standpoint. With the growing inflationary pressure not only impacting consumers globally, but also the cost of operations for businesses, we are focused on pricing to continue offering a fantastic value to our guests while dealing with the economic reality of higher operating expenses. Second quarter fundamentals once again exhibited an acceleration in growth versus comparable period in 2019, with occupancies continuing to ramp up, particularly in Jamaica. The strength in the business was broad-based, with ADR growth and occupancy gains leading to healthy margin performance despite the challenging cost environment. As we previously shared with you, the disruption from the Omicron variant had a particularly acute impact on Jamaica earlier this year. Our bookings for future periods, combined with the removal of Jamaica's COVID testing entry requirements, gave us a sense of optimism for the remainder of the year. Jamaica led our portfolio in occupancy during the second quarter and currently has more occupancy on the books for Q3 than our other segments. We estimate that airlift capacity growth compared to 2019 into Montego Bay accelerated by 15% sequentially during the second quarter, which drove international passenger arrivals to finally exceed 2019 levels on a quarterly basis for the first time since the beginning of the pandemic. ADR growth in the segment lagged the impressive underlying growth exhibited in our other segments as there is a lag between demand growth and the lift to ADR as higher rated bookings mix in. In addition, future bookings in Jamaica have been stronger than our other segments following the removal of its testing requirements. This is all extremely encouraging as we always believe nothing has structurally changed in Jamaica, which was our best performing segment prior to the onset of the pandemic. This leaves considerable upside from the ongoing recovery in Jamaica as we head into the second half of 2022 and into 2023. Turning to Mexico, which has led the way during the recovery for Playa, we had another strong quarter, led by better than expected close in demand on the Pacific Coast. The Dominican Republic continued to benefit from the capital investments we made prior to the pandemic, particularly the Hyatt Ziva and Zilara Cap Cana Resorts, which had another stellar quarter and are now generating a cash-on-cash return well above the high end of our target range of 12%-15% on a trailing 12-month basis, with a resort EBITDA margin that was over 40% in the second quarter. Our focus on direct channels continues to pay off, and we are confident that Playa is on target with our five-year plan to increase consumer direct business to at least 50% by 2023. In aggregate, during the second quarter of 2022, 42.4% of Playa managed room nights booked were booked direct, down 6.1 percentage points year-over-year, reflecting the continued relative strength of our direct channels, including a significant acceleration in group and third-party sourced business. During the second quarter of 2022, playaresorts.com accounted for 12% of our total Playa managed room night bookings, down 10 percentage points year-over-year. This is a critical aspect of o ur business that I believe many overlook. We at Playa drive a significant portion of our direct revenue in-house, which is now a major competitive advantage for our current portfolio for potential third party managed resorts in the future. Finally, as a reminder, we anticipated that as the world slowly returned to a new normal, our mix of direct business would likely fall below 50%, but we still believe it will remain higher than levels seen prior to the pandemic and significantly higher on an absolute basis. Taking a look at who is traveling, a little less than 40% of the Playa managed room night stays in the quarter came from our direct channels. As our group and tour operator mix improved year-over-year and OTA mix remained depressed. Geographically, our U.S. sourcing increased approximately 10 percentage points compared to Q2 2019 to 67% of managed room nights, while our South American source business increased nearly 400 basis points, and European guests mixed 1 percentage point higher. Given the changing state of travel restrictions, our Canadian and Asian customer mix remained significantly depressed versus pre-pandemic levels. Our booking window was significantly longer than Q2 2019, a result of the robust pacing figures we have been sharing with you in recent earnings calls. Our length of stay during the second quarter was 2% above Q2 2019 and 4% longer than Q2 2021. Once again, I would like to sincerely thank all of our associates that have continued to deliver world-class service in the face of pandemic-related challenges. Their unwavering passion and dedication to service is what truly sets Playa apart. With that, I'll turn the call back over to Ryan to discuss the balance sheet and our outlook. Thank you, Bruce. Good morning again. I will first give you an update on our liquidity and balance sheet and then review the fundamentals of the second quarter, and then finish with a discussion of forward bookings and market trends. As you know, we finished the quarter with a total cash balance of just under $349 million as of June 30. This balance is net of $25 million of mandatory debt repayments we made stemming from our 2020 asset sales. We currently have no outstanding borrowings on our revolving credit facility, and our total outstanding interest-bearing debt is $1.12 billion. Our net leverage on a trailing basis now stands at roughly 3.5x. We anticipate our cash CapEx spend for full year 2022 to be approximately $35 million for the year, with roughly $5 million being carried over from CapEx we did not spend in 2021 as anticipated. The vast majority of our projected 2022 CapEx at this point is maintenance related. Now turning to our MICE group business. Our 2022 net MICE group business on the books is approximately $49 million versus $41 million at the time of our last earnings call, and is again well ahead of our full year final 2019 MICE revenues of $32 million. About a third of the $49 million is expected to stay with us in the second half of the year, with 40% of that in the third quarter and the remainder in the fourth quarter. Our pacing for 2023 has remained strong with nearly $31 million already on the books, which is roughly 2 x the amount of MICE revenue we had on the books in July of 2019 for 2020, and also 50% higher than what we shared with you on our last earnings call. The return of this MICE business should provide a good base to help manage yields and drive improved profitability year-over-year, particularly at our resorts in Cabos, Rose Hall and Cap Cana. Now moving on to the fundamentals. Our second quarter results exceeded our expectations as a result of better than expected ADR and occupancy. With respect to the top line, occupancy came in slightly above our expectations, driven by close-in demand in Jamaica and the Pacific Coast. ADR also came in above our expectations, led by better than anticipated ADR gains in the Dominican Republic at both of our managed properties. On the cost front, as Bruce mentioned, the teams have done an excellent job navigating the challenges of the current environment. Our resort margins were well ahead of Q2 2019 levels, and just 40 bits shy of Q2 2018 resort margins. Margins benefited from marketing efficiencies given the higher booked revenue position, while food and beverage and utility expenses were higher compared to Q1 due to both inflationary pressures and targeted investments in food and beverage to enhance the guest experience. I'd like to remind everyone of some of the factors that make comparing and analyzing our fundamentals versus the 2018 and 2019 periods difficult. First, as a reminder, we closed on the Sagicor transaction in June of 2018. As you know, while the Jamaican markets have historically had higher ADRs on a like-for-like basis, the operating costs are higher and thus have a lower margin profile. Secondly, the construction disruption we experienced in 2019 related to our Hilton conversions had their most pronounced impact during the second and third quarters of 2019. Lastly, the Dominican Republic, as you recall, experienced a sharp slowdown related to perceived safety concerns beginning in June of 2019, and led to a material decline in profitability, which carried through the rest of the year. At the segment level, as Bruce mentioned, Jamaica's sequential occupancy improvement during the second quarter was the notable standout. Following the relatively slower start to the year, performance in Jamaica improved during the second quarter, and we expect further improvement in the second half of 2022 based on the business we have on the books, improved MICE booking pace, and increasing airlift into the market. The recovery in Jamaica has the potential to be a meaningful contributor to EBITDA growth in 2023, as the relative ADR growth has been muted versus our other segments and historically comparable resorts. If y ou adjust ADRs in Jamaica for the mix impact of asset dispositions, like for like ADRs have only increased at a low double-digit growth rate versus 2019 during the first half of 2022, thus lagging comparable resorts by roughly 20-40 percentage points. With the tailwind of the strength in the MICE segment and the removal of the COVID entry requirements, Jamaica will be particularly exciting for us to monitor in the coming months. Looking at our other segments, the Yucatán Peninsula continued to deliver strong results, driven by higher demand through our direct channels, leading to sequential occupancy improvement and reported ADR gains of nearly 60% versus Q2 of 2019, or approximately 39% adjusted for OTA commission adjustments and mix impact from asset dispositions. However, cost headwinds in food and beverage and utilities weighed on our second quarter margins in Yucatán, although they were still higher than 2019 levels. The Pacific Coast had a fantastic second quarter, driven by strong demand throughout our direct channels and the MICE group segment, which helped offset similar margin pressure from utilities and food and beverage costs. Finally, our flagship Hyatt Ziva and Zilara Cap Cana resorts continued to lead the way in the DR segment with another quarter of strong margin performance. Results in the segment were once again weighed down by our two externally managed properties, whose ADRs are still below 2019 levels. As we look at the second half of the year, I continue to be excited about our potential based on how our book of business has been building. We're particularly encouraged by year-over-year ADR gains and revenue pacing in the second half of the year, and we expect to lap the second half of 2021's record performance. Both the third and fourth quarters are pacing significantly ahead of the comparable periods in 2019 and 2021 in both revenues and ADR. For the second half of 2022, we expect occupancy levels to be similar to the occupancy rates reported in the first half of 2022 and a high single-digit year-over-year ADR growth, which is an acceleration versus the second quarter in trend when compared to 2019. Another reminder on the modeling and comparability front, the change in the OTA billing methodology impacting our ADR was implemented during the second quarter of 2021 and should largely become comparable year-over-year in the third quarter of this year. The second quarter that we just reported was still materially impacted versus Q2 2021, as we had many reservations on the books ahead of the change, which are not subject to the new commission accounting treatment. We do not anticipate expense inflation to be materially worse in the second half of 2022 as compared to the first half of the year, with the exception of increased insurance costs, which began in the second quarter of 2022 in connection with our regularly scheduled annual policy renewal and some higher F&B and utility costs. As a reminder, our costs experienced a step-up in inflation during the middle of 2021. In conclusion, we still expect to hold or grow margins year-over-year in the second half of the year and lap the second half of 2021's record margin performance. We hope that framework helps guide you as you fine-tune your models and gives further insight into what we're seeing and expecting. With that, I'll turn it back over to Bruce for some closing remarks. Great. Thanks, Ryan. With the increasing uncertainty in the macro backdrop, we are diligently focused on the areas within our control and are carefully monitoring the landscape. Given our leisure focus, the most important factor for our success will be employment, as a major uptick in job losses or confidence could potentially derail the shift back to travel and services from durables. However, this morning's job report demonstrates no weakness in the overall labor market and gives no indications of an impending recession. As long as the job market remains strong, Playa's business outlook should be very positive. We believe the price certainty and amazing value provided by Playa continues to resonate with travelers, even in the face of an uncertain economic backdrop. Finally, on the capital allocation front, we have recovered faster than most of us expected just a short time ago and now have a healthy cash balance, which naturally begs the question: What is next for Playa? Our leverage has only now approached our long-term target of approximately 4x. Although financial market conditions aren't ideal at the moment, we anticipate refinancing our debt and extending maturities. As part of the leverage consideration, our 9.25% interest rate property loan recently became callable, which is another potentially attractive use of capital that we believe will save cash, provide a solid return, help with our debt refinancing, and reduce our long-term cost of capital. Separately, we have been actively working for months on pursuing value-added projects that we have yet to announce, but which are a time-sensitive use of cash on hand. Finally, if credit markets begin to cooperate and our stock continues to remain severely depressed, we would be interested in buying back our stock at its current valuation. With that, I'll open up the line for any questions. We'll begin the question and answer session. To ask a question, you may press star then one on your touch-tone phone. If you're using a speakerphone, please pick up your handset before pressing the keys. To withdraw your question, please press star then two. This time we'll pause momentarily to assemble the roster. First question comes from Patrick Scholes, Truist Securities. Please go ahead. Hi. Good morning, everyone. Morning. Morning. Questions here. Couple questions for you here. You know, certainly, you know, the valuation on where it's trading is, you know, possibly what the value is of the properties are, you know, looks certainly very attractive. My question here is, you know, would you ever consider doing on a typical property, you know, selling off a joint venture piece, really, you know, mark to market example of what your properties might be worth? You know, I think of Ryman Hospitality Properties that did something somewhat similar with their entertainment segment where, you know, there just weren't a lot of good comp set there, and they, you know, they sold off a small piece of that and certainly was much higher than the Street was expecting. Would you do something to that effect so that, you know, you you'd get a good example of really what these are worth? I mean, you know, from an academic standpoint, the answer is sure. We would consider it. Yes. From a realistic standpoint, I'd say it's less likely. I mean, you think about it. First of all, you know, Ryan went over what our cash balance is. It's not like you need to sell an asset- Sure. or even a part of an asset, you know, for any cash needs, right? Because we have a very healthy cash balance. So that's one. The second thing, I think the bigger overriding reason is, you know, the opportunity that exists for Playa in buying real estate in our markets is that it's an incredibly inefficient kind of market. You don't have, you know, for example, you know, REITs like Ryman or others in our markets, you know, that are, you know, competitively bidding on properties all the time, and so that there's, you know, a very efficient market to buy and sell assets. In our case, you know, that just kind of, you know, doesn't exist. It's why, you know, things don't trade very frequently. Maybe it creates some problems for people, you know, trying to find a comp. You know, there's no question if we thought there was an opportunity to do a joint venture with somebody and sell properties and share, and that would really be, you know, from a standpoint of growth, that we would be growing more than, you know, by doing something like that then growing less, you know. That's why we would do that. I'm, you know, I'm not against it. You know, do I inherently believe, you know, that we're undervalued? Oh, I think we're crazy undervalued. I mean, I think if you just look at the free cash flow we're generating, and you know, as I mentioned, you know, there's no really indication of any weakness on our horizon. I think, you know, market's always waiting for the other shoe to drop. For our business, as long as people have income to spend to go on vacations, they're gonna go on vacations. You know, as long as their health, I mean, their employment is healthy, you know, in kind of, jobs, wages are going up, they're going to continue to do that. You know, for us, inflation's not a big negative. I mean, sure, do we have some increase? We highlight it. We have some increase in food and beverage and utility costs, but overall, we're able to, you know, price our rates higher than our costs are going up. As long as that exists, you know, it's going to remain a positive dynamic for us. We're not really fearful of inflation, and we're not really fearful that our business is gonna be, you know, declining anytime soon. Okay. Thank you. My next question, you recently announced you had landed a new management contract. Would you describe that as, I guess, an outright win, or were there any concessions you had to make to, you know, get that contract when we think about, you know? No. Yeah. No. Actually, that contract, you know, it's a good example. I was down in Mexico two weeks ago, meeting with, you know, the owners of that asset. They were, you know, so excited, you know, to get to the point where we were signing that management agreement. The reason being is that they look at our performance. Being the only public company in the all-inclusive space, I can tell you know, that people, you know, our competitors all look at our performance. They said, "Your performance at your properties is dramatically above what we're experiencing, and we wanted you to take over and see what we can do there." You know, they're excited. I think, you know, our prospects for really improving their performance are very, very high. We and they are excited about doing that. Concessions, absolutely not. I mean, it was a, you know, very strong third-party management agreement. You know, I can tell you we're in discussions with others, and so hopefully in the near future we'll be able to make additional announcements. You know, I think it's an exciting time for us because, you know, our performance has been very strong, you know, even stronger than those in the markets that we operate in. Okay. Congrats on that. Thank you. I'll admit, I think I probably know the answer to this one already. You know, when land use on some of the resort markets have you know done exceptionally well over the past year, whether you know it's Miami Beach or Vail and Aspen, you know, we're starting to see some occupancy growth. Obvi ously, you didn't see in your numbers in 2Q, but as you look into the year and early next year, seeing any you know anything noticeable pressure on occupancy. Thank you. No, Patrick. That's why we tried to make that point clear. You're absolutely right. We're not seeing any notable change or slowdown. You know, while we're fully aware of the consumer crosscurrents, we're not seeing any erosion of ADRs in the portfolio. I mean, just to reiterate again, like, while our headline ADR growth, you know, is eye-popping. There are non-organic drivers, you know, impacting those numbers. Our underlying organic, like-for-like, is still very impressive and reasonably sustainable. I think in some of those examples, like, you know, places in South Florida and others, you kind of had a captive market or captive audience that had nowhere else to go. You know, people may be willing to go to, I don't wanna disparage any particular markets in South Florida, but, you know, people may have been willing to go there, but I can tell you what they probably don't want to go back next year and pay the same rates, right? Particularly with lower staffing levels, lower service levels, where we've opted to do the complete opposite and make sure that, you know, we're pricing appropriately. Our pricing is still up, but the underlying ADR growth is not unsustainable while still investing in the product and investing in staffing. Okay. All set. Thank you, the color on all of those. Thank you, Pat. Thank you. Next question will be from Shaun Kelley, Bank of America. Please go ahead. Hi, everyone. Good morning. Thanks for taking my questions. I just wanted to dig in a little bit on, you know, first of all, you know, Bruce, your upfront commentary there about just the trends you're seeing for Q3 and Q4. If I kind of got all this right, I mean, directionally, you're up 35% in revenue in Q3, 20% in revenue in Q4 on bookings, you know, thus far, and that's at high single-digit rates. Those are all year-over-year figures. The balance of sort of A minus B is the occupancy improvement you expect, which should get you kind of into like low-to-mid 70s, similar to what you did in the first half. Did I. How did I do? Absolutely. You're really good. Okay. Just wanted to make sure I caught all that as the decomposition. Really my question then goes into next year a little bit, right? As we do start to cycle, you know, like the recovery part obviously for Playa is, you know, largely done. Jamaica, you know, has a tailwind to it that's gonna last for a bit that you've outlined. Help us think about organic growth levers in 2023. What can push the story forward, as you know, we are, you know, from a consumer perspective, even if things don't roll, we've taken a lot of price in that lens. Is it slowly building occupancy back up to the 80s and optimizing the resorts? Is it, you know, are there other organic opportunities around the properties? What can kind of drive, you know, mid or high single digit growth next year as we, you know, once we kinda, you know, hit like, let's call it some sort of normalized level of demand? Sure, sure. Well, let's, you know, let's step back and look at kind of what could keep going up and drive it. First of all, you know, if you recall, you know, we were definitely impacted, you know, in January, you know, in February by Omicron, right? We did not have a normal first quarter of 2022. Right away we're gonna have a benefit of, you know, fortunately, let's just assume, right, that we don't have another variant, you know, that's gonna get us. We should have a more normalized first quarter. We're gonna have a big benefit there. Second, okay, is just the Jamaica effect. As you're well aware, you know, Jamaica didn't lift their travel restrictions until middle of April. You know, we have, you know, three and a half months that were under travel restrictions, you know, that again, we should be able to significantly lap, you know, the results that we did in Jamaica. Jamaica, you know, historically has been a great market for us. The third big one is MICE, okay? That, you know, you've seen our MICE business continue to improve. I'd say the final component that, you know, may not drive so much in the first quarter, but really probably in the second half of 2023 and then in 2024 and beyond, is gonna be some of the, you know, some of the capital projects. We highlighted that, you know, we have these time-sensitive projects. We haven't, you know, announced what they are. We will announce what they are. Across the board, you know, our success, you know, with our capital investment has been incredible. You know, we have really good returns whenever we invest money. In the projects that we've identified, not surprisingly, are the best returning projects, okay? You know, as you look at what we're gonna be doing later this year into the beginning of 2023, those projects are going to generate some really nice, you know, kind of organic returns going forward. I think for all of those components, it paints a very positive picture for 2023. Shaun, the only other thing I'd add is just kind of reiterate what I said earlier on Jamaica. Just a reminder, I mean, from an ADR, that was traditionally our highest ADR market. If you look at how it's performed thus far in the first half of 2022, it's really only been up kind of high, excuse me, low double-digit ADR growth over 2019. Which when you compare to what the other guys have done, like comparable hotels like Ziva Cancun and others, it's lagged by 20-40 percentage points. We've seen increasing airlift already start to build in that market. While it's, you know, small, we're doing ones and twos, but you just think about what's opened in the last couple years. We had the Ziva Riviera Cancun at the end of last year. You know, the Hyatt Zilara Riviera Maya management contract that, you know, we started taking reservations for December. The CDF that we just mentioned and the continued recovery of the other third-party contract that we've already had. You know, it's not an immense amount of additional revenue, but that proof point and that thesis is starting to build and should add some nice revenue next year and beyond as well. Thank you for that. My follow-up is sort of the balance sheet capital allocation question. You alluded to the callability of the, I guess, the 9.25 notes. That sounds like a, you know, an obvious, you know, maybe first target for something. You know, I'm not super familiar with exactly how much that would, you know, like, you know, just what kind of dollars we're talking about there or refinancing's potential. Just help us think about, I mean, maybe capital priorities because, you know, it would strike me as you're getting into the 3x and 4x level, you know, you should be. You know, you're probably at that place where you wanna reload the, maybe the organic growth ask, and especially if ROI potential around the properties is as high as, you know, you've demonstrated in the past. Yeah. You're absolutely right. We think of it kind of in those, you know, those couple buckets. First, as Bruce mentioned, the, you know, the capital markets are a little disjointed and not ideal at this point, but we certainly anticipate the need to refinance and extend the maturity of our debt. It's not due till 2024, but it's certainly something we're focused on. We may need some cash to help smooth that process over and help our overall cost of capital for the long run, right? You know, obviously, just like you said, that 9.25% debt, which would save over $11 million a year in cash interest expense is an obvious choice, and it just potentially helps kind of, you know, help facilitate a more smooth refinancing whenever that time may be if the markets remain a little more disjointed. As you're well aware, the high yield markets have been incredibly bad. The leverage loan markets are a little bit in better shape, but OID is still tough. So we're, you know, making sure we're preparing and getting ready in the background to address anything that we can if and when the markets, you know, fix themselves. But then to your point, you're absolutely right. Bruce alluded to it to you, but we've been actively working for months in preparing in the background, you know, our ability to pursue some, you know, compelling value-added projects that they're not yet announced or approved, but they're more time-sensitive and would be a great use of our liquidity and capital. Great, guys. Thank you very much. Thanks, Shaun. Great. Thank you. Thank you. Our next question will be from Chris Woronka, Deutsche Bank. Please go ahead. Hey, good morning, guys. Hi, Chris. Bruce, you mentioned the time sensitivity on some of these CapEx opportunities. I know you didn't wanna get into specifics just yet, but is the time sensitivity due to, you know, something you think you need to do to maintain or grow market share? Or is there another angle to the time sensitivity in terms of an approval or procurement or something like that? Yeah. No, no. It's more the latter, you know. Just a couple things, some of the dynamics with a couple of the properties. That's what it refers to. You know, I don't wanna overplay, you know you know that. Obviously, we could do things faster or a little bit slower, but it's more there's great opportunities. I mean, I guess if any message I wanna get across is there's great opportunities, and we have a really strong track record of delivering on those kind of projects. We have more projects than we have cash, okay. In the perfect world, you know, we do even more. We've prioritized them. We've looked at, you know, the best returning opportunities, and that's what we're gonna focus on. I think, you know, the results coming out, you know, and it will be probably, like, beginning in the second half of next year, you know, will be positive, very positive. Okay. Just to follow up on that, Bruce. If you do move forward with some of those, can you do it in such a way that, you know, disruption is minimized? 'Cause obviously that, you know, you guys kind of went through that in, I guess, you know, 2017, 2018. Can we get, you know, do you feel confident you wouldn't disrupt the very strong revenue environment to do those? Yeah. I mean, the things we're talking about, Chris, are gonna have way less of an impact on disruption than we had back in 2017 and 2018. That's number one. You know, number two, you know, we take into account the EBITDA disruption when we're evaluating and prioritizing the projects. That's definitely one of the key considerations. You know, it's always frustrating to me, you know. I mean, I look when I was getting my MBA in finance, everyone told me, you know, the capital markets we re incredibly efficient, and they value long-term cash flow, and they would discount them back at risk-adjusted rates. You know, you do the best projects for shareholder value. Well, I've learned, you know, that's not the case, okay? You know, the capital markets look next quarter, and they wanna see what, you know, what's your EBITDA is next quarter. They assume if we have an EBITDA disruption next quarter, that's a permanent impairment of EBITDA, you know, and you never get it back, you know. You know, somewhere between, you know, the practical way the capital markets value and the theoretical is what we're focused on, you know. You know, we're gonna do projects that make sense for driving shareholder value, and that's what we're doing. We definitely keep our eye on, you know, that EBITDA disruption issue. Okay. Great. Last one is on the non-packaged revenue. Really strong number there in Q2, and both on an absolute basis but even more impressive on per occupied room basis. Can you tell us what drove that? Was it something You know, intentional. Can you maintain some of that momentum going forward or is it more just a function of kind of higher pricing on everything at the resort? It's a couple levers there. One, there was a few things that we were putting in place prior to the pandemic that just allowed us to roll it out more quickly, like, you know, selling, you know, private transfers to and from the airport through our website. You know, we'd already kicked around the idea of selling, you know, or charging for cabana usage at the properties. Well, in a socially distanced world, upon reopening in 2020, everybody wanted those. We started building more cabanas and charging more for them, but still offering them at a very competitive price compared to what you'd get in South Beach, for instance, right? You know, we were able to do, you know, more spa business. Long story short, we have a nice base that already grew throughout the pandemic. Now what you're seeing is that you've layered on the return of MICE and wedding business, who's doing a lot of events and dinners on the beach and celebrations and things like that. I was in Cap Cana in July. You know, as an example, we've hired now three Indian chefs, certified chefs, and we're doing very large Indian weddings there. The one that I was there was a relatively cheap one, and I think it was $275,000 over four days, right? I was blown away with, you know, just the amount of just like the over-the-top celebration at that resort. Again, that was a relatively cheap one. Very focused on the package spend. Okay. Super helpful. Thanks, guys. Thanks. Thanks, Chris. Thank you. Next question will be from Tyler Batory. Oh, Oppenheimer, please go ahead. Hey, good morning. Thanks for taking my question. Can you talk a little bit more about performance within the portfolio at the different brands? I mean, obviously the rate commentary holistically very positive. Is that being more driven by the Hyatts than the Wyndhams, for example? I mean, are you seeing any weakness in terms of some of the lower rated business within your portfolio? No, nothing yet. I mean, certainly the Hyatts have always been, you know, kind of the core, you know, outperformers in our portfolio, you know, compared to kind of the Hiltons and the Wyndhams, but we're not seeing a slowdown. If you're trying to get at, like, the lower end consumer, I still think, you know, even at our Wyndham Alltra and the Hiltons, that's still kind of a mid-tier consumer, and that business is still very, very strong right now. We have pockets, you know, in various markets that are just different from one another. Like you've heard us say many times that Playa del Carmen, that whole market, you know, that includes the Hilton and now a Wyndham Alltra, you know, recovered more slowly than Cancún for all obvious reasons. It's had more supply over the years down there. It's further from the airport. It's not Cancún proper. We're not s eeing any pockets of weakness at the lower end properties vis-à-vis the high-end Hyatts. Okay, great. My follow-up question. There's a lot of headlines, news stories about, you know, the challenges for the airline industry, you know, issues with flights getting canceled, rescheduled, capacity issues. You know, is that something that you've noticed in your markets? What does the flight capacity look like in the back half of this year? I mean, is it ramping up? Are things kind of a little bit more stable? Yeah, we've not had any of the cancellation issues that you've seen in kind of longer haul flights in Europe than others. The back half of the year, you know, based on the data that we received, you know, there's been a nice, fairly large upward revision in Q3 and Q4 on top of what was already happening. You heard Bruce mention earlier that we finally crossed the threshold in Q2 for positivity and in arrivals into Montego Bay, and that's essentially doubling in Q3 and into Q4. Then bigger upward revisions in Cancún and Montego Bay and Los Cabos as well. Not seeing that show up in any of the numbers. Okay, excellent. That's all for me. Appreciate the detail. Thank you. Thanks. Thanks, Tyler. Thank you. Again, if you have a question, please press star then one. Next question will be from Chad Beynon, Macquarie. Please go ahead. Afternoon, thanks for taking my question, guys. Hey, Chad. We get a lot of questions from investors just around kind of a macro downturn, hypothetical. Given your model, can you talk a little bit about some of the things that you could do if we see a slightly more price-sensitive consumer or just kind of a general, you know, weaker consumer out there, to kind of, you know, keep margins at a relatively strong point? Thanks. I'll let Ryan, you know, kind of get into the details of that, but Chad, I'll tell you just from the overall standpoint, you know, I've been in the all-inclusive business now, it's been 20 years, and I can tell you going through different down cycles, all-inclusive does incredibly well in downturns. Incredibly well. Why is that? It goes back to the value proposition and the fact that, you know, you know exactly what you're gonna spend going into it, and so it's not like this unknown. I would look at it and I see no signs, and I have quite honestly, you know, and I tend to be a more, you know, kind of cautious person, you know, not negative, but more cautious looking at kind of the downturns. I just don't see it, you know, first of all. If it comes, I think we will benefit much better than, you know, kind of traditional players will benefit. I think, you know, we do have some levers to pull, you know, to manage through that. Then I'll, you know, pass that part over to Ryan. Yeah, I think the only thing I'd add, just like more specifically, I think it depends a little bit on the property. You know, if you think about the Hyatts, you know, and just generally across our portfolio from the beginning, Bruce has been, you know, pretty adamant about, you know, making sure that we're maintaining price and ceding occupancy in favor of ADR to establish that competitive positioning. You know, at the same time, so if that environment were to present itself, we're okay with giving up some occupancy because it makes it easier on the ops team, and it allows us to kind of continue to price selectively when, you know, a rebound were to take place. You know, that strategy may differ slightly at a lower chain scale property because you can be more flexible with expenses given the different, you know, guest expectations. In general, the marching orders from the beginning of this recovery have been favor rate and not overfill the properties. Great, thanks. Separately, you mentioned some of the international inbound markets are recovering, but still certainly not where we saw it pre-pandemic. Can you talk a little bit more about, you know, Canada, Europe, Asia? Asia obviously has pretty strong restrictions. Kinda where that, you know, group of inbound percentages, collectively maybe versus where we were pre-pandemic and if you're starting to see improvement in that inbound. Yeah. Europe, there were parts of Europe that did, actually recover fairly well. Actually Q1 is just a percentage of our overall room nights. Europe was actually higher than it was in 2019 by just, you know, like 100 basis points. We did see some choppiness at a few properties in June, but that has not continued into July. No cause for concern there. Just recognizing everything that's happened in Europe, right? You know, over the last couple months. Asia and Canada are still severely lagging, as you can imagine. I mean, Canada prior to the pandemic was, you know, roughly kind of 5%-8% of the overall room mix, and Asia was less than 4%. It's not a massive part of the picture, but, you know, Canada is the one that's lagging most behind. Thanks, guys. Appreciate it. Nice quarter. Thanks, Chad. Thank you. Concludes our question and answer session. I'd like to turn the conference back over to Mr. Bruce Wardinski for closing remarks. Okay, great. Well, again, we appreciate everybody's time today. We think, you know, the business in the quarter was obviously very, very strong. We're looking forward to continued strength, you know, throughout the rest of the year and into 2023. I think as you picked up from my comments, I don't see the world coming to an end. Hopefully it's not gonna happen anytime soon, and we can continue to really execute at top level. Again, thanks for participating in our call and, please go ahead to playaresorts.com and book a stay at one of our resorts. Thank you. Thank you. All calls completed. Thank you for attending today's presentation. You may now disconnect. Thank you, Dave.