Playa Hotels and Resorts said that travel advisories warning Americans against travel to Jamaica in 2024 resulted in significant revenue losses for the group’s operation in that country.

Commenting on the performance of the hotel and resort management group’s performance in the fourth quarter of 2024 in an online earnings call, Playa chairman Bruce Wardinski said, “The fourth quarter was still challenged by the construction disruption in the Pacific Coast, the US State Department travel advisory on our Jamaican segment and the lingering impact of Hurricane Beryl.”

He added: “Hurricane Beryl had a significant impact on the second half of the year and the travel warning issued for Jamaica had an approximate [US]$25 million to [US]$30 million impact on the segment.

Notwithstanding, the chairman said the performance was expected, though the revenue per available room (REVPAR) declined by 16 per cent compared to 30 per cent in the third quarter of 2024. During the quarter, the company earned US$272.20 per occupied room as against US$324.35 in the corresponding quarter in 2023.

Occupancy for Q4 2024 was 73.5 per cent versus 75.2 per cent. As a result, owned net revenue for the three months ended December 31, 2024, decreased by US$7.1 million, or 14.3 per cent, compared to the three months ended December 31, 2023. Owned Resort EBITDA for the three months ended December 31, 2024 decreased US$8.2 million, or 50.7 per cent, compared to the three months ended December 31, 2023.

“The decrease was driven by the travel advisory issued for Jamaica by the United States government, which negatively impacted this segment,” Playa wrote in its results.

In Jamaica, Playa owns and/or manages Hyatt Zilara Rose Hall, Hyatt Ziva Rose Hall, Hilton Rose Hall Resort & Spa, Jewel Grande Montego Bay Resort & Spa, and Jewel Paradise Cove Beach Resort & Spa, which have a total of 1,428 rooms.

The company recouped some of its losses occasioned by Hurricane Beryl from a US$1.1-million business interruption insurance payout.

Wardinski also shared, “Subsequent to the fourth quarter, we recently closed on the sale of the Jewel Paradise Cove resort [in St Ann, Jamaica] on February 20, for a gross consideration of [US]$28.5 million.

Playa Hotels and Resorts announced on February 10 it agreed with Hyatt Hotels Corporation that a wholly owned subsidiary of Hyatt will acquire all the company’s outstanding shares for US$13.50 per share in cash.