Related party transactions

The following summarizes transactions and arrangements that we have entered into with related parties. The details of the balances between us and related parties as of June 30, 2018 and December 31, 2017 are as follows ($ in thousands):



	As of June 30,		As of December 31,
	2018		2017
Accounts receivable	$	3,090	$	1,495
Accounts and other payables	$	3,750	$	2,966

Relationship with Hyatt

As described below, we pay Hyatt franchise fees for our resorts currently operating under the all-ages Hyatt Ziva and adults-only Hyatt Zilara brands. In addition, in connection with the Pace Business Combination, all outstanding Preferred Shares of our Predecessor owned by HI Holdings Playa were purchased at a purchase price of $8.40 per share for $196.0 million in face value and $93.6 million of associated PIK dividends.

Relationship with Real Shareholder

In connection with the Pace Business Combination, all outstanding Preferred Shares of our Predecessor owned by the selling shareholder of Real Resorts (“Real Shareholder”) were purchased at a purchase price of $8.40 per share for $43.5 million in face value and $20.8 million of associated PIK dividends.

Upon the consummation of the Pace Business Combination, the Real Shareholder was no longer considered a related party because the Preferred Shares were extinguished in connection with the Pace Business Combination.

Transactions with related parties

Transactions between us and related parties during the three and six months ended June 30, 2018 and 2017 were as follows ($ in thousands):



	Three Months Ended June 30,				Six Months Ended June 30,
	2018		2017		2018		2017
Hyatt franchise fees ⁽¹⁾	$	4,594	$	3,409	$	9,045	$	7,774
Lease payments ⁽²⁾	255		269		472		578
Dividends on the Preferred Shares ⁽³⁾	—		—		—		7,922
Deferred consideration accretion ⁽⁴⁾	—		—		—		36
Interest expense on related party debt ⁽⁴⁾	—		—		—		372
Total transactions with related parties	$	4,849	$	3,678	$	9,517	$	16,682

________


⁽¹⁾	Included in direct expense in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).


⁽²⁾	Included in selling, general, and administrative expense in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).


⁽³⁾	Included in dividends of Preferred Shares in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).


⁽⁴⁾	Included in interest expense in the Condensed Consolidated Statements of Operations and Comprehensive Income (Loss).

One of our offices is owned by our Chief Executive Officer, and we sublease the space at that location from a third party. Lease payments related to this space were $0.5 million and $0.6 million for the six months ended June 30, 2018 and 2017, respectively. Lease payments related to this space were $0.3 million and $0.3 million for the three months ended June 30, 2018 and 2017.

One of our previous offices in Cancún, Mexico was owned by an affiliate of the Real Shareholder, and we subleased the space from a third party also affiliated with the Real Shareholder. We terminated this lease agreement effective July 1, 2017. Lease payments related to this space were less than $0.1 million for the three and six months ended June 30, 2017.