Smedes Rose: Okay. So pretty small overall capital to that.
Mark Brugger: About a $7 million project.
Jeffrey Donnelly: Yeah, it’s a small project.
Mark Brugger: Large, relative to scale the resort, but small in the aggregate.
Smedes Rose: Right. Okay. Thank you.
Mark Brugger: Thanks, Smedes.
Operator: Your next question comes from the line of Austin Wurschmidt from KeyBanc Capital Markets.
Austin Wurschmidt: Thanks. Good morning, everybody. Just wanted to start off with the group pace of plus 21%. I’m curious, first of, how much is on the books today versus this time last year? And what does your guidance assume for RevPAR growth for that segment as you see that ratchet down through the year on the pace front?
Mark Brugger: Jeff, do you want to take that?
Jeffrey Donnelly: Yeah, happy to. So as we sit here today, I think we’re sitting with about group rooms versus last year. So we’re sitting at a significantly increased position on a relative basis. We obviously think that’s going to tail off in the year — for the year, just given space availability concerns. But I think the goal is for us to shift segmentation about two points into the group categories. So it was about 28% for us last year, where we ended at about 30%. And I think what we consider to be equal, if not more significant, is that we’re seeing that pace increase spread throughout the portfolio. So it’s not just driven by good years in our big group boxes. Our resort portfolio that makes up a much smaller piece of the segmentation is also up about 20%, as we’ve really leaned in to reorienting our sales teams and trying to drive some incremental demand into those resorts as we saw leisure demand tail off a bit last year.
Austin Wurschmidt: And then what are you assuming within the RevPAR guide before for the group segment for growth this year?
Jeffrey Donnelly: Probably — at the top end, it probably ends up being about two-thirds of the growth.
Austin Wurschmidt: Got it. And then last quarter, you guys had highlighted about a $4 million lift you expected from The Dagny. Did I hear you correctly that you expect other disruption this year to fully offset that amount? Or are those apples-to-apples comparisons? Just wanted to clarify.
Mark Brugger: Yeah, you heard that correctly, Austin. I would say typically, every year, we have about $3 million to $4 million of disruption and displacement. But you’re right, we do expect to get a lift at The Dagny. But as we always are looking at ROI projects in the portfolio, there’s always some noise that comes up, and it’s the assets that I mentioned that will be in the first quarter and third quarter. Last year. The Dagny was predominately affected in third-quarter impact.
Austin Wurschmidt: Got it. So I guess between — I guess, The Dagny offsets a little bit. But with group then, does that imply that RevPAR growth for the leisure BT-type segments, you’re in the low single-digit range for the full year? Am I thinking about that correctly?
Jeffrey Donnelly: Yeah, leisure is on the lower end; the group’s on the high end. But it’s what you think about the revenue breakdown for the year. So the group is clearly going to carry the RevPAR growth there and carry the weight of it in 2024.
Austin Wurschmidt: Great. Thanks for the detail.
Operator: Thank you. Your next question comes from the line of Mike Bellisario from Baird.
Mike Bellisario: Good morning, everyone. A question on the South Florida performance and commentary that you guys gave. What was the driver of that improvement? Was it just comparison to last year? Did you actually see a sequential acceleration in demand and/or pricing in that market?
Mark Brugger: All of those, really. I mean, the comparisons got easier. South Florida peaked first and most robust. So that — just think about the lapping effects helping that. But demand was better than we anticipated and, certainly, in the keys as we move through the fourth quarter. So we were very encouraged about the performance. At the Westin, we did layer in some group there. But I think the Florida Key story is a very encouraging one.
Mike Bellisario: Got it. Okay. And then a follow-up just on inbound international travel to your major markets. I mean, where do you think that’s at for your portfolio today versus pre-pandemic levels? And what are you seeing in the booking curve that would suggest improvement in ’24? Could you quantify that improvement based on the bookings you’re seeing? Thanks.
Mark Brugger: Yeah. Mike, it’s hard to give the specific data because we don’t track it for the individuals. We just see on the macro data. We believe that last year, we probably under-indexed, particularly in the high-end traveler that went to Italy. And this year, at places like Sedona, we would expect to benefit from as much international coming in, which is really coastal positive, but more of the domestic travelers, particularly the well-heeled domestic travelers deciding to vacation in the United States versus their revenge trip to Europe.
Jeffrey Donnelly: And Mike, I would just add on. I think, pre-pandemic, if you just did a market-by-market analysis for us, we were mid-single-digit exposure. It’s not a guest-by-guest analysis, but just exposure to geography, I think, were mid-single-digit exposure or demand from international sources.
Mike Bellisario: Got it. Understood. And then maybe just zoom in there on the group bookings. Can you tell if you’re seeing more demand from international groups coming to your gateway markets? Presumably, you can track that much easier than the transient traveler? And that’s all for me. Thank you.
Jeffrey Donnelly: Yeah. I mean, I think we don’t necessarily see a lot of groups that are completely international. You have attendees that are coming in from international destinations for domestic, group-oriented business. So it’s not necessarily a stat that we honestly parse through. When we get rooming less from groups, it typically doesn’t have a destination for the consumer. So hard for us to quantify, honestly.
