Sean Dell’Orto: Smedes, this is Sean. I might add too, I mean your focus on — your question is focused on leisure, but I also consider that Hawaiian Village, especially this year has a good group component with it in the convention calendar, while again, not the primary source of demand in the business and the hotel per se in the market. But in the end, it’s a strong — very strong citywide calendar for Honolulu in Q3. And if we look at Q2 for our property specifically, we’ve got some great pace, up 50% in this quarter in May and 100% in June. So, I think we feel that while leisure are certainly very important to the complex, we certainly have a different layer — diversified layer in there with the group as well.
Smedes Rose: Great. And can I just ask one more. You have the sort of the two positive impacts in the quarter with the Massachusetts grant and the employment refund in Hawaii. Were those in your full year guidance is initially contemplated? And I think maybe this is more of a comment, but I think maybe the reason people are struggling a little bit with the stock is we’re kind of backing that out, — and I was just wondering what did you have embedded? And maybe are there any other things like that, that we should be expecting over the course of the year?
Sean Dell’Orto: Smedes, so we had the Massachusetts grants in our guidance. We booked those in February, but we did not have the Hawaii Suda reimbursement that would occur in March, which is about $4.4 million. So, as we think about the shift Smedes, sorry, for cutting you off there, but you think about the shift in EBITDA, what ultimately it obviously includes the Suda, 4.5 and 5 change or so of just operational fee from Q1.
Smedes Rose: Yes. Okay. I just — I mean just — because I think — I mean, even if it was in your full year outlook, we wouldn’t necessarily have kind of known that would hit in the first quarter on the Massachusetts thing. So, I think people are we naturally kind of back that out. So, I think that’s just kind of maybe what’s going on a little bit. Although, look, it was obviously a strong quarter, even taking that stuff out. But I — it’s just kind of a comment, I guess, more than — that’s more than a question.
Operator: Next question comes from the line of Duane Pfennigwerth with Evercore ISI. Please go ahead.
Duane Pfennigwerth: Tom, can you talk a little bit about your Miami renovation plans when we last met, it sounded like you saw an opportunity to go bigger in that market, and maybe the timing is pushing a little bit to the right here. So, can you just talk a little bit about the analysis and the opportunity you see there?
Tom Baltimore: Yes. I would liken it in many cases to what we’ve just done in the Casa. It’s an iconic property, it’s oceanfront, it’s South Beach. We see a great opportunity to reimagine that iconic asset. And if you think about what we’re seeing already in Casa not only is it incredibly well received and throwing out numbers in the second quarter, we expect we’ll be up — I think in May and June we were looking at a 900% increase in RevPAR, but we see that kind of upside with that, again, great real estate. So, we continue to sort of investigate it, continue to study it. Carl Mayfield, heads of our design and construction, certainly best-in-class. He and his team are working hard and working with local architects there and figuring out it’s three buildings.
It’s about 393 rooms, approximately. Don’t have it all scoped out yet, but it’s something we’re really excited about as we look out. And if you think about what we just completed in Bonnet Creek. We can’t wait to really show the talents of the team and that extraordinary work that was done there. And then, of course, we continue to invest in Hawaii. And as we mentioned in the script, when you think about just the Tapa Tower there and the fact that we’re already seeing a $60 increase in average daily rate. So, we see considerable upside in Miami when you look at the last 20 years, what have been the two strongest markets or two of the strongest markets, certainly Miami and Hawaii have been too. And when you think about the ultra-luxury projects that are being contemplated.
Obviously, we’re not envisioning Royal Palm would compete at that level, but there’s certainly plenty of space right beneath that in a lifestyle hotel that we can really take it to the next level.
Duane Pfennigwerth: And maybe just for a follow-up, I would love your thoughts on the outlook for New York. It’s been a positive surprise, a pleasant surprise, frankly, for a while now, would love to hear your thinking for maybe the balance of the year?
Tom Baltimore: Well, if you think back for a second and New York was up 30% of RevPAR in 2023. We were up 11% in the first quarter. And I think supply is down about 9%. And you’re obviously seeing — there have been no new permits that they issued through the City Council since December of ‘21, I think, plus or minus. And Airbnb is finally being regulated. So, a lot of the illegal hotels are certainly not in supply. So, New York is a more compelling market today than it has been. And if you look historically, look back 10 years plus or minus, New York certainly was among the strongest markets. So, we’re very encouraged and I would say, as you sort of look across the urban portfolio, and I think, obviously, evidenced by New York, but not just New York, you’re seeing markets really broaden and begin to recover, which is a good thing and certainly benefiting the Park portfolio.
Operator: Next question comes from the line of Chris Woronka with Deutsche Bank. Please go ahead.
Chris Woronka: Nice quarter. So, I wanted to drill down a little bit on group if we could. I think you said that your pace — your second quarter pace up 11%. As you’re negotiating some of these new group contracts, whether it’s for the rest, I assume not a lot to go in ‘24, but more for ‘25 and beyond. What kind of I guess, room rate increase can you still get — and also on the ancillary, right? You mentioned strength in catering banqueting, — are you still able to push through above inflationary price increases on those?
