You’re seeing, obviously, group urban really beginning to gain momentum. And that shouldn’t surprise anyone. Also keep in mind when you look at our portfolio and take New York, I think, is a great example. You’ve got a 9% reduction in supply there. You’ve got a lot of people that we’re selling and sort of writing off the city. We were not in that camp. You’ve only got three large hotels that can handle large groups. We look at New York and see more upside, not less. So we see real tailwind in that market in particular as we look out. And obviously, we think we’re incredibly well positioned there.
Sean Dell’Orto: Dany, real fast. Just I’d also add, there is a headwind of a 50 basis point renovation impact to RevPAR this year, most of it will be in Hawaii, which we pointed out. And I would also say that’s concentrated in the back part of the year. So as you think about — as you go through the rest of the year and maybe some of the conservatism and thinking around that, clearly, we’re going to have a little more impact, disproportionate impact in the back part of the year.
Dany Asad: Got it. Got it. And then if I could just follow-up. Your outlook for like total RevPAR, let’s call it, like the hotel revenues outside of the HGV portion of it, is about 50 basis points ahead of your RevPAR outlook. How should we think about the incremental growth that flows through from that to the bottom line?
Sean Dell’Orto: Yes. I would say that on the whole, you probably have, from a total revenue standpoint — well, let me just back up and say, from an out-of-room spend or additional to RevPAR about 30 to 50 basis points, I would say. I would say it’s balanced. You’ve got more kind of outlet revenue coming through than banquet and catering, certainly in the first part of this year. That’s a little bit lower flow-through than you might see in the banquet and catering. We have — we’re not counting on as much cancellation, which is obviously a full flow through. So on the balance, I would say that wouldn’t count a lot more incremental flow through from that incremental 30 to 50 basis point add to RevPAR.
Operator: Our next question is from Smedes Rose with Citi.
Smedes Rose: I just wanted to ask a little bit about what you’re layering in for wages and benefits expectations for 2024 across the portfolio? And maybe specifically, if you talk about those assumptions in Hawaii, if they’re meaningfully different from the broader portfolio?
Thomas Baltimore: Yes. Smedes, as you can imagine, there will be some negotiations and we certainly don’t want to forecast where we think those negotiations will end. I think if you look sort of last year, wage increases were in that sort of 4% to 5% range. But to forecast anything beyond that as it would really be inappropriate at this point. Look, we have enjoyed, I think, very strong relations with our partners. We’ve got labor piece, if you will. And I think we had a very successful outcome in 2023, and we would expect something similar here in 2024 and beyond as we look out.
Smedes Rose: Okay. So we’ll wait and see on that front. But it sounds like in your guidance that 4% to 5% is what’s kind of factored in at least for right now until we have better information.
Thomas Baltimore: Yes. I think if you look at overall expenses, we’re probably in that range. That’s probably the better way, I think, to look at it right now.
Smedes Rose: Okay. And then can I just ask you, you mentioned hoping to execute on sales in the range of $100 million to $250 million. Just broadly, what sort of EBITDA would you expect to be selling in that range? I guess, either multiple or absolute dollar amount? Or how should we think about that, which I assume is not factored into guidance?
Thomas Baltimore: Yes. A couple of things to keep in mind. Smedes, we’ve got — if you think since the spin, we have disposed of nearly 42 assets, sold or disposed of 42 assets for just south of $3 billion. Last year, obviously, one asset sale and then another small kind of leasehold interest that we ended up selling as well. So we’ve set a target of $100 million to $250 million. Tom Morey and his team have done an exceptional job every year. We’re not certainly a desperate seller. So we’ll be disciplined. We’ll be thoughtful about it. And we will look to recycle that capital. We’re confident in our ability to be able to sell assets. I think we continue to demonstrate that. But we’ll use those proceeds, obviously, and recycle that back for ROI projects.
We’ll use it also for reduced leverage, could be opportunistically to buy an asset if something were priced right or to buy back shares. I mean, it’s really been the playbook that we’ve used the last several years. The other comment that I would make is, keep in mind, our top 25 assets really account for about 90% of the value of the company. So the remaining 10% to answer your question directly, that would be a small portion of that 10% as we sort of look at, if you want to kind of frame it between that $100 million to $250 million.
