Colin Reed: On the other side of the coin is that if the Fed actually does get its act together and eliminates inflation from our environment. The trajectory that we have in this company looks very, very exciting.
Operator: Thank you. Our next question comes from Smedes Rose with Citi.
Unidentified Analyst: This is [indiscernible] on for Smedes. Just wanted to ask what sort of growth in wages and benefits should we think about looking into 2024?
Mark Fioravanti: In 2024, we’re returning to more normalized wages and benefits growth compared to what we’ve seen the last several years.
Colin Reed: Yes. I know what we’re planning in all of our budgeting, both in our entertainment business and our hotel business. But as Mark said, we’re looking at more normalized.
Unidentified Company Representative: Yes. I mean I don’t want to give guidance for 2024, but we’re assuming low to mid-single digits from a wage growth perspective, which is much more in line with what we were seeing prior to COVID and in the inflationary environment that followed it.
Unidentified Analyst: Got it. And then could you maybe discuss a little more about your decision to wind down Circle entertainment? And are there other ways that you might consider leveraging the content owned by the entertainment division?
Colin Reed: Well, that was the whole thesis here. What has happened, and I’ll like to turn it over to Patrick in a minute, if Patrick Moore is — the world of distribution is so rapidly evolved here over the last three to four years. The product becomes almost redundant as it’s being launched. And so, what we have been able to figure out is that the content that we have, particularly Opry Live, is in demand all over the place. And that is our goal to hitch it to these different distribution platforms. Patrick?
Patrick Moore: Yes. No, sure. And just to build on Colin’s statement. The primary objective was always to distribute the content that we create to the greatest possible audience. We did that through our own linear network. As you know, with the market for linear TV under extreme pressure due to cord cutting and streaming services, and notably, the market for ad dollars is extremely fragmented, we felt the right approach here was to pivot away from owning our own distribution and our own linear network to basically syndicating and licensing and distributing our content through any and all potential providers, which should ultimately increase our audience and reach materially here going forward. And so, with that, we also improved profitability. So, from a strategic standpoint, it makes all the sense in the world to continue with our core objective of distributing the content, but just in a different manner.
Operator: Our next question will come from Dori Kesten with Wells Fargo.
Dori Kesten: It sounds like your stronger than initially expected results for Q4 are widespread, not really concentrated in a few assets. Is that correct?
Mark Fioravanti: Yes. We’re seeing it broadly across the portfolio.
Dori Kesten: Okay. I know it’s early, but do you have a sense if Atairos NBC intends to exercise this option to invest more in Opry Entertainment this year?
Unidentified Company Representative: We don’t know that yet, Dori. The process that we have, as you know, they have the right to buy up another 19% over 2023, 2024 and 2025, and that process really begins in October. They’ll notify us by mid-December if they are — if they desire to buy up or not. So, we’ll know here in about a month. And if they do want to buy out, then we would close that transaction prior to year-end.
Colin Reed: When we know you all know, and — but we’re really focused on growing the revenue and profitability of this business.
Operator: Thank you. At this time, we have no further questions. I’ll turn the call back to management for any additional or closing remarks.
Colin Reed: Okay. Thank you, everyone, for joining us. If you have any additional questions, you know how to get ahold of us. And for those of you that are still on the line, we look forward to hosting you in middle, late January for our investor gathering here in Nashville. We look forward to that. Thank you very much indeed for your time this morning.
Operator: Thank you. This does conclude today’s Ryman Hospitality Properties Third Quarter 2023 Earnings conference call. You may disconnect your line at this time and have a wonderful day.
