We’ve clearly been working with them very closely over the last really 12, 18 months to look at this project and say what is the right level of investment that we want to make here. And we’re very excited about the plan we’ve come up with, and how we think this property will be positioned going forward.
Bill Crow: Great. Thanks all. Appreciate it.
Marcel Verbaas: Thank you.
Operator: Thank you. The next question comes from Austin Wurschmidt with KeyBanc. You may proceed.
Austin Wurschmidt: Great, thanks, and good afternoon, everyone. I was just curious, going back to the Hyatt Regency Scottsdale renovation. Was the decision to pursue this a branding opportunity here kind of a post COVID opportunity or something that you guys have been evaluating for some time. And as you look broadly across the portfolio, clearly you’ve had successes on the renovation front. Are there any other sort of more comprehensive renovation opportunities across any other properties that you’d highlight?
Atish Shah: Yes. Thanks Austin. That’s a great question. And it’s something that we’ve been working on for a long time, frankly, and we’ve owned the property since 2017. So, we’ve had a good run, going into COVID to really understand the property and where we thought the opportunities might be and we for a long time talked about the opportunity to increase meeting space there, to give us a real opportunity to optimize the mix there. Get more group business, being able to progress, higher rates on the leisure side. So it is something that we had been considering going into COVID, for sure. And COVID overall didn’t necessarily change that. What we have seen obviously, is that post COVID domestic leisure demand has been extremely strong.
So, it makes it a little bit harder from a short-term disruption standpoint. But we absolutely look at this and say, we want to be able to sustain and grow the cash flows of this property. We think that doing this, when clearly we were coming up on a time where we have to do a renovation of the property. Anyway, it was time to do the cyclical renovation. The room product was getting a little longer in the tooth, and property overall, hadn’t really had a comprehensive renovation in a long time. So, we felt that this was the absolute right thing to do to really bring this to the next level. And it’s obviously something I focused on quite a bit in my remarks. But it’s a market that we are extremely familiar with. And we’ve owned this property for a good number of years.
Barry and I, when we were at Xenia Hotels and Resorts. We actually owned two of the luxury hotels that are in the competitive peer set for this hotel. And as a matter of fact, develop one of those hotels during that time. So it’s a market that I would say, we probably know more about than any other market almost in our portfolio. So, we’re highly confident about what we think is the right thing to do with this asset and positioning it very well for the future.
Austin Wurschmidt: That’s helpful detail. And then, how much of the $110 million, I think a total spend you expect to hit in 2023 versus 2024. And assuming a similar economic backdrop, would you expect there to be more or less disruption from this asset next year?
