Dom Dragisich: I think we’ve €“ obviously, in Q3 of this year, we saw some elevated SG&A. I think a lot of that had to do with the noise, quite frankly. If you think about the transition, the integration of Radisson. When you look forward, the legacy Choice brand, I think we’re at a point now where I can safely say that adjusted SG&A would grow kind of in the low single digits, which is in line with our historical. I think you’re going to continue to see slightly elevated SG&A. On the Radisson side, obviously, as we continue through the integration, I would say right now, Radisson SG&A probably going to add about $20 million to $25 million. A lot of that has to do with the fact that we did not have the portfolio onboarded throughout the whole year.
So you’re looking at a stub period last year from August through December. Obviously, January through August, we’ll elevate that SG&A. And then in the future, as we integrate the Radisson portfolio, I would say kind of that low single-digit SG&A growth would be a great way to model the combined entity.
Joe Greff: When I look back at the fourth quarter adjusted G&A in the mid-40s, how much of that would you allocate to core Choice and how much of it would you allocate to Radisson?
Dom Dragisich: Yes. So I think what I would say, when you take a look at fourth quarter, and it’s probably better to look at it in kind of full year, but fourth quarter in particular, Radisson SG&A was about $5 million. So almost all of the SG&A increase year-over-year in the fourth quarter was actually driven by the Radisson acquisition. The core legacy brands actually only added about 1% of SG&A growth year-over-year. In Q3, there were a lot €“ like I said, a lot of puts and takes. Radisson was one of them. As we continue to outperform variable incentives, et cetera, that elevated the SG&A as well in Q3. But in Q4, we did see kind of that more consistent 1% to 2% core SG&A growth.
Joe Greff: Great. And then I have a clarification question on your 2023 EBITDA outlook. And maybe you talked about it and I didn’t quite hear it, and I know we’re talking about sort of comparable issues and noncomparable issues. But in 2022, you did $460 million of non-Radisson EBITDA, and then you indicated that you would expect to grow that 7% in 2023. And then if you do $60 million or more of Radisson, that gets you above the upper end of your full year 2023 EBITDA guidance range. Can you help us understand that math?
Dom Dragisich: Sure, absolutely. So when you take a look at the overall guide, the overall guide is $520 million to $540 million. We talked about the fact that on a comparable basis, we were driving core growth of that 6% to 7% or so. That $530 million is inclusive of the $60 million of Radisson EBITDA, which would essentially take you to kind of the core of $470 million. We did have two pretty substantial onetime impacts that were very strategic in nature. We made the decision to terminate the WoodSpring assets that we received a significant LD associated with that. We also are recycling the capital, which has depressed our EBITDA year-over-year by $7 million. So when you look at that $20 million of onetime impact, the core business continues to grow at about 7%.
Joe Greff: So the $460 million base adjusted for Radisson in 2022 is really $440 million is what you’re saying?
Dom Dragisich: That’s correct.
Joe Greff: Great. Thank you.
Dom Dragisich: Thank you.
Operator: There are no further questions at this time. Please proceed.
Pat Pacious: Thank you, Operator. Thanks everyone, for your time this morning. We’ll talk to you again in May when we announce our first quarter results. Have a great rest of your day.
Operator: Ladies and gentlemen, this concludes your conference call for today. We thank you for participating and ask that you please disconnect your lines.
