And now group occupancy is starting to pick up and we’ll have kind of our best year group occupancy in the first quarter this year in 2023. And that’s allowing us to push transient ADR even higher. So we’re able to project even higher ADR for this year based on just that the transient segment as we fill in the group. And group ADR is 20%, 30% higher than pre-pandemic. We’re seeing that same situation in Annapolis. As government travel comes back and we get the base business back from legislators that are autographed Waterfront Hotel, we’re able to now drive transient ADR 20%, 30% higher in Q1 and Q2 of 2023 than we were last year. And so, there’s €“ those opportunities in the portfolio where you are adding group at high rates because these aren’t big box hotels, these are very differentiated and kind of a €“ draw a very premium customer where we are able to continue to drive ADR both on the group side and on transient.
In cities, in the urban markets like New York City, where we used to run kind of 90% to 95% occupancy, January through December, we do like this environment where we’re running in the 70s and 80s, but pushing much higher rates. I think that is a function of €“ there is less supply in the marketplace. Our portfolio is differentiated in high quality in the right locations. And so we’re able to continue to drive ADR growth today and throughout December. And as we look through January, February, our visibility is not that sharp as you get beyond the second half of this year. But in the first and second quarter, our pace and ADR pace in all of our urban markets remains very high as we are building occupancy. And so flow throughs aren’t going to be like they were last year because there will be occupancy driving some of this, and we will have some restaurants and bars reopening.
But as you remember, our portfolio is primarily leased F&B. And so, we are expecting significant ADR growth and margin growth relative to 2019 across this year.
Chris Woronka: Okay. Yes, thank, Neil. Super, super helpful. And then just to kind of follow up on the, I guess, on Bryan’s last question. If you do see acquisition opportunities at some point this year, whether it’s New York or somewhere else, understand the comments about potentially looking at different markets. Is that a situation where you might look to use equity and as a way to further kind of deleverage the balance sheet, is that something that’s on the table?
Neil H. Shah: We would unlikely to issue equity until our cost of equity and our cost of capital is €“ reflects our NAV, but we today have a couple hundred million of cash on the balance sheet. We have $100 million of line capacity. We have two or three hotels in our portfolio that we’ve identified in past calls as non-strategic for us. They are assets that are having a very good recovery in 2023, one asset in Miami and two in Manhattan or two in New York, one in Queens and one in Manhattan. And so, we are expecting to ramp those up across the next quarter or two and consider them as potential sales in the back half of the year. So we have €“ we think we have plenty of liquidity to be acquisitive without issuing equity, if that was the question, Chris.
