Ashish Parikh: Yes. I don’t have that offhand. I know that in some markets, we use a lot more contract labor than others. We generally try not to. But just with the availability of housekeeping, we are probably using more contract labor today than we did in 2019.
Tyler Batory: Okay. Very helpful. Thank you for the detail. That’s all for me.
Operator: Thank you. Our final question comes from Anthony Powell of Barclays. Your line is now open. Please go ahead.
Anthony Powell: Hi, good morning. Thanks for taking the question. I guess another margin question. Over the long run, I guess, what RevPAR growth do you think you need to maintain margins not necessarily this year, but going forward? I think people used to say it was 3% to 4%. Is that still the case? And how is that compared to what it was pre COVID?
Ashish Parikh: I think it’s a good baseline, Anthony. I mean, you have to look at where it’s coming from, right? If all of that 3% to 4% is coming from occupancy, I think it would be tough to get consistent margins. I think even if you have a balance of ADR in occ or certainly the more you can push the ADRs. Yes, I think at 3% to 4% you could definitely have margin growth. But if it’s primarily occupancy, I think that makes it challenging.
Anthony Powell: Right. And that leads to my second follow-up I guess. Is it the main I guess opportunity for you and I guess a lot of peers occupancy growth? I think most €“ hotel rates are 10% or below kind of 2019 levels. And if that’s the case doesn’t make it harder to push margins if you’re really gaining back business travelers and whatnot who are coming in midweek and really pushing up that midweek occupancy,
Ashish Parikh: Yes, it does make it harder. But if you can maintain your rates and push rates because of that occupancy. You’re really bringing back just variable labor. If you’re going from 70% to 80%, you’re not bringing back any managerial staff. You’re really bringing back a few desk agents and housekeeping. So the flow on that isn’t too bad. And that’s really what we’re looking at for this year is absolutely occupancy is going to be the driver of a lot of the RevPAR. But the cost associated with those incremental room sales shouldn’t make us go backwards on the .
Anthony Powell: Got it. Thanks. Maybe one more quick one. And sorry, if you talked about this before. What’s your updated outlook on leisure pricing? And I think it’s remained pretty robust but there’s €“ there needs to be worried about leisure pricing throughout the balance of the year. What are you seeing right now? What is your expectation for the rest of the year?
Neil H. Shah: Leisure pricing, we have not seen a retracement of at this time. In the fourth €“ we mentioned that in the fourth quarter and even into the first quarter, we have a little bit of softness in two resorts, our Key West, Parrot Key Hotel & Villas and the Sanctuary Beach Resort. They have gone backwards on RevPAR from 2022. ADR has held pretty close in both cases. And as we look forward into the couple quarters ahead, we are still projecting and pushing ADR growth in our pace in those markets. And so it is hard to keep pushing ADR, but with certain assets and with the right business mix, we are able to drive it. And the vast majority of our portfolio in leisure assets, I made the example of Annapolis, it’s just you are able to push transient ADR if you have a significant base of business.
