APAC, the same thing. Now China we said was flattish for the quarter. We think it will be about the same for the year. And what’s happening there is what we said in our prepared remarks is that you had a lot of resilience coming out of the pandemic with domestic travel really fueling strong demand growth there. And now people are starting to move outside of the country. because they can. And so what you – and the urban markets in China are performing really well. The secondary tertiary markets are feeling the effects of a little bit of people leaving the country and we think that will continue for the balance of the year. And I think you asked what you need to have that change is you need to have more inbound into China, particularly from other parts of Asia Pacific and then you need to see people from other parts of the world starting to come inbound to China to create that incremental demand that will enable us to yield rate and have that start to grow again.
Chris Nassetta: Yes. The other thing – I think that’s all perfect, I would add on relative to China. We are also, while people aren’t coming into China, we are starting to see that shift. There are a lot more flights that are going to start in the second and third quarter that are going to be going from major destinations, including the United States into China, which is going to help. But we are also seeing it Chinese customer in as much as we think will sort of be flattish this year because there was a huge surge in Chinese we’re staying in China and traveling all over China, and now they’re leaving. We are a net beneficiary of that in other parts of Asia. So if you look at our Southeast Asia business, our Japanese business, I mean, they are largely predominantly staying into Asia at the moment.
I think that’s going to change as more flights open up. And so we’re getting – well, China is not surging in the sense we talked about, we are seeing other markets, particularly Southeast Asia and Japan that are huge beneficiaries of that migration.
Operator: Thank you. The next question comes from Carlo Santarelli with Deutsche Bank. Please go ahead.
Carlo Santarelli: Hey, guys. Thank you. Kevin, I know you touched on it in your prepared remarks a little bit, but specifically on the base and other fees, I think they were up about 32% year-over-year, a dramatic acceleration. In terms of the things you mentioned, I would assume some of that is international, but any way you could provide a little bit more color on the drivers there?
Kevin Jacobs: Yes, sure. I mean, part of it is, as you said, it’s a mix. I mean, in parts of the world where we have more managed hotels is driving more management fees and incentive management fees. We had good performance in license fees, as we mentioned, were up ahead of the broader business. And then our purchasing business has been really strong as it continues to grow. And that you see showing up in other – that business has continued to take share even outside of our system, it continues to take rate, and it’s performing really well. So that’s been a positive driver there as well.
Operator: Thank you. The next question comes from David Katz with Jefferies. Please go ahead.
David Katz: Good morning, everybody. Thanks for taking my question. With respect to net unit growth, I know you said previously that the acquired entities may add 25 or 50 basis points. Can you just sort of paint us a longer-term picture of how the addition of those should roll into your NUG. Is that sort of included Chris, when you say 6% plus. How should we think about those brands in the context of that?
Chris Nassetta: Yes. I mean we did say last time that we were going to incorporate SLH into it, and that is incorporated into our 6% to 6.5%. We ultimately will add in Graduate, but just we think the better convention is to add both the EBITDA and earnings impact and the NUG impact once closed, so that is not in that. I think the way to think about it going forward is the SLH is going to be probably coming into the system into our system over the next couple of years. It’s early days, but so far, we really like what we’re seeing. We’re getting a very, very high percentage of existing SLH members in the markets that we have been out and with SLH marketing to sign up and want to come into the system. And we have no reason to believe that won’t continue, getting the technology and all that done, which is people are working on both sides very, very diligently on.
We’ll start to get us to the other side and incorporating assets and the ability for our customers to book through our channels and honors earn and burn and all of that, sometime probably middle or late summer. So I mean, it’s a little bit of a moving feast. But the 6% to 6.5% does incorporate what we said last time. It’s probably quarter to 0.5 point is the way to think about that consistent with what we said last time. And there’ll be more next year built into that. And my guess is as we grow that business with them, it will continue to contribute probably at a lesser degree just because we’ll get the bulk of the system in over this year and next. Graduate will be kind of a one-time thing. And as we said at our Investor Day, we believe – and we don’t have – we I said there, we had one other thing we were working on.
We announced one thing since then. We don’t – I don’t think you should expect that you’re going to see any additions to NUG in that arena. Now I’m going to say as I always do, never say never. I’ve been saying that for the many years I’ve been running the company, but we don’t have any other those sorts of tricks up partially anytime soon. So I think the way to think about our guidance of 6% to 7% over the next few years is there’ll be a one-time sort of thing for Graduate, but it’s otherwise organic in the way it’s always been.
