Robin Farley: Great. And then just my other clarification on your net unit guidance. From the comment in the release, I guess, I kind of understood the sort of the coming in just under 5% of the COVID delays in China that it was maybe some openings that were sort of pushed past December 31 in China that would maybe make then Q1 opening sort of ahead of the full year number. But then in your comments, you made a comment about starts in China being behind. So I guess, I just wanted to get some clarification on whether it was just openings delayed by a few weeks or sort of a broader issue with the unit growth in China if starts are also behind?
Kevin Jacobs: I think it’s both, Robin. I mean, the environment is creating a drag both — created a drag in the fourth quarter on openings and also has created a drag on starts because it’s just broadly when they reopen and then — before it was lockdown, now it’s they reopen and everybody gets sick, but the net result is the business activity comes — is a drag on business activity. So signing starts and opens were all affected by it. We don’t think it’s a long-term trend in China. We think it’s timing. And yes, by definition, if we — as I said earlier in the Q&A, if there was an environment where you literally have a completed hotel that can’t open because it can’t get a significant of occupancy, we don’t give you quarterly guidance. So, we’re not going to get into like when those hotels are going to open. But I think you can assume they’re going to open on a delay.
Operator: The next question is from Richard Clarke from Bernstein. Please go ahead.
Richard Clarke: I guess, if I stare long enough at your release, I find one negative number, which is pricing is down year-on-year for the Waldorf Astoria. Is there any particular pricing pressure at high-end hotels you’re seeing, or is that mix? And maybe more broadly on pricing, I guess what I observed is, you seem to have taken a little bit less pricing than some of your peers and your occupancies recovered a little bit quicker. Would that match what the strategy has been? And does that give you maybe a few more buttons to compress on pricing further through the recovery?
Chris Nassetta: Yes. First of all on Waldorf, there’s no — that’s driven by individual hotels. Just the Waldorf brand, unlike our other brands, there’s not so many hotels that one dynamic in one particular market or two markets will drive it. So, there’s no — we’re not broadly seeing slowdown in luxury. To the contrary, we’re continuing to see — we’re continuing to see great strength. I’ll dish the second part of that to K.J.
Kevin Jacobs: Yes. Rich, I’m sorry, I didn’t — maybe a little bit of clarification on the second part. I’m not fully understanding where you were going with that. I’m sorry.
Richard Clarke: Sure. I guess, when I look at your pricing relative to the market, relative to some of your closest peers, it seems you’ve increased prices a little bit less than some peers and your occupancies recovered quicker than some peers. Is that in line with your sort of strategy?
Kevin Jacobs: No. Our market share is up across the board, right? So, we’re driving better revenue outcomes than our competitors. You may be looking at individual. I don’t know what you’re looking at in terms of our competitors or individual sort of spot rates for year-on-year. We’d be happy to
Chris Nassetta: The simplest way to look — system-wide last year, we finished in share at the highest levels in our history, and we gained share both in rate and occupancy. So — but those numbers across the system would not support that theory.
Richard Clarke: Okay. And maybe just a quick follow-up. The reasonable size adjustment in the net other expenses from managed and franchise, the pass-through costs that have been negative through the rest of the year. Looking like maybe you’re clawing back some of the losses through COVID. So, just wondering if there’s some specific program that’s pivoted that the other way in Q4?
Kevin Jacobs: No. There’s always timing issues in terms of those line items. In the end, we have revenue and all of our various funds and programs are going to run breakeven over time, and then you’re just seeing timing issues on the P&L.
Operator: The next question is from Chad Beynon from Macquarie. Please go ahead.
Chad Beynon: I wanted to ask about the tight labor market that we continue to hear about in terms of the — from the Fed’s reporting. Obviously, very strong in the experiential category on travel and lodging. So, do you believe this has peaked when you talk to your partners, kind of your builders? What are they saying just in terms of the labor market? And then secondarily, how does that factor into how you’re thinking about IMFs and kind of profits in the back half of the year if it hasn’t? Thanks.
Chris Nassetta: Yes. I mean, the labor market situation has eased a lot. So as we talk to — I mean, listen, we employ a lot of people. We operate a lot of hotels because I talk to our team, but beyond that, talk to our franchise community. I think they would say that broadly, we are not fully back to where we were in terms of access to labor, but we’re getting awfully close. And so, if it was on a scale of 1 to 10 a year ago a 10 in terms of extremis, it’s a 4 or 5. I mean, it was something we were talking about every single day, every conversation, and it is not quite as topical, which is the good indication. So, I think the labor situation is easing. You continue to see across a broad universe of other industries, notwithstanding what the Fed is saying, a lot of layoffs, including, of course, through technology, but through banking, also through retail, where people had really staffed up thinking that the COVID retail demand was going to be maintained and it hasn’t.
And so, there are a lot of people that are getting pushed back out into the job market, and that’s allowing — affording us the opportunity to get the labor that we need. You’ve also seen, while wage rates went up a lot during COVID, net-net from €˜19 to now, you’ve seen that start to stabilize. And those kind of big increases are not continuing. They’re at a higher absolute level, but the level — the rate of increase has diminished substantially. In terms of how we think about IMF, we feel good about IMF. I think for the year, we expect IMF to add significantly to the growth rate. We think this year we expect that it will get over our prior high watermark of €˜19.
