Sourav Ghosh: Yes, Robin, clearly, attrition and cancellation revenue is coming in higher, and I wouldn’t say that’s necessarily a systemic thing. We were expecting — the attrition cancellation revenues to go back more to norm. We had in our previous forecast for the year, approximately $57 million or so for the year. And now we have closer to $71 million forecasted for the year. It’s not across the portfolio. And part of it is our managers are frankly doing a much better job of collecting those revenues and contracts are tighter. So it’s just been sort of a trend that we are seeing, and we may actually stabilize at those higher levels, but it’s not a systemic issue about the portfolio or anything that was some of these jumps out on a onetime basis in Q1.
Robin Farley: So that bridge that you built earlier to kind of what’s recurring and not recurring, would you say that — I guess, that kind of roughly like $14 million increase in your original expectations, you’re saying we should assume that cancellations stay at that level? Or would you say that something that would [indiscernible] we’re thinking about?
Sourav Ghosh: Yes, it’s difficult to exactly predict what it will be for the following year, but it seems like thus far, attrition cancellation is going to be at that elevated level, at least based on what we’re seeing today.
Operator: Our next question is coming from David Katz with Jefferies.
David Katz : Can you just talk about the deal market a little bit? Are there assets out there that would be sold but not for the cost of capital? Is there still some sort of sellers posturing with respect to price that needs to adjust itself. What are the gating factors for a more active deal trading market to start to occur, please?
Jim Risoleo: Yes, David, I think the limiting factor is really the cost of debt. It’s not so much the availability of debt right now because the CMBS market for those buyers who need to tap CMBS financing is wide open. And there’s been a lot of volume occur this year across multiple asset classes in real estate. But the cost of debt is still such that it is precluding private equity firms to underwrite to their hurdle returns and concurrently with their underwriting give the seller the price that they’re looking for in the asset. So I think that is the biggest gating issue. And that puts Host in a really competitive advantage. I mean I talked about it before. We do not have to go to the debt window to get a deal done. And I think there will be opportunities over the course of the year where you have certain private equity firms who might be coming up on end of fund issues with respect to certain assets that they have to trade.
They waited for the Fed to cut rates, but they’re out of time. A couple of deals that we did in 2018 and started with the 1 Hotel South Beach. That was an end of fund issue with the Starwood Capital. They had to trade that asset. Same with the Four Seasons Orlando, another instance where that deal was at the end of fund life’as well. So I can tell you that neither owner of those assets really want to part with them because it is terrific properties. And I hope we’re going to be able to find some additional opportunities in that vein as we work our way through 2024.
Operator: Our next question is from Chris Woronka with Deutsche Bank.
Chris Woronka: Wanted to kind of ask about Hawaii, Maui. I mean you guys — I think used the term evolution of demand. Just can you give us a little more color on kind of what’s happening? Are you guys seeing reservations come in and cancel? Or are you seeing just the booking windows get closer in? Just trying to get a sense for how much visibility you think you had? Is it getting better, it’s getting worse? And what are some of the factors around that?
Jim Risoleo: Yes. I’ll start, Chris, and I’ll let Sourav jump in and add what additional color he might have on it. But we are obviously very close to the — to what’s happening on Maui and I can’t describe it in any more specific terms other than to say that demand continues to evolve on the island. I think that when the wildfires occurred, devastating wildfires occurred, those folks who might have been new to Maui and maybe they were staying down in Wailea in one of our 2 terrific properties [indiscernible] the Andaz or the Fairmont Kea Lani. They just said they listened to the governor and the governor said, “Stay away from Maui.” So travelers took the governor at his word. Now that language has been tempered since. The cleanup continues on the west side.
