So, we will do everything possible to command and control expenses going forward. But I do think it’s important that we kind of level set the stage as to what is our true base of EBITDA going into next year. And I would like to just share a couple of numbers with you because I don’t want people to think that the $80 million of business interruption that we received this year as a one-time event. It’s really not a onetime event from the perspective that the Ritz-Carlton Naples and the Hyatt Regency Coconut Point are going to be back online full time next year.
Sourav Ghosh: Yes, just to expand on that Bill. I think the way to think about it first the level at the base. So, before we even get into the growth of EBITDA for next year. When you think about the midpoint of our guidance at 16.20 right now that already has a $30 million negative impact from Maui which was made up of $25 million from the hotels and then $5 million from the timeshare. So, let’s assume for a second that we still have about a similar impact into next year as Maui recovers. And then you think about that $80 million of BI that proceeds for this year which Jim mentioned, is that effectively a majority of that we would have received as EBITDA from the Ritz-Carlton Naples, and the Hyatt Coconut Point, if it was not for Hurricane Ian.
So, that is EBITDA we would be receiving for next year. So in other words, if you think about it, the base — before any growth is starting off at $1.6 billion plus, if that makes sense. And then of course as Jim mentioned, in terms of expenses and everything else, we are working through and we have many initiatives that we are working on. So while there will be inflationary expense pressures, we fully anticipate to mitigate those pressures with productivity enhancements and various initiatives that we have going on at the hotels. And we will provide you with next year guidance as we typically do in February — on the February call.
Bill Crow: Great. Thanks, guys.
Operator: Thank you. Our next question is coming from Duane Pfennigwerth with Evercore ISI. Your line is live.
Q – Duane Pfennigwerth: Thanks.. Good morning. I thought that was a good question by Bill, and response by you. So I’ll just ask another Hawaii question. Maybe could you just play back the recovery, why things were a little bit better than you anticipated in the third quarter? And then maybe just since the delta on the fourth quarter guidance, is really about Hawaii. It sounds like what would get you to the high end? What would get you to the low end in terms of what needs to happen?
Jim Risoleo: Sure, Duane. Let me start, by saying that the — were it not for Maui. I think our guidance range for the full year would have been tighter than it is. But we have a wide range at this point in time because of some of the uncertainties surrounding how Hawaii is — how Maui is going to recover. The west side of Maui — kind of Maui just reopened to tourists on November 1 yesterday. So it’s going to take some time to see the cadence of, how people are going to come back to the west side. And I do believe it will take some time as well, for people to get comfortable rebooking their stays down in the [indiscernible] where our other two resorts are. We did see a lot of cancellations in the fourth quarter, due to some pronouncements that were made by the governor and we fully support the reconstruction and relief efforts, because what happened on Maui is just a terrible horrible disaster.
And we fully support the fact that you’ve got to take care of the people first, and that’s what’s happened. So the reason, that our performance in the third quarter was better than we initially anticipated, is as a result of recovery first responders taking rooms at our property as well as providing housing that was subsidized by FEMA for displaced residents. And that really caused a material pick up better than we anticipated. You did see a decline in TRevPAR in the quarter by an amount that was directly attributable to what happened on Maui. I think the out-of-room spend the TRevPAR spend was impacted by 120 basis points. So, we’re optimistic for the long-term future in Maui. It’s a great place and great place to be, and we will do what we can to support the recovery.
Q – Duane Pfennigwerth: Thank you. Maybe just to put a finer point on it. The delta in the fourth quarter the range is that a function of the duration of first responder in housing or the rate of just sort of organic leisure recovery?
Sourav Ghosh: Yes, it’s a little difficult to look at November and December. It really is the disaster recovery business and how that will taper off, as the west side of the island opens up which actually opened up as of yesterday November 1st. So, it’s we’re trying to gauge the properties are trying to gauge what that demand pickup looks like, and how they will replace sort of the regular business with the demand recovery business. So that was driving the delta. What I will say is, if it was not for that Maui impact we put out October numbers at 2.4%. Our fourth quarter numbers would have been slightly higher than the 2.4%, if it wasn’t for the Maui impact.
Jim Risoleo: Yes. And point of fact — just to kind of wrap this up way our anticipated — the anticipated impact on comparable hotel RevPAR and comparable hotel EBITDA from Maui is 50 basis points off the top line and $25 million for the full year at the bottom line. So in that sense had Maui not occurred, we would have been talking about a guidance raise on this call because we were able to keep the midpoint at 8%, we would have been talking about an 8.5% guide for this year.
Q – Duane Pfennigwerth: Understood. Thank you.
Operator: Thank you. Our next question is coming from Jay Kornreich with Wedbush. Your line is live.
Jay Kornreich: Good morning. You made some comments on the urban and business transient demand profile accelerating in September getting back to 17% GAAP to 2019. So I’m wondering if you can just provide some more color on how much you think that GAAP can narrow in 2024? And maybe within that some of your peers have been diminishing their exposure to San Francisco. Maybe if you could provide some color on how you see your assets in that market trending over the next year or two?
Jim Risoleo: Sure. I’ll take the San Francisco piece of it Jay. And then Sourav, can talk a bit about business transient. San Francisco, we think for the long-term is a great place to be particularly, given the assets that we own which we believe are the best located in the market and excellent physical condition. San Francisco, Moscone Marriott has been for quite some time now building a solid base of in-house group business. It’s in terrific condition. It was the first asset that we completed as part of the Marriott’s transformational capital program completed in 2019. And the results are paying off relative to the competitive set it is outpacing I think everyone in the sect today. The Grand Hyatt on Union Square also in great physical condition and in a great location.
