So we are seeing a return of business travel in San Francisco in particular, in September. San Francisco it’s one of our top business travel markets. We’re down just about 10% in total room nights relative to where we were in 2019. So it’s slow and steady. And I think 2024 will be a challenged year for San Francisco from a citywide perspective. But as we get beyond 2024, we’re optimistic about how the market is going to evolve.
Sourav Ghosh: Yes. And I’ll add on the San Francisco piece, which is encouraging is our lead volume, as the San Francisco Marriott Marquis is actually up 5.5% to last year. And group room nights there was up almost 8.5% year-over-year as well. So – and in November is I believe when APAC that Asia Pacific economic conferences and that should be really good for San Fran as well. Obviously, 2024 as Jim mentioned, the city-wides are weak but that’s why we are really making inserted effort to get quality in-house group at that hotel. As it relates to your question on BP [ph] it’s been a very, very slow recovery from a room night perspective. Obviously, we had the strength of the special corporate rate this year almost double-digits.
But the room night recoveries across the board for the portfolio is still down around 20% call it, that said, the major markets as we spoke about in our prepared remarks, San Francisco, New York, Denver is down only 10% to 19%, which is pretty impressive. In terms of 2024, we expect more of the same in terms of BP. We expect certain markets to recover – to continue to recover but just at a very slow pace. The reality is if BP will come back in a meaningful way when there is more macroeconomic certainty and there is two economic growth, we believe there’s a pretty close relation with nonresidential fixed investment growth and RevPAR. And once that comes back in a meaningful way and GDP growth comes back in a meaningful way we expect that GAAP to reduce.
Jay Kornreich: Very helpful. Thanks very much.
Operator: Thank you. Our next question is coming from Smedes Rose with Citi. Your line is live.
Smedes Rose: Hi, thanks. I just wanted to ask you – you mentioned 2.6 million group room nights on the books for next year. How does that compare to where you would sort of normally be in terms of group bookings for the full calendar year when you’re in — just late in the year?
Sourav Ghosh: Yeah. When we compare that to 2019 we are about 10% down relative to 2019.
Smedes Rose: Okay. So catching up. And then can you just mentioned the Sheraton Boston you mentioned the Sheraton financing that loan was repaid in full. Any update on the Sheraton Times Square loan?
Jim Risoleo: Yeah. That loan was due to be paid off on October 18. We worked with the borrower and entered into a forbearance agreement and extension to November the next — November 8, next Wednesday. As part of that agreement the interest rate was restated to 13% and there was an upfront paid that brought the effective rate all in to 15%. So they are in the final stages of completed the documentation necessary to have the loan paid off by next Wednesday.
Smedes Rose: Great. Thank you.
Operator: Thank you. Our next question is coming from Dori Kesten with Wells Fargo. Your line is live.
Dori Kesten: Thanks. Good morning. Based on what you’re seeing marketed for sale today and then the shadow pipeline of deals you hear about, would you expect to be a net buyer next year?
Jim Risoleo: Dori, I sure hope so. I really do. I mean, clearly, our balance sheet is a differentiating factor for Host. As we’ve said, we have the ability to allocate capital across many fronts, as you saw us do in the third quarter and sitting here at 2.1x leverage and the ability to do deals all cash and get them done quickly is something that — I don’t think there’s anyone else in this market can do today. What we’re seeing today though is still a fairly significant bid-ask spread in the marketplace. There just isn’t a lot of quality product in the pipeline. We are talking to a lot of people, a lot of hotel owners and we’ll just have to wait and see how pricing trends as we get into 2024. But we clearly have the capability to not only continue to buy back stock, which we believe is very undervalued relative to our assets in the quality of our EBITDA and invest in our assets and pay a sustainable dividend, and also be acquisitive.
So let’s keep our fingers crossed that we have an opportunity next year to do that.
Dori Kesten: Okay. Thank you.
Operator: Thank you. Our next question is coming from Meredith Jensen with HSBC. Your line is live.
Meredith Jensen: Yeah. Thank you. I have two quick questions. First, looking at RevPAR or comparable to TRevPAR, if you could speak a little bit about what you’re seeing on out-of-room spend and how we might think about that in the near and longer term? And then secondly, I recall a couple of minutes ago maybe at the Analyst Meeting, you spoke about some strategic moves you might make over time working with managers to identify some of the brand standards that might be modified, as you sort of collect some sample set to drill down on those. And given where cost pressures are I was curious if there’s anything meaningful there we could think about? Thanks so much.
Sourav Ghosh: Sure. On the food and beverage front, banqueting and catering contribution which is effectively banqueting catering NAV revenue on a per group room night basis, still remains pretty strong. I mean, last quarter we just had a lot of pent-up group demand from groups that are canceled during COVID. So it’s very difficult to compare the Q3 results to Q3 results of this year when it comes to food and beverage. Just because the excess amount of group that we had. So even in our internal forecast, without the impact of Maui we were actually expecting food and beverage revenues to be down. That said, that really has moderated in terms of food and beverage revenue. We are still getting a meaningful amount of banqueting and contribution and outlet revenues for occupied room are significantly higher than they were back in 2019.
The piece that is certainly going to moderate as we get into next year is attrition and cancellation revenue. That has — you saw had an impact in the third quarter. Third quarter with ANC revenue being down literally about half of what it was last year. So that — put into perspective in 2022 we received close to $100 million of attrition cancellation revenue. We think that’s going to moderate somewhere around the $50 million to $55 million range. That’s just one thing to keep look out on, and sorry Meredith your second question was?
Meredith Jensen: Just sort of — it was a strategic question on working with managers on brand standards. Is there any modifications that could be made over time on looking post-COVID?
