So for the EBITDA guidance that we reaffirmed, I would say — the one thing that’s impacting the lack of raising that is the FX headwinds that we’re seeing in the Mexican peso that I mentioned in my prepared remarks. So, that’s one area that is impacting us relative to expectations that puts us really in line with what we said previously and we feel good about the range.
Mark Hoplamazian: The other thing I would note is that, we did increase our integration expense estimate for the year by $5 million. That is entirely associated with Mr. & Mrs. Smith acquisition. So that’s also taken into account in providing the guidance.
Patrick Scholes: Okay. Thank you. And then follow-up question. Mark you had touched briefly on the financing environment. I wonder, if you could just give us your latest thoughts on that as it relates to different geographic regions? And also, especially as it relates to your average new franchisee, typically under $50 million of borrowing your latest thoughts around that? Thank you.
Mark Hoplamazian: Yes. Look, I think the first half of the year, first quarter especially was disrupted in the local and regional bank market by virtue of some of the failures that we saw right off of that in the first quarter and that did have some ripple effect. But honestly, our first Hyatt Studios is expected to break ground in the next 60 days. And we see starts for other mostly start service hotels that are newbuilds in the United States and virtually all of that capital is coming from local banks. So in terms of sourcing the money center banks are basically out of the market still. Pricing is relatively high if you compare it to historic — well I should be careful. If you compare it to the last five to six years it’s significantly higher.
Gone are the days of free money. But if you look at it over a very long period of time it’s actually not that far off maybe a couple of hundred basis points in real terms higher than you would see on long-term averages. So if you look at SOFR levels people are borrowing at 7% 8% maybe 8% or 9% depending on the situation. The borrowing rates advance rates are reasonable in Europe and the borrowing rates have reached between 4% and 5% closer to 4%. But in the United States there’s no question it’s affecting new starts. People are still trying to structure deals in which they have short-term commitments that they think that they can refinance at lower rates in the future. The good news is local banks are still there for the best developers. And so we do see capital formation.
The biggest change in our under construction the proportion of our pipeline that’s under construction has been openings. So we’ve opened a lot of the rooms that were under construction and they’re not getting refilled at the same rate that they were before and that is almost entirely in the programmatic upscale and upper mid-scale areas.
Patrick Scholes: Okay. That’s great color. Thank you
Operator: Next question comes from Duane Pfennigwerth from Evercore ISI. Please go ahead. Your line is open.
Duane Pfennigwerth: Hey, thanks. As you think about your expectation for September normalizing how much visibility do you typically have into that at this point in early August. So as we sit here in early August of last year did you know that September was going to be sort of way off the charts, or is there a chance to maybe close in tracks a little bit better than you expect?
Mark Hoplamazian: Yes we actually have reasonably good visibility in relation to ALG. There’s been a dichotomy between US resorts and the and our all-inclusive resorts in Mexico and the Caribbean. The US resorts have underperformed our all-inclusive hotels. And the all-inclusive hotels have a longer booking window. So we have a better handle on that now with a significant measure of our business from the third quarter already on the books. So we have a pretty good handle on the profile. There’s another dynamic that I’ll just mention in passing and that is the Cancun dynamic I’ll call it US employments or visitation to Cancun and Riviera Maya have come down. They’re actually negative year-over-year. And that’s that has been picked up in two three other ways.
