Mark Hoplamazian: I would just add two quick things, Patrick. First, given booking windows, which are extending, but still relatively short, we felt like we would gain a lot more visibility as we pass through first quarter and that’s going to be by comparison to last year, a massive quarter. We’re seeing really solid pace, both for resorts, ALG up 30 US — I mean legacy Hyatt resorts bookings in January were plus 20%. So leisure is showing no signs of slowdown whatsoever. Group, I mentioned plus 21% pace into the year. We feel really strongly about that. We had pickup last year that was with — in excess of booked rooms on a consistent basis. None of that is included in that base number. And that includes some real weakness later in the year that we are currently observing and seeing what we can do to ameliorate really in three key cities: Chicago, Atlanta and New Orleans, they just have really weak citywide patterns.
But even with that, we’re showing really good pace because it’s inclusive of that. The final thing is, we are — embedded the backdrop to all of this is a slowing in the second half with respect to relative macroeconomic conditions. So I think our sentiment is we see spreads, credit spreads compressing, but rates remaining relatively higher for the time being. We have these dynamics, which are showing great signs of strength across our business lines, including business transient, by the way. But we feel like we’ll have dramatically better visibility post Q1 into Q2.
Patrick Scholes: That’s a great color there, a lot to digest. Just a quick follow-up question on the Hyatt Irvine. Would you consider that hotel sort of a temporary ownership until it’s sort of up and running and stabilized and that would be something you’d consider selling with a long term franchise or management contract?
Mark Hoplamazian: Yes, that’s the intention. That’s — when we underwrote the acquisition itself, first of all, we took full account of the renovation program that we’re now executing against. And our intention is that as soon as we demonstrate what we think is going to be extraordinary demand that we can pull into that hotel, we will take it to market.
Operator: Our next question comes from Stephen Grambling from Morgan Stanley.
Stephen Grambling: From a strategic standpoint, you completed a number of acquisitions, moving asset light. Are we in digestion mode at this point, are there still other areas that you would say you want to fill? And given some of your peers have made a bigger push down chain scales and really even doubled down, in some cases, on limited service and more franchise agreements. How are you thinking about franchise mix and limited service as a potential area of growth longer term?
Mark Hoplamazian: A couple of things. First, our integration process with ALG has gone extraordinarily well. the cultural alignment of the two companies has allowed us to move very quickly. There are only a couple of areas — we largely accomplished everything that we set out to accomplish in 2022, there’s some carryover items, mostly in the area of finalizing some cyber and control environment topics. We feel really good about where we stand, but we want to do some additional work in those areas, plus a lot of what we are spending in 2023 is actually enhancements of capabilities, specifically in digital. So the number one investment in the integration spend in 2023 has to do with digital investment in improving the World of Hyatt experience for those World of Hyatt members staying at ALG properties, which is highly relevant because we launched World of Hyatt in May, we ended the year at a 17% room penetration for World of Hyatt members, which is extraordinary in a short space of time, and we signed up over 315,000 new World of Hyatt members at ALG properties.
