Duane Pfennigwerth: Hey, good morning and congrats on these results. If we just play back your guidance revisions since the start of the year on international, we know Europe is strong. But how would you rank other international regions in terms of the contribution to that guidance revision? And if you would, it might be early here, but any early thoughts on domestic versus international growth rates into 2024?
Tony Capuano: Sure. So let me talk maybe a little bit about China, and then I’ll let Leeny do the balance of the tour around the world. I talked in my prepared remarks about how encouraged we are about the recovery in China and the fact that Greater China as a market surpassed pre-pandemic RevPAR in the quarter. And it was able to achieve those results principally on the shoulders of domestic demand given some of the stats that I shared on the relatively modest recovery of international airline capacity. One of the stats that was really encouraging to me, if you look at Q2 RevPAR in Greater China, we were up almost 125% to last year. I think that speaks to the strength and pace of recovery in that market, but it also speaks to the quality of our distribution particularly in the major markets like Beijing and Shanghai. Leeny, you want to maybe talk a little about APAC and EMEA?
Leeny Oberg: Sure. And I think a lot of this is just about acceleration of recovery. So if you think about it, it’s a little bit hard to predict exactly how airlift is going to go and how cross-border travel and how a country is going to emerge from the pandemic. And so I think the reality is that the recovery in China has come faster than we expected. And cross-border, while it is still meaningfully lower in China than it was pre-COVID, we’ve got international airlift only at 40% of pre-COVID level. So there’s clearly more room to go. There’s no doubt that as that country has rebounded. And as the rest of Asia Pacific has also really opened its borders completely, we’ve seen that all of the travel there has picked up very fast.
So when I kind of go back to where at the beginning of the year, where you might have imagined Greater China and Asia Pacific outside of China, they are both up the most. I think the only other comment I would make is that, obviously, Europe this summer has dramatically outperformed expectations. And we continue to see really strong demand in Caribbean and Latin America and Middle East Africa. So international really benefiting from all the cross-border travel. And frankly, from a global economy that has probably been a bit stronger than everyone anticipated at the beginning of the year.
Duane Pfennigwerth: Appreciate the detailed response. And maybe just a quick follow-up on MGM, does that effectively franchise agreement cover all of their revenue, or just revenue generated through your channels, through marriott. com, through Bonvoy, et cetera? Thanks for taking the questions.
Leeny Oberg: Sure. So…
Tony Capuano: Go ahead, Leeny.
Leeny Oberg: As you say, we’re not going to get into the details of the calculation, but it is based on hotel revenues. So it is not an à la carte sort of deal.
Duane Pfennigwerth: Okay. Thank you very much.
Operator: Thank you. We’ll take our next question from Robin Farley with UBS. Please go ahead.
Robin Farley: Great. Thanks. Just circling back to the MGM deal, I guess, it was my understanding that even though it’s a great partnership, that MGM would not be paying you franchise fees the way we would normally think about rooms in your pipeline paying 4% to 6% franchise fee. So I don’t know if you can just clarify whether they would be paying franchisees the way we would normally think of your franchise fees being? And then my second question is the way the release is written, and I apologize if I’m interpreting this incorrectly, but it sounds like you’re counting the MGM rooms in your rooms under construction. And I’m just wondering, is there some reason why you accounted them as new construction versus more of a conversion, if I’m interpreting that correctly?
