William Hornbuckle: Yes, I’ll kick it off, with Corey. It’s interesting, where we’ve seen a great deal of international single visitation on F1, Super Bowl, maybe not to your surprise is about corporate America. And so it is showing up in multiples in terms of multiple groups taking Corey, if you take just a great deal of inventory.
Corey Sanders: Yes. If you look at the large — the groups that have booked for programs for F1, we’re actually about double in Super Bowl. So we’re seeing some really strong demand there. It’s driving ADR. We’re pretty optimistic about what Super Bowl will bring for us from a casino and leisure side.
Barry Jonas: Great. Great. And then just as a follow-up. As you look across your markets or other parts, maybe parts of the database, are you seeing any noticeable impact from the macro environment we’re in?
Corey Sanders: No, we’re not really seeing any — we continue to book at the elevated ADRs, the regional trips and rated days customer values seem to be where they’ve been in the past. Barry, I think the discussion will ultimately come down to the regionals, not necessarily top line but bottom line in margin. And just keeping those things going strong. obviously, we’ll wait and see what happens in Detroit here, but we’ll come out of that like we always do. And then it will be about regional margins, I think, in bottom line more than top line, at least as anything we can see to suggest that.
Operator: The next question is from John DeCree with CBRE. Please go ahead.
John DeCree: Hi everyone. Thank you for taking my questions. Maybe one more to shift back to Macau. If you were still with us. the trends in recovery in Macau are still tracking along nicely for the market as a whole. There’s obviously a lot of discussion about macroeconomic issues in China. So there seems to be decoupling, Curious to get your thoughts on that. And then more specifically, the next leg of the recovery as we march forward. Obviously, airlift back to Macau and Hong Kong is still a place of recovery. But curious your views on the differences in Macau and China consumer more broadly and then how you see the next leg of the recovery playing out?
William Hornbuckle: Go ahead, Hubert.
Hubert Wang: Yes. Thanks, Jon, for your question. I think that, first of all, I think Macau, I believe that the recovery is going to continue. The government issued their forecast for next year during their budget session. And we are looking at a GGR number for next year, around USD 27 billion for the entire year. And this is quite consistent with our belief, our own expectation and the market consensus as well. Now I think Yes. In China, there is some softness in its overall macroeconomic situation. The GDP growth is around 4% to 5%, which is at the trough, if you look at the long-term window period. But I believe that Macau is not the average of — reflection of the average GDP growth or spending pattern in China. . We, as a town, cater to about 30 million visitations a year.
The unique visitation is probably less than half of that. it’s still a very small number in the grand scheme of population in China. So we cater to the really the, I would say, the economic in in China, the middle class and upper middle class. And there is a recent report if you can refer to also talk about even in China, the consumption of the team high-income group and the base mass is very different. You see continued growth on luxury goods purchase at the high income group, while the mass you have seen a decline. So I think that Macau is positioned to cater to the group with high spending. And this is I think what every concession there, along with the government is trying to do to capture that group and their visitation into the market.
So I think — I hope that answers your question, Jon.
John DeCree: Yes. Hubert that’s great. I appreciate that commentary, very helpful. Maybe one for Bill or Jonathan back on the U.S. as a follow-up. Couple of different questions on OpEx inflation and property insurance being a big one that a lot of folks have talked about, Bill, you’ve just commented on that. But maybe looking ahead, excluding labor, which we’ve talked about, is it your visibility and OpEx? Does it feel like the inflationary impacts have been borne already? Or what do you expect going forward? I guess, kind of your outlook for cost inflation over the next couple of months from where you have visibility?
Jonathan Halkyard: Yes, setting — it’s Jonathan. Thanks, Jonas. setting labor cost aside for a moment and even insurance, which is in a way, it’s more pronounced in a couple of our regional properties than it is in our Las Vegas businesses. We expect inflation in our — some of our core inputs to be low single digits. And — but at the same time, Corey and his team have dozens of initiatives against our cost structure so that we can minimize the impact on that overall and maintain margins in our Las Vegas business is in the range that they’ve been for the past several quarters. . So the thing is in Las Vegas, we have quite a few levers that we can use to offset the impact of that. So again, setting the labor aside, we’re confident that we can hold the line on those other costs.
Operator: The next question is from Chad Beynon with Macquarie. Please go ahead
Chad Beynon: Afternoon. Thanks for taking my question. I know a few calls ago, we spent a lot of time on the Marriott strategic partnership. And Bill, you talked about that as a catalyst for ’24 when that launches. Can you just give us an update since it was slightly delayed just in terms of how we’re thinking about the overall impact kind of replacing those lower-yielding rooms to Marriott direct customers. If we should start to see that real benefit in ’24. Or does it just appear that the city is busy enough right now where maybe we’re not getting that full benefit, and this will be more of a ’25 and beyond positive for you guys?
William Hornbuckle: No. I think it’s ’24 because I think the booking cycle for Las Vegas, even with this group because we’ve seen it obviously mirrored Cosmopolitan is pretty much in line with everything else. They go a little earlier because they want to make sure they can use their points, et cetera. But there’s a clear window over the next couple of months. So once we launch it, we think it ramps fairly quickly. And I think by the third and fourth quarter of next year, this time next year, we ought to be — have a real good feel for what it’s going to provide. The group activity that will be part of it is a little different discussion and we’ll take more time given the obvious nature and cycle of that business. And remember, I think the first year, we’re looking for $50 million to $75 million in incremental. And there’s nothing to believe even despite the delay candidly, there’s nothing to believe we won’t recognize or realize that.
Chad Beynon: Okay. Great. Another one with respect to ’24 in terms of Lunar New Year. I believe Lunar New Year and Super Bowl are coinciding over the same periods. Have you seen any indication just in terms of bookings from some of that international box play? Does that come in a little bit closer to that event — and given that Super Bowl is around the same time, should we expect a lower positive from that?
William Hornbuckle: Well, yes, they do line up. So I can’t change that. But it’s one of the few years that they do. So what I think you’ll see, we’ve seen increasing international back play as tear has gone on, and I think we’ll see it hopefully and believe it will continue into 2024. I think we’re going to see a lot of folks at a football game who don’t necessarily know football very well whether or inviting guests or want to see a spectacle. And so yes, there’s some overlap to it. But we feel pretty positive. It’s just frankly too early to tell. Most of those customers other than a holiday period, which I guess this is, but they react fairly quickly at the last minute and say I’m coming. And so we’ll know about 60 days, 45 days out, really more what the activity case will look like.
