We’re in a time of great uncertainty. I think we all know that. There are — whether it’s inflation, interest rates, geopolitical, the war in Ukraine, I mean all of that but despite all of that, the consumer remains resilient. There’s a really strong labor market. And there are a few things that I think help improve the outlook. Inflation appears to be past peak. Now it doesn’t mean that we’re through it completely. But I think most of the experts believe were sort of past peak. So that’s a positive. The drag from Europe is less than feared. If you think about what everyone was thinking about in terms of a really deep recession there, but the warmer winter better planning by the leaders there have certainly helped mitigate that. China, doing the U-turn on the COVID policy also, I think, helps to restart.
Hopefully, we can have better relations, but getting that and the impact of possible positive impact on supply chain in addition to travel, I think we’re also really encouraging signs. So net-net, it’s fair to say, I think, of sluggish or certainly a soft landing and not a deep recession. We’re certainly not forecasting a deep recession. But certainly, a slower period is, I think, a fair base case. But even with that, Park a number of green shoes and tailwinds given the diversification of our portfolio that I think really outpaced and provide for accelerated earnings growth. Hence, the reason that we’ve got a RevPAR of 7% to 14% year-over-year. I don’t think many of our peers are going to be in that range. So we had a tougher period, but I think the outlook for Park as we look out in ’23 and beyond is very strong and very optimistic.
So we are very encouraged over the intermediate and long-term.
Floris Van Dijkum: Thanks. My follow-up, and this may be for Sean. Sean, why would you not consider using the spare cash on your balance sheet to pay off the maturing CMBS loan completely? And what would that do to your earnings expectation, because presumably, that is not in guidance, but that would be, again, you’re earning less on your — on the cash on your balance sheet than you’re paying on the debt, I would assume.
Sean Dell’Orto: Well, ultimately, I would say it’s pretty close in terms of what’s being earned. That debt is at 4.1%. And clearly, with cash on balance sheet, I would say it’s still — as part of our overall liquidity of $1.9 billion it’s certainly a little more important as kind of we think about paying that down. $725 million, certainly a lot of money, it’s going to be certainly a part of the solution, but I wouldn’t say that we’re looking to pay it off completely today with that cash that we have on our balance sheet.
Tom Baltimore: Floris, I would also add that, look, the beauty of where we sit right now is we have — the balance sheet is strong. You saw the measures that we’ve taken again over the last few years. We have optionality. We’re going to study the situation carefully. But rest assured, we will have it solved by third quarter, if not sooner. And we’ve got optionality. We can put debt on an asset or a combination of assets. We could extend — we could reach out to the servicer, a number of different things that we can do here. So we are not at all alarmed. We’re going to be thoughtful. We’re going to be measured, and we’re going to get to the right outcome. And I used this example at the beginning of the pandemic when everything was closed and we had debt maturities and the world thought Park wasn’t going to be around much longer, we didn’t panic.
