Aryeh Klein: Thanks and good morning. Maybe just on San Francisco, you mentioned improving group outlook there. What about from a business transient standpoint? What are you seeing there? And then I think you did about flattish EBITDA in 2022. What do you think that’s to look like this year?
Tom Baltimore: Flattish EBITDA in San Francisco?
Aryeh Klein: For the — I think in €˜22, I think that’s what it is for the full-year?
Tom Baltimore: Yes. You said flat, it was certainly zero.
Aryeh Klein: Net zero, yes.
Tom Baltimore: Yes, you were certainly being diplomatic and we appreciate it. Let’s all be honest. It’s — the situation in San Francisco is — has certainly been incredibly complex. It’s interesting, if you look at trends and you think back a year ago and what people thought of kind of New York, San Francisco and Chicago, everyone thought in the case of New York and San Francisco, in particular, you’d be years before they’d ever recover. Look at what happened in New York. In the first quarter, we didn’t open the New York Hilton until October of €˜21. We were down 55% in Q1 in RevPAR, down 22% in the second quarter, down 16% plus or minus third quarter and then up 2% in the fourth quarter. So just think about how quickly that recovered.
San Francisco was not that story. We were down — first of all, we didn’t reopen Park 55 until May, and the Hilton was the latter part of the end of €˜21. So they’re down 82%, then down 47%, and down 40% and then rallied back up a little bit at 52%. So no doubt, it’s been lagging and certainly, it’s been frustrating. But we are encouraged and I think a few things give us signs to be optimistic. One, the JPMorgan conference was a big test. They passed the test. There’s 700,000 room nights expected citywide this year versus the 380,000 last year. It is a market with only 32,000 rooms. There’s no market that’s smaller, more compressed, which gives it in good times time to have real pricing power. We also — finally, I believe, have an alignment, not only between the political leaders but business leaders.
And I think listeners know that I’ve been out there more than 10 times, and I’m going out again in March and will continue to go out. But the mayor put forward our plan that we referenced, there are a number of real initiatives underway to make it, whether it’s cleanliness, prime, tax incentives, reimagining buildings and converting to figuring out ways how they can reactivate the city. So very encouraging from that standpoint. And then we continue to get green shoots of more and more group business coming back to the city. I think we’ve got 150,000 room nights just self-contained within the complex that we have there, the Hilton and the Park 55. The big unknown is the business transient. But if you can get the base there and get it anchored with citywides and group and get the leisure going and you get the flywheel effect there, San Francisco, now do I think it’s going to recover as quickly as the New York story that I shared with you, I do not.
I think you laid the foundation this year. We certainly are more encouraged as we look out in €˜24 and €˜25 and beyond. I hope that answers your question. Hopefully, it gives you a good framework to think about.
Aryeh Klein: Yes, I appreciate it. And then maybe just following up on the ROI projects, I think you previously talked about potential for new tower in hope in Hawaiian Village. Can you just update us on the time lines around that? And I think you’ve also mentioned potentially bringing outlet capital to help fund that and where that might stand?
