Duane Pfennigwerth : Hey, thanks. Just on the group pacing and the give back kind of in the quarter, I wonder if there’s any trend of predictability to it kind of emerging. So maybe you could just replay the last couple quarters, how much pace was ahead at the start of the quarter, and then ultimately where it ended up, just to kind of help put that 20% pacing in context.
Raymond Martz : Sure. Well, in Q1, for Q1 of this year, versus the pickup from the prior Q1, we were short a little less than a million in group revenue, which represented about a little under 3,000 group rooms. If we go back to the quarter before that, I think that was relatively flat, but we’ll see if we can pull up that data, Floris. I mean, Duane, sorry.
Duane Pfennigwerth : No worries. Yes, no, that makes sense.
Raymond Martz : And I think what’s been hard, the reason it’s been hard to predict is it’s kind of been bouncing all over the place. So Gabby just pulled up the quarter before and it looks like what am I looking at here three month pickup, I see, okay, yes, so yes, it was about a $0.5 million of less pickup in Q4 for Q4. So, again, pretty modest, pretty minor, but I think it’s evidence of the normalization of the booking window.
Duane Pfennigwerth : Makes sense. So that up 20, I think, which is specific to the third quarter, if you had to guess, like where do we end up in kind of realized revenue? And you can punt on that and say, well, we’ll tell you when we get there.
Raymond Martz : Well, I think the challenge is certainly here’s the one thing I know is going to happen. The percentage will be much lower. All right. So, I mean, as we put more business on the books, obviously that percentage is going to come down. And I think right now we have, do you know what percentage that represents of our target for the quarter? Maybe 60%, we’ll see if we can pull that up, Duane. But the percentage is going to come down, it comes down naturally just as we book more and the numbers get larger, right? It’s just the math from that perspective. In terms of the impact of the booking window, it’s just really hard to forecast that at this point in time.
Duane Pfennigwerth : Thanks for taking the questions on an early conference call.
Operator: Thank you. The next question is coming from Bill Crow of Raymond James. Please go ahead.
Bill Crow : Hey, good morning. Jon, I’m hoping you can dig into the ADR decline at leisure properties, not just in the fourth quarter, but kind of what you’re expecting going forward. How much of that was reactionary to maybe some, I don’t know, some normalization of consumer spending, how much of that was mixed shift. And then you state in your release that you’re kind of bullish on inbound international travel this year, but you’re also saying you really don’t have much of a window into the summer months. So if you could just kind of square all that up, I’d appreciate it.
Jon Bortz: Well, I’ll take a shot at it, Bill. I don’t know if my comments will square it all up, but I think when we look at the resorts, the ADR changes are kind of all over the place. It really depends upon the property, what’s been going on at the property, the region, the weather has had an impact as well. There is mix shift going on at the resorts. So let’s talk about the mix shift first, because that’s the easiest one to look at. As we rebuild group at our resorts, generally speaking, the group rates are substantially lower than the transient rates. It’s the base build. It’s the midweek, particularly out of season. And so it gets priced lower, and it competes with urban markets as much as other resort markets. So as we rebuild that group which is a significant part of our resorts our resort mix that naturally brings the rate down in terms of the overall average.
As we add and continue to recover leisure, which is still below where it was in 19, that business has tended to be business that’s being induced, like it was pre-pandemic through promotions or it represents wholesale international business, which comes in at lower rates, or it’s off-season, where you have to stimulate, typically have to stimulate demand, particularly local demand, in markets like Florida that you live in, gets pretty hot in the summer. And so getting people to come to your location, hopefully driven by a cooler beach weather, bringing people in from inland Florida, it comes at a lower rate. So there’s a good bit of this that is mixed. I think the behavioral normalization has mostly happened, meaning the big premiums we were getting on compressed days, around some holidays, for people coming out of their caves after the pandemic and splurging and paying up, I think most of that is normalized and gone away.
And so it’s really why where we’re losing ADR, we’re losing it at a relatively small amount at this point. And as we look into Q2 as an example, our rate decline for our resorts looks to be lower than what it was in the first quarter and right now it looks like rates for the second half of our resorts will be better than the first half. So I think we’re getting pretty darn close to stabilization, and also we’re benefiting from the ability to charge more at some of the resorts that we’ve repositioned to a higher level in the portfolio.
