So you know that demand profile is incredibly strong already. And then you have the ability to put an exceptional product there on as Brian described probably the best I’m kind of beach in the hotels Zilara Cancun. I just think we really have a great opportunity. So it shouldn’t be passed. This isn’t just a renovation. This is absolutely an incredible resetting of the floor, okay, for Zilara, Cancun.
Smedes Rose: Thank you. Appreciate it.
Bruce Wardinski: Thanks, Smedes.
Operator: Thank you. The next question is from the line of Chad Beynon with Macquarie. Please go ahead.
Chad Beynon: Morning. Thanks for taking my question. Bruce, I wanted to ask kind of a two-parter on Jamaica. One, can you just frame out — I’m not sure if you mentioned this in the prepared remarks, but what spring break or kind of the lead-up to Easter in Q1, maybe just March in general looked like versus prior year period, was there an impact? And then secondly, on the look forward in Jamaica, is your approach to hold ADR and not fill the rooms with locals? I know in the past, there was some good demand. Could you just kind of help us think about what will be locals versus tourists in your model right now? Thank you.
Bruce Wardinski : Sure. Sure. And I’ll just kind of address the second part, and then I’ll pass it over to Ryan, he can give you more kind of on the first quarter and the EBITDA impact and Easter. But our strategy absolutely is to hold ADR. Since we came out of the pandemic, we have been very focused on that, and we don’t believe there’s anything kind of permanent or even longer-term from this situation in Jamaica. We need to deal with it. But whenever you kind of reset your rate structure, I think, it’s a very slippery slope and it’s challenging to kind of regain, where you were. And especially in a hotel like this, which is such a big MICE contributor, that’s something we don’t envision doing. We have a high-quality resort. We’re going to maintain the high quality of that resort and ADR kind of discipline is critical to that. Then I’ll pass it over to Ryan.
Ryan Hymel : And then Chad, to be clear, your question is around this — the impact to March from the travel warning or…
Chad Beynon: I guess, maybe if you could think about like spring break this year versus spring break last year. It doesn’t sound like March was impacted, but I know it’s not a same-store, same week comparable.
Ryan Hymel : Yes. Correct. For us, the fact that Easter, the Semana Santa week was within March, it certainly helps a little bit for Q1, but it certainly hurts April. For us, Easter week, particularly in the Mexican or the Spanish-speaking countries kind of marks the unofficial end of our high season. So the further out it goes, the better. So next year, when it’s in, I think, the second or third week of April. It’s a definitive positive to Q2 and just generally a definite a positive to Playa because it elongates the high season. So for us, it was kind of a minimal impact to Q1 on the positive side, but it definitely hurts Q2.
Chad Beynon: Okay. Thanks. And then lastly, any update in terms of Jewel Palm Beach, how you’re thinking about hanging on to this property, marketing it, divesting it? What’s the M&A market like out there?
Ryan Hymel : Yes. No. We are actively marketing the property, and we’re hopeful to be able to announce something in the near future. But we are actively marketing the property.
Chad Beynon: Okay. Thank you both. Appreciate it.
Ryan Hymel : Thank you.
Operator: Thank you. The next question is from the line of Tyler Batory with Oppenheimer. Please go ahead.
Jonathan Jenkins: Good morning. This is Jonathan on for Tyler. Thanks for taking my question. Maybe following up on Jamaica and understanding the dust hasn’t fully settled yet, but can you talk about the disruption there and how it compares maybe to past travel advisories or interruptions you’ve seen over the years?
Ryan Hymel : Yes. It’s funny that you ask that. Thanks for the question. So it’s — I mean, it’s been a substantial swing, mostly concentrated as where we sit today in Q2 and Q3. And it’s actually as far as the impact in the swing for what we were expecting for Q2 RevPAR prior at the beginning of the year versus where we sit today, it’s actually almost right on par with some issues we had in late 2019 with some crummy news cycles that came out in the DR. If you just look at a full year basis to kind of put some numbers around it, just using round figures, we were expecting the Jamaica segment to be up low single-digit RevPAR. Now based on where we sit today, it’s expected to be down mid single digits. So that’s a high single-digit to potentially double-digit RevPAR swing in a few months here.
So it’s certainly, as Bruce mentioned earlier, I won’t recast at all a lot worse than we thought. And again, it’s not that there’s just an increasing number of cancellations, it more so it has to do with demand. What we’re picking up on a daily basis is below traditional trend lines from what we’ve expected beginning of this year or what we were able to experience last year. So the marketing team has done a number of different sales blitzes and tactics that have a nice impact for a couple of days. The demand falls back off. Again, they targeted some one of the questions meet that’s earlier that targeted some a lot of local groups as well who obviously wouldn’t be worried about a travel advisory and also Canadians as well. So we’ve seen peaks and valleys, but just generally, we’re just below a traditional trend line from a booking basis.
