Ryan Hymel: I think just based on the timing of what we have planned, whether or not we sold the Jewels wouldn’t change the plans. But I expect the maintenance CapEx levels to remain similar, but the kind of growth CapEx or ROI CapEx that we’ve called out in the past should grow over what we spent this year. We called out a few times some construction disruption in the Pacific. What’s happening there is, it’s an ongoing staged renovation of our Diva in Puerto Vallarta. And you’ll recall, that’s one of our legacy Hyatt’s that hasn’t seen a rooms renovation in about seven years or so. And so it’s a great earner for us, and we want to update the rooms to the levels that are more closely associated with some of our newer Hyatt’s.
We’re also spending a small amount of money this year, but a little more forcefully next year in Ziva Los Cabos on public space and meeting space, because that property, again, as a meetings and incentive destination is phenomenal, but it’s been out-punching its weight for a while now, given, again, comparisons to our Ziva/Zalara in Jamaica or the brand-spanking-new Ziva/Zalara in Cap Cana. So we want to make sure that we’re protecting some of those assets and allowing us to continue to push group business in there, which, for all the reasons you already know, is great margin, great ADR and great NPR business for us. So I expect it to go up some.
Patrick Scholes: Okay. Can you just give us for modeling purposes, I guess, a little bit more granularity on a rough ballpark of percentage? Just something ballpark to — when you say, up some, I mean, is that 10% or 50%?
Ryan Hymel: So we’re spending kind of $20-ish million to $25 million on growth CapEx this year, it could go up another 50% to 75% from there. So maybe it doubles, but probably not. We’ve got — just based on the timing of what we’ve got planned, we’re probably not going to do more than that next year. We have other plans, that Bruce can go into if you’d like. I don’t believe they’ll be ready to begin next year, but there’s a lot of other things in the pipeline. If we’re specifically talking about ’24, call it, 50% to 75% more on growth CapEx than we spent this year.
Patrick Scholes: Okay, that’s a good color there. Thank you. I’m all set.
Ryan Hymel: Thanks, Pat.
Operator: The next question comes from Chris Woronka with Deutsche Bank. Please go ahead.
Chris Woronka: Hey, good morning, guys. Covered a lot of ground there, as always. So can we maybe talk a little bit about the — you called out the change in the Hyatt point redemption levels. And in addition to that, I know that they’ve bolted on quite a few brands in recent years and really kind of ramped up their resort offerings to their loyalty members. Do you think any of that is or will have an impact on you guys? And maybe you could give us a really quick tutorial on economics of point redemptions for you?
Ryan Hymel: Yea. On the redemption side, the change was actually a net positive for us, in the sense that it required more points. And so therefore, the next step from that would be that we would get better ADR rate redemptions from Hyatt the following year. It pushed a lot of those redemptions into kind of the first and second quarter, just as kind of like a percentage of our overall Hyatt room nights. Just as an example, we’ve traditionally had mid to high single-digit point stays from all of our Hyatt business, that in this quarter dropped down to kind of low single-digits, purely just because there was a mad dash in the first and second quarter to redeem points before they made that change. But generally, it’s not made up a massive portion one way or another of our room nights from Hyatt. It’s far higher, kind of low-double-digit numbers, from Hilton. And then, Bruce, if you want to talk to any of the brands.
Bruce Wardinski: Yeah. I mean, I think from just a big picture, Chris, if you look at it, I think it’s all positive. So sure, Hyatt added more resort offerings with the Apple Leisure Group transaction, but we are at the upper end. So our products, the Hyatt Ziva and Hyatt Zalara, are higher. They have higher requirements for redemption, the number of points you need to do. So we’re kind of targeting a little different Hyatt customer there. So I don’t really think them adding the stuff below us is really going to have a big impact. And then just overall, and I’ve said this many times in the past, just the more exposure we get to customers, kind of your traditional lodging customers, your Marriott, Hyatt, Hilton, Intercontinental customers, to all-inclusive is positive for us.
So all of it is positive. So I think we just wanted to highlight that because it was just a little bit of an interesting phenomena. You’ve seen that before with airlines, where the airlines do the same thing. They’ll have a flurry of redemptions because they’re changing. That’s all it is. I don’t think really — as Ryan said, it’s not a huge number anyway, and I don’t think it’s a big issue, but I think it’s just positive that there’s more and more exposure kind of from your traditional lodging customer to all-inclusive.
Chris Woronka: Okay. Thanks for that, Bruce. And then I guess could we — I know you said you don’t have any information to share about the Jewell asset sales. But maybe talk a little bit about what the primary gating factor is right now in terms of getting things over the finish line or not getting them over the finish line. And is there a point at which, given the dilution that they’re causing to the portfolio, is there any kind of red line or line in the sand as to when you really want to get rid of this?
Bruce Wardinski: I mean, Chris, our desire, obviously, is to sell them as soon as possible. And is there a big issue? I mean, it’s not, per se, a big issue. It’s just kind of the macro market that we’re all sitting in. Everybody knows the uncertainty out there. Everybody knows about interest rates and volatility of interest rates. And if you look across — and I’ve recently had discussions with a number of people in just the lodging space generally, and the level of transactions is way down. And that includes new supply, that includes sales, lots of things. So just things are moving slower. I think, again, you step back in the big picture, it’s going to benefit us over the next two to three years, all of these kind of fundamentals on supply and demand.
With regards to this, there’s still a lot of interest. And the pricing is attractive for someone who’s coming in, looking at it on a price per key. It’s attractive for us on a trailing multiple. For both sides, I think it’s an attractive transaction. I don’t think there’s any significant issue. I think we’re going to conclude the two sales. And hopefully, we’ll be able to say something in the near future.
