Frank Fertitta: On top of the fact, we have a less promotional environment and we have significantly less incentive business. I mean, this is just focusing on core customer that wants to come to our facilities, because of our location, our amenities and our team members. So, we’ve gotten out of that promotional business that we ran back in 2019. So, you’re naturally going to have a higher spend per visit, coupled along with people having more disposable income from higher ratio.
John DeCree: That’s great. Thanks for all the color. Guys, congratulations on another great year.
Frank Fertitta: Thank you.
Operator: The next question comes from Cassandra Lee with Jefferies. Please go ahead.
Cassandra Lee: Hi. Good afternoon. Thank you for taking my question. I wanted to first ask about ADR. I think looking at Las Vegas overall and your ADR in past few quarters, it’s been significantly higher than pre-COVID levels. How sustainable do you think those are? And how might that be impacted if we go into a recession?
Frank Fertitta: I think as it relates to ADR, that’s kind of a market-driven factor. So, we’re very competitive. We shop — and yield our rates and we hope to see increased upside in ADR. I do think that there is opportunity for us to grow occupancy. So, we’re constantly looking at the mix of business between corporate (ph) and sales rooms and casino room mix as well to maximize that occupancy. And then, certainly in light of any type of headwind, which we really don’t see or foresee any of that coming in the near term, we have lots of different variable expense levers that we can deploy to continue to stay at high margins and high revenue within the hotel.
Cassandra Lee: Great. Thank you. And for my follow-up, I know in the past, you’ve said that you like owning your real estate versus renting. But with interest rate becoming more expensive, can we get your updated thoughts on owning versus leasing?
Stephen Cootey: Yeah. I mean, I think we like owning the real estate. Again, it doesn’t mean we’re beholden to holding it forever. We’re going to what’s right to the — what’s in the best interest of our shareholders over the long term, Cassandra, but keep looking back, owning the real estate provides max — provide us maximum flexibility, including the ability to keep our employees through COVID…
Frank Fertitta: And including the ability to quickly delever like when Durango opens, the company is going to have significant free cash flow to deleverage its balance sheet. And we like that flexibility.
Stephen Cootey: That’s right. And I think, as you know, we’re also in the local business, where over 50% of our covers come more than 5 times a month. That means we’ve got to keep our amenities fresh. We’ve got to keep the places fresh. And owning that real estate allows Frank and Lorenzo and the team to focus long term on vacating those assets.
Cassandra Lee: Great. Thank you very much.
Stephen Cootey: Thank you.
Operator: This concludes our question-and-answer session. I would like to turn the conference back over to Stephen Cootey for any closing remarks.
Stephen Cootey: Thank you everyone for joining the call. I apologize for the technical glitch, and I look forward to seeing you in 90 days. Take care.
Operator: The conference has now concluded. Thank you for attending today’s presentation. You may now disconnect.
