Frank Fertitta: I think it’s always looking for efficiency, right? It’s being relentless about how we run our business and looking at these core areas, we don’t expect to have any real increases in the acquisition cost area. We think we’re doing a great job on cost of goods sold, but that’s really a daily fight. And then probably the biggest one is just us being very diligent about labor…
Scott Kreeger: Kind of energy cost.
Frank Fertitta: Yes, an energy cost. Making sure that we’re competitive so that we get the best employees in the market but at the same time making sure that where we deploy those employees and what level is efficient for our business.
Stephen Grambling: Great. Thanks so much.
Operator: The next question comes from Chad Beynon with Macquarie. Please go ahead.
Chad Beynon: Afternoon. Thanks for taking my question and congrats on the strong opening. Wanted to ask Scott, maybe one for you, just in terms of pacing for 2024 for that meeting and banquet space and now that Durango is open and groups can kind of rent that out. How that’s looking in terms of what’s on the books for 2024 overall versus prior periods? Thanks.
Scott Kreeger: Yes. So I kind of used the benchmark of the same time as last year’s comparison. We like where we’re headed. We especially like where we’re headed in the first quarter and the fourth quarter of 2024 in both group room nights and catering. Summer is a bit soft. We’ve got some work to do in the summer, but with our booking window being pretty short we’ve got time to make that up a bit. And I will caution, they are super strong numbers but they’re not the numbers that we coming out of the pandemic that were 60 plus percent year-over-year increases. But they are still very robust for the brand and we like where we’re headed.
Chad Beynon: Great. Thanks. And then I think you talked about strength across the loyalty database. Did you see any declining weakness for that low-end tier or the unrated business or did that remain pretty consistent through the fourth quarter as well?
Scott Kreeger: It’s a consistent trend. So we still see very robust numbers in the mid- to higher end, but that’s partly our strategy and we see consistent and stable trends in the lower end of the database.
Chad Beynon: Great. Thanks. Appreciate it.
Operator: The next question comes from Joe Stauff with Susquehanna. Please go ahead.
Joe Stauff: Good evening, everyone. Just a few follow ups maybe on Durango. One is with the strong opening. I’m just trying to figure out essentially when you guys would expect visitation patterns to normalize. Would it be like a typical six months? Would you expect it to be earlier? And then would you expect this property in particular to be able to pull a certain amount of, say, consistent visitations from further away than, say, your corporate average?
Lorenzo Fertitta: Look, I think you have your peak at the opening where everyone in town wants to come and see it and you get trial. And I would imagine in Q1 and Q2 we will find out where the market is for Durango. We’re settling in – in our to not grand opening volumes anymore. And so it’ll take a quarter or two and then I think from there we should start to be able to build new customers and visitation and start growing from there.
Scott Kreeger: Yes, Lorenzo, but relative to your question as well as and the second part of it, given the fact that it’s right there on the freeway, it should naturally draw from a wider radius than maybe some of our other properties that don’t quite have the amount of traffic that that freeway has. I mean, it’s one of the busiest kind of loops in the valley because everybody either going to work or coming home from work lives on the west side of town or from the airport back and forth. I mean, they have to drive right by Durango.
Lorenzo Fertitta: But I think if you look at our portfolio, that’s one of the great things about our portfolio’s location, location, location, right. Look at Red Rock, great location, right on the Beltway. You look at Sunset Station right on the Beltway, Boulder Station right on the Beltway. So I think that’s one of the long-term benefits as the town continues to grow, is I think we have probably the best traffic ingress, egress, car counts of anyone in the market.
Joe Stauff: Thank you for that. And Steve, maybe just a quick clarification on North Fork that does not require any new capital from the company, correct?
Stephen Cootey: No, we’ve invested the original capital, which is still sitting there, and it’s a $40 million note. The current balance is about $110 million. We would anticipate raising North Fork’s financing around the project.
Joe Stauff: Thanks, guys.
Frank Fertitta: That’s typically on the financial markets.
Stephen Cootey: That’s right.
Operator: [Operator Instructions] The next question comes from John DeCree with CBRE. Please go ahead.
John DeCree: Good afternoon, everyone. Most have been asked and answered, but maybe one more on Durango. And that is given the successful opening that you’ve talked about, has that influenced or changed how you think about Phase 2 prospects there, either in scope or timing? I know it’s still only been several weeks, but any thoughts on Phase 2 would be interesting to hear? Thank you.
