Leslie Hale : So Tyler, I’ll take the first question, Tom will take the second. What I would say is that on the strong booking dynamics, we are — from a demand perspective, we’re about 10% below 2019 levels, so there’s still room to grow there. What I would say is that we’ve seen strong conversion rates. We’ve seen the booking window, creating an environment where we have strong in the quarter for the quarter production, which is about 20% of our revenues, all of that is creating strong pricing power. And so our total revenues for group were at 104% of 2019 levels and up 4% year-over-year. Our rate is 115% of 2019 levels and up 7% year-over-year. And it’s really being driven by small group and in-house group, which is our bread and butter.
And so I think the dynamic is that small group and in-house group is going to be a greater percentage of group contribution overall for, I think, for the industry. And our portfolio is built to capture that. Our group right now from a contribution sits at about 18%. Historically, it’s been at 20%. So there’s room for incremental contribution there. But what I would say is that the nuance is what is driving group today and it’s a small group, and that fits right in the wheelhouse of our efficient boxes. It’s more intimate space to be in when you have a small group. And so I think we’re winning on that front.
Tom Bardenett : And I’ll take your second question, Tyler, and that’s about the conversions. I’ll give you some proof points and some examples that I think have really shown up since our conversions that were already in process. So for instance, as you know, in Nashville, we just converted in the late July, early August period. And early indications now that we’re at Tapestry within the Hilton system, we already have about 70 group leads that have come. We booked significant more business based on the relationship that we have. We have some meeting space at that location. So we think we can change the mix with more group and pretty profitable group midweek because that’s what you want in Nashville versus weekends where everybody benefits from leisure.
Another proof point is when we think about our Mills House in Charleston, and we became a Curio and in the Hilton system, also very powerful group leads. The type of banquets and lounge activity we have with group. It’s more of an incentive group and a variety of different things that happen with the Hilton system in a proof point is it’s a higher average rate as well. Just this quarter alone, we were about $100 higher than we were previous quarter. That’s a significant movement. Some of that is related to the type of group business. And then obviously, being at the top of the food chain within Hilton and the Charleston drive to market, has also proven. But I think overall, group is a positive move in our portfolio. I do believe we’ll get back to those percentages because of the demand that’s still left in the tank.
And average rate is carrying right now the current structure in regards to why we’re over 2019 levels.
Operator: Our next question comes from the line of Chris Woronka with Deutsche Bank.
Chris Woronka : Good afternoon, everyone. So I think there was a question earlier in the Q&A, kind of around shoulder periods. And my follow-up on that is, is that — as you go back and kind of scrub your historical books? I mean is that any kind of indication that an early indication, I guess, of a broader slowdown? And secondarily, I heard your comments about monthly RevPAR progression, August seems to be every year not as good as the last one. Is there something changing there, and do we have to start looking at August differently? And does that impact any other months? Are there shifts that are making certain months stronger and others weaker?
Tom Bardenett : Yes. When we look at our August, it performed better than 2022. It was the second best month of the quarter. So it didn’t compare to September, but it still had a 4% growth in year-over-year. I always think about August is you’re not going to have significant growth because it’s the back-to-school month in those last 2 weeks. So you really have to get that growth in the first couple of weeks as I think about that month just to answer August question.
