Colin Reed: Yeah, Mark. Do you want to take that?
Mark Fioravanti: Yeah. I mean I would say that from a Hill Country perspective, initially, our investments are really around where we see opportunities to quickly impact the business there. We’re looking at food and beverage, room renovations and the potential to take commercial space that’s currently underutilized and not producing revenue and making it more efficient and delivering more options to the consumers longer term, we think there’s opportunities to grow rooms, increased meeting space as well as potentially increase the leisure amenities there. But to be honest with you, Smedes, it’s a little bit early for us to really lay out precisely what we think the right mix of that is. We’re just really getting into that hotel and understanding its operations and the consumer feedback.
Smedes Rose: Do you modify weigh in on that just for a sec (ph).
Mark Fioravanti: So Smedes, if you look at our Gato Texan Hotel, it is, by far, the most successful convention resort in the State of Texas. When we open that baby up, we hope that we were going to get somewhere between $45 million and $50 million of EBITDA. We’ve expanded that hotel several times now. And that hotel this year is going to do somewhere in and around $120 million. And we sort of see San Antonio and that hotel in San Antonio as having the same DNA that over time, that this hotel can literally become the second best convention resort in the state of Texas. And so, we’re very excited about this hotel. And that’s why we tried to buy it 4 or 5 times over the last eight years.
Smedes Rose: Great. And could I just ask you one, first of all, I appreciate you guys breaking out the cancellation fee. I think that’s a nice incremental disclosure. It looks like cancellation room nights was up quite a bit in the second quarter. I realize it’s down a lot through the 6 months. But I was just wondering if you could sort of explain that a little bit. It was up 87% (ph) and kind of it’s look like cancelation?
Patrick Chaffin: Hey, Smedes. This is Patrick. Yes, it was up a little bit. There were about five or six groups that canceled for future periods, a little bit larger than normal. But as we looked at the specific conditions around each one of them, there was no cost concern. There was nothing that pointed to macroeconomic trends or anything like that. It was just the lumpiness of our cancellations come in now and then. And so a little bit larger, but we dug into that and don’t have any cause for concern based on what we saw.
Smedes Rose: Okay. Thank you.
Operator: Our next question comes from Patrick Scholes, True Securities.
Patrick Scholes: Hi. Good morning everyone, if I missed this earlier, but I believe you said you’re pacing plus about 9% for 2024 and around 9% for 2025. Looking through the transcript last quarter, I do see that you discussed that. Did those numbers improve since your last earnings call over the last three months or where were they?
Mark Fioravanti: You want to take it that.
Patrick Chaffin: Patrick, good morning. Our numbers continue to improve. I mean, if you look at group revenue pace, total room revenue for 2024, it’s actually up, just give you another data point, up 22% over 2019 and that’s both on the room nights and the rate as well. And that continues to improve. In fact, we just closed July and had some really solid bookings in a couple of the hotels just for the end year for the year and the T+1. So that continues to improve and gives us a lot of confidence as we head into 2024. Additionally, on top of that, our mix continues to move in a very positive direction. We have a higher mix of corporate business on the books for 2024, where we stand right now, an improvement over where we are for 2023. So a lot of reasons to feel really good about where we’re heading for 2024.
Patrick Scholes: Okay. Thank you. And then on your leisure business certainly, from other hotel REITs and vacation ownership companies and the like here, obviously, seeing pressure in the summer and back half of the year. I think about, tell me if everyone when I think about leisure for you folks, it’s more country music and the holiday ice events, which is probably not something that can easily transfer to going to Europe. So probably not apples-to-apples with lost a ski resort or features resort [indiscernible], how do you think about the leisure business as it relates to those pressures?
Colin Reed: Let me start, Patrick, I just want to do the 50,000 feet peak part of this. One of the things that we did years ago was that when we built these hotels and added to these hotels, we put in really world-class leisure facilities into these assets. And we’ve continued to embellish the leisure attributes of these hotels over the last three or four years. Yes, country music and the demands that we’re seeing here in Nashville affects Opryland, but country music really doesn’t have an impact when you look at Texan, Aurora, Washington and the Palms. But when you have a quality asset it just does pretty well and putting things like SoundWaves into Nashville has had an enormous impact on leisure. But we do a lot of programming here, too, Patrick. Patrick Chaffin, why don’t you just talk about the demand that we induced because of the specialized programs that we put in place for leisure.
