The demographic changes, where we see more migration of people, more corporate relocation, that is put us in places like the Sunbelt, that is put us in some of these mountain towns that have performed really, really quite well since the onset of the pandemic. But we are certainly opportunistic. And again, through some of these dispositions, we will create some capacities continue to be opportunistic where we see just better risk adjusted returns on a relative basis.
Austin Wurschmidt: And then just the last one for me, maybe for Trey. You mentioned that the midpoint of guidance assumes roughly flat hotel EBITDA margin. Can you share what that range is at the high end, low end?
Trey Conkling: Yes. I think if you look at the high and the low end of the range, we would say, that is kind of minus 50 basis points to plus 50 basis points from 6% to 11% was kind of flat at the midpoint.
Austin Wurschmidt: Perfect. Thanks, guys.
Operator: One moment for our next question. Our next question comes from Bill Crow with Raymond James. Your line is open.
William Crow: Thanks. Good morning, guys. Just looking for a little bit more detail on the expense expectations for this year. I think you mentioned that, wage rates would be growing at a slower pace, but you also have higher FTEs, I assume, at least to anniversarying those that were added last year. So how are you thinking about overall expense growth? What is going on with property taxes, what you actually were able to appeal, but what do you expect there, property insurance, et cetera?
Jon Stanner: Yes. Sure, Bill. Thanks. And good morning. As we said in the prepared remarks, we do expect to see some moderating of expense growth. I think as we have gotten later into last year and the first part of this year, we have seen some of particularly on the wage pressure side of a fair amount of that moderating. Tray articulated a little bit on spent on a per occupied room basis at the operating level was up less than 2% in the fourth quarter are actually aggregate dollars of expenses in the fourth quarter, actually declined from where it was in the third quarter. So we have started to see some moderating there. I think you can tell by as Trey just mentioned, our implied margin guidance, which is flat at a midpoint of 8.5% RevPAR growth still does contemplate some level of expense pressure of persisting into next year.
And I think what we will see that is a little unique from this year is if you look at our results in 2022, our EBITDA margins expanded more than our GOP margins. Our expectation is that that will flip into 2023 as operating expenses moderate. But we did, as you alluded to, we had some nice successful property tax appeals, which helped our EBITDA margins in 2022. And we will feel some pressure on expenses on the insurance line in 2023 that we will make our EBITDA margin expansion lower than our GOP expansion was or is in the year.
William Crow: And then, follow-up question for Trey, what was the cost of the two swaps on the a $100 million debt pieces?
Trey Conkling: The rates there were 2.6% and 2.5% – 5.6 -.
William Crow: Yes. But what was the actual cost of getting that transaction done?
Adam Wudel: Bill, this is Adam. Those are settled on a monthly basis going forward. There is no initial out-of-pocket.
