William Crow: Alright, very good. I appreciate it. Thanks, that is it for me.
Operator: Our next question comes from Michael Bellisario with Baird. Your line is open.
Michael Bellisario: Thanks, good morning guys. Just want to go back to the asset sales and dispositions. I guess if the six hotels do close on your expected timeline, how much EBITDA in 2023 might be sold for the remainder of the year?
Jon Stanner: Yeah, well some of that is going to depend on the timing of the sale. Mike, we have kind of outlined that we expect them to close in the second quarter. We will update our guidance at the time that they close. Our expectation on where we sit in the year is somewhere probably between $3 million and $5 million of reduction in EBITDA.
Michael Bellisario: And then maybe this is served just on the margin or not margins, but on the margin. Just as these asset sales are completed, the pro forma remaining portfolio will RevPAR be benefited, will be diluted the growth that is and margins to what is kind of the growth impact in 2023 from these six asset sales?
Jon Stanner: Yes, it is relatively marginal, Mike. It is slightly accretive to both RevPAR growth and our margin expectations for 2023, not enough that I would expect us to materially change our guidance range as a result of these. Again, these are relatively smaller, as we mentioned, the prepared remarks, they run on average about 30% discounts to our nominal RevPAR levels. And again, we expect this to be accretive from a RevPAR growth perspective. The one thing I will just kind of point out and reemphasize again, is that part of the rationale for these sales is that we are — while the per key prices aren’t as high as maybe you would expect the cap rates here are quite low. Combined with the asset sale in San Francisco last year, we are selling $155 million of assets at a three cap, and if you adjust for the deferred capital needs, it is sub 2%.
And so one of the things that we like is it is going to allow us to continue to bolster the balance sheet without giving up a ton of in place earnings.
Michael Bellisario: Yes. Understood. And then just one more, just thinking about the bottom portion of the portfolio. I guess maybe how many more 60,000 a key, or maybe it is $75,000 or $700,000 per key type of assets do you guys have left in the portfolio?
Jon Stanner: Yes. Look there is some, I mean, I think, there is always kind of a bottom 10% of your portfolio. Like we don’t have a ton of what I would describe as real non-core assets. I do think, we will try to continue to look opportunistically to sell assets. I think, the execution again on these six plus the sale on FFO last year represent a really, really compelling execution, particularly with where we think we — and where and how we can redeploy those proceeds. And we have shown, again, I think, a really nice delta between the yields on what we have sold versus the yields on what we have acquired. And so, I think, you can expect us to continue to look opportunistically for asset sales as we go through 2023.
Michael Bellisario: Got it. And then last one from me for Trey, probably just year-end net leverage, where did it stand, and then what would that have been on a pro forma basis if those six asset sales plus the land sale were completed at 12.31?
