That’s something that the hotel is focused on and make sure that it did not give up its group for that near-term leisure. On the returning capital side, I’m very happy with what we did last year. We reinstated the dividend, and we also went — and as we said we would do is acquired our stock throughout the year. We’ve actually continued that into this year. And that’s something that we — while there are not endless capital to go out and buy stock all the time through dispositions, through additional capacity in our balance sheet or cash on hand, that’s something that we’ll continue to do. And I think what — the one thing that we’re probably proud of — most proud of last year is the balance that we had to the portfolio. We want our portfolio to be balanced in every sentence.
We want to make sure that we have the right amount of leisure, the right amount of group, a right amount of business focus, but then also in how we’re allocating capital. We need to be investing in our portfolio when the returns make sense. We need to be recycling assets and producing more growth and not just sitting on assets forever and watching those returns decline and then we need to return the capital. So sort of a long-winded way, but hopefully, that answers your question.
Operator: Our next question comes from Duane Pfennigwerth from Evercore ISI.
Duane Pfennigwerth: Just on the wine country assets. I wonder how do you think about the margin profile of those assets versus the portfolio average longer term? And how should investors be thinking about the steps required to close that gap? And it sounds like you touched on a pretty significant one with the group focus, but just how you’re thinking about the margins longer term on those 2 assets and what’s required to close the gap?
Bryan Giglia: Okay. Thanks, Duane. So I guess the easiest answer to that is a luxury hotel will not run — we’ll run lower margins than a very large efficient group box or business transient box or even limited service or that — it’s just because of the services and the level of amenities, it’s not going to run the same margins, which is fine because we’re — while margins are something that we watch closely, and we’re absolutely working on the hotels on their margin improvement, we’re more focused on value. And so the bottom line is that those hotels will be valued differently than your upper upscale average city center, urban-type hotel or even other resorts. And so what we want to make sure that we maximize the cash flow, the best we can, work with the operators.
Again, last year, there was a little bit too much confidence put on the near-term leisure. Now leisure continues to be strong, but these hotels have to have components to it. And so that’s something that we focus on. Montage for 2023 has 10,000 room nights on the books right now. It had 5,000 this time last year. That comes at a $1,000 rate. Maybe it’s a little bit lower than the transient rate, but it’s a very strong rate, and it comes with $500 plus of ancillary spend. Four Seasons has 5,000 room nights on the books for 23 and they have 3,000 last year. That’s maybe not the $1,800, $1,900 transient rate but around a $1,500 rate with $500 or $600 of ancillary spend. So it’s getting the mix of each hotel right getting that group component, which has the banquet spend in it, which is much more profitable than the other food and beverage outlets with maybe the exception of a bar.
