Aryeh Klein : Got it. Thanks. Thanks. And then maybe just on the expense side. Can you talk about how you’re thinking about margin this year? Marcel, I think you’ve always been a little hesitant to provide long-term savings targets. But is there anything on that front from a long term saving standpoint where you think they still think there’s some opportunity?
Marcel Verbaas: Yes I’ll go back to what I said about this before . We were always very hesitant about that, because it’s was extremely unclear at that point, what’s kind of inflationary pressures you were going to be dealing with, have your mix of business was really going to change from what it was pre-COVID. The second session obviously has a lot to do with it. So that’s why we were always hesitant. We did not believe you could just look at it statically and say hey, we’re going to be X basis points higher. And I think that’s proven to be the case. So I think we were appropriately hesitant to do so. And if you look back, you can just look at the last few quarters, right? I mean, we were up 17 basis points in the fourth quarter on relatively minor RevPAR increases over 19.
But that’s trophy obviously, that’s we are controlling cost fairly well to be able to actually increase your margin a little bit, even when you see virtually no RevPAR growth. And for most of us who can remember the days before COVID years leading into COVID, we’re having similar issues, obviously, where it was harder to drive RevPAR and drive rates, which made it very difficult to continue to mover margins up. So the fact that we’re still seeing some margin improvement, I think is a testament to how we are able to control costs and how we’re able to run the hotels a little bit more efficiently. But clearly, there continue to be pressures. And we’ve talked about those. We’ve talked about the labor cost increases. We’ve talked about utility costs increases.
And, obviously, we’ve built in our expectations as it relates those into the guidance that Atish went through.
Atish Shah: Yes. I mean, just more specifically, those items, utilities, real estate taxes, and insurance. Those three are 50 basis point headwind for us in 2023, relative to last year. And then the cancellation and attrition fees that I talked about are pretty significant headwinds as well, nearly 100 basis points. And then obviously, we’ve got the renovation disruption. So, we do expect margins to contract over the course of the full year. And that’s included in our in our guidance that we gave.
Aryeh Klein :
Operator: Thank you. Our next question comes from Tyler Batory with Oppenheimer. You may proceed.
Unidentified Analyst: Good afternoon. This is Jonathan on for Tyler. Thanks for taking our questions. I wanted to follow-up on the transaction discussion ourselves. Marcel, I think you said, you were optimistic, it would improve. But I’m curious if you could provide additional color there sort of the house view on the acquisition environment as we move throughout the year?
