Greetings, and welcome to the Chatham Lodging Trust Fourth Quarter 2022 Financial Results Conference Call. At this time, all participants are in a listen-only mode. A question-and-answer session will follow the formal presentation. If anyone should require operator assistance during the conference, please press star zero on your telephone keypad. As a reminder, this conference call is being recorded. It is now my pleasure to introduce to you host, Chris Daly from Daly Gray Public Relations. Thank you, Chris. You may begin. Thank you, Vikram. Good morning, everyone, and welcome to the Chatham Lodging Trust fourth quarter 2022 results conference call. Please note that many of our comments today are considered forward-looking statements as defined by federal securities laws. These statements are subject to risks and uncertainties, both known and unknown, as described in our most recent Form 10-K and other SEC filings. All information in this call is as of February 22, 2023, unless otherwise noted, and the company undertakes no obligation to update any forward-looking statement to conform the statement to actual results or changes in the company's expectations. You can find copies of our SEC filings and earnings release, which contains reconciliations to non-GAAP financial measures referenced on this call, on our website at chathamlodgingtrust.com. To provide you with some insight into Chatham's 2022 fourth quarter results, allow me to introduce Jeff Fisher, Chairman, President, and Chief Executive Officer, Dennis Craven, Executive Vice President and Chief Operating Officer, and Jeremy Wegner, Senior Vice President and Chief Financial Officer, excuse me. Let me turn the session over to Jeff. Jeff? Thanks, Chris, I certainly appreciate everyone joining us this morning for our call. Before talking about the fourth quarter and 2023 generally, I'm gonna spend a few minutes highlighting some noteworthy accomplishments for our company last year. We increased cash flow before CapEx nearly five-fold, from $12 million in 2021 to $58 million in 2022. We reinstated the common dividend for the first time since the start of the pandemic. Last year, we had the highest absolute RevPAR of the select service REITs. We drove EBITDA margins higher by 31% or 900 basis points from 29% to 38%. We opened the $70 million 170 suite Home2 Suites in Woodland Hills, Warner Center, we acquired the 111 room Hilton Garden Inn in Destin, Miramar Beach, Florida for $31 million. We went ahead and sold four hotels with an average age of 27 years at a cap rate of 2% and 6% respectively on 2021 and 19, excuse me, 2019 NOI. Strong result there. Completed the refinancing of Chatham's existing $250 million senior unsecured revolving credit facility with a new $260 million senior unsecured credit facility and a new $90 million unsecured term loan. We improved our overall liquidity from $199 million on January 1, 2022, to $376 million at the end of the year. By doing all that, we reduced our net debt by $82 million, and we reduced our overall leverage ratio from 31% at the beginning of the year to 26% at year-end. Our net debt reduction is second best among all the lodging REITs since the start of the pandemic. For the first time, we participated in the Global Real Estate Sustainability Benchmark Assessment, most people say GRESB, achieving Green Star status and achieving a rating 15% higher than our peers. We're very proud of that. Shifting back to our fourth quarter performance, RevPAR remains strong in the quarter, up 24% over the same quarter last year, driven by ADR growth of 20% and occupancy growth of 3%. Relative to 2019, fourth quarter RevPAR was off 4%, with ADR growing 7% and occupancy declining 9%. November to February are always our seasonally slowest months of the year, given our strong reliance on business travel in certain of our key markets. February is definitely showing signs of improvement as we go through the middle back half of this month. In business travel, relative to the past 90 days, forward demand trends are encouraging, and our tech-focused intern programs are planned to occur according to the companies and the conversations that we're having in that regard. As business travel continues its recovery, we will post outsized growth. Our full-year RevPAR of $124 recovered to 92% of 2019 RevPAR of $136. Our macro view is that business travel, including groups, will continue to gain traction in 2023, and leisure travel will remain strong. Some of the white-hot leisure markets of the past couple years will give some RevPAR back. As this transition occurs in 2023, we will derive the most benefit in changing demand trends as compared to many of our peers who really have become more dependent on that leisure travel segment. Operationally, our margins remain high. We should finish 2022 with the highest operating margins of all lodging REITs. A tribute to our platform, which has delivered outstanding results even at RevPAR levels below 2019. Our fourth quarter Adjusted EBITDA and FFO were up substantially. As a result, we saw a healthy increase in free cash flow to $10 million, double our 2021 fourth quarter. Hotel operating margins slipped approximately 100 basis points in the quarter, due primarily to some one-time items that either benefited the 2021 fourth quarter or hurt the 2022 fourth quarter. Additionally, labor-related costs, including casual labor, adversely impacted margins by approximately 80 basis points. In these seasonally slower months, optimizing labor efficiency is difficult, especially when weekend demand is higher than weekday demand. Of course, we're closely monitoring those staffing levels as we move through this year. Like others in the industry, we're seeing cost pressures impact other areas of the P&L, so it's not just labor, namely utilities, insurance, and general hotel supplies. Lastly, I wanna touch on our financial condition, which is extremely healthy as we sit here at our lowest leverage levels in over a decade. In 2022 alone, we reduced our net debt by over $80 million and reduced our leverage to 26%. We ended the year with approximately $380 million of liquidity, including a new credit facility and term loan. As such, we have the flexibility to acquire hotels, and, or address or refinance maturing debt over the next couple of years. We have 24 unencumbered assets that could serve as additional sources of liquidity. During the 2023 first quarter, we've already paid off loans amounting to $73 million, including the high-rated loan on our Woodland Hills Hotel, as well as two maturing loans. We only have three additional loans maturing in 2023, amounting to $77 million. Those maturities will be funded with remaining borrowings on our term loan and free cash flow. Touching quickly on external growth, the transaction market has been dormant. It seems like it's starting to ease up a bit. With the significant rise in interest rates and a bunch of maturing debt occurring throughout the industry, we believe there will be some opportunities to acquire hotels that fit into our high-quality portfolio in the back half of the year. To finish up, we accomplished much during 2022, and we are well positioned to generate outsized growth both internally and externally given the strength of our balance sheet. With that, I'd like to turn it over to Dennis for a little more color. Dennis? Thanks, Jeff. Our portfolio performed significantly better than the industry, with fourth quarter RevPAR growth of 24%, exceeding industry performance by approximately 50%. Again, I think noteworthy is this is a relative indicator of potential outperformance moving forward in 2023. If you look at our portfolio for the quarter, excluding Silicon Valley, our fourth quarter RevPAR was up 3% versus 2019 on ADR growth of 12%, offset by a decline in occupancy of 8%. Pretty good performance in what I think Jeff referred to as generally our seasonally slower period. During the fourth quarter, 19 of our 37 comparable hotels generated RevPAR greater than 2019, and for the year, 16 of our 37 comparable hotels were greater than 2019. A bullet point with respect to upside in our portfolio as business travel recovers to 2019 levels. Weekday occupancy in the fourth quarter was down approximately 11% versus 2019, which represented a decline from approximately 6% in the third quarter. On the flip side, weekday ADR was up versus 2019 each of the last seven months in 2022, which bodes well as that business traveler continues to recover in 2023. Weekend RevPAR remained strong, up approximately 9% in the quarter versus 2019. Silicon Valley, our largest market, continues to grow meaningfully over the prior year with fourth quarter RevPAR growth of 45%, but is still down basically 32% versus 2019. Year-to-date, our 2022 Silicon Valley RevPAR of $126 is also still down 32% to 2019 RevPAR of $185. Occupancy is getting closer to 2019 levels. It's off 8% to 68% versus 74% in 2019. Silicon Valley EBITDA was $17 million in 2022, still below 2019 EBITDA levels of $29 million or approximately 41%. Fourth quarter air travel into both SFO and San Jose airports remains well below 2019 levels, off 22% and 37% respectively. Given its reliance on the international business traveler as well as a slower return to office, Silicon Valley has been, and think will be still on its road to recovery than most of the rest of our markets. One thing to note is that certainly within the last couple weeks, we have seen, and I think Jeff to this briefly, a continued increase in business international business travel coming into our hotels in Silicon Valley. In other key tech markets, Seattle RevPAR achieved 2022 RevPAR of $125, which represents 87% of 2019 RevPAR. At that hotel, our EBITDA in 2022 was $5.2 million, which is approximately 85% of 2019 hotel EBITDA. That market relative to Silicon Valley performing a little bit better on the road to recovery. Bucking the slow recovery in our Silicon Valley and Seattle markets, Austin is performing above 2019 levels. Our Residence Inn Austin was, RevPAR was up 8% versus 2019. The TPS was not open yet. Our two hotels at The Domain should have a strong 2023. Our 5 highest hotels with absolute RevPAR in the quarter were at our Residence Inn Fort Lauderdale at $184, our HGI Marina del Rey at $173, and then our Hampton Inn Portland at $172. Lastly, our 4th and 5th ranked hotels were the Hilton Garden Inn Portsmouth and the Residence Inn White Plains. Our Homewood Suites Maitland led portfolio occupancy at 89% in the quarter. We had eight other hotels achieve occupancy over 80%. Our top five hotels with respect to average daily rate, again led by our Residence Inn Fort Lauderdale at $230, then our Hampton Inn Portland with an ADR of $226, followed by Portsmouth, Marina del Rey, and our Silicon Valley Residence Inn Mountain View, all above $210. 29 of our 37 hotels achieved fourth quarter ADR higher than 2019. We continue to see an average length of stay approximately 15%-20% longer than our historical levels, which translates to incremental GOP, because there's less required housekeeping that I think you know, certain of the brands have started to roll out new operating procedures with respect to required housekeeping services. For the quarter, total hotel revenue of $70 million was up 23% compared to last year's revenue of $57 million, and we were able to generate incremental GOP flow-through of almost $5 million for flow-through of 35%. Our employee headcount remains down approximately 25% compared to pre-pandemic levels. Admittedly, we're still probably a bit understaffed there. Since 2019, our hourly wages have increased approximately 25%, so meaningful cost increases there. In the quarter, casual labor was up approximately a half million dollars or 50% over last year and reduced margins by approximately 50 basis points. On a per occupied room basis at our comparable hotels, our costs were approximately up 4% relative to 2019. Our top 5 producers of gross operating profit in the quarter were our Gaslamp Residence Inn, which was also the highest producing GOP hotel in the first three quarters of the year, followed by our Silicon Valley Two Residence Inn, and then our Hilton Garden Inn Portsmouth, Courtyard Dallas Downtown, and then our SpringHill Suites Savannah. With respect to capital expenditures, we spent approximately $21 million in 2022, and as we look ahead to 2023, we expect to spend approximately $30.6 million, which includes $22 million of renovation costs at five hotels. With that, I'll turn it over to Jeremy. Thanks, Dennis. Good morning, everyone. Chatham's Q4 2022 RevPAR of $117 represents 23.9% increase for Q4 2021 RevPAR of $95 and was down 3.7% from our Q4 2019 RevPAR of $122. Q4 and Q1 are typically the lowest RevPAR quarters for our portfolio, given the drop-off in business travel around the holidays and the start of the year, and lower levels of leisure travel, given the concentration of our leisure-focused properties and markets where summer is the peak season. In Q4, we continued to see business travel below 2019 levels and leisure travel above 2019 levels, although we believe business travel will continue to recover and that at some point, leisure travel could plateau or begin to decline. As we stated in our earnings release, January 2023 RevPAR was $92, and RevPAR through the first few weeks of February was $113. While absolute RevPAR levels are low for the first few weeks of the year, our portfolio is generating strong RevPAR growth relative to 2022, and business is starting to pick up as past early January, as is typically the case for us. We expect this seasonal recovery to continue throughout the balance of Q1 and into Q2. Just to provide some color on how this seasonal rebound has played out in the past, in 2019, March RevPAR was approximately 15% higher than February 2019 RevPAR. Our Q4 2022 hotel EBITDA was $23.3 million. Adjusted EBITDA was $20.4 million. Adjusted FFO was $0.20 per share, and cash flow before capital was $2.2 million, or sorry, was $10 million. While we are starting to see a cost increase due to a reinstatement of certain brand standards, wage increases, an increase in staffing levels, and increased utilities and insurance costs, we were able to generate a solid GOP margin of 39.9% and hotel EBITDA margin of 33.3% in Q4. Our Q4 GOP margin of 39.9% was down 120 basis points from our Q4 2021 GOP margin, and our Q4 hotel EBITDA margin of 33.3% was 250 basis points higher than our Q4 2021 hotel EBITDA margin, primarily due to property tax refund of approximately $1 million. For the full year in 2022, we benefited from approximately $2 million of property tax refunds and also benefited from assessment reductions related to pandemic-related performance declines. Given the cost pressures the lodging sector is facing, as we saw in Q4 with GOP margins down 120 basis points, we believe margins are likely to decline slightly in 2023 if that trend continues. We are proactively taking measures to mitigate cost increases where possible, and the ultimate impact on margins will depend on RevPAR growth. Over the last several years, Chatham has taken a number of steps to strengthen its balance sheet, and as a result, we now have the lowest leverage and most liquidity we've ever had. In 2022, Chatham reduced its net debt by $82 million or 16%. Since March 31st, 2020, we have reduced our net debt by $331 million or 43%. In Q4, we replaced our $250 million revolving credit facility that was scheduled to mature in 2023 with a $350 million credit facility that consists of a $260 million revolving line of credit and a $90 million delay draw term loan. Including all extension options, the new revolver and term loan have a final maturity of October 2027. In early 2023, we used $75 million of term loan availability to repay two maturing mortgage loans and the construction loan on our Home2 Warner Center. We intend to use the remaining availability under our term loan to repay a $16 million mortgage that matures in May 2023, and available cash to repay a $20 million mortgage that matures in July 2023. Over the course of 2023, we will continue to closely monitor markets to consider opportunities to refinance a $40 million mortgage that matures in December 2023, and potentially address a portion of our 2024 CMBS maturities. Our undrawn $260 million revolving credit facility provides a valuable source of liquidity that increases our flexibility to address our remaining debt maturities. With our reasonable leverage, solid liquidity, strong operating performance, sizable portfolio of unencumbered hotels, and meaningful free cash flow, we are well positioned to refinance our remaining debt maturities when needed. As a re-reminder, our reported 2022 RevPAR figures did not include results for the Home2 Warner Center since it had been in operation for less than a year, and our reported 2023 RevPAR figures will include Warner Center's results starting on January 24th, 2023, the one-year anniversary of its opening date. 2022 RevPAR, including Warner Center, was $90 in Q1, $138 in Q2, $151 in Q3, $118 in Q4, and $124 for the full year. This concludes my portion of the call. Operator, please open the line for questions. Thank you. We will now be conducting a question and answer session. If you'd like to ask a question, please press star one on your telephone keypad. A confirmation tone will indicate your line is in the question queue. You may press star two if you'd like to remove your question from the queue. For participants using speaker equipment, it may be necessary to pick up your handset before pressing the star keys. One moment please while we poll for questions. Take our first question from the line of Anthony Powell with Barclays. Please go ahead. Hi, good morning. I guess question on margin. I think, Jeremy, you said that, you know, margins could continue to decline this year if those trends continue. I just wanted to drill down on that. You had 27% RevPAR growth in the fourth quarter, but, you know, GOP margins were down. I guess they should be up in the first quarter given the rough, easy comps, but how should I think about the RevPAR growth needed to maintain margins throughout the year? I know there could be one-time issues, you know, staffing up and whatnot, so just more color there would be great. Look, I think our plan is not to give guidance at this point. I think you would need, you know, RevPAR growth in the, you know, in the double digits for the year to get to flat GOP margins, though. Okay. Is that mainly just, you know, incremental wage growth, insurance costs, taxes, maybe what's driving that kind of requirement on a year-over-year basis? Yeah. On the GOP side, it doesn't include taxes, although property taxes- Okay. Right. Yeah ... are, you know, likely to go up meaningfully, and will impact EBITDA margins. On the GOP margin side, it's both wage increases given the inflation we're seeing and also kind of a recovery of staffing levels. Again, in the pandemic, especially, you know, through the first three quarters of last year, staffing levels were very low at the hotels. We're continuing to see large increases in other costs as well. Things like utilities are up, you know, based on kind of our internal estimates, up about 13% next year or so. On the property insurance side, I think those are expected increase over 20% as well. Yeah, there's a lot of cost pressures. Yeah, thanks. Yeah, Anthony, this is Dennis. I mean, I think just to add to what Jeremy was saying, I mean, obviously I think you've heard from other REITs as well, and we're all kind of in a process where RevPAR growth year-over-year is pretty strong in the first quarter given the Omicron comparison. I think as you've heard from most people, you know, typically you would see, some pretty good expansion and a plus 20% RevPAR scenario that I think we saw in the fourth quarter. In fact, you know, our operating margins, as we indicated in our release, were down approximately, you know, 100 basis points or so. I think it's, certainly a challenging environment from an expense standpoint at the moment. Okay. Maybe on Silicon Valley, and I think you talked about how the training business should be back this year. What about other business, you know, like, you know, product launches, things like that? What's your conversation like with the big tech firms in Silicon Valley in terms of just overall business volumes in 2023? Yeah, this is Jeff. Hi, Anthony. Hi. I will tell you that our team certainly were not surprised, but, you know, not overly encouraged by November and December, you know, then lack of activity generally in Silicon Valley. That continued into January for the other kind of business travel. All of a sudden in February, you know, things have really started to perk up, and overall bookings in the market and in the two hotels, specifically in Sunnyvale, which are the ones that really drive our results, as you know, really started to look way better. We've seen international travel, particularly for example, with Samsung from Korea and otherwise, it was nonexistent through the entire pandemic. All of a sudden, booking substantial rooms, starting later in this month. They and we feel way better, and this is some real time, you know, sort of, you know, week by week information I'm giving you relative to that. The interns, and one reason why we're not giving guidance at this point in the year, is we wanna see that, you know, or those contracts actually signed. And, you know, conversations are being had around what the volume is gonna be there. So, you know, I think over the next 30 days-45 days, those conversations should be finalized as well, and we'll feel a lot better, you know, about how 25% of our portfolio roughly, you know, based on old numbers, should perform for the rest of the year, you know. It is significant, and team feels much better about, you know, the level of business activity there. Got it. I guess you should know by the first quarter earnings call, kind of the plan for the intern business. Is that fair? Without a doubt, that's the plan. Got it. Thank you. Thank you. We take the next question from the line of Ari Klein with BMO Capital Markets. Please go ahead. Thanks, good morning. Maybe just following up on Silicon Valley. It sounds like it's moving in the right direction, but it's obviously still meaningfully lagging. From a portfolio construction standpoint, would you prefer to have less concentration to the market? And could you maybe look to sell something there? Knowing that prices are probably not ideal, but maybe there's an opportunity to reposition capital in another market. Well, this is Jeff. Hi, Ari. Look, I think there's two considerations, or way more than two, but short term and long term. You know, long term, we've had a lot of strategic conversations, you know, with our board and otherwise just generally about how California feels. You know, and we're kind of more concerned about legislative initiatives and things that are occurring on that front that diminish value perhaps over the longer haul. I think repositioning capital as you're describing and cycling it into some markets that have a little better long-term view and growth, frankly, is a good idea. In the near term, these hotels have great, you know, upside and, you know, someone's gonna really take advantage of us, frankly, if we're gonna sell these hotels right now. Of course, there is multifamily opportunity and, you know, actually, I'm gonna take a visit out there and speak to the zoning official relative to, you know, how that may pan out, you know, in that regard because very big numbers are being paid, you know, as you probably know, on a per key basis, somewhere around $0.5 million a door and more for apartments in that market. We'll take a look at that too. I mean, we've always said these hotels are very well positioned in the market. With some visibility on this foreign travel coming back, which has always been a big piece of our business that's been nonexistent, you know, together with the intern business, I think we're, you know, sort of gonna hold them for the very near term without a doubt. Sorry for the long answer. No, I appreciate it. And just maybe on flexibility overall with, you know, leverage, improving and the balance sheet in good shape. Just for 2023, do you expect to be a net seller, net acquirer? How are you thinking about the balance there? We really do believe, and after just talking to our friendly, you know, owners and developers, you know, that we've kind of established or known for 20 years and 30 years in some cases, that there will be some deal activity in the back half of the year. I also think that, you know, our friends at the various PE firms that have frankly been buying a lot of things during the pandemic, you know, might not be as aggressive as they have been given the interest rate scenario. On a relative basis, I think that bodes better for hotel REITs. Yeah, I think we're net acquirers. Okay. Just lastly, just to follow up on the intern program. Have they given you a sense of just what the volumes could look like, maybe relative to this past year? Hey, Ari, this is Dennis. We're still in negotiations with that. I mean, you know, we're obviously not the only hotels that get this intern business. You know, as we kind of work, and I think Jeff talked about the timeline over the next basically 30 days, we're negotiating with them on volume and rate. Still kind of up in the air at the moment. The good news is it appears as the programs are on, both in Austin, well, in each of Austin, Silicon Valley, and Bellevue, for, you know, I think all of the tech companies we've referred to in the past that we've housed in our hotels. It's encouraging at the moment, but still negotiating, and I think as Jeff talked about, we'll know in the next 30 days - 45 days exactly what's under agreement and what our volume is yet. As soon as we're able to talk about it, we will, You know, we're encouraged at the moment. Got it. Thanks for all the color. Thank you. We'll take next question from the line of Tyler Batory with Oppenheimer. Please go ahead. Hey, good morning. Thank you. Just to follow up again on the cost side of things, you know, when you talk about margin that could decline year-over-year this year, can you give more detail on what's in your budgets in terms of year-over-year increases for wages, year-over-year increases for insurance, and then utilities as well? Yeah. I mean, I think, Dennis, I'll chime in, and Jeremy can chime in as well. I think for just a general labor assumption, it's, you know, essentially, hey, you know, we're averaging kind of 5% a year since 2019. We're expecting another 5% or so in 2023. I think Jeremy already mentioned with utilities being up kind of 13%-14% and property insurance up over 20% year-over-year. I think the biggest item from a year-over-year perspective is property taxes, which Jeremy alluded to in his prepared comments, that we benefited to the tune of, I think around $2 million in 2022, that, you know, from refunds. I think those are your big ticket items. Yeah. I think, Tyler, the other thing to point out on the, on the labor side, it's not just the 5% wage inflation we're assuming here, it's also the fact that brands are requiring us to clean rooms more often now, so there's an increase in staffing levels as well. While wages are going up 5%, you know, housekeeping costs per occupied room are going up, you know, more like 12% or 13% for the year. Okay. Okay. Given that commentary... Sorry, Tyler. I think as you look kinda to 2023, I mean, similar to what you've heard from other companies, obviously first quarter RevPAR growth is gonna be really strong, with second to fourth quarter moderating kind of, you know, to obviously much lower relative to first quarter. You know, I think as Jeff talked about, we should, you know, given kind of our reliance on business travel, you know, produce, you know, some decent RevPAR growth relative to the industry, even in those second, third, and fourth quarters. I think as we saw in the fourth quarter and in terms of margins, you know, certainly there's a lot of cost pressures in there. I think just keep that in mind. How are you thinking about the interplay between occupancy, building that back, and rate? you know, just perhaps given the difficult environment out there, you know, in terms of operating costs going up, I mean, does it make more sense to lean a little bit more into the rate side of things, can potential flow through there? Maybe you do wanna build back the occupancy a little bit more to get back to where you were in 2019. I mean, it's market by market obviously, Tyler. You know, I think, you know, in my prepared remarks talking about how many hotels that had ADR up relative to 2019, certainly it's a, as it always has been, a supply and demand issue. You know, in markets like Silicon Valley and Washington D.C., it's more, "Hey, we still haven't recovered enough as a market from an occupancy perspective to really drive rates." In markets, you know, such as, you know, Austin, Texas and the Northeast and Los Angeles, I think ADR growth is, you know, paramount. In general, we believe, you know, our ADR growth is gonna be stronger than our occupancy growth in 2023. Then one last one for me. I'm interested in the trends that you're seeing so far in 2023. I understand there's, you know, seasonality here, not a ton of business travel. I'm really curious on the leisure side of things, markets like Destin, you know, down in Florida overall, kind of what are you seeing? You know, any indications that things are starting to soften a little bit? Well, I mean, I think it's, you know, I hate to say it, but it's market by market, whereas, you know, our Fort Lauderdale Residence Inn, even relative to 2019 and last year is still doing well. Destin's a little bit of a laggard compared to 2019 and last year. If you look to the Northeast, Portland and Portsmouth outperforming still relative to last year in 2019. Even in the winter? Yeah, even in the winter. You know, I think of kind of what we would call more of our leisure markets, Destin is probably the laggard of the, you know, 5 hotels or 6 hotels. Again, Savannah, high leisure, really still doing well relative to last year in 2019. You know, for the most part, leisure is still carrying the, carrying the weight, and I think as you've seen that in a lot of the peer companies reporting as well. Okay. That's all for me. Thank you. Thanks, Tyler. Thank you. We'll take next question from the line of Bryan Maher with B. Riley Securities. Please go ahead. Good, thanks. Most of my questions have been asked and answered, but maybe for Jeff, you know, given the backdrop of what we're hearing for, you know, second half opportunities when people go to refi, as you think about your markets and your product. How deep of an opportunity do you think that can be? You know, my suspicion is it's probably not gonna be as relatively deep as maybe gateway markets like New York and others. But how are you thinking about the opportunity pool there as you approach the back half? Well, I think the good news for us is we've only got 39 hotels. You know, we acquire one or two hotels, it really moves the needle, and really pushes our FFO up substantially. You know, it's hard to predict where and how much volume there will really be, but I don't wanna get overly excited. You know, I think you're right. I think that, you know, there'll be selected opportunities. We're picky, as you know, generally very picky about the kinda assets that we wanna own, and we wanna continue to increase our focus, you know, on the extended stay segment. Obviously, it's 60%. We're still trying to push that a little bit higher, you know, as an overall mix. That even further narrows the field just a little bit 'cause, you know, we're primarily hunting for Residence Inn, Homewood Suites, TownePlace Suites and Home2 Suites. In that, you know, in that way, we'll continue, I think to put up the margins and the results, you know, that exceed for the most part, others. We'll have to see how it plays out. Okay, thanks. Not to beat a dead horse on the leisure component, but it was pretty profound on one of my covered companies this week. When you think about your leisure-ish properties in aggregate and RevPAR this year, do you think that ends up being kinda flattish for the year or maybe down low single digits? You know, I'm not looking for down really in, in those hotels. Actually, I think we'll be up across the board or altogether when you look at those five hotels or six or so that really comprise what we might or do call leisure for our portfolio. I think we'll be up. I don't think there's any huge pullback happening, you know, particularly in the kind of hotels that we've got. You know, they are not ultra-luxury resort hotels. overall- Got it. Thank you. We're thinking pretty low single digit growth for those versus much higher growth for things, you know, they're still recovering like Silicon Valley or the rest of the BT-focused hotels. That's right. Great. Appreciate the feedback. Thank you. Ladies and gentlemen, we have reached the end of the question and answer session, and I'd like to turn the call back, the floor back over to Jeff Fisher for closing comments. Over to you, sir. Thank you. We really appreciate everybody being on the call this morning. We look forward to providing some more color and continued good results and better news as we move forward through the rest of the year for our next quarter conference call. Thank you. Thank you. Ladies and gentlemen, this concludes today's teleconference. You may disconnect your lines at this time. Thank you for your participation.