Ladies and gentlemen, thank you for standing by, and welcome to the Caesars Entertainment Incorporated 2020 Fourth Quarter and Full-Year Earnings Conference Call. At this time, all participants’ line in a listen-only mode. After the speakers’ presentation, there will be a question-and-answer session. [Operator Instructions] I will now turn the call over to your speaker today, Mr. Brian Agnew, Senior Vice President of Finance, Treasury and Investor Relations. Sir, the floor is yours.

Thank you, Sara, and good afternoon to everyone on the call. Welcome to our conference call today to discuss our fourth quarter 2020 earnings. This afternoon we issued a press release announcing our fourth quarter financial results for the period ended December 31, 2020. A copy of the press release is available on the Investor Relations section of our website at investor.caesars.com. Joining me on the call today are Tom Reeg, our Chief Executive Officer; Anthony Carano, our President and Chief Operating Officer; and Bret Yunker, our Chief Financial Officer. Before I turn the call over to Tom, I would like to remind you that during today's conference call, we may make certain forward-looking statements about the Company's performance. Such forward-looking statements are not guarantees of future performance and therefore one should not place undue reliance on them. Forward-looking statements are also subject to the inherent risks and uncertainties that could cause actual results to differ materially from those expressed. For additional information concerning factors that could cause actual results to differ from those discussed in our forward-looking statements, you should refer to the cautionary statements contained in our press release as well as the risk factors contained in the Company's filings with the Securities and Exchange Commission. Caesars Entertainment undertakes no obligation to revise or update any forward-looking statements to reflect events or circumstances that occur after today's call. Also, during today's call, the Company may discuss certain non-GAAP financial measures as defined by SEC Regulation G. The GAAP financial measures most directly comparable to each non-GAAP financial measure discussed and the reconciliation of these differences between these non-GAAP financial measure and in the comparable GAAP financial measure can be found on the Company's website at investor.caesars.com by selecting the Press Release regarding the Company's 2020 fourth quarter financial results. I will now turn the call over to Tom.

Thanks, Brian. Good afternoon, everyone. We are thrilled to close the book on 2020. It was, by any measure, the most challenging year that we've had operationally and personally to date. The fourth quarter was no exception to that. I want to start the call by recognizing all of our front-line employees. They lived through the vast majority of our employees being furloughed, then coming back into an environment where they were fearful for health and safety, fearful for what was happening at home with children or parents or grandparents or all of the above. And they came back and delivered the exceptional service that our customers are accustomed to at Caesars and operated through some extraordinary contact tracing changes in regulations, reopenings, closings throughout the year and we couldn't be prouder of them. For the fourth quarter, we did $346 million of EBITDA. We've listened and read others’ calls are cadence with similar almost half of our EBITDA happened in October. And then as regulation - restrictions tightened across the country, November and December were sequentially less than October and we think the bottom for the business and we'll talk about what we've seen in January and February and going forward that makes us highly confident of that. In Las Vegas, we did a $100 million of EBITDA, adding back the Rio rent payment, which we're proud of on a relative basis. But we know on an absolute basis, we've got a lot of wood to chop in Vegas as it reopens. We're seeing some encouraging signs there that I'll discuss. In the regional markets in the quarter, we had significant restrictions in Nevada, New Jersey, Colorado, Ohio that related to operating hours. We had closures in Illinois, Pennsylvania that - and the Lake Charles property from the prior…

Thanks Tom, and good afternoon to everyone on the call. While 2020 was certainly a challenging year on many levels, I am extremely proud of our team members and their extraordinary dedication and commitment to running great properties. Our success this year could not have been accomplished without our team members' tireless efforts each day, to provide a safe and healthy environment for our guests. Now turning to operations, in Las Vegas, we generated $90 million of adjusted EBITDA in the quarter and $100 million of property level EBITDA, excluding the real rent payments. EBITDA improved over 40% on a quarterly sequential basis. October was our strongest month where we generated approximately $50 million of EBITDA. Total occupancy for Q4 was 60% with weekend occupancy up 80% and midweek occupancy of 50%. Casino mix as a percentage of our occupancy was over 50% during Q4. Looking ahead, we are encouraged by the booking trends for the second-half of '21. Group and convention room nights on the books for the second-half of '21 versus '19 are currently pacing up over 30% and we are seeing good rate growth as well. 2022 group pace is up 10% in room nights, with strong rate growth versus this time last year. As we have mentioned before, future business on the books remains uncertain, but the strength of forward bookings tell us our customers are anxious to return to Las Vegas. On the FIT side, our booking pace continues to accelerate and its at - at its highest level since reopening. Our booking windows are extending as well 47% of Las Vegas market bookings since the beginning of the year or for at least 30 days out, almost double the percentage that we saw in the fourth quarter. In 2021, we were planning several property…

Thanks Anthony. So we decided to mix things up a bit in the fourth quarter and went from buyers to sellers, with the most significant announcements being the sale of two of our Indiana assets yielding us over $1 billion of rent adjusted debt relief, over 700 million of which is in the form of cash proceeds that we expect to receive during the second and third quarters of 2021. These proceeds further augment approximately $4 billion of year-end liquidity across our unrestricted cash on hand and available revolvers. We are well positioned to close on William Hill, which as Tom mentioned, we expect to happen early in the second quarter and our nearest debt maturities in December of 2024. CapEx for 2021 is expected to land between $350 million and $400 million, excluding Atlantic City and Lake Charles which we will be funding from Escrow and insurance proceeds. Back to you, Tom.

Thanks, Brett. With that, we will open it up to questions.

[Operator Instructions] Your first question comes from the line of Jared Shojaian from Wolfe Research. Your line is open.

Hi, good afternoon, everyone. Thanks for taking my question. So, Tom, I really appreciate all that commentary, that was extremely helpful. Do you think we need to see Vegas meaningfully improve to the levels that you're talking about and getting back to those prior 2019 run rates? Before we see a Vegas asset sale, is that kind of how you're thinking about it?

Yes. So - and thanks for asking that question because I should've addressed that in the opening remarks. I've read a lot of comments about how we're about to sell Planet Hollywood. If whoever knows what's happening there can call me and tell me what we're getting for it, I'd appreciate it. There are no assets for sale in Las Vegas in our portfolio. We do still anticipate selling an asset in the future, but I want to be marketing that asset off of actual performance under our stewardship not having to build a story, build a bridge to what it's doing today versus what we think it will be doing. So I would say, based on what I'm seeing, you should expect a sale unlikely to take place in 2021, probably looking at some time in 2022, most likely first-half.

Okay. Thank you. And just to switch gears here on sports betting and iGaming, I know, Tom, in the past, your message has been that your interactive digital business is profitable, whereas competitors are not. I guess a multipart question here. Is online sports betting and iGaming profitable for you? I know iGaming is, but I guess the first question is, is online sports profitable as well? And how has your strategy evolved on that thinking? I mean do you think that it's time to start getting more promotional and start to capture more market share? Maybe you can just help us think about how you're thinking about that? And then do you need to get this William Hill deal closed before you start maybe a more robust strategy on that front?

So I am limited in what I can say here. The answer to the first question is, yes, we are profitable in all verticals in that business. On the second piece, William Hill has been in a bit of suspended animation, since we announced the transaction, where, obviously, they were not integrated into Caesars when we announced it. There is not a lot that we're able to do in the period between signing and closing. So William Hill face a situation where they had a brand that they knew was ultimately going to go away as the main driver of the business. So it made little sense to spend a lot of money to build the brand that's going to change early in 2021. We have not been in-charge of that, the operating side of that business in the past. So we will - we're in this to be a winner. And if the answer is, we need to invest more money to build market share and whatever form that takes, you should expect that we would consider that. I consider us to be a pretty strong operating team. You shouldn't expect that to be any different when we're managing the sports and online business.

All right. Thank you very much.

Your next question comes from the line of John DeCree from Union Gaming. Your line is open.

Hi, everyone. Thanks for taking my questions. I guess to maybe build off that last discussion a little bit, Tom, I wonder if you could talk a little bit about your thoughts on the iGaming trajectory. I think the last discussion talking about profitability in that segment and it's a business that Caesars has been in for a while. I think we've seen some legislation float around in Illinois and being considered Indiana. So a lot of discussion on sports betting, but it seems like Caesars has a particular advantage given the experience in iGaming. And curious to get your thoughts on the pace of that market rollout?

Yes, John, as we've discussed, I think, the miss in that area of the market in terms of expectations is the view that iGaming is going to significantly trail sports and ultimately not be legalized in nearly as many jurisdictions in my experience when states start to see the revenue feeding in from something like sports. I think their inclination is going to be to expand that and iGaming is certainly an easy path there. I'm encouraged by the January numbers that we saw and effectively 2.5 states that suggest iGaming from a total market standpoint is already pushing $3 billion. We are significantly profitable there that business keeps growing for us. We obviously think we are well-positioned there and in sports with Caesars awards. And we think we're well-positioned to take advantage as iGaming continues to roll out.

Tom, if I could ask a follow-up on that. I'm not sure how much detail you're prepared or can talk about. But we get a lot of questions on crossover play and I don't know if you have any stats out of New Jersey or anecdotally, if you could tell us anything about how much of the Caesars rewards database was playing on online or how many customers were acquired online into the Caesars casino for iGaming specifically?

Yes, I'm not going to be disclosing that level of detail until we've - after we've closed William Hill out of an abundance of caution.

Fair enough. I can appreciate that. If I could ask a second one instead on daily fantasy sports. You've made a minority investment in the business and obviously, the cross-sell rate we've seen from competitors has been pretty high. But I wonder if you could give us a high-level on the strategy and thought process as to how you might leverage that going forward?

Yes, for us it was twofold really. You have - we think we were acquiring the customers at a particularly attractive acquisition cost and the ability to fold it into Caesars Rewards quickly and their capabilities positioned us well to start to grow that business. And it was also obvious - an obvious hole in our lineup as we talked with our partners in the sports world both teams and the NFL itself. So we - that was effectively what we did was we rolled our flutter stock that we got in the TSG skins deal into the investment into SuperDraft, which given - what it happened to flutter stock and where we think we can take SuperDraft, we thought that was a good trend for us.

Understood. Thanks, Tom. I appreciate it.

Your next question comes from the line of Carlo Santarelli of Deutsche Bank. Your line is open.

Tom, you obviously talked a lot about kind of the Las Vegas recovery and what you're seeing in group and noting that you believe you can be on kind of a 2019 run rate as early as the second-half of this year. So my question around that is just, obviously with the group demand, you guys see on the books a pretty good visibility into it. Could you maybe quantify kind of what revenue level relative to 2019 you guys think you need to be at on a quarterly or annual run rate basis to kind of achieve 2019 like EBITDA levels in Las Vegas, specifically?

I mean, I think you should be thinking about a minimum of 500 to 1,000 basis points of margin expansion on a consolidated basis. So you can do the math that backs into where would we get to call it $3.5 billion, which was the pro format, Eldorado, and Caesars numbers in '19 plus the $500 million of synergies we announced in the original deal.

Okay. And that would be off the pro forma kind of 28 and change margin from 2019?

Yes. I would expect these at a minimum and I think we'll be chasing 40 pretty quickly.

And then if I could, just as you guys think about the regional portfolio, obviously you've had multiple transactions over the last year-plus. Is there anything else that you guys are looking at across the board in regional portfolio that you would consider kind of non-core any in regions where you feel like potentially that there could be something that you'd want to do to kind of clean up the portfolio or get it more tailored to kind of what you're trying to do with the business going forward?

I would say unlikely that we would be buyer of anything material that's already operating domestically if markets like New York and Texas open up to commercial casinos. We would certainly take a hard look as to whether it would make sense for us to play there.

Your next question comes from the line of Thomas Allen from Morgan Stanley. Your line is open.

So when you announced about William Hill deal, you talked about reaching $600 million to $700 million bucks sports betting iGaming revenues in 2021. Do you still think that's a good target?

I can't update any numbers that aren't in the public filings, Thomas.

I thought it was worth a shot. So it's gears a little bit. When we think about the strength that we're going to see in Vegas, kind of, and hopefully in the second-half of this year into 2022. Can you just talk about how you're managing your rooms like are you holding back convention bookings because you think that kind of FIT business is going to be so strong? How do you do that? Thank you.

No, I mean, keep in mind the - your booking windows are entirely different. When you're booking a convention, you're typically booking for many months or typically more than a year out. And we've got a block of rooms that typically rolls about 15% of our total room capacity and there is no need to artificially reduce that for expectations of what can happen. In FIT, we are really managing that from a rate perspective and we've got a team here led by Pavan Kapur, who is already at Caesars who are the best in the business at yielding and revenue management and that's been evident in our results for a couple of since the closing and that's what we lean on as we move forward.

I am just asking that question in a different way. Like, are you guys keeping rates steady or even increasing rates for the groups that you are booking into 2022 and the second-half of the year because of your confidence around group.

The group business in the second-half of the year is at higher rates than '19 and it's pure supply demand within that block.

Your next question comes from the line of Steve Wieczynski from Stifel. Your line is open.

So, Tom if we go back to your biggest commentary around the group business could come back in some material form as early as the middle of this year. Look, I understand you have a significant amount of more room nights booked at this point, but I guess the question is how many - I don't know if you can answer this, but how many of these nights do you think will actually pan out or materialize, meaning the conventional group meeting takes place and those folks actually show up?

Yes. And that's part of what Pavan's group does in terms of forecasting and managing the revenue. As you're assuming that in any environment, a 100% of those room nights aren't going to ultimately show up. The discount from what we would have been discounting in '19 in terms of expectation is - what would show up is larger, but we think given what we're seeing in FIT and casino in terms of that wave of demand, we feel very good about where will be, whenever that business does come back in earnest.

And that's regardless of basically where airline capacity is at that point, does that have anything to do with it.

Yes, I mean in our airline capacity in this market has been the lagging indicator. When you've got the demand for people to show up, more seats tend to flow to this market and that should in particular be the case in an environment where airline performance is as it's been.

And then Tom or Brett. Can you update us on where you stand today in terms of leverage targets or goals and the timelines around potentially getting to those? And then Tom, I don't think we've talked about this in a while, but the original $10 free cash flow target, is that still in play. At this point.

Yes, Steve, I see you started to creep down to $7.5 or $8, but I'm still at $10.

I'll adjust.

I'll adjust.

I'm highly confident we will be $10 a share of free cash flow. The - in terms of leverage, nothing has changed. We have more leverage than certainly we anticipated going into the deal, obviously a function of the pandemic and we - you should expect us to be as soon as we are generating significant free cash flow. Again, you should expect us to be number one target is debt pay down and we fully expect to drive leverage sub-4 times on a gross lease adjusted basis. And as we do that, we'll see we reaching a point of diminishing returns in the equity or do you push it further. And we, as you know, Bret and I both come from fixed income background, so we tend to be a little more conservative here anyway and we recognize the benefit of the flexibility to be having less leverage provides and the wider potential equity buyer audience that it creates. And we are going to get there as soon as we possibly can.

Your next question comes from the line of Stephen Grambling from Goldman Sachs. Your line is open.

As you think about some of the upside that you found in the initial synergies in this potential March to 40%, where are the biggest opportunities being uncovered.

I mean it's a whole different operating model, Steve than it was before. We've been talking about this since reopening. The marketing environment is entirely different, the pieces of the properties that are open are entirely different and some of the most labor intensive pieces or the areas where you were losing the most money are never coming back. And layer on top of that, we were in the middle of a combination in the merger that would normally lead to synergies through reducing redundant capacity and Caesars was certainly much heavier in the corporate departments than we have historically run and if you roll all that together, that's how we get to the margins we expect we can get to.

And I guess as an unrelated follow up, when you see this ebb and flow of customers and restrictions both in Vegas at the regional properties, how has the customer that's showing up evolve, are you seeing new customers that are signing up for the rewards program or is it mainly existing customers' rewards program. Thanks.

Yes, you've got a mix of both obviously given the size and the effectiveness of the Caesars reward system, we've seen a lot of rated play come back, but we have seen significant increases in the under-35 crowd that unfortunately is more than offset by decreases in the over-55 crowd. And in terms of how it's evolved, it's been a fairly consistent kind of, everyone moving at the same time. If you segment our groups by or our business by rated and unrated or by age cohort, you've seen similar behavior in terms of how much they're down since reopening and then when the restrictions tightened and then when we started to reopen again. They've kind of moved in lockstep.

Your next question comes from the line of Chad Beynon from Macquarie. You may ask your question.

Tom, I just wanted to follow up on your last remark there. I believe you mentioned that the regional - the non-destination regional revenues were down 17% in the quarter, obviously including markets with restrictions. Do you have a sense of what this was in periods and at properties where there weren't restrictions, or I guess more importantly when this starts to ease and we kind of get the vaccinations and do you think this can be closer to kind of a flat to slightly down, just trying to figure out what was intentional versus everything else that was going on in the quarter? Thanks.

Yes, the answer is - short answer is the way you laid it out. Yes, if you took - obviously Chad, you know, we've got Atlantic City, Reno and New Orleans in our regional properties, which have heavy dependency on rooms. So those are the properties that were most impacted in the quarter in terms of restrictions. And if you went to our true regional assets, if you were trying to compare us to say Pandora or Boyd regional, you say, yes, we would have been around flat in revenue and EBITDA expansion would have been several hundred basis points ahead of the 400 basis points I pointed to earlier.

And I know in the past you've said that you're not interested in any assets outside of the United States. Can you just confirm that? And then also give us an update on where the Korea project sits and if there is any additional capital that needs to be funded from your side of the relationship.

So we still have the Windsor management contract in Ontario. We would expect that we're going to continue to operate that. You should expect that over time that will be the extent of our non-U.S. business. Ask again the second piece Chad? Korea?

Korea. Yes, thank you.

Korea has gone, we sold it for some barbecue pork although, we saw it back to our partners where we have no more commitment, we're out. I think that was in May month.

Your next question comes from the line of Dan Politzer of JP Morgan. Your line is open.

Thanks for taking my question. Tom, you mentioned that you've seen an uptick in the younger unrated player similar to a lot of your peers. I guess, to what extent if any have you been able to kind of get them onto the Caesars rewards program and maybe start to cycle them through to maybe your sports betting or iGaming apps? Any color there would be helpful.

We're pretty good at when people come to visit, signing them up to our program. The under-35 crowd has not been any different than any other new cohort that shows up at the properties, so we've converted them to Caesars Rewards. Remember that Caesars Rewards is not yet connected to sports and online since we have not closed the William Hill transaction. So it's not yet. Frankly as seamless as it will be a few months from now in terms of moving customers out of Caesars - from Caesars Rewards down to RX.

Got it. All right. And then just kind of switching gears in terms of market access for sports betting. Your regional gaming footprints obviously among the largest of your peers. Can you remind me of some of the outstanding access agreements maybe you had, and I know you announced one today, but maybe if you could put some numbers around book gaming this opportunity as it relates to the high margin revenue here?

That's another one I should wait till after we close William Hill. You're talking about the access agreement sales that we're doing?

Right. Exactly so...

Yes, I mean, let us get to as soon as we close William Hill, we can get some data out on that. I'm trying to stay within the four corners of what's been filed there.

Your next question comes from the line of Daniel Adam of Loop Capital. Your line is open.

Keeping it very simple, Tom, is it safe to conclude at this point that Las Vegas is now as things stand today in recovery mode. And then, just related to that, is it possible to see a full revenue recovery, not necessarily EBITDAR, but revenue recovery on the Strip, even if business travel and convention demand never fully return?

If business travel, convention demand never fully returns, I don't think - I think you're going to have trouble getting back to 2019 revenue numbers. Remember that that group business, even though it's only 15% of our business, it's a big piece of cash operating income in high-end restaurants in Entertainment. So that's an important piece of our business, even though it's only 15% of our business. It's important piece of business for our peers in the market where it's larger. In terms of our - I would describe it as we've been wandering in the best for almost a year now since we started shutting down and you can clearly see the light shining through at this point in Las Vegas in terms of customer behavior. Just the people booking - that the pace of the booking and the fact that it's people actually planning trips in the future is a sea change from where it was in 2020. And given our database and what we can mine here, we feel very good presuming there are no further public health setbacks, which obviously is a big presumption given what we've seen. We feel very good that we've seen the bottom in Vegas and in the business and that we're only going to keep getting better sequentially.

And then on the online gaming and sports betting side to the extent you can comment on this. So DraftKings and FanDuel currently seem to be the clear number one and two players in most markets with William Hill that MGM and I guess you can say Barstool, even though they're only in two states, sort of establishing themselves as the second tier in the market. I guess, longer-term, where do you think - within that second tier, where do you think long-term margins can settle on the iGaming and sports betting side, not necessarily commenting about William Hill specifically? Thanks.

I think you're looking at a 25% to 30% EBITDA margin business at maturity for your top tier operators in the market.

Your next question comes from the line of David Katz from Jefferies. You may ask your question.

Thanks for walking me in. I wanted to go back to the online question first, if I may and just speak high level and strategically as you're permitted to do, but is it a business where you believe you need to be in all of the available states, obviously some of the larger ones, it's obvious where you have access and others where you may not. Do you need to be in all the states to be successful, is that part of your definition?

I mean it's part of our plan, we have access between what - we're in 15 states operating plus DC. It should be 20 jurisdictions by the end of this year. We have access to nearly 80% of the U.S. population in our system and you should expect us to be pursuing the opportunity everywhere that we can.

And with respect to just regional gaming again philosophically. We have so many discussions about sort of what the new regional gaming experience will be in a post-COVID world, and I think it's easy for all of us to slip into a discussion in absolute terms where margins are great in regional casinos, but there is nothing to eat, you need to lunch pail it. And perhaps there is the other end of the spectrum where we do cover operators who happen to like their food offerings and lead with it. My sense is, there is a reality that doesn't lie at either end of that spectrum. How are you thinking about that?

So this is something we talk about quite a bit. Your customers in the regional market as we started to point out five plus years ago that they show up for hours at a time. It may be the case that happens to coincide with when they want to eat, they may get hungry well they are. You can have nothing, but you don't need to lose money nearly as - certainly nearly as much money as this industry has lost feeding people. I'm old enough to remember when casinos - we're only in Nevada and New Jersey and yet in those other 48 states, everybody figured out how to eat dinner. And once the casinos open, it became - how do we feed them dinner and let's just given away for free because got free they go, stop at McDonald's on the way home. We - I can't speak for what others will do, we're going to be smarter about where we are in and how we're in the food and beverage business and just make sure we're not bleeding 3 million in every buffet in the country. We're going to figure out how to do it in a way that meets customer demand and maximizes our profitability.

And it's not going to be something that is going to be a competitive decision along the way, right. It's not going to - it will be a competitive experience with what everyone else is doing for the most part?

I am not concerned that I'm hamstring myself competitively with my food and beverage offerings.

Your next question comes from the line of Barry Jonas of Truist Securities. Your line is open.

Thanks for fitting me in. Just can you give us an update on the Pompano development? And with that, any thoughts on the prospects of sports betting in Florida?

On the Pompano development, we continue to work through the planning and local zoning. We are racing this season. We are - we have a highlight license that we can move to. There has been litigation around that license. We would like to see if we can resolve that amicably, but you should expect that everything that was - that we've talked about in the past remains on the table. Obviously, I would have hoped it was construction was in earnest - well in earnest at this point. So the timing is not been as quick as we hope, but the opportunity in the plan has not changed. In terms of Florida sports betting, Florida's an interesting plex every year as the legislative session starts, your lobbyists tend to be super optimistic about what they're going to deliver. And then by the end of the session, they say well, we just couldn't get anything done. It's a complex place to negotiate, you've got obviously the Seminoles down there, the commercial casinos, you've got Disney, you've got Miami interests. So I think, like other places the momentum publicly for wanting to be able to bet on sports is no different in Florida than elsewhere, is that enough to break the logjam this year. I would probably bet no, just because that's what Florida has shown me in the past. But I'm hopeful, I'll be surprised.

Got it. And then just while we're out any thoughts on Texas?

Texas, that's another state where I'm highly confident there will be significant public interest. Can you get through the legislature there with all the various competing bodies, the odds would be against you given what's happened there historically, but we're working there as well?

Your next question comes from the line of Shaun Kelley of Bank of America. Your line is now open.

Maybe just one question for me. Tom, is it sort of I think as you know in a bunch of different ways, but if I was going to think about it pretty simplistically for the - by the fourth quarter, is it possible to basically get back to historical run rates of revenue in Las Vegas without citywide compression. You've done such a good job on the casino block and clearly got the group piece and that's an in-house number. So not thinking about business travel, but just to be don't have compression in the market. Could you just pace on the mix shift that you've already done kind of get pretty back to what we look like normal without that or do you need the market to go along here?

Well, I think in terms of EBITDA, not revenue. So I can see of the scenario where we're testing 2019 revenue and the rest of the market has not listed with us. I think that we have the benefit of the rewards program that helps us from our revenues management standpoint. But if pick your property is running at 55% occupancy because groups aren't here, it's unlikely we're going to be running at 96% occupancy, which was the pre-pandemic number.

I am showing no further questions at this time. I would like to turn the conference back to Mr. Tom Reeg.

All right. Thanks, everyone. We will talk to you next quarter.

Ladies and gentlemen, this concludes today’s conference call. Thank you for your participation and have a wonderful day. You may all disconnect.