Analysis is based on the Hotel Industry Report Study 2007 by Singapore Hotel Association

1. A joint effort of Wen Hui Toh, Yvonne Kwek & Zhi Ming Tay
2008 for Class: Introduction to Lodging Industry
University of Nevada Las Vegas
Introduction
This analysis is based on the Hotel Industry Report Study 2007 of 27 hotels in Singapore
by Singapore Hotel Association. This hotel financial analysis is based on the following
criteria:
• Location of the hotels
• Number of rooms
• The star rating of the hotels
• The occupancy percentage
• Average number of guests per rooms
• Average daily room rate
• RevPAR
• Revenue per guest night
• Total revenue per available rooms
• Total expenses per available rooms
Analysis on Pg. 16

2. The 37 hotels in the report are classified according to its location, star rating and room
number.
No of Hotel Rooms
< 350 Rooms 350-500 Rooms >500 Rooms
Allson Hotel Amara Hotel Singapore Carlton Hotel
Copthorne King's Hotel Changi Village Hotel Conrad Centennial
Four Seasons Hotel
Singapore Copthorne Orchid Furama Riverfront
Grand Mercure Roxy
Grand Plaza Park Hotel Hotel Grand Copthorne Waterfront
Hotel Rendezvous Hilton Singapore Grand Hyatt
New Park Hotel Hotel Phoenix Holiday Inn Atrium
Paramount Hotel Intercontinental Hotel Marina Mandarin
The Scarlet M Hotel Singapore Novotel Clarke Quay
Sentosa Resort and Spa Marriot Singapore Orchard Hotel
Regent Hotel Singapore Pan Pacific
River View Hotel Peninsular Excelsior
Sheraton Towers Raffles the Plaza
Swissotel Merchant
Court Royal Plaza on Scotts
Shangri-la Hotel
Swissotel the Stamford
Hotel Star Rating
3 star 4 star 5 star
Four Seasons Hotel
Copthorne Orchid Allson Hotel Singapore
Paramount Hotel Amara Hotel Singapore Grand Copthorne Waterfront
Penisular Excelsior Carlton Hotel Grand Hyatt
River View Hotel Changi Village Hotel Hilton Singapore
Conrad Centennial Intercontinental Hotel
Copthorne King's Hotel Marina Mandarin
Furama Riverfront Marriot Singapore
Grand Mercure Roxy
Hotel Pan Pacific
Grand Plaza Park Hotel Raffles the Plaza
Holiday Inn Atrium Regent Hotel Singapore
Hotel Phoenix Shangri-la Hotel
Hotel Rendezvous Sheraton Towers
M Hotel Singapore The Scarlet
New Park Hotel Sentosa Resort and Spa
Novotel Clarke Quay
Orchard Hotel
Swissotel Merchant
Court
Swissotel the Stamford
Location

3. Marina Bay/City Hall Riverside Orchard
Four Seasons Hotel
Allson Hotel Copthorne King's Hotel Singapore
Amara Hotel Singapore Furama Riverfront Grand Hyatt
Grand Copthorne
Carlton Hotel Waterfront Hilton Singapore
Conrad Centennial Grand Plaza Park Hotel Hotel Phoenix
Intercontinental Hotel Holiday Inn Atrium Hotel Rendezvous
Marina Mandarin Novotel Clarke Quay Marriot Singapore
Pan Pacific River View Hotel New Park Hotel
Penisular Excelsior Swissotel Merchant Court Orchard Hotel
Raffles the Plaza Regent Hotel Singapore
Swissotel the Stamford Royal Plaza on Scotts
Shangri-la Hotel
Sheraton Towers
Tourist Area Other Area
M Hotel Singapore Changi Village Hotel
The Scarlet Copthorne Orchid
Sentosa Resort and Grand Mercure Roxy
Spa Hotel
Paramount Hotel
Source: www.hotel.com
Reference: J. Siguaw., B.G. Wee., 2008. Exploring Best Practices in the Hospitality
Industry in Asia
Departmental Revenues

4. Departmental Revenues
$60,000
< 350 Rooms
$50,000
350-500 Rooms
$40,000
PAR
$30,000
$20,000
$10,000
$0
ROOMS FOOD BEVERAGE OTHER F&B
< 350 Rooms $49,054 $23,429 $6,034 $2,465
350-500 Rooms $49,467 $20,108 $4,306 $2,839
Departmental Revenues < 350 Rooms
350-500 Rooms
$20,000
$15,000
PAR
$10,000
$5,000
$0
SPA/HEALTH MINOR RENTALS &
TELEPHONE
CLUB OPERATIONED OTHER INCOME
< 350 Rooms $500 $5,720 $3,296 $16,252
350-500 Rooms $421 $581 $1,648 $10,596
Departmental Revenues

5. 350-500 rooms to >500 rooms
Departmental REvenues
$60,000 350-500 Rooms
$50,000 >500 Rooms
$40,000
PAR
$30,000
$20,000
$10,000
$0
ROOMS FOOD BEVERAGE OTHER F&B
350-500 Rooms $49,467 $20,108 $4,306 $2,839
>500 Rooms $52,495 $24,568 $6,560 $4,112
Departmental Revenue 350-500 Rooms
>500 Rooms
$14,000
$12,000
$10,000
$8,000
PAR
$6,000
$4,000
$2,000
$0
SPA/HEALTH MINOR RENTALS &
TELEPHONE
CLUB OPERATIONED OTHER
350-500 Rooms $421 $581 $1,648 $10,596
>500 Rooms $502 $554 $1,343 $11,707

6. <350 - 500 350->500
Variance Variance
ROOMS -$413 -$3,028
FOOD $3,321 -$4,460
BEVERAGE $1,728 -$2,254
OTHER F&B -$374 -$1,273
TELEPHONE $79 -$81
SPA/HEALTH CLUB $5,139 $27
MINOR OPERATIONED DEPARTMENT $1,648 $305
RENTALS & OTHER INCOME (NET) $5,656 -$1,111
TOTAL $16,785 -$11,876
Departmental Revenue

7. Rooms
<350 rooms to 350-500 rooms
• The lower room revenues for hotels with <350 rooms is mainly due to the lower
star rating of the hotels compared to hotels with 350-500 rooms.
• Hotels with 350-500 rooms are of close approximate with the orchard, city and
riverside this had contributed to the higher room rate compared to hotel with
fewer rooms.
• Due to the locations differences, hotels with 350-500 rooms are targeted their
market at the business travelers while hotels with fewer rooms focused mainly in
transient travelers.
• There are more international hotel brand in the 350-500 rooms category compared
to hotels with >350 rooms. There are more market penetration for international
brand name compared to local branding, this had resulted in a higher room
revenue in the 350-500 rooms category compare to hotels in the >350 category.
• The higher room revenue in the 350-500 categories might be due to the better
amenities and services in the hotels.
• The room mix between hotels in the two categories can be very different due to
the target group.
350-500 rooms to >500 rooms
• More five star hotels
• Very near to major convention centers and infrastructure
• Majority of the hotel with >500 rooms have big convention halls
• These hotels held major international conferences
• Major professional development programmes are held in these hotels
• More regular customers who stay in the hotel for a longer time (e.g. 3 months),
these regular customer raised the occupancy % thus making the rooms rate higher
• More group and corporate contracts compare to 350-500 rooms
Departmental Revenue

8. Food
<350 rooms to 350-500 rooms
• Two <350 rooms hotels are in the tourist area: the scarlet and Sentosa resort and
spa.
• The contributing factor of the two hotels is 18% of the total hotels in this
category. Since these two hotels are in the tourist area, food prices can be mark up
significantly and the star rating of the two hotels is in the 5 star category.
• There are 6 hotel in the <350 hotel category which are located in the city, orchard,
and riverside area. These hotels might be situated in the location that is not the
most accessible central area (e.g. Four Seasons and hotel rendezvous are situated
away from the main orchard road area).
• The locations might contributed the lack of food outlets surrounding the area,
causing a higher mark up of food prices in the <350 hotel category compared to
350-500 hotel rooms category. Due to the mark up the POR is higher.
• The poorer performance in the 350-500 hotel rooms category might due to the
easy accessible to food outlets in the area.
• The guest in the 350-500 rooms might consist of more traveler, with this, the
chances of spending money in food is lower in this category.
350-500 rooms to >500 rooms
• >500 room hotel consist of only one 3 star property
• The entire hotel in this category is situated in the city, orchard and riverside area.
This had contributed to the higher pricing of the food.
• Since hotels are situated in the main area, there is a higher possibility of walk in
guest.
• Hotel in this category had international conferences e.g. raffle the plaza and
Shangri-la hotel. This had helped to mark up the food price and the guests in the
hotels have more spending power.
Departmental Revenue

9. Beverages
<350 rooms to 350-500 rooms
• In the <350 category, two hotels are in the tourist area, since these hotels are in
the tourist area, there will be a higher mark up of price of beverage. There might
be higher demand for alcoholic drinks in these areas.
• Hotels in this category might have a higher percentage of banquet events, with
the increased banquet events, more alcoholic drinks are sold.
• There might be more beverage outlets in hotels in this category. The occupancy
percentage is higher compared to hotels in the 350-500 category, with higher
occupancy rate, there might be higher demand for beverages.
• Since the denominator in the <350 is small, it makes the PAR higher. Hotels in
the 350-500 rooms have lower PAR might be due to the close approximate to
other beverages providers.
• In the 350-500 rooms category, there might be lower in-room dinning orders so it
reduces the chance of up-selling of alcoholic beverages.
• There are lower occupancy rate and ADR in this category thus reduced revenues.
Hotels with 350-500 rooms might have host less banquets.
• Poor services and few outlets can be major contributing factors to the lower
revenues.
350-500 rooms to >500 rooms
• In the >500 rooms category, hotels are in the central area, and some of the hotels
host major international conferences, this will eventually raise the banquets
frequency and the sale of alcoholic drinks are higher.
• There might be more demand for in-room dinning and mini-bar.
• With the higher percentage of four to five star rating hotels in this category,
guests are draw to the good service
• Being larger in size, hotels in this category have more outlets thus increased sale.
Departmental Revenue

10. Spa / Health Club
<350 rooms to 350-500 rooms
• Due to the approximate to other spa
• In room spa
• More time can be spend on spa due to transient traveler
• More demand for spa
• The main business of hotel such as Sentosa resort are spa
350-500 rooms to >500 rooms
• Hotels in >500 rooms category might be close to other spa facilities, so the
demand for in-house spa will decrease
• There might be more business traveler in the >500 rooms category, so they might
not have time to go for spa
Minor Operation Department
<350 rooms to 300-500 rooms
• In <350 rooms there might be more demand for laundry and dry cleaning services,
the laundry service might be done in-house.
• Also in this category, the target group of this hotel had more demand for in-room
entertainment such as pay-per view television programmes.
• The guests in the might drive their own cars and shopped more in the hotels’ retail
shops.
• In the 300-500 rooms category, guests might be here for business trips so the
demand for pay-per-view television programmes is lower.
• The close approximate to the city centre means that there will be reduced chance
of shopping in the hotels’ retail shops.
Departmental Revenue

11. >500 rooms
• The laundry service demand might be lower due to the shorter stay of hotel
guests.
• Hotels in the 500 category majority are here for business trip so the demand for
pay-per-view is lower
• These guests might be here for many times so the chances for shopping in the
retail shop are lower.
Rentals & other income
<350 rooms to 350-500 rooms
• Hotels in this category might have lower no-show
• Higher day use
• More early departure
• More late check out and less allowance compared to hotels in the 350-500 rooms
>500 rooms
• In this category there are more hotels that are among the four to five star rating,
with higher rating the level of service is higher, thus there might be more guests
complaints, so there will be more allowances.
• In this category, hotels tend to do function for regular corporate guests, giving
them better discounts so this might be a contributing factor.
• There might be more no-show, less early departure, late check out compared to
hotels in the 350-500 rooms category.
Departmental Expenses

12. Rooms
<350 rooms to 350-500 rooms
• Most hotels with less than 350 rooms are 4* hotels (with exception to Four
Seasons Hotel, The Scarlet, Paramount and Sentosa Resort and Spa) which are
located mainly at Orchard and Riverside (Clark Quay and Singapore River).
• The hotels with 300 – 500 rooms mainly belong to the 4* and 5* categories and
they are located in mainly Orchard and City Hall areas.
• The variances in expenses can be traced to the difference in guests at the hotels.
Mostly tourists will stay in hotels with less than 350 rooms due to the strategic
locations they are in. These hotels are near shopping amenities which will prove
convenient for tourists to visit.
• Since the hotels are largely available for tourists, they are sold in bulk to travel
agencies therefore having guaranteed room nights. With more tourists staying in
hotels with less than 350 rooms, the expenses will rise.
• In 2006, there were many trade shows that attracted tourists, largely made up by
Asians and Europeans (statistics obtained from Singapore Tourism Board)
• Since hotel rooms in this category are lesser, there will not be much discount
given to these hotels. With less discounts, the expenses to maintain the rooms in
these hotels is higher.
• Hotels in this category might had provided more complimentary services and gift
for guests e.g. newspaper.
• With less rooms, and extension of infrastructures such as cable and satellite
television can also be increased.
• Since the target market for hotels in this category are family-based, changing of
items such as linen can be frequent.
• Increases damages in hotel property elevated the money spend on upgrading and
maintenance of FF&E.
350-500 to >500
• As for the hotels with 300 – 500 rooms, they are catered largely towards corporate
travelers as the locations they are situated in are near conference centers and
offices.
Departmental Expenses

13. • Sources show that there are many in-house residents in hotels with 300 – 500
rooms. In 2006, Singapore hosted the IMF / WB event which 16,000 delegates
visited Singapore. Most of them will stay in hotels near the City Hall area as the
meeting was held in Suntec City Convention. Hence the expenses difference is
not large for the two types of hotels being compared.
Food & Beverage
<350 rooms to 350-500 rooms
• Since hotels in the <350 rooms category has lesser rooms, hotels do not get a very
good bulk price when ordering beverages thus causing the expenses higher.
• Further more the revenue in F&B is higher in the <350 rooms category compared
to hotels in the 350-500 category.
• The higher occupancy percentage and the average number of guests per room in
the <350 rooms category did contribute to the higher expenses compare to
350-500 category.
• <350 categories might spend more on alcoholic beverages compared to 350-500
categories.
350-500 rooms to >500 rooms
• Hotel in the >500 hotels category have higher revenue in the food and beverages
category, so the expenses are higher compared to 350-500 categories.
• The higher occupancy rate, average the number of guests per room and the total
expenses per available room is higher the hotel in the 350-500 category.
Telephone
< 350 rooms to 350-500 rooms
• The telephone expenditure on hotels with < 350 rooms is more than those hotels
with 350 – 500 rooms as these hotels are normally patronized by tourists.
• These tourists would normally use the hotel’s in house telephone to call back to
their families or relatives in other countries.
• There might be less public telephones readily found nearby, or that they do not
own hand phone lines with auto roaming.
Departmental Expenses

14. • At this category, with higher demand equal higher revenue, it will be vital for
hoteliers to upgrade the system and there might be more damages.
• With higher occupancy percentage and average number of guests per rooms
compared to hotels in the 350-500 category, the expenses in the <350 category
will be higher.
• As guests of the 350 – 500 room hotels are mainly corporate travelers, they would
more likely own a personal hand phone line with auto roam that they will use
while overseas.
• They would probably use the telephone line in the hotel to fax documents or surf
the Internet.
• Corporate travelers will spend most of his/her time in offices other then hotels
rooms; there is a decreased chance of using the hotels’ phone.
• Corporate travelers might be given a hand phone by the corporation that he/she is
working for. Opportunity to call an oversea call is higher due to the hotel
locations.
350-500 rooms to >500 rooms
• As the statistics show, there isn’t much of a difference in between the expenses of
telephone usage in hotels with 350 – 500 rooms and hotels with > 500 rooms.
• Reason being that these hotels are largely occupied by corporate travelers who
mainly use the telephone line to fax documents or surf the Internet. They would
most probably have their own auto roaming hand phone line.
Spa & Health Club
• As compared, the expenses for spa and health club for hotels with < 350 rooms
differ greatly from hotels with 350 – 500 rooms. The locations of hotels in the
<350 category have an impact on the expenses.
• The Sentosa Resort and Spa belongs to the category of hotels with < 350 rooms, it
contributes largely to the statistics as it is a business catering mainly to customers
who have a demand for spas and health reasons.
• With higher revenue in spa and health club, more expenses are invested so to
increase guests satisfaction and maintain the hotel competiveness.
Departmental Expenses

15. • The lack of other spa and health facilities around the area can be one contributing
factor.
350-500 rooms to >500 rooms
• Hotels in the >500 category are situated in the heart of the city, guests are more
accessible to other spa and health club e.g. California fitness. This is a
contributing factor for lower revenue.
• With lower revenue; hotels might not wish to put in many expenses in this
segment of the hotel.
• Guests staying in hotels in this category are often on business trips; hence they
often do not have the extra time to visit these places of relaxations
Minor Operating Departments
• Hotels with < 350 rooms are mainly occupied by tourists. These tourists will visit
the (most of the time) duty free shops within the hotel to purchase souvenirs and
other items available.
• These hotels will more likely out-source the retail shops with brands that offer
more products as there is a demand for them.
• In the <500 rooms category, hotels might have outsources its laundry services
and garage.
Departmental Profit (Loss)

16. Rooms
<350 rooms to 350-500 rooms
• In the <350 rooms category most are 4* hotels (with exception to Four Seasons
Hotel, The Scarlet, Paramount and Sentosa Resort and Spa) which are located
mainly at Orchard and Riverside (Clark Quay and Singapore River).
• The hotels with 300 – 500 rooms mainly belong to the 4* and 5* categories and
they are located in mainly Orchard and City Hall areas.
• The 350 – 500 rooms formed the majority of departmental profits (S$37,976).
Due to the hotels’ target markets.
• Hotels that fall under this category include M Hotel, Sheraton Towers, Swissotel
Merchant Court and Amara Hotel. These hotels mainly cater to business travelers.
This group enjoyed corporate rates, a lower rate (usually 5-20%) below the
hotel’s rack rate which in turn led to decreased profits.
• Hotels in the 350-500 rooms category are situated in the heart of the city, this
helps the hotels in this category to have a higher rooms rate.
• But the different between both categories is small, this is due to the higher
occupancy percentage in the <350 category.
• On the other hand, the same applies for the <350 rooms category. These hotels
mainly attract the families who are here for a holiday.
350-500 rooms to >500 rooms
• The location of hotels of the >500 rooms might have severe impact on the
income. The hotel’s central location with the Raffles City (Shopping Centre and
Convention Centre) and Suntec City around facilitates the high demand of rooms
• On the other hand, the events held in Singapore also played a crucial role. For
instance, the IMF/WB meetings were held in Raffles City Singapore.
• The higher occupancy percentage for the hotels in the >500 rooms are higher than
that of the hotels in the 350-500 rooms
• Hotels in the >500 rooms category have higher RevPAR compared to hotels in the
350-500 rooms
Departmental Profit (Loss)

17. Food & Beverage
<350 rooms to 350-500 rooms
• The profit is higher in the <350 category compared to 350-500 rooms category
due to its higher occupancy percentage and average number of guests per room
• In the <350 category, hotels have higher revenue so it might be a contributing
factors for the higher profits
• Due to the location of hotels in the <350 rooms, hotels are not situated in the heart
of the city so guests might be more willing to stay in the hotel for food and
beverages.
• Two of the hotels in the <350 hotel category are situated in tourist spot and one of
which is a resort. Guests in these hotels tend to stay in the hotel for their food and
beverages needs.
350-500 rooms to >500 rooms
• The higher occupancy rate for the hotels in the >500 rooms categories is a
contributing factor for the higher profit for this category compared to 350-500
rooms
• There are more well-known brand in the >500 rooms category compared to
350-500 rooms category
• Since most of the hotels in the >500 rooms category are in the heart of the city,
they have a higher mark-up in price
• With the close approximate of the hotels in the >500 rooms to convention centers,
they are the choice for caterer.
• Since business travel tend to stay in hotels in the >500 rooms, business functions
are also held in these hotel frequently. This increase the cover and the spending
power of these guests are high
Departmental Profit (Loss)

18. Telephone
<350 rooms to 350-500 rooms
• Hotels in the <350 rooms category might had overcharge their guests, an
allowance is given.
• Since the revenue for the telephone in the <350 rooms category is higher
compared the 350-500 rooms category, the higher loss is justified.
• Hotels are unable to track short international calls for individual traveler, this
amount acuminated causing loses to happened
350-500 rooms to >500 rooms
• The reduced loss for hotels in the >500 rooms category might be due to the higher
mark up of price.
Spa/Health Club
<350 rooms to 350-500 rooms
• The higher profit in the <350 rooms hotels is due to the higher revenue
350-500 rooms to >500 rooms
• The higher profit in the 350-500 rooms hotels is due to its higher revenue
Minor Operated Departments
<350 rooms to 350-500 rooms
• Despite the about twice the revenue for the <350 category compare to 350-500
room category, the profit taking is similar to 350-500 room.
• This might due to the lower mark up cost fro the hotel in the <350 category due to
the hotel location.
350-500 rooms to >500 rooms
• Lower revenue for hotel in the >500 rooms category
Departmental profit (Loss)

19. Rental & Other Operated Income
<350 rooms to 350-500 rooms
• <350 rooms category has higher revenue compared to 350-500 room category
350-500 rooms to >500 rooms
• >500 rooms category had higher revenue compared to >500 room category
Undistributed operating expenses

20. Administrative & General
<350 rooms to 350-500 rooms
• The higher cost for <350 rooms might be due to more paper work, lesser usage of
high end technology.
• Smaller hotels are easily maneuvered so there is few demands for effective way to
delivery messages.
350-500 rooms to >500 rooms
• Employees in the >500 rooms category might have job expansion and more IT
savvy.
Marketing
<350 rooms to 350-500 rooms
• The hotels with < 350 rooms have lesser marketing expenses as compared to 350
– 500 rooms as they sell their rooms to travel agents in bulk.
• Hotels in this category have individual characterize such as the scarlet hotel and
the Sentosa resort, the scarlet hotel is a boutique hotel while the Sentosa resort is a
resort and spa hotel.
• These hotels tend to have more publicity due to its individualism and tourism
board will help to promote these hotels.
• There are also more hotels in this category compare to <350 category.
350-500 rooms to >500 rooms
• 300 – 500 room hotels already have a brand; they continue to advertise to
maintain reputation and image.
• Hence, with better marketing strategies, they will require higher expenditure.
Hotels in this category might want to advertise on their individual’s differences
such as Hilton’s heavenly bed.
• Hotels in the >500 rooms category face much the same problems as hotel in the
300-500 rooms category, so there are not much different in expenses in
marketing.
Undistributed operating expenses

21. • Hotels in the 350-500 rooms and the >500 rooms have similar target market, so
they need to market aggressively.
Utilities
<350 rooms to 350-500 rooms
• For hotels with < 350 rooms, which caters mostly to tourists and vacationing
families, in room TV entertainment will make up mostly for the utilities usage.
• With a higher occupancy percentage, average number of guests per room, higher
demand for spa and in-room entertainment. Expenditure in utility can be higher.
• There might be a higher number of banquets, 24 hours buffets and higher
operation can be contributing factors of the higher expenditure in the <350
category than 350-500 category.
• As compared to hotels with 350 – 500 rooms, which caters mostly to corporate
travelers and in house guests, who requires more laundry services than in room
TV entertainment.
• As statistics from Singapore Tourism Board shows that the average stay is 3.4
days, the need for laundry service is not as huge as compared to tourists watching
in room television.
• In the 350-500 rooms category, there is less demand for spa service compared to
<350 category.
350-500 rooms to >500 rooms
• Hotels with > 500 rooms cater more towards corporate travelers and business
delegates. These guests normally stay more than the average (3.4 days) hence will
require almost all the utilities offered.
• Delegates would most probably rent a car to move around conveniently hence the
garage / parking services are required.
• The higher occupancy percentage, average number of guest per room might be a
contributing factor for higher expenditure compared to the hotels in the 350-500
categories.
Undistributed operating expenses

22. Property Operations & Maintenance
• Hotels with < 350 rooms have a higher expense on property operations and
maintenance as there are more turnover rates in the hotels as compared to hotels
with 300 – 500 rooms.
• Vacationing families will normally bring their children. With children around,
things tend to damages; hence there is a higher need for maintenance fees.
• In the <350 category there are higher rental service; the higher occupancy
percentage and average number of guests per rooms
• And there is a higher usage of phone services in the <350 category
350-500 rooms to >500 rooms
• The higher expenses for hotels in the >500 rooms might due to the star rating of
the hotels. There are more five star hotels compared to hotels In the 350-500
rooms category.
• The > 500 roomed hotels have to maintain curb appeal. These hotels due to its
strategy location are to follow the tourism guideline.
• Maintain of curb appeal is important to build brand awareness and confident.