NEW YORK — A pullback in leisure demand this summer could spell problems for hoteliers that haven't diversified their demand mix, but TPG Hotels & Resorts President and Chief Operating Officer Ben Perelmuter said solid demand from business travel and groups is helping his company with "filling in the gaps."
Speaking with Hotel News Now at the the 2024 NYU International Hospitality Industry Investment Conference, Perelmuter said overall he's excited about the full summer, particularly with a strong outlook for July and August.
"If you have a summer destination where there's some meeting space and opportunities to drive midweek group, as well as the leisure component, I think you're going to hit a grand slam this summer," he said.
He attributes a pullback in both leisure demand and pricing power to consumers growing more cost conscious as household debt grows, but he noted that pullback is still nowhere near crisis levels.
"It's not at the point where there's a massive gap," he said. "The unemployment rate is still low. People are still going on vacations, but it's not really quite at the level that it was the last couple of years."
Perelmuter noted the sweet spot for TPG Hotels & Resorts — which is the hotel operating division of Procaccianti Companies and recently relocated its headquarters to McKinney, Texas — is in the full-service and independent hotel segments.
"I think that's where we add value, the way we're deployed," he said. "We've got over five decades of experience driving group business into major branded hotels. We have that DNA."
The company launched the Intera Collection earlier in the year to recognize its expertise in managing independent, boutique and soft-branded hotels, and Perelmuter said that division has been a success, so far.
"We've got people that have experience in that space that are used to running these types of hotels," he said.
For more of Hotel News Now's interview with TPG Hotels & Resorts' Ben Perelmuter, watch the video above.