ATLANTA — Third-party operator TPG Hotels and Resorts President and Chief Operating Officer Ben Perelmuter said he expects much of the hotel industry’s focus to shift from deal-making to property-level performance.
High interest rates and short-term residual effects from the U.S. banking crisis are likely to slow the pace of transactions, he said during an interview with Hotel News Now at the 2023 Hunter Hotel Investment Conference.
This provides an opportunity for TPG to pick up management contracts. TPG, the management affiliate of real estate investment firm Procaccianti Companies, added nearly 30 third-party management contracts in 2022.
This year “there’s going to be a lot more focus on performance,” he said. “I believe [companies] won’t be as busy doing transactions and underwriting deals, so they’re going to be looking at property-level performance. It’s important to deliver good results in market share, margin growth, brand performance [and] customer service. Having all those things tie together, that’s where I believe that we’ll be able to grow.”
Third-party management contracts that the company completed in 2022 were largely for upscale full-service hotels such as the Kimpton Overland Airport Hotel in Atlanta and independent hotels in leisure destinations such as the Florida Keys.
Perelmuter, who was appointed president and chief operating officer of the company on March 23, said successful hotel operators are “getting back to the basics.”
“Making sure that you can do the basic things right, delivering a financial package at the end of the month that owners can count on. Those types of things are important,” he said.
He said he expects his company will have some opportunities in the near future to take part in a merger or acquisition with another third-party operator.
TPG is focused on growing its management portfolio in the southeastern U.S., namely in Florida, Georgia and Texas.
The company will be opening an operations headquarters in Dallas “to be front and center there,” he said, helping to position it for growth in Texas and the southeast.
In addition to hotel management services, TPG also offers hotel construction and development services as well as management services for marinas.
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