Billionaire Todd Boehly Says Rich People Are Still Spending Money: 'Demand For Our Private Club Is Off The Charts'

Todd Boehly, the cofounder of Eldridge Industries, said that things in the economy feel better than you would have expected during his Monday appearance on CNBC’s Closing Bell. Eldrige Industries holds investments in companies throughout various industries including travel, media, sports and more. 

Big Spenders: Boehly spoke about Eldridge’s high-end hotels and leisure properties in New York City, noting that demand has remained high, despite chatter about a potential recession. Specifically, Boehly talked about the Aman Group, a hotel company that owns luxury properties in high-end markets like Jackson Hole, New York City, Venice, Italy and more. 

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Let Loose: “People are focused on how to get out and enjoy themselves,” Boehly said. “And hospitality is a big part of that. Demand for our private club is off the charts.” 

Boehly’s comments on the travel industry starkly differ from many economists and investors, who fear a recession and slowdown in spending are on the way. The billionaire added that he does not think that a reckoning is coming for the commercial real estate industry.

Boehly On Rates: High interest rates have weighed down specific sectors of the economy, particularly growth companies and regional banks. Boehly said that Eldridge has avoided many mark-to-market issues like the one that destroyed Silicon Valley Bank by holding ‘floating-rate assets.’ 

This means that Eldridge’s assets offer more return as interest rates move higher, so the underlying assets maintain their value as opposed to fixed-rate bonds. Boehly also noted that he has no intentions of taking Eldridge Industries public.

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