Center for Hospitality Research Cornell Hospitality Proceedings InsightCs oon Hronspeitlalli tHy, Roetsaiplinigt, aanldi tCyom Rmeercpialo Rreatl Estate d 2014 Cornell Real Estate Roundtable Proceedings Produced in association with the Cornell Center for Real Estate and Finance by Benjamin Lawrence, Ph.D., and Peng (Peter) Liu, Ph.D. Vol. 61,4 N, Noo. .1 5 DFeebcreumabrye r2 0210414 All CHR reports are available for free download, but may not be reposted, reproduced, or distributed without the express permission of the publisher Cornell Hospitality Proceedings Vol. 6, No. 1 (December 2014) © 2014 Cornell University. This report may not be reproduced or distributed without the express permission of the publisher. Cornell Hospitality Report is produced for the benefit of the hospitality industry by The Center for Hospitality Research at Cornell University. Michael C. Sturman, Academic Director Carol Zhe, Program Manager Glenn Withiam, Executive Editor Alfonso Gonzalez, Executive Director of Marketing and Communications Center for Hospitality Research Cornell University School of Hotel Administration 537 Statler Hall Ithaca, NY 14853 607-255-9780 chr. cornell.edu Advisory Board Syed Mansoor Ahmad, Vice President, Global Business Head for Energy Josh Lesnick, Chief Marketing Officer, Wyndham Hotel Group Management Services, Wipro EcoEnergy Mark V. Lomanno Marco Benvenuti ’05, Cofounder, Chief Analytics and Product Officer, Bharet Malhotra, Senior VP, Sales, CVENT Duetto David Meltzer MMH ‘96, Chief Commercial Officer, Sabre Hospitality Scott Berman ‘84, Principal, Real Estate Business Advisory Services, Industry Solutions Leader, Hospitality & Leisure, PricewaterhouseCoopers Mary Murphy-Hoye, Senior Principal Engineer (Intel’s Intelligent Systems Raymond Bickson, Managing Director and Chief Executive Officer, Taj Group Group), Solution Architect (Retail Solutions Division), Intel Corporation of Hotels, Resorts, and Palaces Brian Payea, Head of Industry Relations, TripAdvisor Bhanu Chopra, Chief Executive Officer, RateGain Kimberly Rath, Founder and Chairman, Talent Plus, Inc. Benjamin J. “Patrick” Denihan, Chief Executive Officer, Denihan Hospitality Group Umar Riaz, Managing Director – Hospitality, North American Lead, Accenture Chuck Floyd, Chief Operating Officer–North America, Hyatt Carolyn D. Richmond ’91, Partner, Hospitality Practice, Fox Rothschild LLP Gregg Gilman ’85, Partner, Co-Chair, Employment Practices, Davis & Gilbert LLP David Roberts ’87 (MS ’88), Senior Vice President, Consumer Insight and Revenue Strategy, Marriott International, Inc. David Goldstone, Senior Vice President, Global Strategic Relationships, Sonifi Solutions, Inc. Michele Sarkisian, President, P3 Advisors Susan Helstab, EVP Corporate Marketing, S. Sukanya, Vice President and Global Head Travel, Transportation and Four Seasons Hotels and Resorts Hospitality Unit, Tata Consultancy Services Steve Hood, Senior Vice President of Research, STR Berry Van Weelden, Director, Reporting and Analysis, priceline.com’s hotel group Kevin J. Jacobs ‘94, Executive Vice President & Chief Financial Officer, Hilton Worldwide Adam Weissenberg ‘85, Vice Chairman, US Travel, Hospitality, and Leisure Leader, Deloitte & Touche USA LLP Kirk Kinsell MPS ‘80, President, The Americas, InterContinental Hotels Group Rick Werber ‘82, Senior Vice President, Engineering and Sustainability, Development, Design, and Construction, Host Hotels & Resorts, Inc. Kelly A. McGuire, MMH ’01, PhD ’07, VP of Advanced Analytics R&D, SAS Institute Jon Wright, President and Chief Executive Officer, Access Point Gerald Lawless, Executive Chairman, Jumeirah Group Thank you to our generous Corporate Members Partners Accenture Access Point CVENT Davis & Gilbert LLP Deloitte & Touche USA LLP Denihan Hospitality Group Duetto Four Seasons Hotels and Resorts Fox Rothschild LLP Hilton Worldwide Host Hotels & Resorts, Inc. Hyatt Hotels Corporation Intel Corporation InterContinental Hotels Group Jumeirah Group Marriott International, Inc. priceline.com PricewaterhouseCoopers RateGain Sabre Hospitality Solutions SAS Sonifi Solutions, Inc. STR Taj Hotels Resorts and Palaces Talent Plus Tata Consultancy Services TripAdvisor Wipro EcoEnergy Wyndham Hotel Group Friends Cleverdis • DK Shifflet & Associates • EyeforTravel • Hospitality Technology Magazine • HSyndicate • iPerceptions • J.D. Power • Lodging Hospitality • Milestone Internet Marketing • MindFolio • Mindshare Technologies • PKF Hospitality Research • Questex Hospitality Group Insights on Hospitality, Retailing, and Commercial Real Estate: 2014 Cornell Retail Real Estate Roundtable Proceedings by Benjamin Lawrence and Peng Liu ExECuTivE SuMMARy eld in summer 2014 at the headquarters of the International Council of Shopping Centers Hin New York City, the inaugural Cornell Retail Roundtable focused on retail market trends, tenanting and leasing (particularly in regard to malls), and the retail capital market. The roundtable brought together leading practitioners and researchers to examine such key issues as consumers’ shopping behavior and retail market trends; retail real estate investment and financing; retail leasing; and big data in the retail industry. One of the most noticeable retail trends can be described as a “barbell,” with notable strength at the upper and lower ends of the market, but considerable weakness in the middle. Many retailers have added services to their product offering. This trend is also reflected in the redevelopment of malls, many of which have added more tenants that offer services or entertainment, such as athletic clubs, restaurants, and amusement parks. Some owners have even repurposed their mall property for other retail clients. Roundtable participants acknowledged the important of big data, but also agreed on the challenge of making sense out of so much information about customers. On the other hand, data alone is insufficient to develop appropriate judgments about the development potential for particular parcels—that can only be done in person. 4 The Center for Hospitality Research • Cornell University RoundTABLE PARTiCiPAnTS Richard Baker, Governor & CEo of Hudson’s Bay Company Mark Jenkins, Financial officer of Pyramid Management Kenneth Bernstein, CEo of Acadia Realty Trust Company Jose Chan, vP of CELECT vP Robert Karin, Partner of davis & Gilbert LLP Robert Freedman, Chairman, Tri-State Region of Colliers Timothy Kelley, President of Pyramid Management international Company Evan Goldman, vP–development of Federal Realty Scott onufrey, SvP & Md of Kimco Realty Rob Grossman, Principal and Coo of deloitte Consulting Michael Profenius, SvP–development of Grove LLP international Partner Timothy Groves, Md of Citigroup Allen Riffkin, Md of Lazard Frères & Co Marc Halle, Md of Prudential duane Stiller, President & CEo of Woolbrigth development Kelly Harman, vP–Real Estate, organic Avenue, LLC Richard Warshauer, Senior Md of Colliers international Eric Hertz, SvP-Education of iCSC Rick Woroniecki, Md of Ackerman & Co. Joseph Higgins, Md of TiAA-CREF ABouT THE AuTHoRS Benjamin Lawrence, Ph.D., is an assistant professor of food and beverage management at the Cornell School of Hotel Administration. Lawrence earned a PhD in management (marketing) from the Boston University School of Management, an MBA from Mays Business School at Texas A&M University, and a bachelor’s degree from the Cornell School of Hotel Administration. His primary research interest involves channels of distribution with a focus on relationships within the context of franchising. He also studies consumers’ food and beverage consumption experiences and purchasing behavior. His work has been published or is forthcoming in the Journal of Advertising, Journal of Marketing Channels, Journal of Operations Management, Journal of Retailing, Journal of Small Business Management, and Service Science. Peng Liu, Ph.D., is an associate professor of real estate and finance at the Cornell University School of Hotel Administration. Liu’s research focuses on the interaction between financial innovations and real economy, with a specific interest in real estate finance and investment, securitization, commodity pricing, and market analysis and operational research in retail, airline, hospitality, and recreational industries. Previously, Liu was a Fisher Center of Real Estate and Finance Research Fellow at the University of California, Berkeley. Prior to his academic career, Liu worked for Goldman Sachs Asset Management in New York City and held the position of senior consultant at Deloitte Consulting in Beijing. Liu is the editor of the Journal of Real Estate Portfolio Management, associate editor of the Cornell Hospitality Quarterly and the International Real Estate Review, on the board of directors for the Global Chinese Real Estate Congress and the American Real Estate Society, and an overseas reviewer for the Research Grant Council of Hong Kong. Liu has received the William N. Kinnard Scholar Award from the American Real Estate Society, the Homer Hoyt Post-Doctoral Honoree from the Weimer School of Advanced Studies, and the Center for Hospitality Research Industry Relevance Award from Cornell University. He received a best paper award from the American Real Estate Society and the Eurasia Business and Economists and was named teacher of the year at the Haas School of Business. Cornell Hospitality Proceedings • December 2014 • www.chr.cornell.edu 5 CoRnELL HoSPiTALiTy REPoRT Insights on Hospitality, Retailing, and Commercial Real Estate 2014 Cornell Retail Real Estate Roundtable Proceedings by Benjamin Lawrence and Peng Liu “Undeniably, the retail industry spectrum is broad,” said roundtable chair Peng Liu, as he opened the inaugural retail roundtable, held in New York City in June 2014. An associate professor of real estate at the Cornell School of Hotel Administration, Liu added that real estate spans “from the overall economy and retail market trends to technology innovation and big data; and from retail leasing negotiations to shopping center investments and financing. The retail industry is an asset-intensive business with real estate playing a critical role.” Continued growth of internet-based commerce is one source of this phenomenon, and the rise of the internet has also created a new framework for many retailers, in which electronic operations and those at physical stores are blended with each other, as demanded by the customer. 6 The Center for Hospitality Research • Cornell University Session I: Retail Market Trends and Consumer Behavior Retail seems like a barbell, The first session of the roundtable focused on emerging with growth on the high end trends in the U.S. retail market. Several key topics emerged from the discussion including the role of luxury retailers and the low end, but the in spurring growth, the balance of service versus product middle is struggling. offerings in malls, the threat of internet sales on retail, and the importance of selecting food and beverage outlets that resonate with current consumers. Growth of Luxury Retail Segment and Discounters The luxury retail segment continues to show promising growth. Retailers like Tiffany & Co. and Saks Fifth Avenue continue to demonstrate strong same store sales growth and earnings, fueled in part by strong stock market growth. At the other end of the market, discount retailers, with brands such as TJMaxx and Marshalls, have also enjoyed steady growth. However, retailers focused on middle class-oriented brands, including JC Penney, have not fared as well. Robert Freedman, chairman of Colliers International, stated: “We’re seeing a very robust sector in high street luxury goods retail, specifically in Manhattan. Tenants appear to be expand- ing their retail footprint quite dramatically.” This view was shared by several participants, including Richard Baker, rest of the country isn’t feeling so good. It’s hard to lease governor and CEO of Hudson Bay Company: “U.S. luxury is space in the middle of the United States.” very hot,” he said. “The luxury vendors are getting burned in Asia and other places, and they see the U.S. as the best place The Impact of Internet Sales on Retailers to invest their dollars at the moment. The weakest area is the Considerable debate among roundtable participants focused mid-tier market segment.” on the impact of the internet on retail sales. Some argued Scott Onufrey, senior vice president and managing that we are currently experiencing an inflection point in director at Kimco Realty Corporation, added: “We’re seeing consumer behavior, and that retail markets will need to kind of the other end of the spectrum—discounters con- adapt significantly in the future. Duane Stiller, founder of tinuing to expand and serving the needs of the middle class. Woolbright Development, stated, “I think the word that we Maybe it’s a barbell [economy] where you have the high end need to be using when we think of retail trends and custom- doing very well but also the discounters continuing to do er behavior is an inflection point. It’s transformational, not well—so Marshalls, TJ Maxx, Bed Bath & Beyond, Dollar cyclical. This is a point in time that you should note, because Stores—continue to be aggressive in opening new space. The of same-day delivery, because of experiential retailing, and good news is there’s been no new building.” because of the smart phone and technology. Just like in 1984, Participants were in agreement that there seems to be a when the computer changed the way the world operates, we bifurcation in the U.S. retail sector, with outlets focused on are at another one of those inflection points.” luxury and those carrying discount brands faring the best. Today’s millennials, who have grown up with the inter- Discussion also revolved around the fact that the U.S. market net and smart phones, are interacting differently than their has an overabundance of retail space and that limiting new elders in the retail space. Companies like Amazon, Zappos, building in the future is important, given that demand re- and Warby Parker are redefining traditional retail environ- mains sluggish. Michael Profenius from Grove International ments and shifting them online. The key to future growth Investors, commented: “How does the retail industry in this in these markets is profitability of these online ventures. country—which is fundamentally over-retailed—how do we The ongoing debate among retailers and developers is how grow that (retail space) in the context of what the economy internet sales redefine the retail landscape. There is no doubt is doing? The reason why luxury is going so well is because that a significant volume of retail sales has moved online, the wealthy have seen a re-inflation of their wealth, but the and some retail establishments have gone out of business Cornell Hospitality Proceedings • December 2014 • www.chr.cornell.edu 7 Many malls are shifting to a this trend by stating that the relationship between the internet and physical stores is symbiotic. One is not going higher proportion of service- to exist without the other. Evan Goldman, vice president of development at oriented tenants, including Federal Realty Investment Trust, stated that he tries to find entertainment and dining. tenants that are on the cutting edge of using the internet, as well as those that offer a lifestyle experience. “If you have a lifestyle experience, people still want to get out and eat and do certain things…and so if you have the right experience on your street, you can still drive sales. Restaurants can act as an anchor and help with other sales.” Richard Warshauer, senior managing director of Colliers International, argued that landlords need to understand the various retail seg- ments and the potential in the new environment. He posed some questions: “What are those consumer goods that people are going to come out and buy and go home with? What are the ones they want to come out and put their hands on and take a look at” (but buy online later)?, and “what are the items they will buy directly online” (books, for example)? He further noted: “What we are seeing now is a focus on either entertainment and high end products or the growth of wholesale clubs or stores like Target that drive sales.” Shift to New Service Offerings in Malls Several key trends related to mall retail outlets were high- because they failed to reinvent their consumer value proposi- lighted by participants, including a shift to service-based tion (for example, Blockbuster, which could not compete with products, the growth of outlet retail stores embedded in Netflix). In the past decade, the growth in online retail sales traditional malls, and flexible space that can accommodate has continued to outpace retail sales growth. One option for future shifts in the market. Some participants pointed to traditional retailers is to have dual distribution strategies, with the success of shifting to a higher proportion of service the brick-and-mortar stores complementing the online mar- offerings including movie theaters, entertainment offer- ket. A second option is to retool the retail offerings to focus ings, and dining. Timothy Kelley, president of Pyramid more on services. Others argued that we are just in a cyclical Management Group, LLC, commented on the success of pattern and that consumers will always seek brick-and-mortar his company’s renovation of the Carousel Mall in Syracuse, establishments to purchase products. Jack Corgel, the Robert New York, now branded Destiny USA, with the addition C. Baker Professor of Real Estate at the Cornell School of Ho- of 850,000 square feet of retail space. Destiny USA has tel Administration, stated that 6 to 10 percent of all sales are focused extensively on premier entertainment, including now transacted online. This still represents a small proportion a Canyon Climb Adventure, the largest suspended ropes of the retail market. Retail is not going away, but it is evolv- course in the world; WonderWorks amusement park; a ing. Competitive pressures will shift the proportion of service bowling center; a go-kart track; and a comedy club. Popu- versus product offerings. lar polished casual food outlets, including The Cheesecake Allowing returns of internet sales items to brick-and- Factory and PF Chang’s, help further boost the mall’s mortar outlets is one example of a collaborative model be- appeal. As Kelley stated, “The entertainment piece is really tween online retail sites and brick-and-mortar stores. Product key.” return strategies can in fact trigger a new cycle of consumer- Federal Realty Investment Trust’s Goldman manages ism, as a fully integrated internet strategy can spur sales at the mixed-use development projects, including Assembly physical store location. Going forward, companies will benefit Square in Somerville, Massachusetts (adjacent to Boston). from creating mutually beneficial retail strategies between At these locations, Goldman stated, “we are sprinkling in their internet and brick-and-mortar stores rather than view- higher end outlets and mixing residential units, lifestyle ing and treating these shopping experiences as offering sepa- centers, restaurants, and entertainment.” Flexibility in these rate and competing models. Participants further highlighted spaces is key given changes in the marketplace. 8 The Center for Hospitality Research • Cornell University Last, there was discussion about a shift from tradi- tional outlet malls to outlet offerings within traditional mall Millennials are attracted to structures. Hudson Bay’s Baker spoke in regard to Saks fast-casual concepts due to Off Fifth, an outlet of Saks Fifth Avenue: “We’ll double the number of units over the next 5 years…expanding outside their product quality and their of the outlets…this idea of expanding outside of outlet malls is key and should be the way forward for many stores to be sustainable supply chain. competitive.” Food and Beverage Outlet Trends With the phenomenal success of fast casual brands such as Chipotle, the food and beverage market continues to evolve. Brands like Chipotle derive a large portion of their brand equity from their sustainable supply chain. Brands like this that focus attention on their supply chain have forged ties with suppliers, such as natural pork producer Niman Ranch, who support their corporate mission. Mimicking trends in the retail environment, fast casual brands that focus on higher average checks, including Chipotle and Panera, are continuing to benefit from steady growth, while mid-tier restaurant chains, including Applebee’s and Olive Garden, are struggling. Session II: Capital Markets and Real Estate Assets Two reasons that fast casual concepts continue to reso- nate with millennial consumers are their focus on product The second session focused on a discussion of the capital quality and their supply chain. Customers are demanding markets and retail real estate assets, facilitated by Ken Ber- that retailers provide greater transparency regarding their stein, CEO of Arcadia Realty Trust, a public REIT. He started supply chain and sustainability programs. Even stalwarts of the discussion by focusing on the present state of financing: the quick service industry are providing greater transparen- It feels like yesterday we were in a global financial cy to their products. McDonald’s, for example, now provides crisis. There was no debt available. There was a blue eco lablel on the fish sandwich packaging that touts tremendous uncertainty as to where our borrow- their fish as coming from fisheries approved by the Marine ing costs might be, and now things are feeling somewhere between healthy and exuberant Stewardship Council. with a baseline borrowing cost of zero or a little With this in mind, discussion at the roundtable revolved higher than zero, at a high level of complacency around F&B outlets that continue to garner high demand or comfort that rates are going to stay low for a from consumers, and the issues facing such restaurants. while…let’s just start with a traditional mortgage Chik-fil-A, for example, is collaborating with their poultry anywhere from 50 (loan to value ratio) to, could suppliers to shift supply to chickens raised with no antibiot- it go as high as 70 percent? What does that kind ics in all its outlets within the next five years. McDonald’s, of financing look like for a borrower today? Wendy’s, Burger King, and Denny’s have all committed to Berstein directed this question to Tim Groves, director phasing out gestation crates in the supply of their pork prod- at Citigroup Global Markets. Groves responded, “When I ucts. Ben Lawrence, assistant professor of food and beverage think about your question I think about our business. It’s management at the Cornell School of Hotel Administration, kind of like a three-legged stool: we have our commercial stated: “Customers today want to know where their food mortgage backed securities business (CMBS), we have our is coming from. Are the animals being treated properly? Is balance sheet business, and we also provide leverage for it sustainable? These trends will force companies towards non-backed lenders. CMBS lenders had been constrained in greater transparency regarding their supply chain. These providing capital because [they] wanted to limit the amount supply chain issues have become central drivers of brand of retail in the overall portfolio. I think that recently we have value, as in the case of Chipotle and their mantra, ‘Food with started to see that loosen up a bit, and so I think that’s a very Integrity.’ ” positive sign for retail.” Cornell Hospitality Proceedings • December 2014 • www.chr.cornell.edu 9 The real estate debt market Session III: Retail Leasing and Big Data With the growth of e-commerce and the potential for Ama- will see a maturity wave in the zon’s same-day delivery, retailers are under considerable next couple of years, including pressure to adapt their product offerings to stay in business. Established retailers including Barnes & Noble, Staples, and assets that are over-levered. Best Buy are threatened by technological innovations that are moving product purchase to the web environment. Ac- cording to a recent report by Christopher Lee and Associates, during the next five to ten years retail square footage could decrease by as much as 30 to 50 percent, and 10 percent of the nation’s enclosed malls could be out of business by 2022. Given this environment, how can developers attract leading retailers and plan for a changing marketplace? How can technology and the analysis of big data help in developing a winning strategy? These were the questions posed to round- table participants in our third discussion session. Retail Leasing Participants discussed the fact that store closings are part For 60-percent loan-to-value financing of a straightfor- of the continual evolution of retail. The top 10 retailers 30 ward supermarket-anchor shopping center that is not held years ago are not the top 10 retailers today. Given this reality, to any of the short-term issues that we worry about in retail, developers should build contingency plans to account for Groves estimates the spread is in the environment of the low shifts over time. There was general agreement the mall for- to mid 200s. The current spread has been significantly lower mat was not dead but should continually evolve with social than in 2006–2007, which participants believe is driven movements and retail trends. Rob Grossman, principal and more by the index than by the spread. COO of Deloitte Consulting LLP stated, “The role of the Participants discussed the potential upcoming risk of mall is changing; it is not just going there to buy products. loan extension. They highlighted the commercial real estate Because you can get products other ways, most notably on- debt market maturity wave that’s coming in 2015–2017, line, having a retail destination exist as a destination itself is when the 2005–2007 CMBS originations, most of which important. Some underperforming assets require complete were 5-year bonds, will physically come into maturity. These overhauls to improve performance. Scott Onufrey of Kimco 5-year CMBS loans would have matured in 2012 and 2013, stated, “We have even de-malled unsuccessful malls. We but most banks have pursued a policy to “extend and pre- were able to repurpose a property with a Target and a Kohl’s.” tend,” because these assets were effectively over-levered. Extracting value from real estate portfolios means Groves posited the following question related to chang- continually assessing leases that will expire and examin- ing rates: “Is it structural [or] is it cyclical?” It seems the ing new retail outlets that can add considerable value to a answer may be both. There is more availability for retail site. Redevelopment coordinators work to maximize retail today on the CMBS side and, at the same time, certain value by attracting retailers that have high market value and markets and properties are being structurally repositioned potential for continued growth. Attracting the right retailer as their relevance is no longer applicable. Participants shared starts with running a void analysis on existing properties the view that there will be a rate increase two or three years to find those market segments that are not currently being out at the latest. served in your geographic area. This can pose problems Participants discussed future opportunities, including given the length of most commercial lease contracts and the the arbitrage between supermarket anchors, a move into the existing and available retailers in your geographic area. Evan retail space due to low cap rates, and second-tier markets Goldman stated, “The hard part of converting is you have with small to medium-size pieces of real estate, rather than these long-term leases that are 10 to 20 years. You have to do giant parcels. One participant noted that there has been this slowly. The problem in the retail world is that in each of a good amount of development within the retail industry the categories there are only a few outlets and the retailers (a negative sign), but in markets with good demographics, only want to be in limited markets.” Goldman attracts top there’s still a good run in retail. retailers by showing a retailer’s performance in his shopping centers versus competitors. 10 The Center for Hospitality Research • Cornell University During the recession, tenant improvements were one way to attract the right retailer. This benefited public com- Despite the availability of large panies that were not highly leveraged and had deep pockets volumes of data, commercial to fund major improvements. A key point regarding tenant improvement is to balance tenant improvement investment real estate still requires “boots with the flexibility to adapt to future changes. As they work to reposition a center, developers cautioned about building on the ground.” boxes that were specifically designed for certain retail estab- lishments. The key for any investor is not to overeact to the trends of the day and to build contingencies that increase the fungibility of any retail space and provides flexibility in this changing retail environment. Big Data and Technology Participants discussed the role of big data and technology in driving profitability. Technology and data analytics were discussed as having the greatest impact on the marketing and sales functions of property owners. iPads have helped sales force employees talk to tenants and provide a wealth of information that retailers now expect. Online applications including Google Earth have been used to represent the agent. Bottom line, technology can be used as a supplement competitive retail landscape, including Co-Star information but will not be a replacement for in person interactions. to highlight opportunities for growth. Online apps for the In terms of customer-based information, wi-fi was high- commercial real estate market, like those in the residential lighted as one way of tracking customer traffic. This con- market (e.g., Zillow) were discussed among participants. sumer information could be used to help sell specific retail There was a consensus that although leasing brokers use sites and to extract value out of certain high traffic real estate apps to find rental properties, the commercial real estate in the mall. One problem mentioned is that the incredible market was less suited to such technology. A couple of amount of information that can now be collected can lead to reasons cited were that commercial properties are non- information overload. The issue with big data is not its col- fungible and that to understand the true market potential lection but rather how to analyze it. Proactive social media of a particular site required extensive groundwork. Though management was stressed in service-based business, as so- technology can provide extensive information pre-visit, thus cial media play a particularly important role in driving sales. reducing the information the salesforce needs to communi- Real estate owners would be well served to help their tenants cate to the prospective tenant, there is no real substitute for manage social media and address any issues before they boots on the ground. On the broker side in the urban retail result in a poorly performing outlet. Bad online reviews on environment, the amount of information needed to provide sites such as Yelp or Trip Advisor, for example, can threaten to the site tenant has increased exponentially. Retailers now capital investments. Social media can also be used to gain expect to get an enormous amount of data from a leasing grassroots support for new development projects. n Cornell Hospitality Proceedings • December 2014 • www.chr.cornell.edu 11 Cornell Center for Hospitality Research Publication Index chr.cornell.edu 2014 Reports Vol. 14 No. 16 Calculating Damage Vol. 14 No. 7 Exploring the Relationship Awards in Hotel Management Agreement between Eco-certifications and Resource Vol. 14 No. 24 More than Just a Game: Terminations, by Jan A. deRoos, Ph.D., and Efficiency in U.S. Hotels, by Jie J. Zhang, The Effect of Core and Supplementary Scott D. Berman D.B.A., Nitin Joglekar, Ph.D., Rohit Verma, Services on Customer Loyalty, by Matthew Ph.D., and Janelle Heineke, Ph.D. C. Walsman, Michael Dixon, Ph.D., Rob Vol. 14 No. 15 The Impact of LEED Rush, and Rohit Verma, Ph.D. Certification on Hotel Performance, by Vol. 14 No. 6 Consumer Thinking in Matthew C. Walsman, Rohit Verma, Ph.D., Decision-Making: Applying a Cognitive Vol. 14 No. 23 What Message Does Your and Suresh Muthulingam, Ph.D. Framework to Trip Planning, by Kimberly Conduct Send? Building Integrity to Boost M. Williams, Ph.D. Your Leadership Effectiveness, by Tony Vol. 14 No. 14 Strategies for Successfully Simons, Ph.D. Managing Brand–Hotel Relationships, by Vol. 14 No. 5 Developing High-level Chekitan S. Dev, Ph.D. Leaders in Hospitality: Advice for Vol. 14 No. 22 Managing Context Retaining Female Talent, by Kate Walsh, to Improve Cruise Line Service Vol. 14 No. 13 The Future of Tradeshows: Susan S. Fleming, and Cathy C. Enz Relationships, by Judi Brownell, Ph.D. Evolving Trends, Preferences, and Priorities, by HyunJeong “Spring” Han, Vol. 14 No. 4 Female Executives in Vol. 14 No. 21 Relative Risk Premium: A Ph.D., and Rohit Verma, Ph.D. Hospitality: Reflections on Career New “Canary” for Hotel Mortgage Market Journeys and Reaching the Top, by Kate Distress, by Jan A. deRoos, Ph.D., Crocker Vol. 14 No. 12 Customer-facing Payment Walsh, Susan S. Fleming, and Cathy C. H. Liu, Ph.D., and Andrey D. Ukhov, Technology in the U.S. Restaurant Enz Ph.D. Industry, by Sheryl E. Kimes, Ph.D. Vol. 14 No. 3 Compendium 2014 Vol. 14 No. 20 Cyborg Service: The Vol. 14 No. 11 Hotel Sustainability Unexpected Effect of Technology in the Benchmarking, by Howard G. Chong, Vol. 14 No. 2 Using Economic Value Employee-Guest Exchange, by Michael Ph.D., and Eric E. Ricaurte Added (EVA) as a Barometer of Hotel Giebelhausen, Ph.D. Investment Performance, by Matthew J. Vol. 14 No. 10 Root Causes of Hotel Clayton, Ph.D., and Crocker H. Liu, Ph.D. Vol. 14 No. 19 Ready and Willing: Opening Delays in Greater China, by Restaurant Customers’ View of Payment Gert Noordzy and Richard Whitfield, Vol. 14 No. 1 Assessing the Benefits of Technology, by Sheryl E. Kimes, Ph.D., Ph.D. Reward Programs: A Recommended and Joel Collier, Ph.D. Approach and Case Study from the Vol. 14 No. 9 Arbitration: A Positive Lodging Industry, by Clay M. Voorhees, Vol. 14 No. 18 Using Eye Tracking to Employment Tool and Potential Antidote PhD., Michael McCall, Ph.D., and Bill Obtain a Deeper Understanding of What to Class Actions, Gregg Gilman, J.D., and Carroll, Ph.D. Drives Hotel Choice, by Breffni A. Noone, Dave Sherwyn, J.D. Ph.D., and Stephani K. Robson, Ph.D. 2013 Reports Vol. 14 No. 8 Environmental Vol. 14 No. 17 Show Me What You See, Vol. 13 No. 11 Can You Hear Me Management Certification (ISO 14001): Tell Me What You Think: Using Eye Now?: Earnings Surprises and Investor Effects on Hotel Guest Reviews, by María- Tracking for Hospitality Research, by Distraction in the Hospitality Industry, by del-Val Segarra-Oña, Ph.D., Angel Peiró- Stephani K. Robson, Ph.D., and Breffni A. Pamela C. Moulton, Ph.D.Signes, Ph.D., Rohit Verma, Ph.D., José Noone, Ph.D. Mondéjar-Jiménez, Ph.D., and Manuel Vargas-Vargas, Ph.D. 12 The Center for Hospitality Research • Cornell University Vol. 13 No. 10 Hotel Sustainability: Vol. 4 No. 1 The Options Matrix Tool 2012 Reports Financial Analysis Shines a Cautious (OMT): A Strategic Decision-making Green Light, by Howard G. Chong, Ph.D., Tool to Evaluate Decision Alternatives, Vol. 12 No. 16 Restaurant Daily Deals: and Rohit Verma, Ph.D. by Cathy A. Enz, Ph.D., and Gary M. The Operator Experience, by Joyce Thompson, Ph.D. Wu, Sheryl E. Kimes, Ph.D., and Utpal Vol. 13 No. 9 Hotel Daily Deals: Insights Dholakia, Ph.D. from Asian Consumers, by Sheryl E. 2013 Industry Perspectives Kimes, Ph.D., and Chekitan S. Dev, Ph.D. Vol. 12 No. 15 The Impact of Social Vol. 3 No. 2 Lost in Translation: Cross- Media on Lodging Performance, by Chris country Differences in Hotel Guest Vol. 13 No. 8 Tips Predict Restaurant K. Anderson, Ph.D.Satisfaction, by Gina Pingitore, Ph.D., Sales, by Michael Lynn, Ph.D., and Andrey Weihua Huang, Ph.D., and Stuart Greif, Ukhov, Ph.D. Vol. 12 No. 14 HR Branding How M.B.A. Human Resources Can Learn from Vol. 13 No. 7 Social Media Use in Product and Service Branding to Improve Vol. 3 No. 1 Using Research to Determine the Restaurant Industry: A Work in Attraction, Selection, and Retention, by the ROI of Product Enhancements: A Progress, by Abigail Needles and Gary M. Derrick Kim and Michael Sturman, Ph.D.Best Western Case Study, by Rick Garlick, Thompson, Ph.D. Ph.D., and Joyce Schlentner Vol. 12 No. 13 Service Scripting and Vol. 13 No. 6 Common Global and Local 2013 Proceedings Authenticity: Insights for the Hospitality Drivers of RevPAR in Asian Cities, by Industry, by Liana Victorino, Ph.D., Crocker H. Liu, Ph.D., Pamela C. Moulton, Vol. 5 No. 6 Challenges in Contemporary Alexander Bolinger, Ph.D., and Rohit Ph.D., and Daniel C. Quan, Ph.D. Hospitality Branding, by Chekitan S. Dev Verma, Ph.D. Vol. 13. No. 5 Network Exploitation Vol. 5 No. 5 Emerging Trends in Vol. 12 No. 12 Determining Materiality in Capability: Model Validation, by Gabriele Restaurant Ownership and Management, Hotel Carbon Footprinting: What Counts Piccoli, Ph.D., William J. Carroll, Ph.D., by Benjamin Lawrence, Ph.D. and What Does Not, by Eric Ricaurte and Paolo Torchio Vol. 5 No. 4 2012 Cornell Hospitality Vol. 12 No. 11 Earnings Announcements Vol. 13 No. 4 Attitudes of Chinese Research Summit: Toward Sustainable in the Hospitality Industry: Do You Hear Outbound Travelers: The Hotel Industry Hotel and Restaurant Operations, by What I Say?, Pamela Moulton, Ph.D., and Welcomes a Growing Market, by Peng Glenn Withiam Di Wu Liu, Ph.D., Qingqing Lin, Lingqiang Zhou, Ph.D., and Raj Chandnani Vol. 5 No. 3 2012 Cornell Hospitality Vol. 12 No. 10 Optimizing Hotel Pricing: Research Summit: Hotel and Restaurant A New Approach to Hotel Reservations, Vol. 13 No. 3 The Target Market Strategy, Key Elements for Success, by by Peng Liu, Ph.D. Misapprehension: Lessons from Glenn Withiam Restaurant Duplication of Purchase Data, Vol. 12 No. 9 The Contagion Effect: Michael Lynn, Ph.D. Vol. 5 No. 2 2012 Cornell Hospitality Understanding the Impact of Changes in Research Summit: Building Service Individual and Work-unit Satisfaction on Vol. 13 No. 2 Compendium 2013 Excellence for Customer Satisfaction, by Hospitality Industry Turnover, by Timothy Glenn Withiam Hinkin, Ph.D., Brooks Holtom, Ph.D., and Vol. 13 No. 1 2012 Annual Report Dong Liu, Ph.D. Vol. 5 No. 1 2012 Cornell Hospitality 2013 Hospitality Tools Research Summit: Critical Issues for Vol. 12 No. 8 Saving the Bed from Industry and Educators, by Glenn the Fed, Levon Goukasian, Ph.D., and Vol. 4 No. 2 Does Your Website Meet Withiam Qingzhong Ma, Ph.D. Potential Customers’ Needs? How to Conduct Usability Tests to Discover the Answer, by Daphne A. Jameson, Ph.D. Cornell Hospitality Proceedings • December 2014 • www.chr.cornell.edu 13 Cornell University School of Hotel Administration The Center for Hospitality Research 537 Statler Hall Ithaca, NY 14853 607.255.9780 shachr@cornell.edu www.chr.cornell.edu