Cornell Center for Real Estate and Finance Offers New Report Series

May 18, 2012

Contact:  Jane Henion, 607.254.8987, 

Ithaca, NY, May 17, 2012 - With reports explaining a new series of hotel real estate indices and an analysis of gateway cities, the new report series from the Center for Real Estate and Finance (CREF) at the School of Hotel Administration fills a gap in publications for the hospitality real estate and finance industry. “Our faculty have been actively publishing in the discipline academic journals,” observed CREF executive director Jan deRoos. “What we are doing here is to make this valuable research accessible to the industry, students, and other academics.” All CREF reports are available at no charge.

New Cornell Hotel Indices will track real estate prices and transactions involving repeat sales

Three new hotel real estate market indices from the Cornell Center for Real Estate and Finance (CREF) will fill a key gap in information about the hotel industry. As explained in a new CREF Report, these indices will monitor real estate transaction price changes in the hotel market for hotels with sale prices of $10 million or more, for hotels selling for less than $10 million, and for hotels involved in repeat sales. The indices will be updated quarterly and are available at no charge through the CREF website,

Also available at no charge on the CREF website is the report explaining the indices, “Cornell Real Estate Market Indices,” by Crocker H. Liu, Adam D. Nowak, and Robert M. White, Jr. Liu is the Robert A. Beck Professor of Hospitality Financial Management at the Cornell School of Hotel Administration, Nowak is an assistant professor at West Virginia University, and White is founder and president of Real Capital Analytics, which is providing data for the indices.

“The hotel industry has needed indices like these for some time, since other commercial property has them and so does residential real estate,” commented Jan A. deRoos, CREF executive director and the HVS Professor of Hotel Finance and Real Estate at the School of Hotel Administration. “I want to express my appreciation for our data analyst, Real Capital Analytics, for making these indices possible, and to CoStar for their support. These measures represent a large step up from reports of average transaction prices, because the average price doesn’t really tell you what you need to know about real estate transactions.”

Cornell Analysis Identifies U.S. Gateway Cities

A groundbreaking analysis has identified eight gateway cities in the United States, based on international enplanements and overall visitation. The new study, “What Is a Gateway City? A Hotel Market Perspective,” by Jack Corgel, is available at no charge from the Cornell Center for Real Estate and Finance (CREF).

“We know that international tourism brings in foreign exchange, and hotels located in gateway cities tend to perform more strongly than others, so knowing which cities fit this definition can be valuable for investors,” said Corgel, who is the Robert C. Baker Chair of Real Estate at the Cornell School of Hotel Administration. “I used an empirical analysis that compared cities based on two measures of the volume of international travel as compared to the number of available hotel rooms.”

Using 2010 figures, the analysis takes into account the number of enplanements and overall visitation by international travelers, as those figures relate to the number of hotel room-nights sold in each particular market. Topping the list of gateway cities are New York and Miami, followed by San Francisco, Honolulu, Los Angeles, Boston, Chicago, and Washington, D.C. Each of these received over 1 million visitors in 2010. Certain cities, notably, Orlando and Las Vegas are major markets for international travelers, but are not considered gateways because they tend not to be the entry point for visitors. Other cities, such as Philadelphia, are entry points for international arrivals, but do not have as large a volume of visitation as the gateway cities.

About The Center for Real Estate and Finance
Established in 2009, the Center for Real Estate Finance provides a platform for educating students, creating new knowledge through research activities, and exchanging information about real estate with a broad set of audiences. CREF is at the forefront of research in all areas of commercial real estate, from the study of the behavior of real estate assets in investment portfolios to an understanding of real estate capital markets to the science of hedging real estate risk. To learn more about CREF, visit

CREF Industry Fellows: Abacus Lodging Advisors • Archon Group, LP • Atlantic & Pacific Companies • Caribbean Property Group • Carlson Hotels • Chartres Lodging Group • Crescent Heights • Hersha Hospitality Trust • Hilton Worldwide • HVS • Jones Lang LaSalle Hotels • LaSalle Hotel Properties • Marquette Real Estate Group • Marriott International • National Realty & Development Corp. • Prudential Real Estate Investors • Real Capital Analytics • Sawyer Realty Holdings • Spring Bay Property Company • Starwood Capital Group • Sunstone Hotel Investors • W Holdings • Watermark Capital Partners, LLC  • Wyndham Hotel Group 

CREF Friends: AREA Property Partners • BlackRock • Clarion Partners • Commercial Mortgage Alert • GTIS Partners • Mid-America Management Corp • TIAA-CREF • Westport Capital Partners LLC • Westbrook Partners