Shopping Centers Today

JUL 2018

Shopping Centers Today is the news magazine of the International Council of Shopping Centers (ICSC)

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J U L Y 2 0 1 8 / S C T 11 Good bedfellows Retail centers, hotels work well together, experts say By Joe Gose S hopping center landlords and hoteliers are striking up more joint ventures than ever before, in an effort to bring customers to their properties, according to experts at a RECon panel titled "Alternative Use — Hotels." As a case in point, moderator Timothy Marvin, execu- tive head of the JLL hotels and hospitality group, cited the announce- ment a few days ago that Marriott International would open at least five hotels at Simon's shopping centers in the near future, the latest in a succession of similar hotel deals made with Simon. As hotels and developers build partnerships, retailers welcome them today much more than they did five years ago, said John Ward, pres- ident of 505Design. "The battles you used to have are almost all gone away," he said. Tom Lorenzo, Hilton's vice president and managing director of devel- opment for the Northeast and Canada, said developers began showing noticeable interest in adding on hotels a few years ago. Retail landlords began picturing their properties in more-prominent locations than in the past. At the same time, Hilton's strategy has shifted from a focus on access to highways, to access to retail, Lorenzo said. "Our select seg- ment may have breakfast, but our customers are looking for places to eat, shop and be entertained," he said. Pyramid Management Group, owner of 16 malls in the Northeast, opened a 209-room Embassy Suites Hotel at Destiny USA, in Syr- acuse, N.Y., last year. The company is also opening a 192-room, dual-branded Tru by Hilton and Homewood Suites by Hilton at the Crossgates Mall, in Albany, N.Y. Pyramid began looking at diversifying its properties about 10 years ago and thought owning hotels was the natural way to go, said James Soos, the company's director of devel- opment. To date, the retailers have welcomed the decision. "They understand the level of investment that we are making," Soos said, "and that the end goal of extending length of stay and bringing more people into the centers is a benefit to them." n entertainment and mixed-use prop- erties," said Patrick Peterman, Simon's vice president of development and asset intensification, in a press release. "The uses are very complementary. We've recognized this for a long time." In all, Marriott operates some 6,500 hotels under about 30 banners across nearly 130 countries and territories. One of the most notable hotel-mall combinations is the Ritz-Carlton — also a Marriott brand — in Fashion Centre at Pentagon City, Va. Other Simon malls that contain Marriott- brand hotels are Phipps Plaza, Atlanta, which got an AC hotel in 2016, and Coconut Point, Estero, Fla., where a TownePlace Suites opened last year. In all, Marriott has more than 6,500 hotels across 30 brands in 127 coun- tries and territories. n There is a great synergy when you combine Marriott's innovative hotels and Simon's exciting shopping, dining, entertainment and mixed-use properties

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