As an officer with the Mira Mesa Shopping Center in San Diego, CA, Elliot Feuerstein helps to lead a prominent retail development that features major restaurants, banks, and apparel outlets. As part of his professional duties, Elliot Feuerstein stays abreast of the latest developments in the retail and shopping center industries.
Since the first department stores of the 19th century, retailers have understood that one key to success is finding ways to keep shoppers in the store for longer periods of time. This concept was the topic of discussion at a recent panel at the 2018 International Council of Shopping Centers (ICSC) annual conference, known as RECon. The panelists, who included executives from the hotel and retail industries, discussed the growing trend of including hotels as a core part of the shopping center experience.
While hotels and shopping centers have a long history together, for most of that time hotels were not considered an integral part of the overall retail development strategy. This appears to be changing, as shopping center executives attempt to find new ways to drive traffic and extend visit times. This renewed interest is being reciprocated by hotel developers seeking innovative methods of standing out in a crowded field by providing unique amenities to their guests.
According to the panelists, this emerging trend of tighter hotel-shopping center integration presents both opportunities and challenges for hoteliers and retail development companies alike. Not only will real estate development companies need to adjust to the dynamics of a new industry, but hotel companies may need to develop new risk-and-return forecasting models.