Crocker Liu

Robert A. Beck Professor of Hospitality Financial Management

Liu Ph.D.

Crocker H. Liu is the Robert A. Beck Professor of Hospitality Financial Management and a professor of real estate at the Cornell University School of Hotel Administration. He previously taught at New York University's Stern School of Business (1988-2006), where he was the associate director of real estate, and more recently at Arizona State University's W.P. Carey School of Business (2006-2009), where he held the McCord Chair in addition to being the director of the Center for Real Estate Theory and Practice.

Professor Liu's research interests are focused on issues in real estate finance, particularly topics related to agency, corporate governance, organizational forms, market efficiency, and valuation. His research has been published in the Review of Financial Studies, Journal of Financial Economics, Journal of Business, Journal of Financial and Quantitative Analysis, Journal of Law and Economics, Journal of Financial Markets, Review of Finance, Journal of Corporate Finance, Journal of Urban Economics, Regional Science and Urban Economics, Real Estate Economics, Journal of Real Estate Finance and Economics, and the Journal of Real Estate Research. From 2001 to 2014, he was co-editor of Real Estate Economics—the top academic real estate journal—and he still serves on its editorial board. Professor Liu previously served on the editorial boards of the Journal of Real Estate Finance and Economics, Journal of Property Research, and the Journal of Real Estate Finance.

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Insights by Crocker Liu (5)

Q2 2020 Real Estate Indices: Are All Crises the Same?

Although the Great Recession is useful in offering insights into how hotel performance might fare during a crisis, we show that the current crisis is much worse in terms of risk and the loss of relative wealth.

Do Property Characteristics or Cash Flow Drive Hotel Real Estate Value? The Answer Is Yes

Abstract: Analysts typically use two types of methods to value hotels: comparable sales and the present value of income (sometimes calculated as discounted cash flow). This report explores whether one model is superior to the other, and whether combining both models results in more precise hotel valuations.

Looking Under the Hood: The Catalysts of Hotel Credit Spreads

Executive Summary: The interest-rate spread (or credit spread) between hotel loans and office building loans is an effective predictor of the relative change in delinquency for hotel loans, as explained in a prior report, "A New Canary for Hotel Mortgage Market Distress" (published by the CHR).

Relative Risk Premium: A New “Canary” for Hotel Mortgage-Market Distress

Executive Summary: Lenders' evaluation of the hotel industry's prospects can be assessed using a metric called the relative risk premium, which we introduce in this report. Similar to the canary in a coal mine, changes in the relative rates that lenders charge for hotel loans, as compared to those for office buildings, give an early warning of relative hotel loan delinquencies.

Using Economic Value Added (EVA) as a Barometer of Hotel Investment Performance

In this report, we show how the popular and well known economic value added (EVA) technique can be used as a barometer of investment performance for hotels and other property types. Economic value added represents the return on a project in excess of its financing cost.