Quote Originally Posted by Packman41 View Post
Converting to apartments is not very likely IMHO.

The Detroit News has updated their online article and now report:

“The final straw, according to Skelton and Wilson, [two, independent hotel consultants] was that the cost of upgrading the facility was too high and the expectation of getting back the convention and group meeting business was too low. The cost to upgrade the facility could be over $20 million, Wilson speculated.”

If the new owners are not going to spend $20 million [[$25,906 per room) to keep a Hyatt-like quality hotel, then you wonder what they are willing to spend. All hotel management/franchising companies have inspection standards that the owners have to meet in order to retain that management company.

The less the owners are willing to spend, then the lower quality hotel you get to manage the place. Now looks as if the owners are going down scale.
Such a shame. Considering they purchased for 11 million, I supposed I can see how 20 milion seems daunting. However, they have to realize what a mammoth size project they have for the bargain they paid. A total of 31 million to have a high-rated luxury Hyatt Regency and be one of the leading convention hotels in the state is a BARGAIN! One can only hope that they sell to some better owners who are up for the task. This isn't just a typically 300 room standard hotel. This is a key player hotel in the local hotel industry. This is another Marriott Ren Cen, Westin Book Cadillac, etc.

By the way, I can tell you from personal experience that if those room do not get updated quickly, the hotel will go downhill fast. The rooms were last renovated in 2001-2002. Typicaly hotel room renovations should occur every 7 years according to industry standards. We are now 3 years past that time. It is no wonder why Hyatt wants to terminate the contract as it becoming a poor representation of their brand. The public areas still felt luxurious and were nicely maintained last time I was there.

Someone should give Ford a call. Didn't they have a nice quarter? Purchasing and renovating the Hyatt would be pocket change to them! GM owns a hotel, why can't Ford?