Edward Hotel, Former Hyatt Regency Dearborn, Closes Abruptly

[XDetroitr]

I agree that loud, obnoxious behavior is unacceptable and will also cause me to leave an establishment. My issue lies with hsi presumption that they were Detroiters. Is this based upon behavior or color of skin. Either way I could do without someone who automatically concludes that obnoxious, black or black and obnoxious people must be from Detroit

My comment about "presumed" Detroiters was not meant to offend. Only that Dearborn has a relatively small African-American population and the Detroit border is within a mile of the Hyatt. Therefore, the likelihood of the clientele being from Detroit is quite high.

[Hypestyles]

hopefully, if it becomes another hotel business, they will be hiring.. as far as "alternatives".. could any of the rooms be converted/expanded into apartments?

[Packman41]

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.

[iheartthed]

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.

When my friend got married about a year and a half ago the rate for the bridal party to stay there was in the $100/night range on what should have been a fairly busy weekend for them. At that rate I would guess that the hotel is averaging annually less than $15,000/room in revenue... Certainly not a compelling case to convince the owners to throw $20 million into a hotel with a poor location.

[DetroitPlanner]

When my friend got married about a year and a half ago the rate for the bridal party to stay there was in the $100/night range on what should have been a fairly busy weekend for them. At that rate I would guess that the hotel is averaging annually less than $15,000/room in revenue... Certainly not a compelling case to convince the owners to throw $20 million into a hotel with a poor location.

But you fail to realize there are several hundred rooms there, two restraunts, bars, meeting rooms, ballrooms, and a hotel store. Ever buy anything in a hotel? Say a meal, a bottle of scope, or hold a wedding? They make tons of additional dollars that way. Rooms are almost a loss leader for these places. 1.5 years ago the economy was not as solid as it is now [[its still weak BTW) so the party was able to swing a good rate for several rooms as well as having it at a time where there were probably 100's of rooms empty.

[iheartthed]

But you fail to realize there are several hundred rooms there, two restraunts, bars, meeting rooms, ballrooms, and a hotel store. Ever buy anything in a hotel? Say a meal, a bottle of scope, or hold a wedding? They make tons of additional dollars that way. Rooms are almost a loss leader for these places. 1.5 years ago the economy was not as solid as it is now [[its still weak BTW) so the party was able to swing a good rate for several rooms as well as having it at a time where there were probably 100's of rooms empty.

I'm still not convinced. Using the 60% occupied benchmark that I have heard cited as the break even point for hotels, this place is losing money.

But even if they were generating $20-$25K/room annually the math still doesn't work. It would take them a couple years of total revenue [[in an unstable hotel market) just to recoup the upgrade costs, forget about general operating costs. Then, as I said before, factor in that they are likely losing money... I'm sure that Hyatt asking for a $20M upgrade was quickly dismissed by the owners.

I'd guess that the hotel is far too large to give it much of a future as a luxury hotel. It would need to be able to increase occupancy and/or charge higher rates in order to make an expensive upgrade make sense. Wonder how much it would cost to demolish it and build another hotel?

[DetroitPlanner]

I'd guess that the hotel is far too large to give it much of a future as a luxury hotel. It would need to be able to increase occupancy and/or charge higher rates in order to make an expensive upgrade make sense. Wonder how much it would cost to demolish it and build another hotel?

Maybe its time for some of the floors to be turned into condos or apartments? U of M is hinting on converting the empty buildings along the mall's western ring road into student housing in order to link the mall with the campus. Why not expand the project?

[Hermod]

But you fail to realize there are several hundred rooms there, two restraunts, bars, meeting rooms, ballrooms, and a hotel store. Ever buy anything in a hotel? Say a meal, a bottle of scope, or hold a wedding? They make tons of additional dollars that way. Rooms are almost a loss leader for these places. 1.5 years ago the economy was not as solid as it is now [[its still weak BTW) so the party was able to swing a good rate for several rooms as well as having it at a time where there were probably 100's of rooms empty.

Hermod's Law [[based on 25 years of road warrior experience): Never, ever eat at the hotel restaurant!

[cmubryan]

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?

[Hypestyles]

GM owns a hotel? where?

[DetroitPlanner]

GM owns a hotel? where?

GM owns the Marriot and the Marriot Courtyard downtown. JW Marriot once sat on the board of GM. So a hotel had ownership of GM at one time!

[Gistok]

GM owns a hotel? where?

When they bought the Renaissance Center from Highgate back in the 1990s, the [[at that time) Westin Hotel was part of the package. Eventually it became a Marriott because the head of Marriott was on the GM Board.... but GM owns the building.

[DTWflyer]

Here is the master review thread on Flyertalk, arguably the best website and opinions by business travelers:

http://www.flyertalk.com/forum/hyatt...er-thread.html

The Hyatt Dearborn generally got mediocre reviews and as mentioned on many occasions it was rather empty at times.

There are some pictures of the rooms on Page 2. While the room and bathroom appear to be in good condition it was due for some updates in some areas. Particularly in comparison to other Hyatts and competitor properities.

Hyatt likely was requesting that they put flat-screen TVs, updated workstation/desks, perhaps a different type of shower/tub in each room. In addition to upgrades to the common areas.

[jcole]

Don't feel too bad for the Hyatt people; Hyatt is owned by the Pritzgers who also own TransUnion and all its subsidiaries, and if you work for them and go on a business trip and book there, they charge you full rack rate.

[Whitehouse]

Now that's a modern building I hate to see decline...

[Detroitnerd]

Now that's a modern building I hate to see decline...

I can't believe I'm about to speak a word in favor of Mayor Orville Hubbard, but here goes: At least he understood how traditional cities worked. When they showed him the design of the Hyatt, he was furious, barking out, "They've turned their BACK on Michigan Avenue!"

Despite the source, it's a fair point. Modernism doesn't exist in a vacuum. It's seldom human scale. It seldom integrates itself well with existing thoroughfares. It demands to be seen from a distance, mighty and terrible, like a boss' big desk at the back of a sprawling executive office. And you achieve that by setting it back behind acres and acres of parking.

As I posted earlier about Troy, I wonder what we'll use these huge buildings set willy-nilly in the middle of huge parking lots for in the future ...

[mwilbert]

This is a complaint about city planning and land values, not about an architectural style. There are certainly plenty of modernist buildings in Manhattan or Boston that are integrated into the street grid and not surrounded by parking. On the other hand, in suburban areas, or areas where land is cheap and the local government uninterested or incompetent, you generally get isolated pods with asphalt.

[Detroitnerd]

This is a complaint about city planning and land values, not about an architectural style. There are certainly plenty of modernist buildings in Manhattan or Boston that are integrated into the street grid and not surrounded by parking. On the other hand, in suburban areas, or areas where land is cheap and the local government uninterested or incompetent, you generally get isolated pods with asphalt.

To a certain extent, you are correct. But don't let's forget that modernism took off after World War II, during the great suburban exodus in the United States and the rise of car culture. For a clearer definition of what's called "magazine architecture," refer to Stewart Brand's "How Buildings Learn." You may not always agree with Brand's take on modernism, but it's a fascinating view of how architecture changed after World War II.

[Detroitnerd]

Given the traditionally stark differences in ethnic makeup between Detroit and its suburbs, I kinda understand the remark. Then again, the latest census proves that things are more complicated now. But, yeah, I feel ya, jt1: At a certain point, a dispassionate educated guess ends and some serious cultural chauvinism, if not outright racism, begins with this sort of stuff.

[iheartthed]

At a certain point, a dispassionate educated guess ends and some serious cultural chauvinism, if not outright racism, begins with this sort of stuff.

Probably about the point where it becomes necessary to mention that the offending parties are black... I mean "Detroiters".

Here's a test:

I'm not surprised by the news. My family used to meet at the Hyatt's restaurant on the 2nd floor for Sunday brunch. We stopped going a few years ago because the clientele was getting a little too rowdy. Large groups of people not always behaving politely in public. Sadly, the quality of their brunch buffet also dropped noticeably.

I changed one little part of his original statement. Does the statement still make sense? Is the reasoning for his family not continuing to go to Sunday brunch at the Hyatt any less clear now? Did it ever matter what city the loud, obnoxious people lived in who crashed Sunday brunch at the Hyatt?

[Detroitnerd]

Probably about the point where it becomes necessary to mention that the offending parties are black... I mean "Detroiters".

Here's a test:

I changed one little part of his original statement. Does the statement still make sense? Is the reasoning for his family not continuing to go to Sunday brunch at the Hyatt any less clear now? Did it ever matter what city the loud, obnoxious people lived in who crashed Sunday brunch at the Hyatt?

Good job. I understand. Even mentioning the race changes the entire meaning of the statement.

[iheartthed]

Good job. I understand. Even mentioning the race changes the entire meaning of the statement.

But then I don't have any qualms about getting angry about drunken, idiotic, white suburbanites trashing downtown on Opening Day. And I can say that with a clear conscience. But why is that? Is it because I'm white? Is it because they're enacting a kind of chauvinism? Is it because the whites have not historically been the victims of racism? I think that's what confuses me.

Well, it shouldn't matter there either [[am I understanding your point correctly?). Drunk people trashing downtown are drunk people trashing downtown. Them being white doesn't make a difference for what they did. And people of any race can get drunk and trash downtown.

However, "white" is the default for American so... there really isn't a stigmatization of a whole class of people by saying "drunk white suburbanites trashed downtown". If anything, that statement is more of a distinction to say that the people who trashed downtown on opening day aren't Detroiters and they aren't black [[Latino, Arab or Asian) -- or some other disenfranchised class of people. It's like saying "the terrorists who destroyed the Oklahoma City federal building were white". What that statement is really saying is that "the terrorists who destroyed the Oklahoma City federal building were not Muslims of Arab descent."

[Downriviera]

Rowdy clientele at Hyatt Sunday brunch.

[poobert]

Rowdy clientele at Hyatt Sunday brunch.

Best thing ever.

[Gistok]

Perhaps this begs the question... is Hyatt abandoning the Detroit market altogether? Or are they looking at another existing location for their signage?

I realize that Hyatt's trademark has been soaring lobbies and that besides the RenCen, no other Detroit area hotel fits the bill.

I had always hoped that the David Whitney Building would be converted to a hotel... but by moving the skylight above the 4 story lobby to the top of the 18th floor, and had the [[weather enclosed) skywell opened up with railings enclosing the hallways of each floor looking down the 18 story skywell.... in a Hyatt like way.

The Denver Brown Palace Hotel comes close to what I'm describing...
http://en.wikipedia.org/wiki/File:Brownpalace2.JPG
http://en.wikipedia.org/wiki/File:20...lace_Hotel.jpg

What they're currently planning for the Whitney doesn't come close to what I would like to see... the skywell will remain a skywell.