Midtown building to get Marriott's first U.S. conversion to 'apartment-style' concept

[Airforceguy]

Midtown building to get Marriott's first U.S. conversion to 'apartment-style' concept

The first U.S. location of Marriott International Inc.’s new foray into what it calls “apartment-style accommodations” for travelers is coming to Detroit.


Bethesda, Md.-based Marriott is bringing Apartments by Marriott Bonvoy to The Plaza, the former Hammer & Nail office building on Woodward Avenue that was redeveloped into apartments by Detroit-based developer The Roxbury Group in 2016. As a result of the change, the 72-unit apartment building is being converted into about 92 units for longer-term travel accommodations. Leases for the existing apartment units will be honored, said David Di Rita, principal of The Roxbury Group.


The conversion is expected to be complete next year and set to involve reconfiguring some of its two-bedroom units.


Di Rita said there has been “a continuing evolution of the marketplace” as he has fielded inquiries from various operators of less traditional apartment/hospitality companies — think Sonder, Roost and Mint House and others — about converting The Plaza, which is just north of Detroit’s Whole Foods Inc. grocery store at Woodward and Mack avenues.


“It’s something we’re starting to evaluate, not specific to The Plaza but to our portfolio generally,” Di Rita said. “In our ongoing relationship with Marriott, they introduced Apartments by Marriott to us as a possibility for somewhere in our Detroit portfolio and The Plaza struck us as a really nice fit.” That includes being 100% residential already as well as the unit layout and site location. Unlike hotels, Marriott Bonvoy properties don't provide amenities like daily housekeeping or meeting spaces, but do offer things such as private bedrooms, separate living rooms, full kitchens, and washers and dryers, the hotel chain says.

https://www.crainsdetroit.com/real-e...d-stay-concept

[royce]

The question I have is, "What is the vacancy percentage currently at the Plaza?" Seems like it has to be incredibly high for the Roxbury Group to take this course of action. I wouldn't be happy as a current tenant. There are now going to be strange people, who are guest, in the building. Unless they separate, by floors, the current residents from the hotel guests, I would not feel comfortable living here. It wouldn't necessarily be a safety issue, but how do you know if the hotel guests will be quiet and not partying, using the hotel rooms to party instead of just staying there for an extended time.

[Danny]

Which means the Hammer and Nail Building could see the demo ball.

[mwilbert]

The question I have is, "What is the vacancy percentage currently at the Plaza?" Seems like it has to be incredibly high for the Roxbury Group to take this course of action.

I don't know, but it seems to me like you might do it even if it were full--you can rent more units at what is probably a higher rate. It might just be more profitable. It really depends on the cost of conversion. But sure, if it has a lot of vacancies now it would make the switch more attractive.

[canuck]

I don't know, but it seems to me like you might do it even if it were full--you can rent more units at what is probably a higher rate. It might just be more profitable. It really depends on the cost of conversion. But sure, if it has a lot of vacancies now it would make the switch more attractive.

Yes, sort of like putting rental units forward as Airbnb. Short terms are more profitable.

[K-slice]

I'm sure this is going to be a money maker for them. There's a reason that Book Tower reserved 1/3 of the apartments there for the same kind of thing.

Say $2,000 monthly rent = $67/day on average. Hotel rooms are going for double that on an average day in the area, even at an extended stay rate.