What are those vacancy rates again? You think that having hulking, vacant, vandalized, and deteriorating properties has NO effect?If your theory held any water, then the existing vacant buildings downtown would have been sufficient to discourage occupancy in the Renaissance Center, Comerica Tower, First National Building, Compuware, and just about every other major building in the Central Busines District. Some who have posted on this thread act as if vacant buildings downtown are a brand-new phenomenon.
Too many on this board act as if the volume of vacant buildings downtown is normal or has no negative effects.Some who have posted on this thread act as if vacant buildings downtown are a brand-new phenomenon.
Well, there is this from March of this year.....Is there any evidence that the Book-Cadillac or Fort-Shelby are failing? Bear in mind that the economy SUCKS right now, most acutely in Detroit, and those two buildings haven't yet closed-up shop. I take that as a positive sign.
Please come here, we're cheap and your shareholders wont revolt!?! THAT is the marketing strategy?Detroit’s Hotel Doldrums
by Joe Brancatelli | See Archive
The Motor City’s top hotels have gotten a much-needed overhaul in recent years, but the downward spiral of the auto industry helps keep occupancy rates down....
More than half of Detroit's estimated 40,000 guestrooms are empty, and PKF Hospitality Research says lodging demand will fall further this year. The St. Regis is in receivership. The Riverside has been picketed by employees who say they haven't been paid, and the Detroit News says the hotel owes almost $700,000 in back taxes. One of the casinos is in bankruptcy and another is for sale. Only a handful of buyers have closed on the dozens of pricey condos atop the Book Cadillac. The Fort Shelby's new rental apartments are mostly empty too. And Detroit's revpar [[revenue per available room), the key measure of financial health in the lodging industry, is one-third lower than the national average.
"The statistics are scary," admits Shannon Dunavent, general manager of the Doubletree Guest Suites hotel that was lovingly carved out of the carcass of the Fort Shelby. "I've been working in Michigan for 20 years and I won't lie to you. There's no new business in the market. We're all trying to steal from the other guy to survive."
....
"This has always been about urban renewal and politics more than market forces," one hotel executive told me last week. "You can admire the drive and the commitment to rebuild Detroit, but there was a lot of 'If we build it, they will come,' thinking. We built. Guests haven't come."
...
And Farmery [GM of RenCen Marriot] believes Detroit can wake from its lodging nightmare. He thinks the city can profit from the AIG Effect that has forced major corporations to cancel pricey meetings in eyebrow-raising resorts like Las Vegas and Hawaii.
"Our product is terrific and our rates are low," he says. "And nobody will criticize you if you hold a meeting in Detroit."
http://www.portfolio.com/business-tr...?page=2#page=2
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