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.
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.