Big 3’s resurgence helps Detroit hotel industry pick up speed

Selling the millions of cars that came off Detroit-area assembly lines during the most recent recession might have been tough, but filling the more than 1,600 new hotel rooms that came online in downtown Detroit at the same time was likely tougher.

Between 2007 and 2009, three new hotels and one renovated property opened in downtown Detroit, just in time for the economy to crater and push the area’s occupancy rate below the dreaded 50% mark.

“When those hotels came out, the market fell apart,” said Michael O’Callaghan, COO of the Detroit Metro Convention and Visitors Bureau. “It was brutal around here.”

Not so much now. Spurred primarily by a rebound in demand for cars and trucks made by General Motors, Ford and Chrysler, Detroit hotels’ revenue per available room for the first six months of the year jumped 13.8% from a year earlier, trailing only San Francisco-San Mateo, Oahu and Dallas among the 25 largest U.S. markets in terms of RevPAR growth, STR reported last month.

The Detroit market, which consists of about 40,000 rooms, reported a 66.3% occupancy rate in June, putting the metropolitan area on par with overall U.S. occupancy and ahead of markets such as Atlanta, Houston and Tampa-St. Petersburg.

http://www.travelweekly.com/Travel-N...pick-up-speed/

2009 was hell. So glad to see things are normalizing in a good way for the CBD.

There's a big one, just sitting there, about a 3 wood from the Cobo entrance. Granted, it's been a dump for a couple of decades even before it closed, but, what a great location.

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Originally Posted by softailrider

There's a big one, just sitting there, about a 3 wood from the Cobo entrance. Granted, it's been a dump for a couple of decades even before it closed, but, what a great location.

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I'd be surprised with the renovation of Cobo & uptick of room occupancy and rates if someone didn't scoop up the Pontch. That having been said, it needs more than a little renovation. The building screams 1975. But the location is terrific, as, I imagine, is the view. I think someone willing to put a lot of money into it could make it into a lucrative property. It needs renovation on a level to be competitive with the Book Cadillac, MGM Grand, and Marriott RenCen. Mid-level renovation will make it competitive with Holiday Inn and HIlton Garden Inn. I don't think that would be successful in the long run. So, I hope an investor can see the value of putting money into it.

Of course, it could conceivably also be a nice condo tower. Again, that would take a lot of money.

PS Whatever becomes of it, I hope they use the name Pontchartrain.

That Westin Hotel article omitted the Fort Shelby Hotel, which also came online during the time the other 4 hotels did...

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Originally Posted by MikeyinBrooklyn

I'd be surprised with the renovation of Cobo & uptick of room occupancy and rates if someone didn't scoop up the Pontch. That having been said, it needs more than a little renovation. The building screams 1975. But the location is terrific, as, I imagine, is the view. I think someone willing to put a lot of money into it could make it into a lucrative property. It needs renovation on a level to be competitive with the Book Cadillac, MGM Grand, and Marriott RenCen. Mid-level renovation will make it competitive with Holiday Inn and HIlton Garden Inn. I don't think that would be successful in the long run. So, I hope an investor can see the value of putting money into it.

Of course, it could conceivably also be a nice condo tower. Again, that would take a lot of money.

PS Whatever becomes of it, I hope they use the name Pontchartrain.

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This issues regarding the Pontch were mentioned in the Cobo Center thread. The building had an extensive renovation around when it was turned into Sheraton so the interior is modern not 1975ish.

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The Pontch was extensively renovated about three years ago. Now, most of the
renovations were cosmetic [[new carpet, paint, furniture, bathrooms,
fixtures all to match the Sheraton brand) but they did install a nice fitness
center and indoor pool on the first floor right off the motor lobby. They
closed off floor three that contained the old fitness center and access to the
old outdoor pool. From what I remember, the building needs an HVAC and plumping
overhaul as well as new elevators but as long as the building has been secured
since closing, the rooms should be ready to go. The hotel still looks
completely furnished when looking from the outside. The rooms are small but due
to the fact that they were just completely re-done and barely used it would be a
waist to start with reconstruction and enlarging them

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.

http://www.detroityes.com/mb/showthr...387#post269387

I know the Pontch was renovated, but I stick by my "1975" designation for 2 reasons [[admittedly I have never been the building). First, the exterior is neither bold and modern nor classically elegant. It LOOKS dated without charm, a la architecture of the 1970s. Second, new carpetting and furniture not withstanding, modern hotel rooms require things beyond that. They tend to be bigger, have more luxurious restrooms, office/ work stations in the room,etc. Also more real suites in the building as compared to a more basic hotel. Those changes are not cosmetic; I would suspect the hotel would need to have substantially reconfigured rooms to be a modern, first class hotel. I have never heard about that kind of renovation occurring, even if the furnishings were nice and contemporary. I have stayed at all 3 casino hotels, and been in a Book Cadillac suite. I would doubt strongly that the Pontch could readily compete with them. I think it can, but it will take a great deal of investment.

The views are great from the Pontch. I stayed there once in the later 1970's, while attending a state Republican convention as a teen. That being said, my being at a GOP convention had to have been a lifetime ago. But we all did things in our youth that embarrass us today....

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Originally Posted by MikeyinBrooklyn

I know the Pontch was renovated, but I stick by my "1975" designation for 2 reasons [[admittedly I have never been the building). First, the exterior is neither bold and modern nor classically elegant. It LOOKS dated without charm, a la architecture of the 1970s. Second, new carpetting and furniture not withstanding, modern hotel rooms require things beyond that. They tend to be bigger, have more luxurious restrooms, office/ work stations in the room,etc. Also more real suites in the building as compared to a more basic hotel. Those changes are not cosmetic; I would suspect the hotel would need to have substantially reconfigured rooms to be a modern, first class hotel. I have never heard about that kind of renovation occurring, even if the furnishings were nice and contemporary. I have stayed at all 3 casino hotels, and been in a Book Cadillac suite. I would doubt strongly that the Pontch could readily compete with them. I think it can, but it will take a great deal of investment.

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They completely re-did each guest room, guest bathroom and public corridor as well. I would think the rooms in their current form could still compete with the HI Express down the street. Speaking from experience, the room sizes are truly not overwhelmingly tiny. If Starwood was willing to let Shubh franchise their quality Sheraton name back in 2008 for the hotel, I would think that it could be competitive if given it's needed mechanical upgrades and a better maangement team with a strong owner that has some cash.

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Originally Posted by MikeyinBrooklyn

I know the Pontch was renovated, but I stick by my "1975" designation for 2 reasons [[admittedly I have never been the building). First, the exterior is neither bold and modern nor classically elegant. It LOOKS dated without charm, a la architecture of the 1970s. Second, new carpetting and furniture not withstanding, modern hotel rooms require things beyond that. They tend to be bigger, have more luxurious restrooms, office/ work stations in the room,etc. Also more real suites in the building as compared to a more basic hotel. Those changes are not cosmetic; I would suspect the hotel would need to have substantially reconfigured rooms to be a modern, first class hotel. I have never heard about that kind of renovation occurring, even if the furnishings were nice and contemporary. I have stayed at all 3 casino hotels, and been in a Book Cadillac suite. I would doubt strongly that the Pontch could readily compete with them. I think it can, but it will take a great deal of investment.

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If you've never been in the building how can you criticize it? You make it sound like it was an SRO and that was never the case.

I thought the Pontch was a cool looking addition to the Detroit skyline when it was new in the 60s. By 1975 it was old news.

I'm still wondering, how the Auto Industry equates to the Hotel Industry booming? I don't see the correalation.

The Big 3 affect non-automotive business health in Metro Detroit? Gosh.

And what happens when we fall into a double dip recession and cars aren't selling as well? That's what freaks me out. I hope that this predicted economic lull really doesn't drag for the 4-8 years I've been hearing predicted. With all the incredible momentum downtown is showing, it'd be a disaster to fall back into it.

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Originally Posted by DetroitPlanner

If you've never been in the building how can you criticize it? You make it sound like it was an SRO and that was never the case.

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I am not criticizing the Pontch, it's past owners, or anything of the sort. And I did preface my original statement with, as you noted, that I have never been in there. I truly hope someone buys it, gives it the work it needs, and it is a raging success. I just think we shouldn't kid ourselves in thinking an owner can come in, throw around a little paint, and it will play with the big boys. The exepnse-accounting business types who are the prime audience for a reopened Pontchartrain Hotel at the Cobo Center are going to demand quality and amenities that it doesn't currently have, assuming the time period in which the hotel was opened, and the seemingly cosmetic- real, to be sure, but cosmetic- renovations it has received [[as I've read about here on Detroit Yes). Hey, if it's a gem, I'd be surprised and delighted. I just know that there are probably 10+ hotels where the business travellers will stay first. The last thing we need to have is have it be an open-then-closed-then-open-the changed affiliation-then closed hotel again. It will be a waste of money and make people avoid investment there at all costs. It needs to be reconsidered and highly renovated to be a competitive and profitable location. If that weren't true, why would it be closed right now?

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Originally Posted by MikeyinBrooklyn

I am not criticizing the Pontch, it's past owners, or anything of the sort. And I did preface my original statement with, as you noted, that I have never been in there. I truly hope someone buys it, gives it the work it needs, and it is a raging success. I just think we shouldn't kid ourselves in thinking an owner can come in, throw around a little paint, and it will play with the big boys. The exepnse-accounting business types who are the prime audience for a reopened Pontchartrain Hotel at the Cobo Center are going to demand quality and amenities that it doesn't currently have, assuming the time period in which the hotel was opened, and the seemingly cosmetic- real, to be sure, but cosmetic- renovations it has received [[as I've read about here on Detroit Yes). Hey, if it's a gem, I'd be surprised and delighted. I just know that there are probably 10+ hotels where the business travellers will stay first. The last thing we need to have is have it be an open-then-closed-then-open-the changed affiliation-then closed hotel again. It will be a waste of money and make people avoid investment there at all costs. It needs to be reconsidered and highly renovated to be a competitive and profitable location. If that weren't true, why would it be closed right now?

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Like was said room size is fine at least for a mid level hotel the biggest issues with the Pontch are it's mechanical issues. It's closure is primary due to that it's owner Shubh Hotels went bankrupt, they owned a number of hotels across the country, including the Pittsburgh Hilton that was left in limbo as it was in middle of a renovation when the company went under. Really if had my way it would be demoed and replaced with a hotel that is more street friendly. The hotel I really want to see redone is the Leland it's the only hotel downtown that was never closed and still has it's original interior features.

Yes the Leland was designed by Cornelius W. & George L. Rapp... known as Rapp & Rapp. This name won't be that familiar to many of you because they designed mostly theatres and ballrooms from WWI onward. They were known as one of the "big 4" movie palace design firms [[along with C. Howard Crane, Thomas Lamb and John Eberson).

Rapp & Rapp is mostly famous for their French Renaissance and Baroque theatres and buildings. The Michigan Theatre [[originally 4,050 seats) was one of their largest commissions. They also did the Chicago Theatre [[3,880 seats), and the Broadway Paramount [[3,600 seats, razed) in Times Square NYC. Around the same time that they did the Michigan Theatre commission, they were commissioned to build the Leland Hotel. It has a very elegant Italian Renaissance facade, and also some very fine public interior spaces that still surivive in their original look.

Rapp & Rapp also did the Royal Oak Theatre [[a much tamer suburban commission). Their last theatre [[after the founding brothers were long dead) was the new Fisher Theatre in 1961, when enough members of the firm were brought out of retirement to do this one special request.

Ironically the old Fisher Theatre was designed by Graven & Mayger... a firm that only lasted 1 1/2 years [[1927-28). The 2 architects of that theatre were former Rapp & Rapp employees that went off on their own. They only did 5 theatre commissions before disbanding in 1928.

I find some of the comments on this kinda interesting, as I had some friends stay at the Ponch, when it opened under the other name and renovated about 4 yrs ago.. The room they stayed in was beautiful
redone nicely, flat screened, comtemporary furniture, beautiful bathroom,,, a very good reno job by most standards and beautiful bedding /covers on them...It was by no means "dated 1975"" They had actually put a alot of money into many areas, A furthur redue would not be all that expensive now

I spent my wedding night at the Pontch. I still think it's an attractive building. It held up much better than my marriage.

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Originally Posted by DetBill

I find some of the comments on this kinda interesting, as I had some friends stay at the Ponch, when it opened under the other name and renovated about 4 yrs ago.. The room they stayed in was beautiful
redone nicely, flat screened, comtemporary furniture, beautiful bathroom,,, a very good reno job by most standards and beautiful bedding /covers on them...It was by no means "dated 1975"" They had actually put a alot of money into many areas, A furthur redue would not be all that expensive now

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I don't think that latest renovation turned out that well. They had some church convention in there the last Summer the Hotel was open. The A.C went out and some of those church people just about had heat stroke.

Before the last renovation the place was terrible, it was common knowledge it had gone way downhill.

Weird thing is, before they closed, that Hotel was busy on the weekends. You would go by there and lights were on in most of the rooms. That means there were people staying there.......right ?

There was a Crains article right before the closure of the Pontch that mentioned the owners were trying to work out a franchise deal with Crowne Plaza. It was a Crowne Plaza before it originally closed BTW.