Detroit's boutique hotel boom crawling back after COVID-19 disruptions

Great update on the hotels under construction in Downtown and Midtown Detroit in the Free Press. Unfortunately, some hotel proposals have been scrapped.
Detroit's boutique hotel boom crawling back after COVID-19 disruptions
https://www.gannett-cdn.com/presto/2...pjpg&auto=webp

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Weekly occupancy rates for greater downtown Detroit hotels was generally between 40% and 60% in June and July, reaching nearly 73% in the final week of July, according to the convention and visitors bureau. The average daily rate that final week was $196.


Still on Molinari's wish list to see built is a large high-occupancy hotel next to downtown's Huntington Place convention center, formerly known as the TCF Center and Cobo Hall. A creditor in Detroit's 2013-14 bankruptcy once considered such a hotel for the former Joe Louis Arena site. However, the development firm that now owns the property, Detroit-based Sterling Group, is instead building a 500-unit housing development. Yet there is still some land available to possibly squeeze in a future hotel.


“It is critical that we add a large convention center hotel, upscale, to the west side of [[Huntington Place),” Molinari said. “Until we do that, we’re not going to be able to compete appropriately and we’re at a big disadvantage.”

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https://www.freep.com/story/money/bu...n/10249605002/

So then make the convention center hotel happen already? What the hell is the deal?

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Originally Posted by Satiricalivory

So then make the convention center hotel happen already? What the hell is the deal?

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Chicken and egg. You don't get the conventions without the hotel but there's no guarantee you get enough of them with it. So far no private investors have wanted to dig that deep.

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Originally Posted by Satiricalivory

So then make the convention center hotel happen already? What the hell is the deal?

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There's a 1,329-room hotel across hart plaza in the Ren Cen. This property puts downward pressure on the entire cbd hotel market. Any new large convention hotel would likely saturate the market soaking would be investors.

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Originally Posted by 401don

Chicken and egg. You don't get the conventions without the hotel but there's no guarantee you get enough of them with it. So far no private investors have wanted to dig that deep.

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I think it's a wait-and-see from investors. There are hundreds of downtown area hotel rooms due to come online in the next few years. They might want to see how those fare before committing funding towards a super hotel.

Is a 1/4 mile walk/shuttle ride from the Ren Cen REALLY the deal breaker to getting more/larger conventions? I understand that having a large [[500-600) room hotel plopped down right next door to COBO is attractive. But is that really the blockade??? I'd be curious to know what the average occupancy is at the Ren Cen Marriott. With all the newly added [[and upcoming rooms) in Detroit supposedly coming online in the next 2-4 years, I'd think Detroit can handle the majority of conventions. It handled a Super Bowl, I think it'd be able to take on some of the major convention business.

One more item: Although Ross is involved in the Olympia/LCA hotel, I still have so much skepticism toward that project happening.

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Originally Posted by hybridy

There's a 1,329-room hotel across hart plaza in the Ren Cen. This property puts downward pressure on the entire cbd hotel market. Any new large convention hotel would likely saturate the market soaking would be investors.

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That sounds dubious. Downtown has perennially high hotel occupancy rates and not enough rooms, this has been the situation for a long time now. They've been stating for many years that the convention center needs a dedicated hotel, so the Marriott at the Ren Cen clearly isn't enough.

So the hotel market is well proven, it shouldn't be hard to get financing for it. There are multiple large lots on Fort street right across from the center where you could easily fit a large hotel. It's baffling no developer has taken the opportunity yet.

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Originally Posted by Satiricalivory

That sounds dubious. Downtown has perennially high hotel occupancy rates and not enough rooms, this has been the situation for a long time now. They've been stating for many years that the convention center needs a dedicated hotel, so the Marriott at the Ren Cen clearly isn't enough.

So the hotel market is well proven, it shouldn't be hard to get financing for it. There are multiple large lots on Fort street right across from the center where you could easily fit a large hotel. It's baffling no developer has taken the opportunity yet.

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Admittedly my knowledge is a bit dated, but in 2017 while completing market studies for what could be supported at JLA site that was indeed the case. That's not to say a hotel isn't desired there, nor is it indicative of one succeeding or not. If there is market and profits to be made, a hotel will get built there.

The issue with a convention-connected hotel on the JLA site is the disconnect to downtown. People attending conventions want to spend their days conveniently seeing their host city. The long discussed second tower at the Pontchartrain hotel [[known by various names over the years) would seal the deal because it is conveniently connected to the most desired areas of downtown.

I think potential still exists though. A new parking structure on Congress bridging 1st with a hotel above it would suit parking and conveniently connected convention hotel rooms. That stretch could use some life right now.

There's like 5 parking garages in the area, last this it needs is more parking.

And I'm not sure that's true. Most convention centers and attached hotels are pretty isolated from downtowns with a few exceptions.

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Originally Posted by Satiricalivory

There's like 5 parking garages in the area, last this it needs is more parking.

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That's my point. A hotel can be added without increasing parking since it already exists. Rebuilding existing parking to support a hotel tower directly across from the convention center and activating a highly visible but often dead street seems like a win for all parties.

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Originally Posted by mikeg19

Is a 1/4 mile walk/shuttle ride from the Ren Cen REALLY the deal breaker to getting more/larger conventions? I understand that having a large [[500-600) room hotel plopped down right next door to COBO is attractive. But is that really the blockade??? I'd be curious to know what the average occupancy is at the Ren Cen Marriott. With all the newly added [[and upcoming rooms) in Detroit supposedly coming online in the next 2-4 years, I'd think Detroit can handle the majority of conventions. It handled a Super Bowl, I think it'd be able to take on some of the major convention business.

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Yes. When you're a national event planner without a "special place in your heart" for Detroit, and you're choosing from 10+ big cities...the one where your conference attendees are forced to trek 1/4 mile outside each day [[what if it rains? or snows?) is not going to be at the top of the list.

^ That's a point as some [visitors] don't perceive Detroit fully walkable just yet.

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Originally Posted by KnnNike

Yes. When you're a national event planner without a "special place in your heart" for Detroit, and you're choosing from 10+ big cities...the one where your conference attendees are forced to trek 1/4 mile outside each day [[what if it rains? or snows?) is not going to be at the top of the list.

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By the same token, you attach a hotel to a convention center few people are going to trek 1/4 mile each day looking for Detroit amenities. They're going to be at the convention center all day, eat at the hotel restaurant, drink at the hotel bar, shop at the hotel souvenir shop, then go back to their rooms and crash. Maybe if there's something across the street or next door, some will venture out.