"USA Today" Article on Detroit's Hotel Industry

http://www.usatoday.com/story/travel...otels/2586237/

Once again, another article which emphasizes the 'two Detroits' - the downtown and 'everything else'.

One thing that I liked are the last sentences [[direct quote):

Detroit Regional Chamber President and CEO Sandy Baruah says he hopes all the development downtown will eventually spread outward.

"You start with the core, you start with the assets you have, you build them out to make them sustainable and you build out from there," he says.

I have always felt that Detroit's recovery will come along Woodward. Build the downtown, build every piece of land fronting Woodward in midtown, and just keep going.

When I think of Detroit I think of its assets. Its assets, to me, are mostly downtown, midtown [[including WSU, the hospitals, DIA, etc.) and then a little further out things like Henry Ford Hospital.

Detroit needs a solid tax base and downtown is the best hope of building a foundation for that tax base.

Then as new, stable neighborhoods develop they will produce the real estate taxes Detroit needs.

Renovate Dan [[Gilbert) renovate. Build Dan build.

I should add that the article has a lot of good numbers on the hotel market in Detroit. I didn't emphasize that in my original post.

I found these stats amazing:

Hotel occupancy rates in the metropolitan Detroit area have gone from 47.5% in 2009, when General Motors and Chrysler filed for bankruptcy protection, to 61.3% so far this year, according to hotel industry tracking firm STR. That's in line with the national average. Last month, hotel occupancy levels reached 70.3%.

I wish we knew more about hotels in downtown Detroit [[cf. metro Detroit).

This a re-hash from a local Freep article a couple of days prior.

http://www.freep.com/apps/pbcs.dll/a...=2013307270055


EMU keep in mind that depending upon when in 2009 we are talking about, there is the possibility that several hundred more rooms have opened and this is remarkable.

Quote:

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Originally Posted by emu steve

http://www.usatoday.com/story/travel...otels/2586237/

Once again, another article which emphasizes the 'two Detroits' - the downtown and 'everything else'.

One thing that I liked are the last sentences [[direct quote):

Detroit Regional Chamber President and CEO Sandy Baruah says he hopes all the development downtown will eventually spread outward.

"You start with the core, you start with the assets you have, you build them out to make them sustainable and you build out from there," he says.

I have always felt that Detroit's recovery will come along Woodward. Build the downtown, build every piece of land fronting Woodward in midtown, and just keep going.

When I think of Detroit I think of its assets. Its assets, to me, are mostly downtown, midtown [[including WSU, the hospitals, DIA, etc.) and then a little further out things like Henry Ford Hospital.

Detroit needs a solid tax base and downtown is the best hope of building a foundation for that tax base.

Then as new, stable neighborhoods develop they will produce the real estate taxes Detroit needs.

Renovate Dan [[Gilbert) renovate. Build Dan build.

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There's one oversight: Tax breaks and credits for businesses that move in. Cities that do that shortchange their residents and put the tax burden back on the residents.

Hotels are like manufacturing operations. They bring outside dollars to be spent in a local geographic area increasing the wealth, as opposed to redistributing the wealth within a region. If the Crown Plaza is full each night [[assuming non Tri-County residents), that brings dollars for Starbucks, eating out, casinos, in short anything from outside the region to benefit the region. Booming hotels are great for any city! Plus each person who visits has an experience in Detroit - for example - many of those creditors in town for the Orr events at the Book Cadillac etc bring NY dollars to be spent at Roast, tipping local valets, going to local pubs etc - all on the Company dime. The more downtown office workers - the more other consultants/professionals will stay downtown to service these companies. Nowhere to go but up!

Quote:

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Originally Posted by belleislerunner

Hotels are like manufacturing operations. They bring outside dollars to be spent in a local geographic area increasing the wealth, as opposed to redistributing the wealth within a region. If the Crown Plaza is full each night [[assuming non Tri-County residents), that brings dollars for Starbucks, eating out, casinos, in short anything from outside the region to benefit the region. Booming hotels are great for any city! Plus each person who visits has an experience in Detroit - for example - many of those creditors in town for the Orr events at the Book Cadillac etc bring NY dollars to be spent at Roast, tipping local valets, going to local pubs etc - all on the Company dime. The more downtown office workers - the more other consultants/professionals will stay downtown to service these companies. Nowhere to go but up!

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I like your points.

If employment site move from Southfield [[or Livonia or whatever) to downtown Detroit it is a zero-sum event. One [[downtown Detroit) wins. One [[e.g., Southfield) loses.

Travel and tourism is different in that it brings bucks from outside the region into it rather than redistribute it within the region.

This is why cities love conventions.

That is a big win for the region and in this example downtown Detroit.