Edward Hotel, Former Hyatt Regency Dearborn, Closes Abruptly

**Hardhat** · May-07-12, 07:32 AM

Jump to Latest news Dec. 14, 2018 >>

Uh oh.

DEARBORN, Mich. - After nearly 40 years in business, the Hyatt Regency Hotel in Dearborn is closing.
The operators of the well known hotel have been trying to reach a new management agreement for the past year, but just couldn’t get the deal done, according to the operators. As a result, the Hyatt group is walking away from the property.
It is not clear what will happen to the building and its workers.

Hyatt has decided to exercise its termination rights and allow the ownership to pursue alternative options to operate the property. We are working to establish a date that ensures a smooth transition,” said Hyatt and Royal Realities LLC.
Sources are telling Local Four, the Hyatt could be gone in as little as three months from now.
http://www.clickondetroit.com/news/H...v/-/index.html

**Gannon** · May-07-12, 07:40 AM

Seismic. Damn.

One of the best examples of environmental architecture, that building is...best reflections of both sunrises and sunsets I've ever seen.

It will suck to have it empty. Hope something gets worked out soon.

I simply cannot imagine it not being the Hyatt any longer.

**401don** · May-07-12, 07:49 AM

Between The Henry, Hyatt and Dearborn Inn that's a lot of high end rooms to fill. I never understood how Dearborn supported so many with so few corp's outside Ford in the area. I'm guessing they are losing business to people who avoided downtown in the past.

**DetroitPlanner** · May-07-12, 07:50 AM

Most likely another chain hotel will go in there. This appears to be a fight between the building owners and the hotel management. This is akin to driving by a BP gas station one day and the next Day its is a Mobil.

This hotel will change. Most likely it will be marketed more for tourists as it is enormous and near Greenfield Village. Only certainty we have is that things will change. No sense worrying about what was is now lost, learn fro it and worry about how to place it for the future.

**cmubryan** · May-07-12, 07:53 AM

Well this news ruined my morning. What I don't understand [[and maybe the owners don't even know yet) if the plan is for the hotel to stay open after Hyatt Regency stops managing or shut the hotel down. I simply cannot believe that the second largest hotel in the state [[I believe) will be allowed to sit empty!!! I realize Dearborn and Fairlane maybe past their prime, but with the hotel's proximity to Ford's world headquarters, downtown Detroit as well as the airport, I cannot believe it cannot continue operations as a hotel.

This is truly a sad day for Metro Detroit. First, we couldn't support a Ritz Carlton, now we can't support a Hyatt Regency. Maybe something can be worked out??? It's been done before: HI Express downtown.

**Bham1982** · May-07-12, 08:00 AM

I had always wondered how they they were filling this place. I guess it turns out they weren't.

This hotel is massive, and is supposed to be very high-end. Hyatt Regency is one of their premier brands.

I guess Hyatt and Ritz Carlton were thinking that between the Ford HQ, and location halfway between downtown and airport, that Dearborn was an ideal location.

I always thought it strange, though. Ford's HQ count isn't massive, there isn't much of anything else corporate in Dearborn, and if you wanted to be close to downtown or the airport, why not just stay right there, instead of 20 minutes away?

Both hotels would have made more sense downtown or in Oakland County, IMO. Who knows.

**Detroit_uke** · May-07-12, 08:49 AM

That's not good news. I live down the street on the Detroit side....Is Fairlane next? Somebody mentioned they were thinking of apartments - that may be a good idea with UM-D and HFCC right across the street.

**Wheels** · May-07-12, 09:11 AM

I knew they were in trouble when they took out the monorail.

**Packman41** · May-07-12, 09:21 AM

Let’s not get hasty here. The new owners will not let the hotel go dark – they will find a new management company for the hotel. This happens all the time.

What is concerning is that it will no longer be the same level of quality as a Hyatt.

The following is a quote from the Detroit News”
“But the hotel's reputation as a well appointed and luxurious destination for travelers may have been too much for the investment group”, Dearborn Mayor John O'Reilly said Monday.

"The purchasers didn't have any business plan or vision," O'Reilly said. "I believe they thought they could get the property cheap by playing games. They knew they would have to make investments and upgrades to maintain the Hyatt Flag.

"I knew from my conversations that that was a challenge with them."

The mayor’s comments lead me to believe that the new owners may have been opportunistic buyers and got in over their heads.

When they get a new management company I would expect that it will be of much lesser quality than a Hyatt.

**D_Town** · May-07-12, 09:26 AM

We all know another hotel chain will move in there. Everytime I drive past that place the parking lot is always packed.

**iheartthed** · May-07-12, 09:44 AM

It won't sit empty but it also won't have a nameplate anywhere near the Hyatt brand. I'd imagine a similar scenario to the Ritz/Henry situation.

**Parkguy** · May-07-12, 09:47 AM

They've started construction on a new train station just west of there, too. As for Ford headquarters being the only business draw, you have to remember that Dearborn is filled with Ford offices, R&D, engineering, technical, proving grounds, and design centers-- all of which have business reps and consultants coming and going constantly. And that doesn't count the suppliers and other related businesses.

**EastsideAl** · May-07-12, 10:07 AM

Originally Posted by Packman41

The mayor’s comments lead me to believe that the new owners may have been opportunistic buyers and got in over their heads.

When they get a new management company I would expect that it will be of much lesser quality than a Hyatt.

Let's hope they don't do what the opportunistic owners of the Pontchartrain did. Burning through successive management companies down the hotel industry food chain, while being so cheap in running and maintaining their property that they get a terrible reputation with travelers and eventually stupidly run it right in to the ground.

**jcole** · May-07-12, 10:10 AM

Fox 2 just announced that there will be a smooth transition from Hyatt to the new owners of the hotel within 90-180 days and that no employees will lose there job. Just expect a name change in the above time frame.

**cmubryan** · May-07-12, 10:22 AM

If a new chain comes in there, it just won't be as fitting. The place is a classic Hyatt Regency. With it's contemporary design and open atrium concept no other chain would seem right. It would be like renaming the Westin Book Cadillac, the Hilton Book Cadillac. The place was rebuilt to perfectly fit in with Westin's standards. Perhaps this isn't even as much of a good comparison as I am trying to communicate.

Lets just hope that if a new chain comes in, it's a quality chain. I could live with a Starwood chain, or even Marriott or Hilton. Heaven forbid it become something like a Wyndham or Ramada. Those chains are typically the "downward spiral" chains when a once decent, quality hotel becomes a rundown, lower-end establishment. I would rather see the place close and converted to something else then watch it die like a lot of the Southfield highrise hotels that are now closed and abandoned.

**casscorridor** · May-07-12, 10:28 AM

Any guesses on what the hotel will become?

It would be cool if they could continue the Hyatt Regency brand and bring it to the Hotel Pontchartrain, but I heard it was becoming a Crowne Plaza. Either way, I hope both the Pontch and the Dearborn Hyatt get filled.

Also, speaking of Dearborn train station, Detroit and Dearborn really need stronger connection. It needs to be a simple, no-brainer voyage from Downtown Detroit [[and the Midtown/Cultural Center) to all the attractions in Dearborn such as the Henry Ford, Greenfield Village and Arab American Museum. Hopefully the new train station will help, but we really need frequent commuter rail service and bus connections.

Detroit has a lot to offer, but visibility, accessibility and mobility are obstacles to tourism. Not even going to mention the airport!!!

**DetroitPlanner** · May-07-12, 10:38 AM

Originally Posted by cmubryan

If a new chain comes in there, it just won't be as fitting. The place is a classic Hyatt Regency. With it's contemporary design and open atrium concept no other chain would seem right. It would be like renaming the Westin Book Cadillac, the Hilton Book Cadillac. The place was rebuilt to perfectly fit in with Westin's standards. Perhaps this isn't even as much of a good comparison as I am trying to communicate.

Lets just hope that if a new chain comes in, it's a quality chain. I could live with a Starwood chain, or even Marriott or Hilton. Heaven forbid it become something like a Wyndham or Ramada. Those chains are typically the "downward spiral" chains when a once decent, quality hotel becomes a rundown, lower-end establishment. I would rather see the place close and converted to something else then watch it die like a lot of the Southfield highrise hotels that are now closed and abandoned.

Better a Ramada than a Motel 6! Too many amenities in this place to go too far downscale. They do a signifigant amount of business with small conventions as they have lots of ballroom and breakout session space.

**DTWflyer** · May-07-12, 12:26 PM

I could see it becoming a Sheraton under the Starwood brand. Sheraton are usually decent but can be run the range of modern to dated. At least the Starwood brand has strong business traveler appeal with their strong loyalty program.

Doubtful it would be a Marriott property considering Marriott has the Dearborn Inn plus an affiliation now with The Henry as part of their Autograph collection.

The Hyatt always did a pretty good business with meetings, seminars, and events. That at least should make the property somewhat desirable however it seems large in terms of the number of hotel rooms.

**Wesley Mouch** · May-07-12, 12:30 PM

Hotel brand-shuffles are pretty common -- and usually nothing much to worry about. But you never know.

I'll add here that the success of the downtown hotel market has probably had some impact in Dearborn. Ten years ago, if you needed to stay downtown, you stayed in Dearborn. That's less true today.

Like a lot of things, I'm sure this is only part of the story.

**XDetroitr** · May-07-12, 01:26 PM

I'm not surprised by the news. My family used to meet at the Hyatt's restaurant on the 2nd floor for Sunday brunch. We stopped going a few years ago because the clientele was getting a little too rowdy. Large groups of [[presumed) Detroiters not always behaving politely in public. Sadly, the quality of their brunch buffet also dropped noticeably.

**Hypestyles** · May-07-12, 02:20 PM

hopefully, if it becomes another hotel business, they will be hiring.. as far as "alternatives".. could any of the rooms be converted/expanded into apartments?

**Packman41** · May-07-12, 02:51 PM

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.

**iheartthed** · May-07-12, 03:13 PM

Originally Posted by Packman41

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.

**cmubryan** · May-07-12, 03:21 PM

Originally Posted by Packman41

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.

Such a shame. Considering they purchased for 11 million, I supposed I can see how 20 milion seems daunting. However, they have to realize what a mammoth size project they have for the bargain they paid. A total of 31 million to have a high-rated luxury Hyatt Regency and be one of the leading convention hotels in the state is a BARGAIN! One can only hope that they sell to some better owners who are up for the task. This isn't just a typically 300 room standard hotel. This is a key player hotel in the local hotel industry. This is another Marriott Ren Cen, Westin Book Cadillac, etc.

By the way, I can tell you from personal experience that if those room do not get updated quickly, the hotel will go downhill fast. The rooms were last renovated in 2001-2002. Typicaly hotel room renovations should occur every 7 years according to industry standards. We are now 3 years past that time. It is no wonder why Hyatt wants to terminate the contract as it becoming a poor representation of their brand. The public areas still felt luxurious and were nicely maintained last time I was there.

Someone should give Ford a call. Didn't they have a nice quarter? Purchasing and renovating the Hyatt would be pocket change to them! GM owns a hotel, why can't Ford?