Edward Hotel, Former Hyatt Regency Dearborn, Closes Abruptly

[ndavies]

Dearborn shut the hotel down due to safety violations.

https://www.detroitnews.com/story/bu...cy/2312264002/

[Atticus]

Dearborn shut the hotel down due to safety violations.

https://www.detroitnews.com/story/bu...cy/2312264002/

Sounds eerily similar to the last years of many Downtown Detroit hotels in the 1980s. Frequent change of ownership to shady or inexperienced ownership groups, code violations, lack of routine maintenance, and eventual closure.

The only way this hotel is going to survive is through a very expensive remodeling project. And with all of the focus on downtown projects, I don’t know if the numbers add up for a legitimate business group to justify financing that.

[313WX]

It also doesn't help when your main customers [[Ford and its suppliers) are exponentially shrinking out of existence.

[Johnnny5]

Sounds eerily similar to the last years of many Downtown Detroit hotels in the 1980s. Frequent change of ownership to shady or inexperienced ownership groups, code violations, lack of routine maintenance, and eventual closure.

The only way this hotel is going to survive is through a very expensive remodeling project. And with all of the focus on downtown projects, I don’t know if the numbers add up for a legitimate business group to justify financing that.

A bit ironic that the tax incentives being used to open the hotels downtown likely played a role in killing this one just a few miles down the road. Combine the new subsidized competition, the dwindling business from Ford and a shady Chinese owner who is likely on his way to prison and this place didn't stand much of a chance after Hyatt left.

[401don]

I see a conversion to senior living in its future.

[cmubryan]

The hotel is too big. What was Ford thinking? That hotel is ginormous, and has no purpose except to serve Fairlane area, which has little appeal outside of Ford HQ.

I guess you could get a few out-of-towners interested in Henry Ford, but not enough to fill 1,000 rooms.

They should probably just knock it down, but it would cost too much. It will likely sit.

This hotel did well for at least three decades. It is a convention hotel and used to be able to fill its rooms by holding large events. When it was built, it was one of two [[the other being the Detroit Plaza @ The Ren Cen) mega four diamond convention hotels in the area. Things have changed considerably since then. However, this hotel remains the second largest hotel in the state capable of holding events that the vast majority of other hotels don’t have the capacity for. To knock it down would be crazy. The hotel has mainly failed because it’s past two owners have gotten in over their head and don’t have the financial backing needed. I guarantee that with a good owner, full renovation, an affiliation with a major chain and some new marketing plans it can make a come back. The adjacent Henry Hotel and Dearborn Inn [[both affiliated with Marriott) seem to be doing well. I could see this becoming a Sheraton, Hilton, Crowne Plaza, Wyndham Grand, etc.

I hope the current owners can sell this quickly before it sits idle too long to an owner with deep pockets.

[hybridy]

I see a conversion to senior living in its future.

perhaps with a tram connected to the mall so developers can charge a premium for 'luxury senior living connected to a dynamic retail/dining/office complex for aging in place and a sophisticated and tempered year-round community where placemaking is priority'

[EastsideAl]

perhaps with a tram connected to the mall so developers can charge a premium for 'luxury senior living connected to a dynamic retail/dining/office complex for aging in place and a sophisticated and tempered year-round community where placemaking is priority'

Those pictures are giving me some acid flashbacks of '70s teenage nostalgia. I sure remember riding that exotic glassed-in elevator, all 3 floors worth!

My best memory of the hotel is sneaking into the media center there for Super Bowl XVI in 1982, glomming a bunch free food and drink, and having a chat with NFL TV guys Pete Axthelm and Jimmy the Greek. Security didn't figure out for nearly an hour that my friend and I didn't belong there.

[EastsideAl]

This hotel did well for at least three decades. It is a convention hotel and used to be able to fill its rooms by holding large events. When it was built, it was one of two [[the other being the Detroit Plaza @ The Ren Cen) mega four diamond convention hotels in the area. Things have changed considerably since then. However, this hotel remains the second largest hotel in the state capable of holding events that the vast majority of other hotels don’t have the capacity for. To knock it down would be crazy. The hotel has mainly failed because it’s past two owners have gotten in over their head and don’t have the financial backing needed. I guarantee that with a good owner, full renovation, an affiliation with a major chain and some new marketing plans it can make a come back. The adjacent Henry Hotel and Dearborn Inn [[both affiliated with Marriott) seem to be doing well. I could see this becoming a Sheraton, Hilton, Crowne Plaza, Wyndham Grand, etc.

I hope the current owners can sell this quickly before it sits idle too long to an owner with deep pockets.

Do you really think there's any market though [[or at least enough market) for a convention hotel that's now essentially in the middle of nowhere at the edge of the parking lot of a dying old mall? Being in a concrete bunker of a hotel with a giant parking lot near a snazzy new mall in the suburbs was hot stuff in the '70s and '80s [[and with a revolving restaurant too, woowee!). But now it seems kind of like a polyester double knit suit. Definitely not stylish, and even somewhat embarrassing. It's not really competitive with newer, fresher downtown hotels, or even hotels in more fashionable suburban locales, and definitely not walkable to anywhere interesting other than tired old Fairlane. I'm not sure if any amount of renovation solves the core problem of the hotel's location.

[softailrider]

This hotel probably needs to be put out of its misery and demolished.

There is no demand for a mega-convention 800-room "luxury" hotel in this location. There are already far too many rooms in Metro Detroit and this is not a desirable location for leisure or business travelers.

The folks who need to be close to Ford already have that downgraded ex-Ritz Carlton facility. There's also the Dearborn Inn. That's plenty for the Fairlane area.

The last time I was in the Henry I thought it was very nice, maybe even nicer then when it was the Ritz. As an aside, they have a young bartenter at the Henry who pours the strongest drinks anywhere I’ve been. Every drink is a double plus a half shot on top.

[masterblaster]

A bit ironic that the tax incentives being used to open the hotels downtown likely played a role in killing this one just a few miles down the road. Combine the new subsidized competition, the dwindling business from Ford and a shady Chinese owner who is likely on his way to prison and this place didn't stand much of a chance after Hyatt left.

The hotel is 10 miles down the road from downtown, not just a few miles. There you go blaming Detroit on its failure.

With the hotel's proximity [[within 1.5 miles) to downtown east Dearborn, downtown west Dearborn, the Amtrak train station, the Henry Ford Museum/Greenfield Village complex, Fairlane Mall, a University of Michigan campus, and the Ford HQ, near 2 freeways, it would seem this place has promise.

Please read the reviews from Tripadvisor, here is one below. The hotel was neglected. You blame Detroit, but they are still building hotels in the suburbs. For instance, 2 hotels were recently completed in Allen Park on Southfield Road. A hotel is nearing completion just north of downtown Royal Oak.


JamieM904
Brighton
396
Reviewed 2 weeks ago

Needs updating
I want to start with that the staff at this hotel is excellent. Everyone is very friendly. Unfortunately the hotel is old and it shows. The wallpaper is peeling, the carpet is worn only two of the five elevators seemed to be working. I heard a lot of people complaining about the temperature of their rooms. The work out room was out of order not to mention it is almost in the same room as the pool so the air is overly humid. The hot tub was out of order."

https://www.tripadvisor.com/Hotel_Re..._Michigan.html

[Johnnny5]

Masterblaster, I did not blame "Detroit" for anything. The fact remains that for many would be guests the downtown hotels are in direct competition with those in Dearborn, and tax subsidies are what made most of those downtown builds possible. I'm simply opposed to subsidizing a game of musical chairs where other taxpayers are paying to move businesses, stadia and hotels from one city to the next. It's ridiculous.

[cmubryan]

Do you really think there's any market though [[or at least enough market) for a convention hotel that's now essentially in the middle of nowhere at the edge of the parking lot of a dying old mall? Being in a concrete bunker of a hotel with a giant parking lot near a snazzy new mall in the suburbs was hot stuff in the '70s and '80s [[and with a revolving restaurant too, woowee!). But now it seems kind of like a polyester double knit suit. Definitely not stylish, and even somewhat embarrassing. It's not really competitive with newer, fresher downtown hotels, or even hotels in more fashionable suburban locales, and definitely not walkable to anywhere interesting other than tired old Fairlane. I'm not sure if any amount of renovation solves the core problem of the hotel's location.

I would normally agree if we were talking about a typical 1970s outdated suburban location. However, I believe that the hotel’s prime location near everything mentioned [[Ford World HQ, The Henry Ford, UofM, and being half way between downtown and DTW) is a major redeeming factor that can’t be ignored. Yes, Fairlane mall needs some redeveloping as well but it can happen if the correct efforts are put forth! However, the hotel doesn’t need the mall to survive. Case in point: The Henry.

[Bham1982]

I would normally agree if we were talking about a typical 1970s outdated suburban location. However, I believe that the hotel’s prime location near everything mentioned [[Ford World HQ, The Henry Ford, UofM, and being half way between downtown and DTW) is a major redeeming factor that can’t be ignored. Yes, Fairlane mall needs some redeveloping as well but it can happen if the correct efforts are put forth! However, the hotel doesn’t need the mall to survive. Case in point: The Henry.

The Henry is a comparatively small property, though, and doesn't have high room rates. And it used to be a Ritz Carlton, demonstrating the area's decline.

It isn't the worst location, but isn't great either. Yeah, there's Ford.

Fairlane Mall is dying, a small commuter college like U-M Dearborn wouldn't generate much hotel usage, Henry Ford is a day-trip attraction like DIA or zoo, and not sure what's the advantage of being "halfway between downtown and airport" [[if you want downtown or airport, you would stay in either locale, not in some highway exit in the middle).

[Meddle]

I wouldn't call it a highway exit. I wouldn't call the Southfield a highway. It's more of a commuter route.

I always found this place to be a bit hard to get to with the maze of driveways and ramps. I tried to avoid the Southfield as much as possible, so I always came in off Evergreen or Michigan.

Access to the hotel is limited though in that you have to go through the shopping center parking lot. It would have been better to have a separate entrance road. And if they had done something else like a golf course or parks and trails to the west of it along Michigan towards the river, they could have sold it as a resort type place for conventions and business travelers.

[cmubryan]

The Henry is a comparatively small property, though, and doesn't have high room rates. And it used to be a Ritz Carlton, demonstrating the area's decline.

It isn't the worst location, but isn't great either. Yeah, there's Ford.

Fairlane Mall is dying, a small commuter college like U-M Dearborn wouldn't generate much hotel usage, Henry Ford is a day-trip attraction like DIA or zoo, and not sure what's the advantage of being "halfway between downtown and airport" [[if you want downtown or airport, you would stay in either locale, not in some highway exit in the middle).

The Henry’s room rates are significantly over the area average and nothing to sneeze at. Also, the nearby Doubletree and Dearborn Inn continue to perform well and all have rates that The Hyatt could easily achieve if they did a renovation. These rates at a decent occupancy could easily stabilize income and make it a good investment for someone. Furthermore, The Hyatt has something that none of these other hotels offer: major convention space in an architectural striking building. Anyone who knows anything about the hotel business knows that 772+ rooms can easily be filled by hosting major conventions. Given the hotel’s proximity to Ford World HQ, DTW, Downtown, all of Dearborn’s attractions it can attract more mid scale conventions that don’t want to pay for the downtown locations and want suburban conveniences of free parking, close proximity to DTW and other attractions. Many major cities have suburban convention hotels that do well. I’m telling you the reason this hotel has failed is because of inept owners. This may not ever be the metro’s top luxury hotel again but it can be a quality upper mid-scale [[Hilton, Marriott, Crowne Plaza, Sheraton) convention hotel.

[cmubryan]

To further prove the point on why the hotel failed, the owner “Edward” Gong is dealing with ummmm higher priorities right now.

https://www.nzherald.co.nz/nz/news/a...ectid=12055624

[401don]

To further prove the point on why the hotel failed, the owner “Edward” Gong is dealing with ummmm higher priorities right now.

https://www.nzherald.co.nz/nz/news/a...ectid=12055624

Still you'd think he would get the fire extinguishers checked.

[softailrider]

After they abruptly closed the hotel what did they do with the guests that were checked in? Just throw them out and tell them to go sleep on a park bench?

[casscorridor]

perhaps with a tram connected to the mall so developers can charge a premium for 'luxury senior living connected to a dynamic retail/dining/office complex for aging in place and a sophisticated and tempered year-round community where placemaking is priority'

Maybe Elon Musk can take it over and build a hyperloop connecting it to a yet to be disclosed location.

[Meddle]

Ya' know, Mikey D and the transit hounds have been talking about expansion. Michigan Ave IS a straight shot downtown.

And isn't the Amtrak station close by?

And Ford and the train station gig .....

[cmubryan]

Still you'd think he would get the fire extinguishers checked.

Right, if it was only that.

[Onthe405]

Sadly, the future of this building in its current state as a hotel looks to be paralleling the neighboring Fairlane Town Center as a retail destination.


The property has clearly been on the trajectory of a death spiral for some time--a behemoth facing headwinds of competition, changing consumer tastes, and demographics. IMO, a renaissance is either wishful thinking, denial, or both.

There's a solid business reason a string of failed sub par amateurs has owned and managed the place since Hyatt ditched it: no successful, reputable hotelier sees potential in it.


If some deep-pocketed, speculative sugar daddy actually existed--why wouldn't that entity have stepped up to the plate by now?

[cmubryan]

Sadly, the future of this building in its current state as a hotel looks to be paralleling the neighboring Fairlane Town Center as a retail destination.


The property has clearly been on the trajectory of a death spiral for some time--a behemoth facing headwinds of competition, changing consumer tastes, and demographics. IMO, a renaissance is either wishful thinking, denial, or both.

There's a solid business reason a string of failed sub par amateurs has owned and managed the place since Hyatt ditched it: no successful, reputable hotelier sees potential in it.


If some deep-pocketed, speculative sugar daddy actually existed--why wouldn't that entity have stepped up to the plate by now?

The hotel has sold three times in the last 11 years. The 2007 sale, the owner paid 40 million right before the recession. They defaulted and the hotel was picked up in 2010ish by an inexperienced foreign investment group for 15.5 million, Royal Realties. These guys are the ones that started the major disinvestment and neglect by not keeping it up to Hyatt’s standards thus Hyatt pulling their flag in 2012. Finally they sold to the current Canadian/Chinese “hotelier” Gong who seems to pick up outdated, under managed hotels and attempts to keep them slowly churning without much investment. Gong purchased it for 20 million in 2016 and promised a return to 4 star status [[which was laughable if you looked at his other properties).

My point being the hotel isn’t exactly getting purchased for pennies and more so has had crap luck with neglectful and inexperienced ownership groups. Someone will come along and realize the potential here and invest mega dollars. It happened at the Pontchartrain after Shubh hotels crashed it and left it for dead in 2009 and is now a respectable Crowne Plaza. It also happened at the iconic Holiday Inn Southfield which sat vacant for 5ish years and is now flourishing again as a Best Western Premier.