Adoba Hotel in Dearborn headed into foreclosure; management firm to leave Friday

[313WX]

Is that really walkable? If I recall correctly, you have to pass through the giant parking lot to get to the giant parking lot surrounding Fairlane. I'm not positive, though.

Take a look at Westborn [[Michigan and Oakwood Blvd.) and Eastborn [[Michigan and Schaefer) to judge for yourself. Most of the Fairlane developments [[aside from Ford's HQ) came along in the 1970s through 1990s, long after these town centers were established,

Eastborn is essentially Dearborn's old downtown. It's similar to, say, Grand River/Greenfield in Detroit. It was even anchored by a Multi-Level Montgomery Wards store like Grand River and Greenfield.

[iheartthed]

Is that really walkable? If I recall correctly, you have to pass through the giant parking lot to get to the giant parking lot surrounding Fairlane. I'm not positive, though.

This happens with hotels more frequently than you think. Franchisors are keeping very close track of the physical status of their franchises. On transfer, the new owners need to complete a Property Improvement Program [[PIP), and those can be expensive.

I'm also guessing that this hotel was positioned as a "luxury" brand/cost, and most business travel is shying away from that. In one of my previous lifetimes, I had to go through a computer program to book car, flight and hotel. And that program sought the lowest cost, even if that meant Enterprise rental [[smokers allowed, eech), layovers, and budget hotel brands.

I think it's usually about the price more so than the luxury brand. And in my experience the price point is typically set for what a mid-range hotel in an expensive market would cost [[it's usually set around $300/night which would get you into a Westin or Marriott in Manhattan during on a routine business day). I have friends who also work in industries requiring business travel who have said the same thing.

The problem with the Hyatt is location, plain and simple. Hindsight is 20/20, but if we're all honest with ourselves then we will admit that there was never any long term prospects for a luxury hotel in Fairlane other than to serve Ford related business travelers. It was never going to materialize into an urban center or major tourist destination. That the second largest hotel in the state of Michigan would be located anywhere besides downtown Detroit seems pretty absurd, don't you think?

[401don]

Good observation and I agree. Add to that is downtown Eastborn and Westborn nearby that have pleasant blend of old and new, like a Royal Oak, with downtown Detroit a short drive away.

I wonder about the possibility of upper floor residential conversion. With grand unobstructed views and hotel amenities, pool, restaurants, walkable shopping it would seem prime for luxury apartments and/or condos.

Grand views? It overlooks a massive parking lot on one side and a highway on the other. It's going to make a nice seniors residence though.

[313WX]

I think it's usually about the price more so than the luxury brand. And in my experience the price point is typically set for what a mid-range hotel in an expensive market would cost [[it's usually set around $300/night which would get you into a Westin or Marriott in Manhattan during on a routine business day). I have friends who also work in industries requiring business travel who have said the same thing.

The problem with the Hyatt is location, plain and simple. Hindsight is 20/20, but if we're all honest with ourselves then we will admit that there was never any long term prospects for a luxury hotel in Fairlane other than to serve Ford related business travelers. It was never going to materialize into an urban center or major tourist destination. That the second largest hotel in the state of Michigan would be located anywhere besides downtown Detroit seems pretty absurd, don't you think?

Also, how soon we forget that Dearborn lost another big name luxury hotel franchise recently [[the Ritz-Carlton).

But to be fair, the entire Fairlane complex was built at a time when the leaders in Michigan had collectively decided to abandon the city of Detroit, its assets [[which in hindsight were actually quite valuable) to the region/state notwithstanding. The goal wasn't necessarily to develop anything that would last a long time, but to simply avoid the aspects of Detroit they disliked in the short-term.

[iheartthed]

But to be fair, the entire Fairlane complex was built at a time when the leaders in Michigan had collectively decided to abandon the city of Detroit, its assets [[which in hindsight were actually quite valuable) to the region/state notwithstanding. The goal wasn't necessarily to develop anything that would last a long time, but to simply avoid the aspects of Detroit they disliked in the short-term.

Well, the solution is simple then: tear that schitt down. It'll probably float along in a state of declining prospects for a few more years, but the days are numbered for the usefulness of that building. It looks like something that belongs on Las Vegas Blvd rather than in Dearborn, Michigan. And even on Las Vegas Blvd they aren't afraid to push the plunger on a building that has aged out.

Ford should just demolish it and return the land to nature before it's allowed to become blighted. We all know that once a building becomes blighted the blight will only spread.

[MSUguy]

Also, how soon we forget that Dearborn lost another big name luxury hotel franchise recently [[the Ritz-Carlton).

But to be fair, the entire Fairlane complex was built at a time when the leaders in Michigan had collectively decided to abandon the city of Detroit, its assets [[which in hindsight were actually quite valuable) to the region/state notwithstanding. The goal wasn't necessarily to develop anything that would last a long time, but to simply avoid the aspects of Detroit they disliked in the short-term.

The Henry is still a high end property[[it's also half the size the Hyatt) and part of Marriott's Autograph Collection

To put this in more context, we have a healthy hotel market with increasing convention business thanks to a renovated Cobo. But no even wants to even touch the place. Instead of letting it limp along, it might be best to let it close, demolish and redevelopment as a much smaller property. Really, having one the regions main convention hotels outside of downtown doesn't make any sense.

Detroit is running at about the same occupancy rate as Chicago and a leader among Midwestern Rust Belt cities, including Indianapolis and Cleveland, said Charles Skelton, an Ann Arbor-based hospitality consultant.

"Detroit used to lag by 10 occupancy points," Skelton said. "Now it's right up there with them."

The increasing number of large conventions and conferences coming to Detroit is a big factor in the rising occupancy rates, Alexander said.

Among the factors attracting the events are the $279 million renovation and expansion underway at Cobo Center, efforts to rebuild downtown and riverfront improvements, he said.

Last year, the Convention & Visitors Bureau had five large groups booked. This year it has 13, Alexander said.

http://www.crainsdetroit.com/article...to-conventions

[cmubryan]

I disagree with most of you. I believe the hotel, if renovated, can make it with the proper branding and marketing. It still has very impressive and dramatic public areas. If built today, the hotel would definitely would cost upwards of half a billion dollars. While the location isn't as prime as it was 35 years ago, it still is in a very convenient location, right near two major highways, 15 minutes from the airport, 15 minutes from downtown and up the road from the a top tourist attraction!

For heaven's sake, this is not the Hyatt Regency Flint we're talking about!

[Bham1982]

I disagree with most of you. I believe the hotel, if renovated, can make it with the proper branding and marketing.

This hotel is too damn big. That's the biggest problem. If it were 20% the size, yeah, it could be decent, and there are worse locations to have a hotel, but the size [[room count, amenities, conference space, etc.) is just ridiculous.

No one wants a gigantic Disneyworld/LV Strip resort style hotel in a declining inner-ring autotopia, surrounded by cracked parking lots, and four blocks from the ghetto. Greenfield Village and Ford don't generate the need for thousands of adjacent luxury hotel rooms.

[Zacha341]

^^^ Umm, maybe make that 8 or 10 blocks......

[Honky Tonk]

This hotel is too damn big. That's the biggest problem. If it were 20% the size, yeah, it could be decent, and there are worse locations to have a hotel, but the size [[room count, amenities, conference space, etc.) is just ridiculous.

No one wants a gigantic Disneyworld/LV Strip resort style hotel in a declining inner-ring autotopia, surrounded by cracked parking lots, and four blocks from the ghetto. Greenfield Village and Ford don't generate the need for thousands of adjacent luxury hotel rooms.

And yet, more hotels have been and still are being added in that area since this one was built.

[cmubryan]

This hotel is too damn big. That's the biggest problem. If it were 20% the size, yeah, it could be decent, and there are worse locations to have a hotel, but the size [[room count, amenities, conference space, etc.) is just ridiculous.

No one wants a gigantic Disneyworld/LV Strip resort style hotel in a declining inner-ring autotopia, surrounded by cracked parking lots, and four blocks from the ghetto. Greenfield Village and Ford don't generate the need for thousands of adjacent luxury hotel rooms.

It has about 770 rooms, about the size of two large hotels. Vegas hotels are thousands of rooms. 770 rooms can fill up fast with large seminars, conventions, etc. There are plenty of viable hotels in the same area: The Henry, The Doubletree, The Dearborn Inn Marriott, etc.

[Bham1982]

And yet, more hotels have been and still are being added in that area since this one was built.

Please name one such hotel.

I am talking large, full service luxury hotels, with conference space and the like, not small, roadside, limited service motels.

I am not aware of any higher end hotels added anywhere in that part of Metro Detroit, really not since the Ritz Carlton was built in the 80's. Both the Ritz and Hyatt have been significantly downgraded in recent years, and even the small Dearborn Inn does so-so business, despite very robust Ford and wedding reception activity.

Ford Land still owns most of the property in that area. They basically stopped building 25 years ago.

[DetroitPlanner]

Please name one such hotel.

I am talking large, full service luxury hotels, with conference space and the like, not small, roadside, limited service motels.

I am not aware of any higher end hotels added anywhere in that part of Metro Detroit, really not since the Ritz Carlton was built in the 80's. Both the Ritz and Hyatt have been significantly downgraded in recent years, and even the small Dearborn Inn does so-so business, despite very robust Ford and wedding reception activity.

Ford Land still owns most of the property in that area. They basically stopped building 25 years ago.

There are two hotels, both on Michigan, one recently opened and another is under construction. You had no qualifiers in fact you led the reader to assume that if someone builds a giant full service hotel they are crazy. I'd agree as with the Dearborn Inn, the Henry, and whatever this one is now called they have more than enough of that segment.

The Ritz was not downgraded. If anything it was upgraded from being a standard Ritz Property to a Marriot Signature property. Marriot runs both the Ritz and the Signature Properties. It will cost $250+ for a standard room at the Henry tonight, it is hardly a Days Inn.

[Honky Tonk]

Please name one such hotel.

I am talking large, full service luxury hotels, with conference space and the like, not small, roadside, limited service motels.

I am not aware of any higher end hotels added anywhere in that part of Metro Detroit, really not since the Ritz Carlton was built in the 80's. Both the Ritz and Hyatt have been significantly downgraded in recent years, and even the small Dearborn Inn does so-so business, despite very robust Ford and wedding reception activity.

Ford Land still owns most of the property in that area. They basically stopped building 25 years ago.

I'll have a couple of names of midsize hotels that have been, and are being constructed around the Adoba. There is also a condo-like "hotel" [[?) that was constructed specifically for people staying for longer durations. Give me a couple days to drive around and write the names down for you. Thanx.

[DTWflyer]

The problem with this property is that it is a massive convention-center style hotel that has large overhead and operating costs and needs a massive investment to bring the property up to modern standards. Now the demand for large conventions and business travel have changed, making that update a questionable return on investment.

You have two problems here:

1. Condition of the Property:
The hotel under the Hyatt brand was at the end of its lifecycle and needed to be refreshed. Also, the behind-the-scenes infrastructure for a 35-year old building is in need of upgrades and repair.
The current owners did not see the return on investment in the property to maintain a global flagship brand hotel.

The room ammenities and fixtures - bedding, bathroom, TVs, decor, etc.

Plus all of the utilities and infrastructure - HVAC, elevators, water system, Wifi/internet, food service areas, etc.

2. How many large conventions can fill the place? Most of the conventions and shows they had been attracting had been local and regional in nature with limited demand for overnight stays.

The Henry and Dearborn Inn are the two nicest hotels in Dearborn for higher-end business travel. Most of the traveling consultants stay at those properties. The Detroit Lions put up their personnel for team business at the The Henry. International flight crews stay at the Henry.
There are several mid-level business hotels like the Courtyard, Doubletree in the area. Plus numerous extended stay hotels. Plus, the hotels surrounding the airport are only 15 minutes away.

This property unfortunetely became a dinosaur.