Southfield Holiday Inn purchased

**Elevator Fan** · July-24-15, 04:57 PM

Never thought this would happen. To be split into three separate hotels, which makes some sense as there are three sections to the property now. And they plan to reopen the Rondeview restaurant at the top of the tower, which is surprising given that the space was converted to suites in the mid 80s. Let's hope this actually takes place.

http://www.detroitnews.com/story/bus...ield/30536537/

**401don** · July-24-15, 06:12 PM

They state the reason for this investment is that "Southfield is growing into the business center of the metro area". My perception was that Southfield was struggling, losing office space to both downtown and the I-75 corridor?

**Hypestyles** · July-24-15, 06:55 PM

how can you apply for jobs? hmm..

**hybridy** · July-24-15, 07:08 PM

I am seeing lots of investment/improvement all along the Telegraph corridor between 9-14 mile with new eateries and renovated office centers. I think owners are freaking out a bit with Detroit's office comeback and Southfield's "inner ring" perception. Maybe Lear bankrolled the investment...

**animatedmartian** · July-25-15, 12:09 PM

Originally Posted by 401don

They state the reason for this investment is that "Southfield is growing into the business center of the metro area". My perception was that Southfield was struggling, losing office space to both downtown and the I-75 corridor?

Yea, but those areas got more expensive and now Southfield has the cheapest properties/rents for similar quality buildings. Southfield will now be on the upswing to the determinant of whatever other major office market and then somewhere else becomes the new affordable.

**ConantNHolbrook** · July-25-15, 12:31 PM

Worked there 2001-2002. Spooky then, empty and run down. Never thought they'd ever be able to do anything with that large a property. Seems like a complete gut job to me.

**Jason** · July-25-15, 01:53 PM

Does anyone know why it would be more competitive as three hotels instead of one?

**Onthe405** · July-27-15, 01:16 PM

Originally Posted by Jason

Does anyone know why it would be more competitive as three hotels instead of one?

This is pure speculation, but they may be attempting to market the property as three separate products, for example: traditional rooms & meeting space, all suites [[i.e. Embassy Suites, Staybridge Suites), and budget with limited service [[Hampton, Fairfield) or perhaps long-term stay [[Residence Inn, Extended Stay America)--all on the same premises.

This is becoming quite common in the hotel business, as it allows big chains to market more than one of their products adjacent in one place, while leveraging the pooling of staff & management if required.

IMO, this particular property is starting with some significant challenges:

1. The circular tower concept is antiquated in that it proved to be an awful, impractical configuration for guest rooms [[have to be pie-shaped, which is very limiting). That's one of several reasons why a circular hotel hasn't been built [[that I'm aware of) in 40 years. It might work OK as a past mistake, but not wise for launching a new property.

2. The fact that it has been vacant for 7 years [[not to mention declining & neglected for many years before that), the interior will need to be a complete tear-down if the owners truly intend to compete with newer hotels . It seems to me it would probably be more economically practical to raze the existing structures and build something that reflects the changes in consumer tastes.

Let's face it, this isn't The Algonquin [[or even the Book Cadillac), and Southfield isn't Manhattan regarding the necessity for architectural preservation. The only possible appeal might be to authentically restore the building top-to-bottom with a retro chic 50s/60s mid-Century vibe [[replete with top-floor restaurant)----which would make it unique in the Detroit-area market.

3. Foreign investors frequently misread unique, local, & risky markets like Detroit & its inner ring suburbs. One thing is for sure: they should hire an experienced local as the Director of Sales & Marketing, and probably the General Manager [[or at least Assistant) as well.

**cmubryan** · July-27-15, 05:26 PM

Originally Posted by Onthe405

This is pure speculation, but they may be attempting to market the property as three separate products, for example: traditional rooms & meeting space, all suites [[i.e. Embassy Suites, Staybridge Suites), and budget with limited service [[Hampton, Fairfield) or perhaps long-term stay [[Residence Inn, Extended Stay America)--all on the same premises.

This is becoming quite common in the hotel business, as it allows big chains to market more than one of their products adjacent in one place, while leveraging the pooling of staff & management if required.

IMO, this particular property is starting with some significant challenges:

1. The circular tower concept is antiquated in that it proved to be an awful, impractical configuration for guest rooms [[have to be pie-shaped, which is very limiting). That's one of several reasons why a circular hotel hasn't been built [[that I'm aware of) in 40 years. It might work OK as a past mistake, but not wise for launching a new property.

2. The fact that it has been vacant for 7 years [[not to mention declining & neglected for many years before that), the interior will need to be a complete tear-down if the owners truly intend to compete with newer hotels . It seems to me it would probably be more economically practical to raze the existing structures and build something that reflects the changes in consumer tastes.

Let's face it, this isn't The Algonquin [[or even the Book Cadillac), and Southfield isn't Manhattan regarding the necessity for architectural preservation. The only possible appeal might be to authentically restore the building top-to-bottom with a retro chic 50s/60s mid-Century vibe [[replete with top-floor restaurant)----which would make it unique in the Detroit-area market.

3. Foreign investors frequently misread unique, local, & risky markets like Detroit & its inner ring suburbs. One thing is for sure: they should hire an experienced local as the Director of Sales & Marketing, and probably the General Manager [[or at least Assistant) as well.

One thing to remember: the past ownership group attempted a renovation but most likely ran out of money and it never re-opened. Their plan was to convert the hotel from the Holiday Resort Hotel to a Wyndham Property. The outside facade facing Telegraph is actually new and the hotel was never opened with this facade. The Wyndham logo is still on the front doors of the hotel even though it never opened as a Wyndham. It can be assumed that some renovations took place which would save the current owners some money.

Also, the articles mention the reopening of the 190 something room hotel, when the total room count is north of 400. This makes me wonder if the plan is to keep the tower and demo the shorter, older wings? That might be the better investment. In order to regularely fill 400+ rooms, hotels must continually host events or be in superior locations. This location is fairly good and centrally located but it is not considered a superior location that would continuously keep 400 rooms filled.

**Bham1982** · July-28-15, 07:24 AM

I suspect this project will never happen. Bad location for a hotel, ridiculous and inefficient floorplans, and never heard of the buyers. This property was losing money for 30 years.

**cmubryan** · July-28-15, 08:21 AM

Originally Posted by Bham1982

I suspect this project will never happen. Bad location for a hotel, ridiculous and inefficient floorplans, and never heard of the buyers. This property was losing money for 30 years.

Well...construction has been going on for several weeks now. I will admit that crews seem light for a project this size which could be why they are expecting it to take two years.