Quote Originally Posted by detmsp View Post
A while back someone around here was floating a rumor that the BC was about to be foreclosed on... I'll take this as a sign that there's not truth to that rumor.
No, the rumor was that Ferchill's other hotel, the Hilton Garden Inn was in foreclosure and that turned out to be true.

http://www.crainsdetroit.com/apps/pb...UB01/308299993#

Only time will tell in the B-C. It has a MASSIVE $90+ million loan that comes due in a year or two. Given the latest sales prices of other hotels in the area, such as Dearborn Hyatt [[750 rooms) at $12 million or the Dearborn Ritz-Carlton for ONLY $3.0 million you really have to wonder how they are ever going to repay this debt.

Maybe they have to jack up the room rates no matter the occupancy level in order to get as much money as they can.

Maybe they only want the movie/film folks as they:
1) Present a "better" image
2) Don't care what it costs as someone else is paying the bills
3) The guy paying the bills doesn't care as 42% of his costs are paid by the taxpayers of the state. So his $300 per night bill is really only $174. That's a nice discount.

I really don't know how or if they are making their loan payment now. Maybe the City of Detroit pension funds that invested in the hotel have to report it.

Again, only time will tell. Stay tuned.