Three Solutions to Turn Detroit’s Downtown Vacancy into Its Hospitality Future
Detroit faces a 3,000-room hotel shortage while 12% of downtown office space sits vacant, creating opportunities for strategic office-to-hotel conversions.
Detroit faces a 3,000-room hotel shortage while 12% of downtown office space sits vacant, creating opportunities for strategic office-to-hotel conversions.
Analysis shows over 1,200 luxury rooms opening through 2028, supported by GM's headquarters move and $2+ billion in downtown development projects.
NoMad Hotels has announced its debut in Michigan, following an agreement with Ford Motor Company to open a nearly 180-guest room hotel in Detroit. The hotel will be housed within The Station at Michigan Central, a 30-acre tech and cultural hub. This is part of an ambitious effort to revitalize Detroit's historic, once-abandoned passenger rail station. NoMad Detroit closely follows the announcement of the brand's Asia debut in Singapore, after Sydell Group and Hilton partnered together last year in a joint venture to grow the NoMad brand. The NoMad brand was founded in 2011 and is led by CEO Andrew Zobler, an industry veteran in the lifestyle hospitality space. NoMad's legacy in creative place making is unmistakable, with its brand becoming a namesake for the New York neighborhood it helped revitalize.
A JW Marriott will fill the 600-room riverfront hotel that is under construction in downtown Detroit.
Acclaimed hospitality company Method Co., in partnership with Bedrock, will open ROOST Detroit, Michigan's first high-design extended stay concept, on June 1. Method Co. additionally reveals Anthology, a dynamic event program with a series of elegant venue options, at Book Tower. ROOST Detroit guest reservations are now available, and Anthology is now accepting inquiries for events beginning in September 2023. Following the 7-year, nearly $400 million restoration of Book Tower, Detroit-based real estate developer, Bedrock, and nationally-acclaimed hospitality company Method Co., today announced that ROOST Detroit will officially open and is now accepting reservations for guest stays, starting June 1. Method Co. and Bedrock additionally unveil Book Tower's special events program, Anthology, an elevated hospitality experience spanning several beautiful event venues. The renowned lodging, event offerings and forthcoming food & beverage concepts advances Book Tower's emergence from its historic restoration as a desirable destination for travelers, locals and those looking to host special events in downtown Detroit.
The Detroit hotel market continued an upward trajectory in 2022 following a strong 2021. As illustrated below, RevPAR growth was driven by increasing average rates, with ADR exceeding pre-pandemic levels. Strong ADR levels were driven by Detroit’s tourism industry, which has shown the greatest recovery following the severe downturn in 2020 and early 2021. Visit Detroit reports that visitation numbers since the second quarter of 2022 have approached the pre-pandemic levels of 2019. However, occupancy growth has lagged the average for the U.S. and other top 25 markets in the Midwest, such as Indianapolis, Chicago, and St. Louis. This trend is primarily due to a slower recovery within the commercial segment, as workers have yet to return to offices in full force and international travel remains low.
As Detroit Foundation Hotel's new Director of Sales, Laia Whitfield brings with her eleven years of dedication within the hospitality industry. Her ability to seamlessly foster long-lasting business relationships is evidenced in her previous roles where her hands-on approach to sales allowed her to engage a diverse audience, changing the trajectory of client relations at all properties she has touched. At Detroit Foundation Hotel, Whitfield will spearhead sales and marketing initiatives that will showcase all that makes Detroit Foundation Hotel a hub for the community.
Joining Dannecker is Jaimie Skriba, the property's new Director of Lifestyle. Skriba started her hospitality career in Michigan working across the art and beverage industries. Skriba then moved to France, where she traveled the country studying wine and working with various hospitality groups on photography and marketing. Since moving back to Michigan Skriba has held various production roles with brands including Skymint Brands, Capitol Records and The Sundance Institute and has continued her work as a freelance marketing consultant and photographer. In her new role, Skriba plans to further integrate the Motor City community into the Detroit Foundation Hotel's events and programming, uplifting those who make up the expansive culture while providing guests the opportunity to experience a slice of Detroit.
Leading the team is James Dannecker, who joins as General Manager. Dannecker previously served as Director of Task Force Operations for Aparium Hotel Group, supporting multiple properties across the portfolio. Prior to joining Aparium, Dannecker spent five years with Davidson Hospitality Group and Pivot Lifestyle Hotels, managing several properties across the United States, including the award-winning Hotel Zephyr and Hotel Madera. Dannecker has worked with boutique properties across the country for the duration of his career, from The Restoration On King Boutique Hotel to the SLS Las Vegas and Hotel Palomar. At Detroit Foundation Hotel, Dannecker hopes to use his expertise to bring the community together and create the foremost hospitality experience in Detroit.
Detroit-based real estate development company, The Roxbury Group, in collaboration with TreeFort Hospitality, announced today a major renovation to downtown Detroit’s historic David Whitney Building and will rebrand its hotel as an Autograph Collection hotel upon completion. The renovations will include an expansion of the hotel as well as new food and beverage venues.
Continuing its national opportunistic investment activities, Oxford Capital Group, LLC today announced the acquisition and planned full scale interior renovation of the iconic 453-room Westin Book Cadillac Detroit Hotel, located at 1114 Washington Boulevard in the Washington Boulevard Historic District of downtown Detroit. Oxford, along with its partner Taconic Capital Advisors, led complex negotiations with multiple constituents, ultimately resulting in the modification, restructuring, and assumption of the commercial mortgage-backed security loan. As part of its investment commitment, Oxford and Taconic will lead a comprehensive refresh of the guest rooms, public space, meeting rooms, and ballrooms over the next 24 months. The hotel will remain open and operational throughout the renovation period.
Oxford Capital Group and Hunter Pasteur will break ground this week on The Godfrey Hotel Detroit in historic Corktown, bringing a 227-room, lifestyle brand hotel with first-class amenities, as well as hundreds of jobs, with many going to Detroit residents.
Prior to the COVID-19 pandemic, Metro Detroit experienced a decade of revitalization and growth. However, with the onset of the worldwide pandemic, the lodging industry faced a downturn that was greater than the past two lodging-market declines combined. During the Great Recession, Metro Detroit’s occupancy fell roughly seven points, from 55% in 2008 to 48% in 2009; in 2020, occupancy dropped from the 2019 benchmark of roughly 66% to 45%, reflecting a 21-point decline. Average daily rate (ADR) declined from $87 in 2008 to $75 in 2009, a 13% drop; in 2020, ADR fell approximately 20% from what was registered in 2019 ($105 to $84).
Detroit Foundation Hotel, is reopening its doors Sunday, October 4 after temporary closure due to the COVID-19 pandemic. The award-winning hotel located in the former Detroit Fire Department Headquarters has been credited with spurring Downtown Detroit's revitalization and will welcome back visitors and locals with enhanced sanitation and safety protocols. The hotel's flagship restaurant, Apparatus Room is also reopening with their beloved menu by Executive Chef Thomas Lents, encompassing new additions that celebrate the fabrics of New American cooking and Midwest classics and paying homage to some of the country's most iconic culinary masters.
Quore, the leading provider of workflow management and productivity tools for hotels, was determined to be an indispensable tool for the staff at the Holiday Inn Detroit Northwest while navigating the challenges brought on by the Coronavirus pandemic. Quore was temporarily suspended but quickly brought back when guest satisfaction suffered.
The doors are now open at Hotel Indigo Detroit following a $10 million, two-year transformation to infuse the spirit of Motown and the Motor City into every step of the guest experience, from the first step into the upbeat lobby to a new-concept restaurant and the lyrical, harmonious guestrooms.
Shinola Hotel officially began its phased reopening last month, welcoming guests with enhanced sanitation and safety protocols. This month, the hotel's beloved restaurant venues from James Beard award-winning Chef Andrew Carmellini of NoHo Hospitality Group will be reopening, bringing back some of the magic that has made Shinola Hotel such a destination for both visitors and the Detroit community alike.
The Motor City continues to benefit from an improved reputation driven by development efforts among economic power houses such as Ford, Fiat Chrysler America (FCA), and General Motors (GM). However, Detroit's economy has become more diverse since the economic lows of 2013 when the City filed for bankruptcy. The financial, healthcare, and education sectors have solidified their presence, while the technology sector has become a focus of growth.
Choice Hotels International, Inc. (NYSE: CHH) and Koucar Management celebrate the official start of construction on Detroit's first Cambria hotel: the Cambria Hotel Detroit Downtown. Slated to open in 2020, the modular-construction, six-story, 158-room upscale hotel will become the Cambria brand's second location in Michigan. Nine other Cambria hotels have already opened their doors this year, together representing over 1,200 upscale rooms. Three more Cambria hotels are expected to open in top-tier markets across the country by year-end.
Shinola Hotel, the passion project behind two iconic Detroit-based brands, luxury watchmaker Shinola and real estate firm Bedrock, is pleased to announce the appointment of Mark O'Brien as General Manager of the hotel, which opened in early 2019. O'Brien brings over 25 years of expertise to his new role and will oversee all aspects of hotel operations at the 129 room property, including guest services, housekeeping, maintenance, and sales. O'Brien began his career over 25 years ago as a Front Desk Agent at the New York Hilton followed by leadership positions there and at The Waldorf Astoria. He continued his career in New York until 2010, serving as General Manager for multiple Manhattan properties including Hotel Wales, The Maritime Hotel, and Dream New York Midtown. Throughout this time, O'Brien was also General Manager for the online hotel reservation service, Quikbook. O'Brien then relocated to Midland, MI where he served as General Manager at Wyndham Hotel Group's H Hotel, followed by his most recent role prior to Shinola Hotel as Vice President of Lodging at Boyne Mountain Resort in Boyne Falls, MI. O'Brien graduated from Michigan State University and currently resides in Detroit, MI with his family.