Hotel development in Detroit continues full steam ahead, even as multiple large-scale residential developments are scaled back due to rising construction costs. Is Downtown Detroit prepared for the next round of hotel development within the Motor City?
Record levels of demand, coupled with Detroit’s improved reputation, have driven hotel developers to the city. Multiple hotel projects in the pipeline are expected to complement the vast amount of development efforts throughout the city.
In response to rising demand for unique designs, developers are turning to adaptive reuse as a means of creating one-of-a-kind hotels. Historic building conversions come with their own sets of challenges, balanced by potential rewards.
Demand from a variety of sources has risen in Chicago, pushing occupancy to a ten-year high in 2015. More than 6,000 new rooms are expected in the market over the next three years, though average rates and hotel values should continue to grow.
Some of Detroit's historic buildings have been vacant for decades. Over the past few years, independent hoteliers and lifestyle brands have stepped in to transform the dated buildings into first-class hotels.
The city and county of Greenwood, South Carolina, have grown and diversified over the past several years, and revitalization projects are still underway. Meanwhile, tourism, health care, and manufacturing continue to generate demand for area hotels.
Greater Detroit is bridging a recovering automotive industry with investments in competitive emerging technologies and hospitals. These and other efforts at economic recovery will prove crucial for Detroit’s hotel industry in the coming years.