
Recent Detroit Hotel Trends
Source: STR Global, STR Monthly Hotel Review

While commercial demand has lagged, several developments are in the works that will positively affect this segment in the future.
- Ford is redeveloping the early-20th-century-built Michigan Central Station in the Corktown neighborhood into its global mobility district; the new facility is expected to host 5,000 workers.
- The Gordie Howe International Bridge will add a second span over the Detroit River connecting Michigan to Windsor, Ontario, Canada. Its expected opening in 2024 is anticipated to increase border-crossing traffic.
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The mixed-use Hudson's Site tower will be the second-tallest building in Detroit when completed and will include a 300-room hotel.
Hotels Under Construction in Downtown Detroit

One factor holding back even stronger growth within the meeting and group segment is the limited number of hotel rooms in the Downtown submarket, particularly the lack of a large convention-style hotel connected to Huntington Place, when compared to similar sized cities in the Midwest. Thus, the opening of new hotels in the next five years will have a positive impact on convention business going forward. Hotel development in the surrounding suburbs of Detroit has been led primarily by the economy and upper-midscale segments, while Downtown Detroit continues to see development within the upscale and luxury chain scales. The map below illustrates the hotel pipeline for Downtown Detroit.

The outlook for the Detroit lodging market remains optimistic. Improvement within the commercial segment is expected as business travel picks up pace and economic development throughout the city continues. General Motors began to bring its salaried workers back to the office in late January 2023, a positive sign for the year to come. Meeting and group demand will continue to grow as the city attracts more large-scale events, such the 2024 NFL Draft and the 2027 NCAA Men’s Basketball Final Four. Meanwhile, Detroit’s popularity as tourist destination continues to grow, positively influencing leisure travel for the region.
For more information, contact Brandon Leversee or David Preiss of HVS Detroit.
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