As recently as a couple of years ago there was talk among city officials and Cobo officials about continuing lack of competitiveness of Cobo lacking was cited along with the relitivly small at the time for a downtown of a region this size even though at that point the market was already quickly growing. There's also the argument that Detroit was underhoteled for a region and city its size downtown and while that is still true most likely we've sucessfully absorbed a lot of new rooms already the tourist industry is very cyclical and does make ya wonder how many rooms is a good equilibrium.
The lastest numbers I could find for the year 2016 all indicators were up as far as the occupancy was over 60% for all metro markets even downriver. Perhaps the fact that in the city the average price per night had been climbing and importantly revenue per room was up 3.8% are the metrics that are driving the push.
Its not just downtown that's seen a huge boom in hotels a number of Oakland County cities Such as Farmington Hills (5 in the past 4 years), Troy, the Woodward corridor and others especially in newer burbs. But even inner-ring burbs like Southfield and Dearborn have seen renovations new construction with more projects planned.
Now tourism is up and so are occupancy rates and profits this is projected to continue but a overheating of the national economy could potentially put hotels in a difficult position with everything planned. Michigan tourism up until the past several years was operating at less than potential and Metro Detroit and especially downtown had traditionally been one of the most undeserved markets.
Perhaps the bet is right but the recent experience of the recession shows that over saturation during those times leads to a painful collapse of said market, so I share the nerves of anyone concerned.
Here's a link to 2017 report on the hotel market.
https://www.madonna.edu/pdf/Detroit_Hotel_Industry.pdf
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Speaking of more details on high rise projects Crain's has a graphic of the site plan for Woodward between the LCA and CoPa along with the nearby area.
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Quote:
Map reveals new District Detroit details
Nearly 200,000 square feet of retail space, a hotel, 2 high-rise buildings among plans
By KIRK PINHO
Crain's Detroit Business
February 04, 2018
-Aerial map obtained by Crain's shows 200,000 square feet of new retail space
-Two new high-rise towers planned near Comerica Park
Two high-rise buildings are planned to flank Comerica Park.
The towers, overlooking the home of the Detroit Tigers, are just a few of the developments in the Ilitch family's District Detroit project revealed in an aerial map that shows the latest vision for what surrounds the 41,299-seat baseball stadium.
In addition, a new hotel where Hockeytown Cafe now stands and retail flanking both sides of Woodward Avenue's passage over I-75 are planned, according to the map, which Crain's obtained last week.
All told, it includes nearly 200,000 square feet of new retail space, plus the previously undisclosed hotel, a "tech store" and a market, in addition to the two high-rise buildings referred to as Montcalm Tower and Adams Tower.
For good measure Crain's threw a skyline pic from prolly around November of the area.
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http://www.crainsdetroit.com/article...etroit-details