Downtown Detroit's hotel scene is booming

Downtown is riding a wave of new and renovated hotel developments — yet tourism officials still see room for growth.

The big picture: A five-star hotel planned at Hudson's Detroit, a new luxury convention hotel at Huntington Place and the hotel expansion at the historic David Whitney Building are helping drive the momentum.

Yes, but: The city needs another 4,000 to 5,000 hotel rooms to consistently attract major conventions and events, Visit Detroit spokesperson Chris Moyer tells Axios.

• "We're at a critical inflection point for hotel development," Moyer says. "The interest is only increasing."

By the numbers: Downtown has 5,313 hotel rooms as of April — a 25% increase since the end of 2019, according to the Downtown Detroit Partnership (DDP).

• The downtown hotel occupancy rate was 54% in April, up from 48% in April 2023 and 15% in April 2020.
• The average daily rate downtown is $251, per the DDP.

State of play: The hotel boom is part of downtown's larger revival following the city's 2013 bankruptcy .

• There's now a more diverse array of options, from redesigned business-oriented accommodations to boutique and historically themed hotels.

Zoom in: The Courtyard Detroit Downtown just finished extensive upgrades at the 260-room hotel across the street from the Renaissance Center. Dan Gilbert's Bedrock owns the hotel and it's operated by Marriott International.

• The new-look Courtyard has a refreshed lobby, modernized amenities throughout, a robust fitness center with locker rooms and enhanced rooftop views.

The intrigue: Prospects at the Courtyard and other hotels near the riverfront are somewhat tied to the Renaissance Center's murky future following General Motors' looming departure.

• Officials for GM, Bedrock and the city are brainstorming future uses, the Detroit News reports .

What's next: Construction continues at Midtown's 154-room AC Hotel, which will incorporate the historic Bonstelle Theatre, per the Free Press . It could open by the end of the year.

• Michigan Central Station is also pursuing a hospitality program.

The bottom line: A prime opportunity for more hotels is simmering, especially on the heels of the NFL Draft and Michigan Central's grand reopening .

• "Now you're seeing a market in Detroit that is starting to kind of hit its stride, it's starting to fill in," says David Di Rita, principal at the Roxbury Group, developer of the David Whitney and the AC Hotel.
• "We're really in a place where by [Visit Detroit's] measure, we need more hotel rooms to attract the bigger and bigger events."