Grand River Growth Plan -All Gibbs for City Jan 2 2026 - Flipbook - Page 61
Conven琀椀on Impacts
In 2025, conven琀椀ons related to the city’s ongoing leadership in automo琀椀ve design and produc琀椀on
will con琀椀nue to dominate. For example, in May 2025, the Automate conven琀椀on at Hun琀椀ngton Place
a琀琀racted 45,000 guests, and more than 900 exhibitors specializing in robo琀椀cs and automa琀椀on. As
these high-pro昀椀le events con琀椀nue to choose Detroit, mee琀椀ng and group demand for hotels is
expected to rise. As hotel demand rises, Southeast Michigan is seeing a burst of construc琀椀on and
renova琀椀on ac琀椀vity aimed at expanding its hospitality capacity.
Figure 2: Le昀琀: Michigan Central Sta琀椀on. Via Historic Detroit. Right: Hudson’s high-rise hotel, retail, o昀케ce and residen琀椀al complex. Via SHoP
Architects. The Hudson’s hotel will be Michigan’s only 5-Star hospitality o昀昀ering.
Michigan Central Sta琀椀on & Hudson Site
One of the largest projects is Michigan Central Sta琀椀on, a landmark redevelopment featuring over
600,000 square feet of mixed-use space, including retail, hospitality, community and o昀케ce areas.
The site is expected to include a 100 room hotel. At the Hudson site, another high-pro昀椀le project is
underway: a 210-room, 昀椀ve-star hotel, luxury residen琀椀al, retail and the new General Motors World
Headquarters is under construc琀椀on. The Hudson hotel will be Michigan’s only 昀椀ve-star hospitality
o昀昀ering.
Market Oversupply
In contrast, the demand for hotel rooms in the South Michigan region is likely oversupplied.
According to Newmark Research, South Michigan’s hotel market has a high supply risk, ranking in the
bo琀琀om 5% of markets. The oversupply issue impacts revenue, with South Michigan ranking 97th out
of 104 markets for revenue per available room, at just $70, well below the na琀椀onal average of $100.
South Michigan does not have the same robust growth and a琀琀en琀椀on that has come to Detroit in the
past few years
Encouraging Trends
Meanwhile, the AC Hotel is bringing 150 new rooms to the region, and the Courtyard Detroit
Downtown has recently completed upgrades to its exis琀椀ng 260 rooms. Occupancy rates are also
improving; Central Business District hotels saw occupancy rise from 52% in 2023 to 57% in 2024.
Average daily rates in CBD also grew, increasing from $220 to $225 based on data from CoStar.
Metro Detroit Region Hotel Overview
Gibbs Group July 2, 2025
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