Number of Hotel Rooms Continues to Grow to Meet Demand 

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By Joshua Long, Data Program Director

During the pandemic, when travel was down and people were staying home, the occupancy rate for hotel rooms in Downtown was drastically lower. In the last year, however, demand has largely rebounded, and occupancy is up to near pre-pandemic levels. This indicates a strong demand for visiting and staying Downtown.  

Economic developers and event planners locally have looked to capitalize on this demand to attract not only larger-scale events, but also trade conventions, conferences and sports tournaments. However, not having enough hotel rooms Downtown has long been cited as an impediment to attracting the biggest events. With Downtown Detroit being selected for the NCAA men’s basketball Final Four tournament in 2027, the NFL draft in 2024 and the return of the Chevrolet Detroit Grand Prix to the streets of Downtown in June 2023, the issue of hotel rooms has resurfaced as a top priority. These milestone events will not only put Downtown Detroit in the spotlight, but they offer a chance for local, regional and national attendees to experience Downtown Detroit in a unique way.   

Real estate developers in Downtown Detroit have been working steadily to increase the number of hotel rooms and meet the demand for more over the past decade. A significant number have been completed and several more are nearing completion.  

The Downtown Detroit Partnership tracks these development projects and, in this quarter’s, DDP Datascape Trends report, we’re breaking down these projects.  

Currently, there are 4,957 hotel rooms in Downtown Detroit, of which 703 have opened since 2014. 

Current Projects

In addition to the nearly 5,000 current rooms Downtown, there are 826 rooms currently under construction and set to open soon. By the end of next year, there will be 5,783 hotel rooms.  This represents an almost 17% increase in room capacity in and near Downtown. 

Demand Rebounding

Though demand for hotels was down during the worst of the pandemic, hotel occupancy has nearly rebounded to pre-pandemic levels. Further, hotel operators are receiving higher revenues per room than 2019. Since the temporary collapse of hotel demand due to the pandemic has abated, several new and restarting projects in or near Downtown have recently been announced, showing that the pandemic has not reduced the long-term demand for hotel rooms Downtown in the future. 

Hotel Demand Has Rebounded (Chart Below)

 
 
 
 
 
 

Average Daily Rate 

 
 
 
 

October, 2019 

 
 

 $  187.04  

 
 
 
 

October, 2022 

 
 

 $  223.75  

Projects Slated for the Future

The following are notable hotel projects that are planned to be completed Downtown in the future. These projects represent an additional 760 rooms.  

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