The “Big Three” automakers, local employers and office headquarters, conventions, and leisure destinations represent the primary sources of lodging demand for the greater Detroit market. Over the last two decades, Detroit has evolved from a mid-50.0% occupancy market into one that achieves notably higher occupancy levels. This long-term strengthening trend has been attributed to increases in commercial activity throughout Metro Detroit created by a more diverse economy, record levels of tourism, and the continued presence of citywide events, such as the North American International Auto Show. In 2023, occupancy approached 60.0% again, similar to levels of the early 2010s but still below the peak occupancy period of 2014 through 2019. ADR, on the other hand, approached the $120 mark in 2023, and RevPAR reached an all-time high. Factors contributing to the 2023 performance levels included noteworthy commercial developments (particularly in Downtown Detroit), high levels of leisure demand, and recovery within the meeting/group segment. The outlook for 2024 is favorable, as commercial demand continues to recover, as well as positive meeting/convention and special event forecasts. Moreover, continued commercial development, improving international travel, and Detroit's growing popularity as a tourist destination should drive demand growth.
* Although the HVI cannot tell you what a particular hotel is worth, it does provide excellent “big picture” data, indicating which market areas are experiencing positive trends, and thus may present good investment opportunities. The HVI for the U.S. is a measure of the strength of the lodging industry as a whole and, specifically, the hospitality investment market. The HVI for the various identified markets can provide a basis to evaluate and compare different geographic regions. For more insight on the limitations and applicability of the HVI, please read the message on the HVI home page by clicking on the graphic at the top of this page.
The widespread impact of the coronavirus (COVID-19) has had an unprecedented impact on hotels and hotel values worldwide.
Consequently, the latest HVI analysis may no longer reflect the most current measure of lodging industry strength or the
hospitality investment market.
In each of our offices across the globe, we are working tirelessly to analyze the impact of recent events and provide timely
insights to help you navigate these uncharted waters. Because it is unclear how long the pandemic will last or how long related
restrictions will be in place, we are updating our analyses on a weekly basis using the most current data.
Additionally, examination of value trends in prior cycles can provide useful information. Historical patterns, together with
an understanding of the market’s current expectations for the eventual recovery of the industry and its performance, can provide
insights on the likely trajectory of decline and recovery for hotel values.
For the Latest Information and Analysis on the Impact of COVID-19Click Here
If you’d like to speak to someone personally to review details of our most current analysis, please don’t hesitate to contact
us directly.
ADR, Demand, Occupancy, RevPAR, and Supply Projections:
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| ADR Change
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|
|
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| Market Demand Change
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|
|
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| Hotel Occupancy Increase/Decrease
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|
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| RevPAR Change
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0.0%
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0.0%
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0.0%
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| Market Supply Growth
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Change In Value For Market:
Legend
| Significant Value Increase:
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Greater than +10%
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| Moderate Value Increase:
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Between +3% and +10%
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| Stable Values:
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Between -3% and +3%
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| Moderate Value Decline:
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Between -3% and -10%
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| Significant Value Decline:
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More than -10%
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Detroit RevPAR
| Year |
RevPAR |
| 2008 |
$47.67
|
| 2009 |
$37.50
|
| 2010 |
$40.89
|
| 2011 |
$45.81
|
| 2012 |
$49.06
|
| 2013 |
$52.67
|
| 2014 |
$57.97
|
| 2015 |
$61.70
|
| 2016 |
$64.08
|
| 2017 |
$67.96
|
| 2018 |
$70.34
|
| 2019 |
$71.72
|
| 2020 |
$72.79
|
| 2021 |
$
|
| 2022 |
$
|
| 2023 |
$
|
| 2024 (f) |
$
|
| 2025 (f) |
$
|
| 2026 (f) |
$
|
