United States -  Detroit

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.

Change In Value For Market:

Significant Value Increase: Greater than +10%
Moderate Value Increase: Between +3% and +10%
Stable Values: Between -3% and +3%
Moderate Value Decline: Between -3% and -10%
Significant Value Decline: More than -10%

For more information, please contact:

Brandon Leversee
Valuation, Market & Feasibility Consulting
[email protected]
  • +1 269 303-5551 (w)