Detroit Hospitality Market Report

A robust construction pipeline slows Detroit’s lodging rebound. This wave of new rooms ranks among the nation’s fastest expansions. Occupancy holds below 60 percent as upscale properties — like a dual-branded Marriott near the downtown riverfront — draw demand from the overall traveler base. That said, the city’s long-term outlook remains strong. The near-completion of the University of Michigan Center for Innovation and expansions at Henry Ford Hospital will bolster business travel. Marquee events at Ford Field will also broaden Detroit’s appeal beyond the automotive sector. Meanwhile, the scheduled completion of the Gordie Howe International Bridge this year is poised to increase cross-border tourism and commercial traffic, driving additional room demand despite current trade-related tensions. Although submarkets like Detroit-Dearborn may face occupancy challenges from the influx of upscale rooms, that alongside these other factors are expected to fuel the Midwest’s second-highest ADR gain in 2025, emphasizing Detroit’s rise as a hospitality destination.