Bedrock in Detroit, part of the Quicken Loans Family of Companies, has expanded its real estate and lodging holdings with the acquisition of the 260-room Courtyard by Marriott on Jefferson Avenue in the Millender Center across from the Renaissance Center. The transaction price was not disclosed.
The Courtyard, which Bedrock bought from General Motors Co.’s Riverfront Holdings, joins the Shinola Hotel among the company’s Detroit hotels. It also owns the Ritz Carleton in Cleveland where Dan Gilbert, founder and chairman of Quicken Loans, owns the NBA Cleveland Cavaliers.
According to Bedrock, the deal was finalized on Tuesday and closed on Wednesday.
“It’s a strategic buy for us,” says Andrew Leber, vice president of hospitality at Bedrock. “The hotel performs well.”
Leber says the hotel will continue as a Courtyard by Marriott for at least the length of the current management contract. “Anything is a possibility (for the future) but we are big fans of the Courtyard brand,” he says.
With the lobby and restaurants being remodeled last year and the guest rooms being updated about three years ago, Leber says likely upgrades will be made to the facility’s event and amenity spaces. “We’ll be able to examine that more closely now that we own the property.”
Leber says he’s not concerned about competition or conflict with the Shinola Hotel and in fact Bedrock is studying other hotel possibilities in the downtown area.
“Courtyard operates at a different price point than Shinola,” he explains. “We’re studying the possibility of hotels at the Book Tower, the Hudson’s site, and at 1300 Beaubien, the former (Detroit Police) headquarters building.”
The sale did not include Millender Center’s 30,000 square feet of retail space, close to 10,000 square feet of offices, nor the 1,850-vehicle parking facility, which the automaker still owns and has since 2010.
“Bedrock has played a tremendous role in the transformation of downtown Detroit and we’re confident they will do great things with the property,” said GM is a statement.
The 260,000-square-foot hotel was built in 1985 as an Omni Hotel, part of the original Millender Center. After that it was a Doubletree before taking the Courtyard by Marriott brand. Last year, it added a combination Applebee’s/IHOP restaurant on the first floor that is operated by Livonia’s Team Schostak Family Restaurants.