Bedrock purchases GM's Courtyard by Marriott hotel
Dan Gilbert's real estate firm Bedrock LLC has purchased the Courtyard by Marriott hotel on Jefferson Avenue in downtown Detroit that was previously owned by General Motors Co.
Andrew Leber, vice president of hospitality for Bedrock, said the company's purchase of the 260-room hotel was finalized on Tuesday, making the it Bedrock's second hotel in downtown Detroit and the third in its overall hospitality portfolio.
"Detroit is on the radar of a lot of international travelers, and domestic travelers," Leber said. "This was a way to diversify our portfolio...Detroit has been on a lot of industry publications top places to visit and its aso gaining a lot of interest gaining a lot of interest commercially."
Terms of the agreement between Bedrock and GM were not disclosed by either party.
Leber said Bedrock is studying another three or four development projects in Detroit for potential hotel use. It owns the the Shinola Hotel on Woodward in Detroit, and the Ritz Carlton Cleveland.
Raeven Henry, a GM spokeswoman, said the automaker listed the Courtyard hotel for sale in 2018 because "the ongoing development of downtown Detroit presented an attractive opportunity to put this property on the market.
"Bedrock has played a tremendous role in the transformation of downtown Detroit and we’re confident they will do great things with the property," Henry added.
GM has been attempting to sell parts of its downtown Millender Center, which includes the Courtyard by Marriott hotel.
The building at 333 E. Jefferson is across the street from the automaker's Renaissance Center headquarters. Besides the 250-room hotel, the Millender Center has 30,000 square feet of retail space, 100,000 square feet of office space and a 1,850-space parking deck, according to CoStar, a commercial real estate information service.
The GM subsidiary Riverfront Holdings Inc. bought the Millender Center for $38 million in 2010, according to public records.
Leber, the vice president of hospitality for Bedrock, said there would be no major changes planned at the Courtyard by Marriott hotel for guest or employees.
"The guest experience won't change and the team member experience won't change," he said. "There's a Marriott management agreement in place for that location and we're buying with the Marriott management in place."