Ilitch-Ross plan for $190M hotel near Little Caesars Arena gets OK
Detroit — A proposal to add a 14-story, 290-room hotel as well as new retail space next to Little Caesars Arena moved forward this week.
The Downtown Detroit Development Authority on Wednesday approved a $190 million development proposal from Olympia Development of Michigan and Related Cos., the development firms tied, respectively, to the Ilitch family and billionaire businessman Stephen Ross.
The proposal was for a mid-rise, mixed-use hotel development at Woodward Avenue and the I-75 service drive, next to LCA, a plan the companies previously had announced. The project site is at 2455 Woodward Ave. and is bordered by Woodward to the East, LCA to the north, Park Avenue to the west and W. Fisher Service Drive to the south.
The proposal calls for a hotel, as well as up to 30,000 square feet dedicated to street-level retail and food service. The developers said construction would take about three years and begin in the third quarter of 2024, "pending continued public private partnership on the development and attainment of sustainable financing," according to a news release and a DDA briefing document.
"A hotel on the doorstep of the second busiest arena in the nation will position Detroit to attract more of the world's most watched entertainment events and invite visitors to extend their stay and experience more of this great city and growing neighborhood," Andrew Cantor, president of Related Cos. Michigan, said in a statement.
"Related remains extremely optimistic about the future of The District Detroit and are working closely with our partners at Olympia Development and with the city to deliver the kind of inclusive economic opportunities this community deserves," he added.
Claude Molinari, president and CEO of the Detroit Metro Convention and Visitors Bureau, said in a statement that the city needs additional hotel rooms "to better compete for significant events and conventions that will bring tens of thousands of additional visitors to the region and help create good jobs for Detroiters."
The estimated $190 million price tag of the project includes more than $137 million in costs tied to construction and tenant improvements, per the DDA memo.
The sign-off from the DDA means that the developers "can now begin working towards completing the project based on the timeline outlined within the proposal," according to a Detroit Economic Growth Corp. spokesperson.