  Emu_steve Member Username: Emu_steve Post Number: 434 Registered: 11-2006 |
http://www.detnews.com/apps/pb cs.dll/article?AID=/20070813/B IZ/708130319 I found that fascinating as most on this forum (from the various casino threads)seem to think that all new Detroit casinos will attract are mostly locals, i.e., not attract the same kind of higher roller crowd that Vegas attracts. From the Detnews: 'MGM, looking to broaden its customer base beyond gamblers from Metro Detroit, is marketing the complex as a hotel and entertainment destination. "We're going after the high-end customer who can afford the room," said April Jacobs, director of marketing for MGM Grand Detroit. "A lot of it will be business travelers during the week." ' IF these new casinos attract high rollers coming to Detroit for business or conventions and they pay $300+ for the rooms then Detroit will have a success on its hands. It will have essentially expanded the market, i.e., attracted those who previously might not have been interested in coming to Detroit. (Message edited by emu_steve on August 13, 2007) | ||
3rdworldcity Member Username: 3rdworldcity Post Number: 864 Registered: 01-2005 |
I'm a very frequent business traveler and I would never dream of spending $329 a night to stay there, or anywhere. And I could afford to if I wanted. I stay at new Hampton Inns wherever possible, usually for $85/night (Hilton VIP Gold rate.) I frequently fly into Detroit from DFW and ORD and because of my frequent flier status, almost always in 1st class. The people sitting next to me who are flying into Detroit on business usually stay at suburban chain motels (because that's where their meetings are) and the ones staying in Detroit usually stay at the Ren Cen, Omni, etc at prices substantially below $329 a night. They are usually sales/marketing/engineering folk whose employers have them on a budget like everyone else. They're in first class because of the number of annual miles they fly, just like almost everyone else up there. Very few if any people pay to fly first class. I can tell you that the standard room rate at Bellagio, Venetian or any of the other major casinos in Vegas are less than $329 a night, except possibly on extra big weekends where there's a particular high demand, and if you gamble there much at all the rates are reduced or compt altogether. Does anyone think MGM is actually going to charge those rates and that people will pay them? | ||
Iheartthed Member Username: Iheartthed Post Number: 1354 Registered: 04-2006 |
^For now, yes. Unlike Las Vegas Blvd, downtown Detroit has a severe shortage of hotel space. | ||
Thejesus Member Username: Thejesus Post Number: 1812 Registered: 06-2006 |
"Does anyone think MGM is actually going to charge those rates and that people will pay them?" Of course not. Those are "retail" rates. They will likely rent out at between $170-250 per night. | ||
Emu_steve Member Username: Emu_steve Post Number: 435 Registered: 11-2006 |
I agree 3WC. Why would someone pay those rates in Detroit if they wouldn't pay them in Vegas or in other destination sites. I am curious what the 'retail' rates will be once the hotels are open and specials (e.g., Motor City Bowl which is a slow week for business travel). | ||
Crawford Member Username: Crawford Post Number: 102 Registered: 10-2006 |
"For now, yes. Unlike Las Vegas Blvd, downtown Detroit has a severe shortage of hotel space." Eh, downtown actually has a severe GLUT of hotel space. Look at downtown occupancy figures and room rates. They are some of the worst (if not THE worst) in the nation. The quoted rates are wildly off, and MGM knows it. The fanciest casino hotels on earth don't charge such rates. No hotel in metro Detroit charges such rates. Maybe the Townsend officially charges something in that ballpark, but most nights you will pay less. | ||
Iheartthed Member Username: Iheartthed Post Number: 1359 Registered: 04-2006 |
^That's because downtown Detroit hasn't traditionally been much of a convention destination outside of the auto show. Hopefully this will change. I don't have the numbers, but my suspicion is that the actual room count in Detroit is far below that of other central cities in the top 10 metropolitan areas. | ||
Eric Member Username: Eric Post Number: 915 Registered: 11-2004 |
It's changing, hotels bookings from conventions are up almost 40% http://modeldmedia.com/develop mentnews/dmcvb9007.aspx | ||
Gistok Member Username: Gistok Post Number: 5077 Registered: 08-2004 |
I seriously doubt that the high quality of the linens and large size of the bathrooms matters to most male travelers. | ||
Ray1936 Member Username: Ray1936 Post Number: 1789 Registered: 01-2005 |
You can get a very nice room in a Las Vegas casino for $39.00 Sunday-Thursday in one of the off-strip casinos. Try Boulder Station, Sunset Station, Red Rock, or dozens of others. Give them enough action and you'll also be comped. | ||
Jt1 Member Username: Jt1 Post Number: 9802 Registered: 10-2003 |
quote: I travel way too much for work and the linens are a pretty darn nice addition. Not $329 woeth but I will take nice linens over other items anyday. | ||
Iheartthed Member Username: Iheartthed Post Number: 1362 Registered: 04-2006 |
"I seriously doubt that the high quality of the linens and large size of the bathrooms matters to most male travelers." Probably geared more towards the escorts they hire to come along for the trip. Watch out Vegas, the D is back! | ||
Dannaroo Member Username: Dannaroo Post Number: 121 Registered: 05-2006 |
quote: When I stayed at the Hard Rock Hotel in Chicago, I was so impressed with the bedding that I actually asked the management what type they used (the mattress was the most comfortable I had ever slept on and the linens were absolutely perfect). I was in the market for a new mattress and when I got home looked up to see what it would have cost me to replicate that experience; to put it lightly, it was sadly outside of my price range. When picking a hotel, if I am going to be spending a couple hundred dollars a night, I definitely would want bedding like that again. All that being said, those rates still sound extra high to me for the Detroit-metro market but I have to agree with the poster above who noted that nobody is going to actually be paying the posted retail rates. | ||
Spartacus Member Username: Spartacus Post Number: 212 Registered: 07-2005 |
People routinely pay that much (or more) at the Townsend. At the Ritz you would typically pay close to $300. You're in the 200s at the Centerpointe or Royal Park in Rochester. Vegas rates have extreme swings. You can easily pay close to $400 at any of the nice strip hotels. Of course if it is a slow day you can pay much less, it all depends on availability. | ||
Crawford Member Username: Crawford Post Number: 103 Registered: 10-2006 |
I tried a number of weekday August dates at the Ritz in Dearborn, and most are in the $230-$270 range. That fancy new hotel in Rochester comes in at $170-$200. The Townsend prices are all over the place, but I am seeing many days at $265. No downtown Detroit room rate even cracks $200. Given these prices (and these are not special deals, they are the quoted web prices), there is no way people will pay the $329. | ||
Accraghana Member Username: Accraghana Post Number: 54 Registered: 07-2007 |
I think initially you will get a lot of people who will pay that right at around the time of the grand opening when it’s still a novelty. When the dust settles, there is no way the market will sustain such rates. | ||
Detroit313 Member Username: Detroit313 Post Number: 449 Registered: 02-2006 |
Detroit will be able to sustain the prices, I have no doubt. In the past Downtown Detroit was a bargain, and travelers were happy to pay those lower rates for lower quality, but times are a changing. Detroit is flooding the market with hotel rooms- rooms that should've been there before. Detroit hasn't even begun to reach its potential. Its funny, Archer was asking the casinos to build 800 rooms at one time! <313> | ||
Gistok Member Username: Gistok Post Number: 5087 Registered: 08-2004 |
But when Archer was asking that, there were no plans for the Hilton Garden Inn, the Book-Cadillac and the Fort Shelby. | ||
Detroit313 Member Username: Detroit313 Post Number: 450 Registered: 02-2006 |
Gistok- yes there were plan for all but the Fort-Shelby. Kimberly-Clark was funding the Book-Cadillac and the Hilton group had already finished funding for the Hilton-Garden. Only the Book can be compared to the casino's in terms of Cliental. <313> | ||
Gistok Member Username: Gistok Post Number: 5091 Registered: 08-2004 |
Detroit313, the gaming referendum passed in 1996, so I'm talking 1997... 10 years ago. Were there already discussions for the B-C back then by Kimberly-Clark? And were the Hilton-Gardens funded back then? I wrote a full page Op-Ed piece for the Freep on Oct. 30, 1997 suggesting that it would be a pity for them to tear down the U/A and Michigan theatres for one of the casino sites. So those 800 room hotels were planned already in 1997, long before at least any Kimberly-Clark plans were proposed for the B-C. Not sure about the Hilton Gardens financing dates however. (Message edited by Gistok on August 14, 2007) |
