Marcus & Millichap has published its Detroit Hospitality Investment Forecast report for 2025.
“Detroit’s hospitality sector is undergoing a transformational year in 2025, with strong long-term fundamentals powered by strategic infrastructure developments and revitalization efforts,” Steven Chaben, senior vice president and regional manager, said in a statement.
Marcus & Millichap’s 2025 Detroit Hospitality Investment Forecast Report provides investors with vital insight and analysis on the current state of the Detroit hospitality market, including:
- A surge of 1,200 new rooms coming online in 2025 makes this the second-largest annual supply increase in five years, with development concentrated in Downtown Detroit and Dearborn.
- Occupancy is forecast to dip slightly to 59 percent due to the supply influx, though full-service hotels are expected to lead in recovery with the largest occupancy gains.
- Average daily rate (ADR) is projected to increase to $126.16, with economy hotels achieving the largest price gains as demand begins to rebound after last year’s decline.
- Despite modest occupancy declines, RevPAR is set to reach a new record high of $74.40 in 2025, driven by the improving ADR environment.
- The metro’s average price per room exceeded pre-pandemic levels in 2024, and continued investor interest is fueled by Detroit's relatively low entry costs and strong yield potential compared to other major U.S. markets.
"New infrastructure like the Gordie Howe International Bridge, institutional expansions, and a growing pipeline of marquee events are converging to make Detroit a rising star in Midwest hospitality,” added Chaben.