Downtown Detroit’s Holiday Inn Express & Suites is now under new ownership. The sale of the business was finalized in July but only recently announced. The new owner, Vic Partners LLC, is a private equity firm mostly made up of Detroit-area investors, and the group plans to put money toward a range of improvements and hire new staff.
Not long ago the former owner, Motor City Hospitality LLC, invested $2 million in renovations required by the Holiday Inn Express franchisor, Intercontinental Hotels Group, but a principal with Vic Partners indicated that more improvements are planned for the streetscape, as well as for interior areas of the hotel.
The transaction might strike some as unexpected, given the current national view of Detroit, but a managing partner with Vic characterized the sale as “a smart value-add investment in a steadily improving downtown Detroit market.”
In close proximity to the hotel are a number of important locations, including Quicken Loans’ headquarters, Ford Field, Joe Louis Arena, Comerica Park and Cobo Center.
Greenwood Hospitality Group, which owns Dearborn’s The Henry, has been hired by Vic to handle operations at the Holiday Inn Express & Suites.
As Detroit fights to get back on its feet, strategic business transactions will play an important role. Investors and business owners with concerns about the sale or purchase of a business are encouraged to visit our commercial law page.
Our firm handles a range of business and commercial law issues, including financial statement analysis, employment contracts, restrictive covenants, and the sale and purchase of a business.
Source: Crain’s Detroit Business, “Holiday Inn Express in downtown Detroit sold to private equity group,” Sherri Welch, Aug. 27, 2013