Chicago-based Oxford Capital Group has acquired the 453-room Westin Book Cadillac Detroit Hotel from Cleveland-based The Ferchill Group. While the purchase price was not disclosed, the new owners reportedly plan to spend $16 million to renovate the property, according to a tax incentive request filed with the city of Detroit in September.
As part of its investment commitment, Oxford, along with its partner Taconic Capital Advisors, will update the guestrooms, public space, meeting rooms and ballrooms over the next two years in collaboration with The Gettys Group and Marriott International. The hotel will remain open and operational throughout the renovation period.
Oxford and Taconic led “complex negotiations,” with multiple constituents, the companies said in a statement, ultimately resulting in the modification, restructuring and assumption of the commercial mortgage-backed security loan. According to findings from commercial real estate research firm Trepp reported in The Detroit News, Ferchill owed $77 million and faced foreclosure for being delinquent on the loan since May 2020, although as of June, the loan reportedly no longer was in foreclosure, instead showing as more than 90 days delinquent.
“The Book Cadillac is arguably Detroit’s most iconic hotel asset. We are excited to announce this acquisition and look forward to strategically upgrading and refreshing the property so that it remains a market leader in downtown Detroit as the city and the nation continue their post-COVID recovery trajectory,” said John W. Rutledge, founder, chairman and CEO of Oxford Capital Group and Oxford Hotels & Resorts. “We worked closely with various city agencies on this complex transaction and are grateful for their support.”
The Westin Book Cadillac was the tallest building in Detroit and the tallest hotel in the world when it opened in 1924. It closed for renovations in 1984 and remained empty for more than two decades after, reopening in 2008.
"We are pleased to have negotiated this highly complicated transaction to acquire such a prominent historic asset,” said Matthew Kalt, VP of Oxford Capital Group and Oxford Hotels & Resorts. “The Westin Book Cadillac is a landmark property revered in Detroit for nearly 100 years, located in the center of the city, and we look forward to leading the renovation of the hotel and to continue to be a part of Detroit’s revitalization.”
“We are excited to execute on our first transaction with the Oxford team and hope it is the first of many,” said Eric Sitman, a director with Taconic Capital Advisors. “The Westin Book Cadillac represents a tremendous value-add opportunity for one of the most historic and iconic assets in all of Detroit. Our partnership looks forward to improving the hotel’s positioning through a comprehensive renovation as the city of Detroit, along with the rest of the world, recovers from COVID.”