The Trumbull and Porter Hotel in Detroit's Corktown neighborhood has shuttered for nearly two months but plans to reopen by the end of the week.
An early March pipe break forced the closure of the 144-room hotel at 1331 Porter St. plus the Red Dunn Kitchen restaurant, which should open by Memorial Day, said Barry Caplan, managing principal and COO of Celebration, Fla.-based Access Hotels & Resorts, which manages the hotel for owner Leo Lee.
"Getting parts and additional equipment, but also manufacturing the parts, getting the right equipment, getting the various elements of the piping, it's a process," Caplan said Wednesday afternoon.
Bryan Peckinpaugh, a spokesperson for the Detroit Water and Sewerage Department, said a contractor on the Trumbull and Porter property hit a 4-inch water line and it "took some time to find the valve to turn (the water) off."
Prior to the COVID-19 pandemic, for the calendar year 2019, the hotel averaged 68 percent occupancy and an average daily rate of $139 per room, Caplan said.
However, the global health crisis crushed the hospitality industry, shuttering many hotels and making many unable to service their debts when the travel industry took a hit as a result of travel restrictions and other public health measures.
The Trumbull and Porter, formerly the Corktown Inn, has been no different.
According to Trepp LLC, a New York City-based company that tracks commercial mortgage-backed securities debt, owner Corktown Hotel LLC hasn't paid on its $13.1 million CMBS loan in close to a year and currently owes about $12.8 million.
"In terms of CMBS loan, we're much like everyone else," Caplan said. "The lender has been working with the ownership group to right the loan. That's that."
Trepp loan commentary also says that the borrower, Corktown Hotel LLC, has been working with South Natick, Mass.-based The Henley Group on restructuring its CMBS loan.
Other Detroit hotels that have faced debt issues include the Westin Book Cadillac, whose owner told Crain's in March that the hotel is facing foreclosure.
Trepp also says the value of Trumbull and Porter has fallen to $17.5 million as of November 2020, down from $23.4 million in January 2019.
Caplan said that Trumbull and Porter severed its franchise agreement with the Rockville, Md.-based Choice Hotels International Inc.'s Ascend Hotel Collection and is instead operating as an independent hotel moving forward.
That, Caplan said, allows the Trumbull and Porter to save on the monthly franchise fee plus gives it greater flexibility in setting its own nightly rates and "getting heads in beds."
The hotel canceled the franchise agreement around the time of the broken pipe, Caplan said.
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Corktown hotel to reopen this week after two-month closure - Crain's Detroit Business
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