In an ironic twist, amid one of the bleakest economic periods in Detroit's history the city is celebrating the restoration of two landmark hotels downtown that are powerful reminders of its prosperous past. It's a welcome feel-good story for the Motor City, whose auto industry is stuck in reverse with seemingly endless rounds of layoffs.

Following a $200 million renovation, the historic Book Cadillac Hotel, once famous for playing host to U.S. presidents and entertainers, reopened in October under the Westin flag. In mid-December, the Fort Shelby Hotel — named after a British fort that once stood near the site — reopened as a Doubletree Guest Suites as part of a $90 million renovation.

“The comments we get from people when they come down to the Westin is that they couldn't be more proud of it,” says Christopher Ferchill, vice president of development for The Ferchill Group. The Cleveland company spent two years restoring the 453-room hotel, now known as the Westin Book Cadillac Detroit.

Before the Ferchill Group's rescue of the iconic building on Washington Boulevard, the hotel had stood vacant since 1984. Vandals had stolen everything from decorative plaster to brass pieces.

When it was built at a cost of $14 million in 1924, the 33-story hotel was the tallest in the world and contained 1,136 guest rooms. The Italian Renaissance-style exterior was an architectural jewel.

Transformation of the Fort Shelby into 203 spacious guest suites was no less of a Herculean effort. The project took six years to complete from conception to inception, but it was worth the effort, says Richard Curto, a principal with MCP Development LLC, owner and developer of the new Doubletree Guest Suites Fort Shelby. The hotel on Lafayette Boulevard was originally built in 1917 as a 10-story building; a major addition came in 1927.

“The biggest satisfaction by far for our ownership group was to convert a closed-down, dilapidated structure into a beautifully renovated and modern mixed-use development that helped re-energize an area of downtown Detroit and add significant local employment,” says Curto.

More than hospitality

Both hotels are listed on the National Register of Historic Places and anchor mixed-use projects. At the Fort Shelby, 10 floors of luxury, high-end apartments are being built atop the hotel. “There is a deep need in downtown Detroit for higher-end, mixed-use city living where you can rent instead of buy,” says Curto.

MCP is now negotiating leases for the 56 new apartments. Monthly rents range from $1,700 for a one-bedroom apartment up to $4,500 for a penthouse. Finn & Porter, an elegant restaurant that serves steak and seafood, is part of the development along with a local coffee shop.

The Westin Book Cadillac development is a 770,000 sq. ft. mixed-use project that includes 17,000 sq. ft. of retail space on the ground floor as well as 63 condominiums. Michael Symon's Roast (Symon is a star on the Food Network) and 24 grille are among the restaurants that occupy the retail space.

The pace of sales on the condos, which range from the mid-$200,000s to more than $1 million for penthouses, has hit a snag largely because of the credit crunch, says Ferchill. As of late February, the Ferchill Group had closed sales on 15 of the 63 units. “Our pre-sales on the condo were great, but because of people's inability to get financing for these condos, we've had a slow closing period.”